HomeWhat's Trending'Landmark Victory': Copyright Office Finalises Rule Change on Streaming Royalties

‘Landmark Victory’: Copyright Office Finalises Rule Change on Streaming Royalties

In a significant development for songwriters reclaiming their music rights, the U.S. Copyright Office has solidified a crucial rule regarding streaming royalties. This ruling clarifies who receives payments from platforms like Spotify after songwriters invoke their termination rights.

The finalised rule addresses concerns raised over a previous policy by the Mechanical Licensing Collective (MLC), which critics argued could indefinitely funnel streaming revenues to former owners even after rights were reclaimed. Advocates, including renowned artists like Don Henley, Sheryl Crow, and Sting, rallied behind revisions to ensure fairness under copyright law.

Jordan Bromley of the Music Artists Coalition hailed the decision as a ‘landmark victory for songwriters,’ emphasising that it not only guarantees fair compensation but also reinforces the integrity of copyright in the digital era. The MLC, in response, welcomed the guidance and committed to implementing necessary changes to comply with the new rule.

Key to the issue is how the MLC’s blanket license interacts with termination rights granted by federal law, which allow songwriters to regain control of their works sold decades earlier. The rule aims to balance the rights of songwriters while respecting existing licenses and derivative works created during prior ownership.

Despite initial disagreements and a lengthy public comment period, the Copyright Office’s final rule underscores that royalties rightfully belong to post-termination copyright owners. It mandates corrective adjustments to rectify any prior improper payments, a move supported by industry stakeholders for its clarity and fairness.

David Israelite, President & CEO of the National Music Publishers’ Association, praised the outcome, noting that clear guidelines will streamline processes and ensure prompt payments to songwriters reclaiming their copyrights. Industry-wide, the decision has been met with acclaim, with stakeholders affirming its role in protecting creators’ rights in the digital music landscape.

This ruling marks not just a regulatory change but a pivotal moment for music creators seeking equitable treatment in a rapidly evolving industry. As the Copyright Office enacts these reforms, it sets a precedent for safeguarding the rights of artists in an increasingly complex digital ecosystem.

As you navigate these significant changes in copyright law, ensure you have the right legal support to protect your rights and maximise your earnings. Vakilsearch offers reliable, efficient, and affordable legal services, providing expert guidance and comprehensive support to help you make the most of new regulations. Choose Vakilsearch for a seamless legal experience, ensuring your creative works are protected and fairly compensated in the digital era.

Akash G Varadaraj
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