MUSIC ARTISTS’ RIGHTS GROUPS FILE JOINT BRIEF ON ROYALTY RATES

The Music Artists Coalition and the Songwriters of North America stress the need for fair compensation for songwriters.

(November 19, 2019) – Today the Music Artists Coalition (MAC) and the Songwriters of North America (SONA) filed a joint amicus brief with the D.C. Circuit Court of Appeals on the determination of royalty rates to be paid by interactive streaming services. The brief urges the court to affirm the decision of the Copyright Royalty Judges (CRJs), which increases the royalty rates payable to music copyright owners. As stated in the brief, the 110-year-old compulsory license has a depressive effect on songwriter income and has failed to keep pace with the actual value of musical works. Compulsory streaming rates have been inadequate to support professional songwriters, and the Copyright Royalty Judges made reasonable and balanced adjustments to correct for the undervaluation of songwriters’ contributions. It is critical to songwriters’ ability to make a living that this decision be affirmed.

Technology’s impact on the music industry has been tremendous and will shape the way fans enjoy music for decades to come. But given the growing dominance of some technology companies, we must make sure the benefits of digital innovation and new services are fairly distributed, including to the content creators who are the backbone of the music industry.

Below are highlights from the brief:

·       “For over a century, songwriters have been subject to a compulsory license, now embodied in section 115 of the Copyright Act, that determines the price to be paid for reproduction and distribution of the musical works they create. There is no comparable example of a profession where the government sets the price for one’s labors.”

·       “After carefully weighing all of the evidence, the CRJs determined that songwriters should be paid more, and increased the rate for interactive streaming under section 115. Songwriters deserved that raise. Indeed, for some, the added income will be a critical factor in their ability to continue in their careers as professional songwriters.”

·       “In contrast to music publishers and songwriters, record companies are able to engage in free-market negotiations to license their separate copyright interests in the sound recordings in which musical works are embodied. Without the constraint of a compulsory license, record labels are able to achieve greater relative value in licensing their recordings.”

·       “Under the updated formula adopted by the CRJs, if the record labels negotiate a better rate in the marketplace, songwriters may benefit even though they are otherwise living under the ‘ghost in the attic.’ Far from being unreasonable, as the Services suggest, the revised rate formula represents an important corrective to properly value the work of songwriters and ensure a fair return for their creative contributions.”

“I struggled for over a decade to make my living as a songwriter. I know how hard it is. Writers don’t sell tickets or t-shirts. They rely on publishing royalties for their income. Developing songwriters today have an especially difficult time since we can no longer rely on traditional record sales. Thank you to the CRJs for giving songwriters the raise they deserve. I hope the Court of Appeals will affirm this balanced and fair rate increase for songwriters,” said MAC Board member, Shane McAnally.

“If I were trying to make it as a songwriter today dependent on digital royalties, I wouldn’t be able to sustain a livelihood the way I once did from the income of physical sales. Without sharing in master royalties, merchandising or touring revenue, most songwriters now have to consider holding down a second job. I sincerely hope the D.C. Circuit Court of Appeals reaffirms the CRJs’ decision and takes the industry in the direction it desperately needs to go. Songwriters are counting on it,” said SONA co-founder and board member, songwriter Shelly Peiken.

“It all starts with a song. The foundation of the music business is the songwriter and they deserve to be compensated fairly for their work. MAC felt it was important to let the D.C. Circuit Court of Appeals know how vital it is that songwriters are paid a fair wage and that the rate increases should be upheld,” said MAC board member, Coran Capshaw.

“On behalf of the working songwriter members of SONA, we are proud to submit this amicus brief in partnership with MAC. ‘Get the rate right!’ was our battle cry when we started SONA five years ago in response to unfair digital royalty rates and we continue to fight for the value of our work today. We are optimistic that the D.C. Circuit Court of Appeals will uphold the balanced and equitable decision by the Copyright Royalty Board, which gave songwriters a much-needed rate increase under the 110-year-old compulsory license,” said Michelle Lewis, songwriter, co-founder and executive director of SONA.

For more information contact [email protected] or visit www.musicartistscoalition.com.

For Music Artists Coalition:
Kristen Foster
[email protected]

For Songwriters of North America:
Debbie Hennessey
[email protected]