Spotify and Amazon 'sue songwriters' with appeal against 44% royalty rate rise in the United States
A recent Copyright Royalty Board (CRB) ruling brought great news for songwriters in the US – with royalty rates for streaming and other mechanical uses set to rise 44% in the market.
Spotify and Amazon have now officially come out in opposition to that ruling, in what the National Music Publishers Association (NMPA) has called a "shameful" move which equates to "suing songwriters".
On January 27, 2018 MBW reported on the CRB’s landmark ruling, which stated that royalty rates paid to songwriters in the US from on-demand subscription streaming would rise by 44% over the next five years. That decision was ratified last month (February 5), when the CRB published the final rates and terms for songwriters.
Streaming companies were given 30 days to lodge official opposition to the ruling if they wished. The likes of Apple Music declined to do so – but it's a different case for Spotifyand Amazon, which have now both filed a notice of appeal against the 44% royalty rise.
In a statement today (March 7), the NMPA said that a "huge victory for songwriters is now in jeopardy" due to the streaming services’ filing.
NMPA President & CEO David Israelite commented: “When the Music Modernization Act became law, there was hope it signaled a new day of improved relations between digital music services and songwriters. That hope was snuffed out today when Spotify and Amazon decided to sue songwriters in a shameful attempt to cut their payments by nearly one-third.
He added: "The CRB’s final determination gave songwriters only their second meaningful rate increase in 110 years.
Instead of accepting the CRB’s decision which still values songs less than their fair market value, Spotify and Amazon have declared war on the songwriting community by appealing that decision."