Our colleagues in the U.S. reported yesterday that the country’s Copyright Royalty Board has rejected the proposal to freeze mechanical and download royalty rates made by corporate giants in the record and music publishing industry.
These groups had argued that mechanical uses and revenues were no longer significant, and that freezing the royalty rate at 9.1 cents US per sale or download for the next five years was acceptable. The rate has been at this level since January 1st, 2006. In response, music creator organisations were able to point to a 2021 IFPI report that showed CDs, vinyl and downloads still make up over 25% of total revenues, a significant share in absolute terms, and vital to the sustainability of many music creators.
This victory for songwriters and composers was the result of huge amount of work by the Songwriters Guild of America, the Society of Composers and Lyricists, Music Creators North America, CIAM, Charles Sanders, Chris Castle, and individual songwriters including George Johnson.
Charles Sanders, SGA Legal Counsel and FTMI board member said:
This decision is proof that individual creators can fight successfully to protect their rights against the multinational conglomerates that prioritize shareholder interests over protecting their own creators”.
We join these organisations in thanking the US Copyright Royalty Board for their decision. More information is available at Chris Castle’s Music Technology Policy blog.
Image: William Henry Jackson, Public domain, via Wikimedia Commons