Digital Media Association Urges Federal Court to Reject “Double-Dip” Royalty
Washington, D.C. (6/30/2009) – The Digital Media Association (DiMA), along with several additional industry organizations, today urged a federal court to reject demands by songwriter and music publisher representatives for payments of “public performance royalties” in association with downloads of ringtones to consumers’ wireless phones. ASCAP, on behalf of songwriters and music publishers, is demanding performance royalties from Verizon Wireless and AT&T Wireless.“In 2007, the court that is hearing the current ringtone cases agreed with DiMA when it rebuffed ASCAP’s demand for public performance royalties associated with digital downloads of sound recordings,” said DiMA Executive Director Jonathan Potter. “The court concluded then that selling a download is like selling a CD – neither involves a public performance and so neither requires payment of public performance royalties. Because ringtones are also enjoyed privately by consumers who have already acquired them, we expect the court will rule the same way in these cases.”
“CD manufacturers, digital download providers and purchasing music fans pay songwriters hundreds of millions of dollars annually in music reproduction and distribution royalties. But when music is distributed – regardless of whether the form is physical CDs or digital downloads – the law is settled that no public performance royalty is also due. Rather, public performance royalties are due when music is actually performed, for example by radio stations or in nightclubs.”
DiMA is the ambassador for the digital media industry: webcasters, online media, digital services, and technology innovators. DiMA advocates for business and regulatory environments that support our members’ growth and success, including fair competition, fair royalties, innovation and consumer welfare.
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For more information, please contact:
Sheri Lapan | Digital Media Association
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