It seems as though record companies have developed a new game plan in order to collect royalties. As we all know, the music industry attempted to sue individual users who illegally downloaded songs. But because of this approach to recover from major fiscal loss has destroyed their public image.
Instead of lowering the cost of CDs in order to compete with music circulating through the internet that is for free, these businesses have turned to collection agencies who are now bringing cellphone companies to court over royalties from ring tones. Contesting that ring tones counted as public performances, the music industry asserted that cell phone companies should be obligated to pay performance fees. The courts quickly denied this claim.
After this unsuccessful attempt to collect money, Broadcast Music Inc is now suing T-Mobile over ring back tones, contesting that the cell phone company is selling them without agreeing to licensing agreements. Instead of ring tones, which play out loud when someone calls a cellphone, ring back tones play expressly to the person calling. That is to say, instead of hearing a cellphone dialing tone, the caller will hear a song chosen by the cell owner.
Music lovers are quick to point out the contradictory nature of this lawsuit. If ringtones that can be heard by anyone around a cellphone that is being called, do not equate to a public performance, it seems absurd to sue the mobile carriers over a ringback tone that can be heard only by the caller. Record companies seem to be grasping at straws as they suffer from huge financial losses.
It does not seem that lowering the cost of CDs and DVDs is an idea that has occurred to the major companies. There are still a number of music fans out there that prefer to collect and own the media, however with prices constantly spiking, downloading music for free seems very tempting. CDs generally go on sale for about seventeen dollars.
Specific bands have been skirting the issue of music downloading through unique tactics. Radiohead, an alternative rock band, established a website where fans can download the music for free, or for a donation. Nine Inch Nails’ Trent Reznor has followed suit. With record companies’ unsuccessful lawsuits and declining public image, it seems as though thinking outside of the box and fair pricing may be more effective than bullying money out of mobile carriers and individual users.
Mallory McGuinness-Hickey works for debt collection company Rapid Recovery Solution and writes free lance pieces on financial news.
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