The Recording Industry Association of America (RIAA) is demanding
that a panel of copyright judges lower the rate of royalties given to music publishers
and songwriters.

The RIAA believes that the current rate of royalties is "out of touch
with reality" and feels it’s time for the government to take action. The
government hasn’t adjusted the royalty rate since 1981 forcing music publishers,
songwriters and labels to make their own deal. The RIAA cites that the rate
changes are needed because the music industry has changed in the past 25 years.
"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 in a statement.

According to the RIAA, though piracy runs rampant in the music industry, music
publishers have seen a hike in royalties due to ringtones sales. "Mechanical
royalties currently are out of whack with historical and international rates,"
RIAA executive VP and general counsel Steven Marks explained. "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."