HHR New Media, Entertainment and Technology Group

  Royalty Rate Analysis

After months of hearings, testimony and deliberations, on October 2, 2008, the United States Copyright Royalty Board (CRB) announced newly established rates for royalties to be paid to writers and composers (as opposed to performers) whose musical compositions are made and distributed as sound recordings (i.e., phonorecords), including via (1) physical recordings (e.g., CDs, tapes, vinyl, etc.), (2) permanent digital downloads, (3) ringtones, (4) limited/tethered digital downloads and (5) interactive streaming. Continue Reading »

As we previously noted, it was recently reported that in the midst of the Copyright Royalty Board (CRB) hearings, the publishers, record labels and digital music providers (DiMA) agreed to a settlement on the royalty rates for limited downloads and Internet streaming, that are scheduled to ratified this October by the CRB. Given the sides’ position throughout the process on this issue was so far apart, it seemed as though these rates, in particular, would certainly be left to be decided by the CRB judges. But in the wake of this news of agreement, the logical conclusion is that the parties agreed on a revenue equation for the rates, as has been the case in other countries for publishing royalties, where the publishers are guaranteed the greater of a certain percentage of revenue or an amount per subscriber, download, stream, play, etc. Continue Reading »

It was recently reported that in the midst of the Copyright Royalty Board (CRB) hearings, the publishers, record labels and digital music providers (RIAA, DiMA, etc.) agreed to a settlement on two of the five royalty rates scheduled to be set this October by the CRB. This news surfaces from comments made by National Music Publishers’ Association’s president/CEO David Israelite on June 18^th, 2008, at a recent trade association meeting in New York. Specifically, it seems the sides have reached an agreement on the rates for limited downloads and Internet streaming, but still remain worlds apart on the other rates, which include, digital permanent downloads and ringtones. The confidential agreement still requires approval by three CRB judges, however, there is little chance they will balk at a pack reached by the two sides. Continue Reading »