The Recording Industry Associate of America (RIAA) may becoming
more open to the idea of digital music rights.

"It's a model worth looking at," John Kennedy, head of the
International Federation for the Phonographic Industry, said at a
press briefing last weekend in Cannes at Midem, the annual global
music market. "If the ISPs want to come to us and look for a
blanket license for an amount per month, let's engage in that
discussion..."

But Mitch Bainwol, head of the Recording Industry Association of
America, who was the co-host of the briefing, quickly interjected:
"...on a voluntary, commercial basis."

So what has changed in the IFPI and RIAA minds?
Digital downloads doubled in 2006, while traditional CD sales fell.
Secondly, Microsoft structured a fee with Universal Music Group
for its Zune player. Third, discussions about interoperability are
coming out again.

"We shouldn't kid ourselves," Kennedy said. " Steve Jobs holds the
biggest key to interoperability. He faces advice from us and pressure
from various governments around the world." As far as Jobs giving
in, he added, "it's going to be at the stage where he thinks it is
commercially advantageous to him."

The IFPI and RIAA need to realize that times are changing and that
if they wish to remain financially viable they need to change with
the new economy.

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