Streaming Services: New Legislation Could Change How Royalties Are Paid

Posted on 02-06-2018 by
Tags: royalties , music , streaming music


Music Publishers, Songwriters and Streaming Services Agree With Proposed Changes

Bipartisan legislation plus industry agreement usually signals a change on the horizon. This could be the case with the Music Modernization Act. Among other things, the Act proposes a new way for streaming services to pay mechanical royalties


The Times They [Might Be] A Changin’

The bill, the Music Modernization Act, has been introduced in both the House and the Senate by a bipartisan group of lawmakers who say they want to update copyright law for the new world of streaming, which has more than doubled in revenue since 2015 and now accounts for more than 60 percent of the music market. The proposal would make a number of changes to copyright law, but the centerpiece is a major rewrite of how streaming services like Spotify pay so-called mechanical royalties — which go to songwriters and publishers when their musical compositions are recorded or reproduced. Music Modernization Act: 4 Big Things You Need To Know, Law360, January 25, 2018

Read the bill and see the likelihood of passage below:

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