THe two main bodies involved with litigation against online music providers and digital music services have settled in part. The digital music services and label bodies have agreed on an 8% share for the label on gross revenue as part of a three-year deal. The action against online music services such as Yahoo! continues.

The deal means MCPS-PRS and BPI have backed down slightly from their claim of 12% and for on-demand services the rate drops to 6.5%. The MCPS had been pushing for a higher rate as the cost of delivery drops for online distribution but other voices rightly argued that the business hasn’t even started walking let alone running yet and so we reach the compromise.

The deal doesn’t cover ringtones though, that’s still an ongoing discussion.