Ringtones get compulsory licenses - publishers mad, labels happy

The Register of Copyrights has determined that ringtones fall under Section 115 of the copyright Act, and therefore are subject to compulory licenses. The publishers had argued that ringtones, and we mean the realtones which are actually audio rather than midi, are derivative works, and therefore not covered under Section 115. Harry Fox had already licensed a large number of works under this theory at rates higher than the compulsory license, so this ruling means that publishers will probably lose money, although it is still up to the Copyright Royalty Board to determine the exact rate.