Skype is in news again. EMI music Publishing has struck a deal with Skype to sell music on Skype's new retail website. As per the deal Skype would be licensed to use song copyrights from EMI's catalogue to sell music as downloads and ring tones. This is for the first time that music copyrights have been licensed worldwide in such a manner otherwise licenses had to be applied for by the seller on a country to country basis which made it difficult for songwriters to collect payments for their work.

Music lovers certainly have a treat in hand as EMI has more than one million copyrights which include some of the best known songs ever written such as New York, Singin'in in the Rain and Over the Rainbow.

Mobile phone based ring tones had been a big success when they were introduced but it is still unclear as to how large a market VoIP ring tones represent. The deal allows for downloading and subscriptions and probably there is a feeling that Skype could eventually compete with mobile and MP3 music offerings from Apple Computer, Microsoft, Napster, Verizon and Sprint.

Smart move Skype, with the VoIP business becoming really competitive, the music segment might bring some relief.