{"id":91522,"date":"2022-05-07T12:00:00","date_gmt":"2022-05-07T11:00:00","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=91522"},"modified":"2022-05-06T13:52:59","modified_gmt":"2022-05-06T12:52:59","slug":"mechanical-royalties-for-songwriters-rise","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/mechanical-royalties-for-songwriters-rise\/","title":{"rendered":"Mechanical royalties to rise by 32% for songwriters in the US"},"content":{"rendered":"\n<p>Image Credit: Music Business Worldwide<\/p>\n\n\n\n<h2 style=\"user-select: auto;\"><span style=\"color: #3366ff; user-select: auto;\">For the last little while, a negotiation in the United States has been ongoing over particular types of mechanical royalty rates paid to songwriters for sales of physical music and downloads, reports Music Business Worldwide.<\/span><\/h2>\n\n\n\n<p>On May 5th, the groups representing songwriters, music publishers and record labels reached an agreement to settle the negotiation. The mechanical royalty rate that publishers\/songwriters receive for purchased music on physical discs or downloads has been 9.1 cents per track since 2006. Now, the settlement proposes a 32% increase to 12 cents per track. Furthermore, songwriter royalties will automatically increase annually &#8211; relative to the rate of inflation.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>Who pays mechanical royalties?<\/h3>\n\n\n\n<p>It&#8217;s record companies that pay mechanical royalties to publishers and songwriters in the US. As a result, if the CRB does decide to increase the mechanical rate from 9 cents to 12 cents for physical formats, it&#8217;s record companies\u00a0that will have to pay this out to songwriters. This led to a slight legal issue because the same parent companies that own the three largest music publishers also own the three largest record labels.<\/p>\n\n\n\n<p>Now the Copyright Royalty Board are to consider the agreement. The CRB declined to approve an earlier agreement covering physical sales and downloads because of concerns over \u201cstatic\u201d rates. <\/p>\n\n\n\n<p><span style=\"text-decoration: underline\" class=\"underline\"><strong><a href=\"https:\/\/www.musicbusinessworldwide.com\/files\/2022\/05\/Joint-Motion-to-Adopt-New-Settlement-of-Statutory-Royalty-Rates-and-Terms-for-Subpart-B-Configurations-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">The new motion<\/a><\/strong><\/span> states: \u201cThe new Settlement provides \u2018a reasonable basis\u2019 for statutory royalty rates and terms for Subpart B Configurations.<\/p>\n\n\n\n<p>\u201cFirst, it provides an immediate 32% increase to 12\u00a2 per track for physical phonorecords and permanent downloads and provides for annual inflation-based adjustments for subsequent years of the term.<\/p>\n\n\n\n<p>\u201cThis substantial increase and provision for annual adjustments responds to the Judges\u2019 concerns regarding \u2018static\u2019 rates.<\/p>\n\n\n\n<p>\u201cSecond, it represents the consensus of stakeholders representing the vast majority of the market for \u201cmechanical\u201d rights for Subpart B Configurations, including many of the songwriter groups and representatives who did not support the prior proposed settlement.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><strong>\u201cAS A MUSIC COMMUNITY, WE ARE STRONGEST WHEN WE COME TOGETHER TO FORGE LASTING AND SUSTAINABLE WIN-WIN DEALS.\u201d<\/strong><\/p><cite><strong>Mitch Glazier,\u00a0<a href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/riaa\/\">RI<\/a><a href=\"https:\/\/www.musicbusinessworldwide.com\/companies\/riaa\/\" target=\"_blank\" rel=\"noreferrer noopener\">AA<\/a><\/strong><\/cite><\/blockquote>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><span style=\"text-decoration: underline\" class=\"underline\"><strong>Related:<\/strong><\/span> <a href=\"https:\/\/routenote.com\/blog\/what-royalties-music-platforms-collect\/\"><span style=\"text-decoration: underline\" class=\"underline\"><strong>What royalties do music platforms collect?<\/strong><\/span><\/a><\/p><\/blockquote><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><span style=\"text-decoration: underline\" class=\"underline\"><strong><a href=\"https:\/\/routenote.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">If you&#8217;re trying to find a free digital music distribution service, don&#8217;t forget to check out RouteNote. We&#8217;ll distribute your music to the world&#8217;s largest streaming services and download stores for free <strong><a href=\"https:\/\/routenote.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">and<\/a><\/strong><\/a><\/strong><\/span> <span style=\"text-decoration: underline\" class=\"underline\"><strong><a href=\"https:\/\/routenote.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">you&#8217;ll keep 85% of global revenue.<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the last little while, a negotiation in the United States has been ongoing over particular types of mechanical royalty rates paid to songwriters for sales of physical music and downloads, reports Music Business Worldwide.<\/p>\n","protected":false},"author":29,"featured_media":91523,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11109],"tags":[4683,2443],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.4.1 - 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