Copyright Royalty Board Raises Mechanical Royalty Rate for Songwriters by 44%! Share Thisi
Last year, the National Music Publishers Association and the Nashville Songwriters Association went to the Copyright Royalty Board (CRB) to lobby for a change in the unfair compulsory mechanical royalty rates that were being distributed to songwriters, and their efforts have finally paid off!
The CRB has announced that over the next five years, the mechanical royalty rates paid to songwriters in the US will increase by 43.8%! Any time a reproduction of a copyrighted musical composition appears on a CD, cassette tape, vinyl album, etc., mechanical royalties are paid to music publishers. This new ruling is especially relevant to streaming royalties, that fall under the CRB oversight.
The ruling includes a “late fee” that will be imposed on digital music services, if they fail to pay songwriters on time, as well as removal of the Total Cost Content (TCC) cap which will give publishers more negotiation power and help to raise them to a more level playing field with record labels.
This is the largest rate increase in CRB history and is an important step toward overcoming the unfair treatment of songwriters.