Recording Academy Advocates for Songwriters with Historic Payout of Nearly $400 Million

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In a landmark victory for songwriters and publishers, the Recording Academy, through the Mechanical Licensing Collective (MLC), has secured a historic payout of nearly $400 million. This monumental sum is owed to rights holders due to underpayments during the Phonorecord III blanket licensing period from 2021 to 2022.

Underpayments by DSPs Digital Service Providers (DSPs) such as Spotify, Amazon Music, and YouTube are reported to have underpaid rights holders by slightly over $419 million during the specified licensing period.

Breakdown of Underpayments:The underpaid amount includes $281 million for mechanical royalties and $137.8 million for performance royalties. These royalties are crucial to songwriters and publishers for their creative contributions.

MLC's Reference to Copyright Royalty Board The Mechanical Licensing Collective attributes this significant payout to the decision of the Copyright Royalty Board's Phonorecord III final determination made in August.

Recording Academy's Advocac The Recording Academy has consistently been a champion for the rights of songwriters and publishers. This achievement reflects the ongoing commitment to ensuring fair compensation for creators in the ever-evolving landscape of digital music streaming.

Ongoing Reporting As more reports from Digital Service Providers are anticipated, an additional $10 million to $15 million is expected to be added to the already substantial total balance.

Maximizing Membership The Recording Academy emphasizes its dedication to supporting all its members. A guide is provided to assist Recording Academy members in leveraging their platform, maximizing their membership benefits, and engaging with the various divisions and initiatives of the Academy.

This historic payout not only acknowledges the creative contributions of songwriters and publishers but also sets a precedent for fair compensation in the digital music streaming era. The Recording Academy's ongoing efforts underscore its role as a staunch advocate for the rights and well-being of music creators. As the landscape evolves, the Academy remains committed to securing just compensation for its members.