"There is actually a valid agreement in place between NORM and Exactmobile," stated Exactmobile CEO, Davin Mole. "This agreement provides the mechanical rights that we need to legally operate as a music seller. Exactmobile has tremendous respect for musicians and composers alike, and has no intention of avoiding the mechanical royalty payment. We have been actively negotiating with NORM to increase the rate payable under the agreement, and have not been able to reach consensus on the amount of the royalty. There was certainly no need for NORM to summons the company in order to achieve payment. In fact, Exactmobile, and other major players in the industry have the royalty payments accrued in trust accounts, ready to pay out as soon as NORM is willing to accept the payment."

Exactmobile refute the claim by NORM that the 7,5% royalty is reasonable. "International standards are not the only relevant yardstick in this matter," explains Mole. "We have consulted copyright experts, as well as other major players and we are confident our offer of 5% is a reasonable and fair offer, which is market-related and meets the expectation of the Copyright Act."

"Furthermore, the summons issued by NORM is actually invalid," continued Mole. "There are certain fatal flaws, which will necessitate the withdrawal of the summons and we have launched the appropriate legal procedure. We would expect NORM to respect the legal process, and allow the law to take it's course without further inappropriate discussion in the media. We view the comments made by NORM as defamatory and we reserve our legal rights in this regard."

[4 Sep 2008 10:22]

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