Los Angeles - Universal Music Publishing Group (UMPG) and major record label Sony BMG (NYSE: SNE) on Tuesday announced a digital licensing agreement for the Southeast Asia and India markets, in some areas creating licensing rules in countries where none previously existed.

For instance, the deal will for the first time see record companies pay mechanical royalties to songwriters and publishers on the sale of records in India.

Specifically, the deal covers audio and video downloads, streaming and subscription services, and mobile products including ringtones and video; it does not cover the countries of Japan and Korea, where deals were already in place.

Overall, the companies said the deal will streamline licensing agreements for the use of music and video; speed the development of legitimate online and mobile markets; and ensure that rights holders benefit from Asia's growth in the digital arena.

"For many years digital music resellers have been challenged with licensing content from a myriad of content owners and similarly challenged in effectively reporting sales in return," said Ruuben van den Heuvel, Sony BMG's SVP of digital and new business development in Asia.

"We expect to see a significant increase in our respective businesses as content flows to our partners and consumers are able to find their favorite artists and discover new music to get excited about."

The companies said they will work together with the performing rights society in each territory to implement the agreement.

Related Links:
http://www.sonybmg.com

http://www.umpg.com