EMI, BMG, Sony Settle Over South African Royalties

The South African affiliates of EMI Music Publishing, BMG Music Publishing, and Sony Music Entertainment have reached a settlement over the calculation of mechanical royalties on select recordings. Terms were not revealed. The move could pave the way for negotiations between mechanical rights body National Organization for Reproduction Rights in Music and the Record Industry of South Africa to forge a new standard for the calculation of mechanicals.

The agreement follows a summons issued last year by EMI Music Publishing and BMG Music Publishing against Sony for unpaid songwriter royalties on Celine Dion's 1996 release "Falling Into You." The dispute centered on record companies providing free stock to retailers, music clubs, and other trade entities in lieu of discount on invoice, as well as alleged non-payment of songwriters royalties on those units.