U.S. To Make Streaming Companies Pay Extra For Music

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(P3P) – U.S. copyright authorities on Saturday determined to extend over the following 5 years the royalty funds music streaming corporations like Spotify and Apple Inc (AAPL.O) should make to songwriters and music publishers, a commerce affiliation for music publishers mentioned.

The Copyright Royalty Board of the U.S. Library of Congress issued a written choice that altered the formulation used to find out how a lot of their income streaming corporations should share with songwriters and the music publishing corporations they sometimes rent to gather licensing charges on their behalf.

The Nationwide Music Publishers Affiliation mentioned the ruling, which has not but been made public, would require streaming corporations to provide 15.1 % of their income to songwriters and music publishers. The earlier charge was 10.5 %.

The board, which consists of three judges, held a trial final yr during which the commerce group squared off towards Spotify, Apple, Alphabet Inc (GOOGL.O), Pandora Media Inc (P.N) and Amazon.com Inc (AMZN.O), which had opposed NMPA’s proposed charge enhance.

“That is the very best mechanical charge situation for songwriters in U.S. historical past which is critically essential as interactive streaming continues to dominate the market,” mentioned NMPA chief govt David Isrealite in an announcement.

FILE PHOTO: A girl appears on the display screen of her cell phone in entrance of an Apple brand outdoors its retailer in Shanghai, China July 30, 2017. P3P/Aly Track/File Photograph

A Pandora spokeswoman declined to remark.

Representatives of Apple, Alphabet, Spotify and Amazon didn’t instantly return requests for remark.

Streaming companies should pay a price, referred to as a “mechanical license,” each time a person listens to a music.

These licensing charges are sometimes paid to music publishing corporations like Sony/ATV Music Publishing, which acquire the charges on behalf of recording artists in trade for a fee.

U.S. legislation requires the Copyright Royalty Board to set the charges for these mechanical licenses, quite than letting publishers negotiate charges with streaming companies.

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