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iTunes Store not to close as royalties are frozen

Well some good news as it is looking like the iTunes Store won’t be forced to close its virtual doors after all; as per my colleague’s previous post found (here) because the Associated Press has reported that the federal Copyright Royalty Board has frozen the royalty fees for songwriters on sales of digital downloads and CD’s.

Songwriter’s currently receive a royalty of 9.1cents per song and it well remain at this level for the next five years; this decision by the federal Copyright Royalty Board definitely comes as a relief for companies such as Apple that sell music.

The federal Copyright Royalty Board was asked by the National Music Publishers’ Association to increase the royalty rate to 15 cents per song and such a raise in royalties could have meant the Apple iTunes Store making a loss and being forced to close.

Source — macworld