Late last month a federal judge issued an injunction to shut down the service, but Napster appealed and continues to operate. Royalties come in many forms. When radio, television or public events play a song, the artist is credited and receives a quarterly or yearly airplay royalty. Sales royalties represent a percentage of a CD's sale price. Songwriters get publishing royalties when a song is recorded.
Commercial royalties come from the use of songs in commercials or in commercial activities.
Artists need royalties not just to pay their bills but to repay record companies for advances on their CD contracts. And they must pay off advances before they see a paycheck. Some artists never realize any earnings for their work in the studio. It was a modest sum by many standards in the industry, but a new high for the band. One of those downloads got the attention of a producer from the Sci-Fi Channel.