Washington DC
05 February 2018
Reporter: Barney Dixon

CRB issues royalty rate hike for music streaming services

The Copyright Royalty Board (CRB) has ruled to increase royalty payments to songwriters and music publishers from music streaming services by nearly 44 percent.

According to National Music Publishers Association (NMPA) president David Israelite, the rate hike is the “biggest rate increase granted in CRB history”.

The new rates will be in effect from 2018 to 2022. Services that offer interactive streaming and limited downloads, such as Amazon, Apple, Google and Spotify, will be affected.

The ruling increases the overall percentage of revenue paid to songwriters from 10.5 percent to 15.1 percent.

Israelite commented: “We are thrilled the CRB raised rates for songwriters by 43.8 percent.”

He said: “Crucially, the decision also allows songwriters to benefit from deals done by record labels in the free market. The ratio of what labels are paid by the services versus what publishers are paid has significantly improved, resulting in the most favourable balance in the history of the industry.”

Israelite added: “The decision represents two years of advocacy regarding how unfairly songwriters are treated under current law and how crucial their contributions are to streaming services. We thank the songwriters who shared their stories with the court and helped illustrate how badly these rate increases are needed. While the court did not grant songwriters a per-stream rate, the increases in overall rates and favourable terms are a huge win for music creators.”

According to the NMPA, the board’s decision is the direct result of a lawsuit from the NMPA and the Nashville Songwriters Association against Google, Amazon, Spotify and Pandora.

Frank Scibilia, partner at law firm Pryor Cashman, which represented NMPA and NSAI in the case, commented: “At trial, we had a dual focus. First, we wanted to begin correcting the unfairly low share of royalties being paid to the songwriters who create the musical works that are the very foundation of music streaming services, and second, to protect our clients against business strategies employed by the interactive streaming services that have had the effect of reducing the reportable revenues on which our clients’ royalties have been based.”

More Copyright news
The latest news from IPPro The Internet
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
IPTV supplier fined £18,000
14 February 2018 | Harrow | Reporter: Barney Dixon
A pre-loaded IPTV box supplier must pay a £18,000 fine for selling illicit streaming devices online, as well as breaching the Premier League’s copyright
IFPI calls for “effective solution” to value gap
07 February 2018 | Brussels | Reporter: Barney Dixon
The International Federation of the Phonographic Industry (IFPI), with the support of 23 other creative industry organisations, has penned a letter to the new presidency of the European Council asking it provide an “effective solution” to the so-
New trial ordered in BMG v Cox
06 February 2018 | Virginia | Reporter: Barney Dixon
The US Court of Appeals for the Fourth Circuit has overturned a $25 million damages award for BMG Rights Management and ordered a new trial in its dispute with Cox Communications
CRB issues royalty rate hike for music streaming services
05 February 2018 | Washington DC | Reporter: Barney Dixon
The Copyright Royalty Board has ruled to increase royalty payments to songwriters and music publishers from music streaming services by nearly 44 percent
Grumpy Cat wins copyright lawsuit
25 January 2018 | California | Reporter: Barney Dixon
The owner of internet sensation ‘Grumpy Cat’ has won a copyright infringement lawsuit against Grenade Beverage
Radiohead sue Lana Del Rey for copyright infringement
8 January 2018 | New York | Reporter: Barney Dixon
Radiohead are suing Lana Del Rey for copyright infringement, claiming that the Del Rey’s 2017 song Get Free was similar to their 1992 song Creep
Glosfer and Gemmy to create blockchain copyright protection platform
4 January 2018 | Seoul | Reporter: Barney Dixon
Blockchain firm Glosfer has signed a memorandum of understanding with copyright protection company Gemmy to create a blockchain-based copyright protection platform