Labels Seek Lower Royalty Rate

http://www.radioandrecords.com/radiomonitor/news/business/top_news/article_display.jsp?vnu_content_id=1003466905

Record labels are asking a panel of copyright judges to lower the rate they pay music publishers and songwriters for the use of the lyrics and melodies with which they create sound recordings.

During the period when piracy was devastating the record industry, the RIAA argues, profits for publishers rose as revenue generated from ringtones and other innovative services grew. Record industry executives said there was nothing strange about seeking a rate change that would pay less to the people who write the music. [emphasis mine]