NMPA CHEERS RATE ADJUSTMENT WINDFALL

The National Music Publishers’ Association is cheering news that songwriters and music publishers will finally receive more than $419m in mechanical and performance royalties owed them by DSPs from 2021-2022—a transaction delayed by legal appeals not completed until August 2023.

Because the final royalty rates differ from the interim ones set by the Copyright Royalty Board (CRB), DSPs must submit adjustments of previous royalty payments for interactive streams to the Mechanical Licensing Collective. Most services previously paid a royalty rate of 10.5%, but the new formula set that number at 14.4% for the period known as Phonorecords III (2018-2020 for historical unmatched royalties and 2021-2022 for blanket licenses).

NMPA President and CEO David Israelite (pictured) says the ruling "will finally net music creators and copyright owners the windfall they should have received years ago. The fact that the majority of this adjustment will be distributed by the MLC in a completely transparent and expedient way is another massive benefit of the Music Modernization Act (MMA), and while we would have preferred it be paid sooner, this is a welcome and critical lift now."

Because several DSPs didn't submit adjustment reports by the 2/9 deadline, the MLC says it expects the total royalty figure to increase by up to $15m in the weeks to come. The MLC is also providing a detailed breakdown of the relevant figures on its website.

Meanwhile, we still use an abacus to complete simple mathematical tasks.