Copyright Royalty Board To Examine Mechanical Royalties
http://www.fmqb.com/Article.asp?id=563157

Copyright Royalty Board To Examine Mechanical Royalties January 30,
2008
The Copyright Royalty Board (CRB), which assigned the controversial
performance royalties for Internet radio streamers last year, will now focus its
attention on the question of mechanical royalties, which are paid to publishers
and songwriters whenever physical music products, downloads and ringtones are
sold. According to a letter written by performing rights organization ASCAP
boss Marilyn Bergman, both the RIAA and the Digital Media Association
(DiMA) want to decrease the mechanical royalty, while ASCAP wants it to be
increased.

Bergman's letter to all ASCAP members, posted on Wired.com, says that the
CRB hearing is critical because "rates will be set for the first time ever for
digital products such as digital downloads, subscription services and
ringtones."

"Our friends at The National Music Publishers' Association (NMPA) will be
representing the mechanical right interests of songwriters and music publishers
in this hearing. They will be fighting vigorously to protect those
mechanical right interests to ensure that musical compositions are compensated
fairly," Bergman wrote. "On the other side of this fight stands the Recording
Industry Association of America (RIAA) and the Digital Media Association (DiMA).
Both the RIAA and DiMA have proposed significant reductions in mechanical
royalty rates that would be disastrous for songwriters and music publishers."

Irwin Robinson, ASCAP Board member and Chairman of the NMPA, added, "Our
opponents in this hearing are proposing a rate structure which would have
devastating consequences for songwriters, composers and music publishers trying to
make a living, now or in the future."

The CRB's initial hearing will last four weeks, followed by a rebuttal
hearing in May. A final decision is not expected until October 2.