I thought part of the controversy was that the artist actually doesn't get much, if any, of the additional revenues (i.e. it is going mostly to the recording studio).
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Intellectual property is a touchy area. On the one hand, we have countries such as China, which have almost no IP laws, but whose economies don't seem to suffer (they are doing just as well, if not better, than most emerging markets). On the other, we have countries like the U.S. and much of the E.U. where everyone claims a patent or copyright on everything. Where's the happy middle? As for Apple, they try to sue other people for using the term podcast (or anything with a pod or i in it), while at the same time announcing the iPhone before they had inked a licensing deal with Cisco. They need to pick a side and stick with it.
The artist should get the exact same amount that they get when they sell the full song. That is determined by their own contract negotiations with their label. And some artists own their own labels, thus get the full amount. At least that's my understanding - that Apple pays the exact same fee for a ringtone sale that they pay for the sale of a song.
I agree IP is a touchy area. As a software developer it's always been an issue for me as, like music, software is often so easily copied and people are often too quick to justify their own copying of both. By getting into the custom t-shirt business, I've also recently seen the other side of the spectrum, where people abuse trademark law to limit competition by trademarking common words or phrases and then using that trademark to prevent others from making products with those words. I have dozens of common phrases I now can't let people type into what is supposed to be a custom t-shirt (and other products) designer because of this. I can't even let you type the work "Caution" because someone trademarked that word for use on apparel. That just seems absurd to me. The holder of that trademark didn't create anything original, they simply found a way to abuse trademark law.



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