Billboard reports that the next version of Apple Inc.'s (NASDAQ: AAPL) iPhone may feature a new wireless internet connection and offer more tracks as ringtones than are currently available. Potential ringtones are currently limited to about 500,000 tracks, but the new plan will increase that number and extend the feature to ringback tones as well. Of course, this assumes that Apple and the record labels can build a decent relationship.

Apparently, Apple and the record labels are in dispute over how much the iTunes Store will charge users to download tracks via a wireless iPhone connection, for ringtone use or not. Billboard cites a New York Times article that claims "labels charge more for mobile music downloads than they do downloads via a computer, and apparently there's still some back and forth over that issue." The wireless connection currently offered is a slower version than the 3G access that projected for the new iPhone, opening new locations and a "broader range of access."

The estate of legendary reggae star Bob Marley is engaged in a fierce struggle with the Universal Music Group over the rights to his work: Last month, Universal signed a deal with Verizon Wireless to allow the company to become the exclusive distributor for ringtones featuring the work of Tuff Gong (Marley's nickname -- just demonstrating that I'm a big fan). Marley's family threatened to sue but then Verizon took most of the Marley ringtones of its site.

But then a spokesman for the family issued a vitriolic statement and, in an act of retaliation better suited to a playground than a boardroom, Verizon put the ringtones back up on the site.

According to a Verizon Spokesman, "We had earlier this week decided to take the content down temporarily to give the Marley estate and Universal time to work out their differences. Now, in light of that statement, we'll be putting that content back up tomorrow."

So now the Marley's say the lawsuit is back on. In one of his classic songs, Marley asked "Is this love - is this love - is this love - Is this love that I'm feelin'?"

Not much love going on between Marley and his estate right now.

The music industry just can't catch a break. With CD sales in free fall for years, the record labels had been relying, believe it or not, on growth in ringtone sales to make up for lost revenue. But, The New York Times reports, the party may be over. According to Broadcast Music Inc., ringtone sales are expected to drop $50 million to $550 million this year. However, in a bit of good news, ringback sales -- yes, you can buy music that plays while you are waiting for a phone call to be answered -- are expected to increase to $65 million this year.

Does anyone else find it sort of pathetic that people spent $600 million on ringtone sales last year? It started out as cool and clever but now that so many people have same ones, it's not. It's annoying. According to the Billboard Hot Ringtones chart (I'm not making this up), the number one ringtone is Chris Brown's "Poppin'," with annoyingly omnipresent songs like "My Humps," "Candy Shop," and "Because I Got High" all making appearances.

There's nothing like a ringtone to set a girl apart from the other hangers-out at the coffee shop. Ringtone sales have been huge, says the Motley Fool's Rick Aristotle Munarriz, for companies like Infospace. But when Skype started selling ringtones, it was to a big ol' yawn from users - who really needs to set his computer ringtone apart from the other computers in his home office?

Munarriz sees a lot of potential, however, in the music download market. His belief is that Skype's 100 million-plus registered users might finally be monetized through music (and, naturally, video downloads and concert tickets), at last justifying eBay's purchase.

I have a hard time seeing this as such a huge advantage, personally - I'm a faithful Skype user, but I've never spent a penny with them. And music won't be the place where I start.

I own a few shares of eBay and zero Skype ringtones.

Skype, long the darling of VOIP newbies like me, is nothing if not a bandwagon-jumper. The company, acquired by eBay last September, has never stayed true to its phone calling roots, dabbling in everything from instant messaging to voicemail to videocasting. And we know it: everybody's doing ring tones.

The latest bandwagon, straight from the playbooks of the rest of the phone calling world: music downloads. Today Skype signed agreements with a number of the music biggies, including Warner / Chappell Music, EMI Music Publishing, and Sony / ATV Music Publishing. These agreements will allow Skype to distribute many of its ringtones "lawfully" (was it unlawful before, I wonder?) from artists like Madonna, Depeche Mode, and the Red Hot Chili Peppers.

So I've got to know: how long before Skype launches a campaign where they play some hip-shaking song from the most commercially over-exposed group on television, the Black-eyed Peas? I predict it won't be long.