The year-long dispute between mobile communications application service provider, iTouch, and the National Organisation for Reproduction Rights in Music in South Africa (NORM) has been settled.
Arising out of a disagreement over the amount of royalties to be paid for the use of music cellphone ringtones, iTouch South Africa recently called for a tribunal to order on the matter on behalf of the entire industry.
"iTouch has never denied local or international artists` right to receive royalties, but we believe in order to be fair, a reasonable regulated price needs to be agreed," says Greg Brophy, CEO of iTouch SA.
"Ultimately the agreement is also a win for the music industry as we will be passing on royalties to them on behalf of our customers."
A spokesman for NORM says the organisation agreed to a sliding scale of payments, dependent on the ringtone chosen, and that it was relieved a decision had been made and the dispute ended.
Brophy says the deal will see ringtones cost an average of 13c per download, which is 2c lower than originally demanded by NORM, although it is higher than iTouch originally proposed.
He says iTouch is one of the largest global providers of personalised ringtones, which amounts to millions of rands worth of business each year.
In SA alone it is worth over R25 million annually. A recent survey done by iTouch found that about 40% of college and university students, plus a third of school pupils, change their cellphone ringtone at least 10 times a year as part of personal expression and fashionable fun.
SA consumers` favourites ringtones include "Nkalakatha" by Mandoza, "The Ketchup Song" by Las Ketchup and "Die Another Day" by Madonna.
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