ECSA welcomes the major settlement between music majors and the NMPA, which proposes an increase from 9.1 cents to 12 cents per track for US mechanical royalties on physical sales
Today, ECSA welcomes the proposed immediate 32% increase to 12¢ per track for physical sales and downloads and its adjustment to inflation, as put forward by the three music majors and the NMPA. At the end of March, the US Copyright Royalty Board (CRB) officially decided not to extend the longstanding mechanical royalty rate of 9.1 cents for physical formats and downloads. In its decision, the CRB found that the proposed settlement between the US National Music Publishers Association and the major labels “does not provide a reasonable basis for setting statutory rates and terms.” The three judges have rightly objected that the settlement does not represent all the parties, in particular songwriters and that the settlement does not take into account inflation and the increased cost of living.
Here a quote from our President, Helienne Lindvall:
As ECSA President, I am delighted to welcome the proposed immediate 32% increase to 12¢ per track for physical sales and downloads and its adjustment to inflation, as put forward by the three music majors and the NMPA. This proposed deal is an important step forward to better recognise the value of songs and improve the remuneration of composers and songwriters in the US and beyond. I want to thank the judges and my peers, in particular David C Lowery, George Johnson, Chris Castle / MusicTechPolicyDaily, Blake Morgan, Kevin Casini, Abby North, and all the songwriters’ trade bodies who fought so hard as well. This success demonstrates that songwriters' voices matter and should be taken into account in designing tomorrow’s music industry, including the streaming business. A lesson for the present and the future of the music industry. And for the entire world.