Apple's online iTunes store dodges music royalty hike

SAN FRANCISCO (AFP) — Apple dodged a potentially deadly financial bullet on when US judges held steady on digital music royalties paid by iTunes online shop.

The Copyright Royalty Board Thursday rejected a push by music publishers to get a bigger bite of the money Apple charges for digitized songs at iTunes. The board also didn't endorse a lowering of royalty rates backed by Apple.

Publishers will continue to get nine of the 99 cents iTunes charges per song. They had petitioned the board to raise their cut to 15 cents.

ITunes vice president Eddy Cue said in testimony to the board that raising prices to cover increased royalty fees would cause song sales to plummet and if Apple absorbs a fee hike it would probably operate at a loss.

"Apple has repeatedly made clear it is in the ...