Labels seek lower royalty rate

December 01, 2006 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. "While record companies and music publishers were able to agree on royalty rates during that 25-year period, the assumptions on which those decisions were based have changed beyond recognition," the RIAA said. "Mechanical royalties currently are out of whack with historical and international rates," RIAA executive vp and general counsel Steven Marks said.

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