Published
Thu, Mar 9, 2017, 13:56
- The outcome of the hearing will shape the incomes of songwriters and publishers in the US and internationally.
The American Copyright Royalty Board (CRB) has begun a hearing to decide on aspects of the country's mechanical royalty rates for the next five years.
The CRB consists of three permanent judges who decide the conditions and payments of licensing and royalties collected in the US. Mechanical royalties are subject to a statutory rate set by the CRB, meaning the outcome of the hearing will shape the amount of money songwriters and publishers can earn from their material. While a deal was reached last year setting the rate for physical sales and downloads, terms surrounding streaming royalties are up in the air, Complete Music Update reports. Whatever is agreed to in the hearing, which lasts until December, will remain in place for five years.
In response to news of the hearing, The International Confederation Of Music Publishers has voiced its concerns regarding tech giants' push to economise their streaming businesses by paying artists as little as possible. Addressing the likes of Apple, Spotify and Google, a letter penned by the group states: "We appreciate the innovative platforms you have developed... however we must voice our outrage at the way you are devaluing our work in the process... Stop litigating against songwriters and pay them a fair rate for their songs. It is in your best interest to do so instead of making it impossible for us to earn a living. The future of music, and your business, depends on it."