After much bellyaching by the major labels that iTunes' price structure was depriving them of an untold fortune, Apple recently announced that they have renewed their agreement with the majors and will continue to offer downloads for 99 cents a pop. After underestimating the power of the digital download market, the music companies wanted to pressure Apple into a variable pricing structure that would allow them to charge extra for more popular songs. It appears that Apple may have "hand" in this relationship.

A renewed agreement wasn't Apple's only recent victory. A London High Court ruled in favor of the computer company in their breach of contract dispute with Apple Corps., the Beatles' record label. At the core of the dispute between the Apples: the computer company's use of their Apple logo in association with iTunes after agreeing, in 1991, to never enter the music industry. Justice Edward Mann ruled that Apple Computer used the logo in association with music sales (iTunes music store) but not in connection with the music business, i.e. creating and publishing music.

Not everything digital directly involves Apple, sometimes they are just implicated tangentially. Last week, The Allman Brothers Band and Cheap Trick filed suit against Sony Music in Federal Court in Manhattan claiming that they have been shortchanged on digital download sales. The record deals involved predate the existence of Internet downloading and didn't contemplate the new technology. The suit alleges that Sony's practice of treating digital downloads like traditional record sales, which permits them to deduct costs, leaving the bands with about 4 1/2 cents per every 99 cent song has deprived them of significant royalties. The bands claim that Sony is essentially licensing the music to download services, which according to their contract, entitles them to half the net revenue, approximately 30 cents per song. The lawsuit may end up becoming a class action and if the artists prevail, Sony might owe millions in royalties.

Labels: Allman Brothers Band