June 11, 2005
Royalty issues crop up as mobile ringtones grow in India
Royalties from mobile phone ringtones are soon expected to replace sales of CDs as the chief source of income for music makers around India, reports siliconindia.com.
"And with 50 million mobile phone subscribers in India already, battle lines are being drawn between Bollywood producers and songwriters over who gets the cash from hit movie songs.
The trend has caught India's formulaic movie and music industry, called Bollywood, by surprise.
The money collected by mobile phone companies, estimated at $1 million last year and growing 15 percent a month in 2005, also alerted songwriters to appeal for copyright royalties each time one of their songs played, sparking a clash with producers who claim complete ownership.
Bollywood lyricists and composers in particular have been taking a one-time fee from producers for songs for decades without considering royalties on the material that can sometimes be far more valuable than the original fee.
The producers attempt to market the songs to recoup the fee but face widespread piracy originating from countries such as Pakistan, China and Malaysia and unwillingness by restaurants and other venues in India to pay royalties.
Songwriters claim that ringtone royalties were not covered in the original contracts and have called for a share of the new revenue.
The issue of copyright royalty payment and control of the Indian Performing Right Society, which distributes song royalties is currently the subject of court cases.
"Bollywood does not know that such rights exist in the world," said Achille Forler, who runs a music publishing business in India called Deep Emotions that seeks to cater to these artists. "There has never been anyone in Bollywood who could monitor the rights."
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