Member Alert
| NMPA Member Alert from David Israelite - Major Music Industry Groups Reach Historic Agreement on Royalty Rates and Standards |
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Dear Members: I am thrilled to report that music publishers, songwriters, record labels and digital services have entered into an agreement that will pave the way for the development of exciting new music offerings that will allow consumers to access and enjoy music in new and more convenient ways, while ensuring that the creators of the musical works are fairly compensated. Below is a press release just issued by the National Music Publishers' Association (NMPA), the Recording Industry Association (RIAA) and the Digital Media Association (DiMA). The agreement, in the form of draft regulations submitted to the Copyright Royalty Judges today, will roll forward all current mechanical royalty rates under Section 115 of the Copyright Act, with limited changes, and proposes mechanical royalty rates for five newly created categories of services, paid lockers, purchased content lockers, mixed service bundles, music bundles and limited offerings. The agreement submitted to the CRB resolves the pending Section 115 copyright royalty board rate proceedings without the need for litigation. A special thanks to the NMPA Board of Directors, the staff and the attorneys of the NMPA whose hard work over the last year led to this remarkable agreement. Sincerely, David Israelite President and CEO National Music Publishers' Association _________________________________________________________________________ FOR IMMEDIATE RELEASE April 11, 2012 Major Music Industry Groups Reach Historic Agreement on Royalty Rates and Standards Agreement Enables New Cutting-Edge Business Models WASHINGTON - Organizations representing the music publishers and songwriters, major record labels, digital music services and cellular phone companies today announced an agreement setting mechanical royalty rates and standards that supports a slate of new cutting-edge business models to help consumers access and enjoy music. The Recording Industry Association of America (RIAA), National Music Publishers Association (NMPA) and Digital Media Association (DiMA) are filing an industry-wide agreement that fully resolves the Copyright Royalty Board (CRB) Rate Proceeding under Section 115 of the Copyright Act. The settlement provides for the development of new digital music services and business models offering music to consumers by creating new rates and terms under Section 115 for five new categories, which include: • Mixed service bundles (for example, a locker service, limited interactive service, downloads or ringtones combined with a non-music product such as a mobile phone, consumer electronics device or Internet service) • Paid locker services (subscription-based locker providing on-demand streaming and downloads) • Purchased content lockers (a free locker functionally provided to a purchaser of a permanent digital download, ringtone or CD where the music provider and locker have an agreement) • 'Limited offerings' (subscription-based service offering limited genres of music or specialized playlists) • Music bundles (bundling music products such as CDs, ringtones and permanent digital downloads) The 25-page proposed agreement will be submitted to the CRB by the various parties and resolves the pending mechanical royalty rate proceedings without litigation. The agreement covers 2013-2017 and must be formally be approved by the CRB. It establishes a royalty rate category for these new business models and rolls forward, with limited changes, all existing rates and terms for CDs and downloads. Lee Knife, Executive Director - DiMA 'From the advent of internet radio services, to online music stores, on-demand streaming and more recently, cloud-based music services, digital media providers thrive on creating new ways for fans to enjoy more music whenever and wherever they want,' said Lee Knife, Executive Director of the Digital Media Association. 'Today's agreement paves the way for our members to continue developing exciting new business models that satisfy consumers, create greater revenue opportunities for music creators and effectively fight piracy, the music industry's greatest threat.' David Israelite, President and CEO - NMPA 'Today's agreement is not only an important show of industry cooperation, but a testament to the value of the creative content being provided to consumers,' said NMPA President and CEO David Israelite. 'This agreement represents the culmination of months of discussions among the music industry, digital service providers and technology companies, and will provide more consumer choice with respect to when and how to access music while ensuring songwriters and music publishers continue to thrive in the digital age.' Cary Sherman, Chairman and CEO - RIAA 'This is a historic agreement that reflects our mission to make it easier for digital music services to launch cutting-edge business models and streamline the licensing process,' said Cary Sherman, Chairman and CEO, RIAA. 'This is major win for consumers, the music community, and entrepreneurs and investors in new music services. Getting to agreement was a challenge, and I want to thank Steve Marks, our lead negotiator, for his persistence and creativity in getting a deal done.' About DiMA The Digital Media Association ('DiMA') is the trade association representing the legal and policy interests of the nation's leading online distributors of digital music, movies and books. DiMA members are constantly developing new and innovative ways to provide consumers with increased access to legitimate online content, and DiMA helps its members accomplish this objective by representing the industry in a wide variety of legal, political and regulatory matters. About the NMPA Celebrating its 95th year, the National Music Publishers' Association (NMPA) is the trade association representing American music publishers and their songwriting partners. The NMPA's mandate is to protect and advance the interests of music publishers and songwriters in matters relating to the domestic and global protection of music copyrights. About the RIAA The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States. Media Contacts: NMPA/ Amy Lee - 202-280-8816 RIAA / Jonathan Lamy - 202-775-0101 DiMA / Ann Brown - 301-633-4193 |
