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Royalties go mobile

World Brief

ITunes and mobile-phone operators O2, Orange, T-Mobile and Vodafone have pacted to pay royalties to composers and songwriters for music sold over their digital platforms in the U.K.

The companies will pay 8% of gross revenues, minus Europe’s value added tax for all digital music except ringtones on online and mobile networks. A lower rate of 6.5% has been agreed on for non-on-demand services.

British record companies’ trade body BPI and collection society the MCPS-PRS Alliance, which reps songwriters, composers and music publishers, have signed on to the deal.

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