Appeals Court Orders Review Of Music Streaming Royalties Formula

The court of appeals has described the method used to calculate the royalty fee paid by web portals to artists and associations to stream music as flawed.

The Second Circuit Court of Appeals of the United States has ordered the lower court to again look in to the royalty rates it had previously set for websites Yahoo and Real Networks according to which they have to pay royalty fee to the American Society of Composers, Authors and Publishers, tech news site TG Daily reports.

The case, which started in 2008, is over the debate on how much the websites should pay to the society for streaming its music. The lower court set the rate at 2.5 per cent, which was challenged by the companies.

"In setting the royalty rate, the district court must follow an approach more tailored to the varying nature and scope of Yahoo's music use," stated US Circuit Court Judge John M. Walker Jr., one of the three Judges constituting the panel overseeing the case.