
"While record companies and music publishers were able to agree on royalty rates during that 25-year period, the assumptions on which those decisions were based have changed beyond recognition," the RIAA said. The group said that during the period of time when piracy was "devastating" the record industry, revenue for music publishers rose with the emergence and success of innovative services such as mobile phone ringtone services.
"Mechanical royalties currently are out of whack with historical and international rates," RIAA executive VP and general counsel Steven Marks said. "We hope the judges will restore the proper balance by reducing the rate and moving to a more flexible percentage rate structure so that record companies can continue to create the sound recordings that drive revenues for music publishers."
Source:
The Hollywood Reporter