Songwriters ‘breathe sigh of relief’
“The Music Modernization Act (MMA) is now law! We have worked on elements of this legislation for 15 years. With the passage of this law, every professional songwriter in America, including myself, who has suffered devastating economic losses in the era of digital music delivery, can now breathe a sigh of relief and be optimistic about the future of our profession. Along with the songs that bear my name, this is my proudest career accomplishment.” – Steve Bogard, writer of 10 #1 songs and President of the Nashville Songwriters Association International (NSAI)
“Now the job of utilizing the tools found in the Music Modernization Act begins,” said NSAI Executive Director Bart Herbison. “NSAI and other songwriter organizations will immediately select songwriter board and committee members for the new Music Licensing Collective (MLC) that commences operation on January 1, 2021. We have two years to build the first-ever songwriter, music publisher run mechanical licensing collective. This will be the first collection agency that pays songwriters 100 cents from every royalty dollar since the digital streaming companies will pay operational costs of the MLC.”
Note: the text of this post is taken from a media release issued on October 11, 2018, by the Nashville Songwriters Association International. For more information, visit the NSAI website.
Higher streaming royalties
Higher streaming royalties resulting from the marketplace rate standards included in the Music Modernization Act will come over time when the next Copyright Royalty Board proceeding occurs in four years or when ASCAP or BMI have rate court proceedings under the terms of the MMA. Agreements reached with streaming companies or court proceedings could result in higher streaming rates.
“It is not too bold to say this is the most important songwriter legislation ever adopted by Congress. When we negotiate our digital rates or go to trial-type proceedings, we expect rates that are much fairer based on what the market should pay,” Bogard added.
44% mechanical license royalty increase
Songwriters WILL see an immediate 44% mechanical royalty increase beginning in January 2019 from the previous Copyright Royalty Board trial where NSAI and the National Music Publishers Assn. represented American songwriters and won the largest mechanical royalty increase in history. The increase will phase in over a five-year period.
THE MMA in a nutshell:
- Changes the standard by which songwriter streaming rates are established replacing an outdated 1909 law that governs songwriter mechanical or sales royalties, changes consent decree regulations from 1941 that govern songwriter performance royalties.
- Requires the random selection of judges when performing rights societies ASCAP or BMI go to a rate court proceeding. Presently those judges are appointed for life.
- Creates a new Music Licensing Collective governed by songwriters and music publishers to oversee and administer digital mechanical licensing and payments, resolve disputes and administer unclaimed royalties.
- Eliminates the disastrous Notice of Intent (NOI) program administered by the U.S. Copyright Office that shifted the digital mechanical licensing burden back to songwriters.
- Guarantees streaming royalty payments to artists whose recordings were done before 1972 who now are not required to be paid due to a loophole in the Copyright Act.
- Stipulates direct streaming royalty payments to record producers and engineers.
More information about NSAI here.