Music companies reach settlement over digital music delivery.

Companies representing a substantial majority of the UK digital music market have reached a settlement relating to the royalties paid to composers, songwriters and music publishers for the digital delivery of music for online and mobile use

The three-year deal has been agreed between the MCPS-PRS Alliance representing songwriters, composers and music publishers, British recorded music trade association the BPI, iTunes and four UK mobile network operators, O2, Orange, T-Mobile and Vodafone. It sets a rate of 8% of Gross Revenue less VAT to be paid to composers, songwriters and publishers when their music is offered in a digital environment, with a lower rate (6.5%) for non-on-demand services. These rates are subject to minimum royalties.

(http://www.cellular-news.com/story/19630.php )