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Friday, October 3, 2008


The Copyright Royalty Board (CRB) has now approved a group of mechanical rates related to on-demand streams, conditional downloads, permanent downloads, and master ringtones. That includes a heavily-debated rate on permanent downloads, which has been held steady at 9.1 cents per download under five minutes in length. For every additional minute, the rate is 1.75 cents, rounded upward on the total song length. That rate also carries for physical recordings as well.

On the less permanent side, mechanical rates have also been disclosed. The rates actually vary by service type, though generally, the rate is 10.5 percent of top-line revenues, minus applicable performance rates. The mechanical rate on master ringtones, which excludes polyphonic and monophonic tones, is 24 cents per delivery. Immediately following the rates announcement, leading mechanical royalty collections group Harry Fox Agency noted that labels, online music services, and other licensors will include the updates in their quarterly reports starting 180 days after the rates take effect.