There is a nascent business developing around the delivery of material to mobile phones, as anyone who has heard a phone ringing in a crowded place understands.

There is a new business sector emerging around the distribution of material to mobile phones, as anyone who's witnessed a cellphone ring in a crowded room knows.

There are a variety of types of content and information now accessible, including news and stock quotes, as well as entertainment and games. Streaming media and video conferencing are also possible thanks to new technologies.

For now, ringtones are by far the most popular such service, with sales of $2.5 billion-$3.5 billion worldwide in 2003 according to reports. Last year's sales in the United States accounted for only 3% of this total, or about $100 million dollars, but they are anticipated to grow dramatically this year as polyphonic ringtones become more accessible on mobile phones.

Monophonic ringtones were first introduced in the early 1980s. They played one note at a time, like playing a song on a touch-tone phone. Furthermore, they had to be downloaded from the Internet and installed onto the mobile phone by the user from their computer. Anyone who purchases a new phone can now get a polyphonic ringtone straight to their handset through an on-phone option menu.

This is an example of free ringtones site: Suonerietelefono

Polyphonic ringtones use MIDI technology to generate a wider palette of tones at the same time. Instrumental pieces might seem almost identical if played correctly. The newest technology, on the other hand, permits samples of real master recordings to be delivered straight to a user's mobile phone. Ringtones in this generation are known as "mastertones," "trutones," or "ring tunes."

Ringtones offer a treasure trove of untapped revenue streams, but there are many legal issues and hidden expenses to navigate through. First and foremost, ringtone vendors must purchase a mechanical license from the Harry Fox Agency or directly from the publishers. Similarly, performing rights organizations such as ASCAP, BMI, and SESAC may require ringtone providers to acquire public performance licenses. This would allow your ringtone to be heard in public every time the phone rings. Finally, a ringtone provider generally receives a commission on each sale paid to the carrier for whose service the ringtone provider is listed.

The trademarktone, or trutone, is a whole new business opportunity for record companies who typically control the artists' sound recordings. In order to sell mastertones, a ringtone provider must pay a royalty to the owner of the recording's sound recording. Zingy and Faith West have already announced their intentions to enter into first such deals. As of yet, no industry standard rate has emerged.

Finally, new business models are developing that illustrate the vitality of this emerging market for mobile music--and perhaps threaten the industry standard. In 2003, Xingtone began selling software that converts music already owned by users into ringtones without charge to any ringtone provider, copyright owner, or wireless carrier. So far, no major publisher, ASCAP, or BMI has taken an official public stance on services such as Xingtone. While many musicians and labels are wary about them being a revenue generator, others believe they may provide one.

The ringtone industry may appear to be quite lucrative, but it is merely the beginning of what mobile phones can do. Many new firms have begun to successfully provide games, local entertainment and restaurant recommendations (Vindigo), news updates (Diggit), music audio identification (MusiKube), fan clubs (Wicked Wireless), social interaction services, video conferencing, streaming television, and even pornographic images.

As mobile device technology improves and consumer adoption of such devices grows, the potential for generating income in the wireless sector will grow for both content providers and copyright owners, as well as carriers.

The goal will be to gain users' attention while also developing creative and engaging licensing models that provide a fair value proposition while yet producing enough money to pay copyright holders.

Peter Moran, Andy McCormick, Cheryl Wickham, and Mark Anderson are partners at MasurLaw, a boutique entertainment, intellectual property, and business law firm in New York. This article was written with the assistance of colleagues such as Peter Moran, Andy McCormick, Cheryl Wickham, and Mark Anderson.