The Universal Music Group have issued a statement about the complaint they have filed with the European Commission against Europe's lovely royalty collection societies.
As reported in yesterday's Daily, this is all part of the disagreement between the recording companies and the agencies that represent the publishers and songwriters as to how the money made on digital music sales should be carved up. The collection agencies want 12% on digital sales, compared to an average of 8% on physical sales. The record companies think that is rather optimistic, given that the publishers and songwriters haven't had to invest in the costly infrastructure that allows digital music distribution, and they are trying to resist the collection agencies' demands. Here in the UK the BPI has taken MCPS to a copyright tribunal over the whole issue. Universal is complaining to the EU because, it says, the various collection societies around Europe are conspiring, and in doing so are essentially forming a monopoly in a bid to get their way.
In a statement issued yesterday, the major record company told reporters: "The Societies have collectively set a royalty rate which is excessive and imposed terms which are unfair and unreasonable. They refuse to allow record companies to sell copyright inclusive product, contrary to existing practice in the physical world. They insist on royalties being paid on the full retail price, which means that royalties are charged not just on the value of the download or mastertone etc, but to a large extent on the cost of carriage and other services". So, that's them told.