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New music deal for Indian radio

Indian radio will pay a flat 2% rate to music companies following a ruling by the Copyright Board, reports Radio and Music.

The decision ends a two-year fight between the music and radio industries in India. Earlier this year, the Supreme Coart gave the Copyright Board four months to resolve the dispute over music royalties.

Currently, Indian radio pays 850 rupees ($18) per hour of music irrespective of the size of the station. According to an estimate, as much as 18% of ad revenues goes to the music industry.

The new system will be based on a 2% share of advertising income. It is expected that the new fee will also expand the number of stations that actually pay for its music.

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