Music-industry finance firm Sound Royalties is praising a ruling from the Copyright Royalty Board (CRB) that will raise mechanical royalty rates paid to songwriters by nearly 44 percent over the next five years. The largest rate increase in CRB history, the decision will impact works streamed via on-demand subscription services such as Google, Spotify, Apple and Amazon in the United States.
Sound Royalties, which has long advocated for the rights of songwriters, released the following statement today in response to the news.
“Today’s decision from the Copyright Royalty Board is a momentous milestone for long underpaid and underrepresented songwriters,” said Sound Royalties Founder and CEO Alex Heiche. “It is well past time that we adjust today’s royalty rates and policies to properly address streaming, which now dominates music consumption across the country.”
“Between the significant rate increases, the removal of the Total Content Cost (TCC) cap and the new late fee, these much-needed and overdue changes will help ensure that songwriters are paid properly and on time for their valuable products,” Heiche added. “While likely still below what songwriters could rightly earn in a free market, this historic decision is the best news for these creatives in our lifetimes and protects the vitality of the songwriting profession in today’s evolving market.”
For more, visit soundroyalties.com