Interesting little article...
also read the comments from the poeple
When your phone rings, the copyright police may come calling | Entertainment & HDTV | iPhone Central | Macworld
excerpt:
'A digital rights group is contesting a U.S. music industry association's assertion that royalties are due each time a mobile phone ringtone is played in public.
The American Society of Composers, Authors and Publishers (ASCAP) filed suit against AT&T asserting that ringtones qualify as a public performance under the Copyright Act. ASCAP, which has 350,000 members, collects royalties and licenses public performances of works under copyright...."