Ringtone revenues under threat from cover versions

The fledgling master recording ringtone industry - long seen as a major revenue source for the record companies and mobile operators - is in danger of being substantially damaged by aggregators planning legal cover versions, according to New Media Zero via Moco News.

"Ringtones incorporating tracks by signed artists are expected to provide new revenues for record companies for the first time, as previously only music publishers have received revenue.

But NMA has found that several third-party aggregators are planning to make cover versions of popular songs and use these to create ringtones instead. Such a move would not be illegal as long as the aggregator paid the standard blanket licensing fee to the collection societies MCPS/PRS.

The record industry said it's prepared to take on anyone who tries to 'pass off' its artists' works.

"Trying to sell anything, including soundalikes, using artists' names will infringe trademarks owned by us or the artists,' said Barney Wragg, VP of e-Labs at Universal Music International. 'In the case of trademark infringement or passing off, we would vigorously protect the rights of our artists."

But third-party aggregators are not so certain there's anything the record companies can do.

'I think it'll happen regardless of what they do,' said Del Dias, MD of Art Empire Industries, a dance music online specialist which sells and creates ringtones for major and independent labels. 'How is a soundalike different to a polyphonic?'

Gilles Babinet, founder of Musiwave, one of the first companies to create real-music ringtones, said, 'I believe it's a major threat. Frankly, I don't know how to deal with it at this point.'

emily | 5:44 PM | Copyright Protection |
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