Pryor Cashman Advises NMPA and NSAI on Rate-Setting Proposal for Digital Music Streaming Services
On November 1, 2016, Pryor Cashman clients the National Music Publishers’ Association (“NMPA”) and Nashville Songwriters Association International (“NSAI”) submitted their Written Direct Statement to the Copyright Royalty Board (“CRB”) proposing rates and terms payable by interactive streaming and limited download services such as Amazon, Apple, Google and Spotify for the years 2018-2022.
Under the proposal, NMPA and NSAI are calling for rates to be set on a per-play and per-user basis rather than as a percentage of revenue, an approach they contend will ensure that songwriters are paid in accordance with “the inherent value – and popularity – of their work, instead of the success of a given service’s business model.”
In a press statement announcing the proposal, NMPA President and CEO David Israelite explained:
“Interactive streaming is becoming the dominant way in which consumers listen to music. This trend will continue, therefore it is imperative that we improve the rates paid by streaming services like Spotify to ensure that the songwriters who create the songs on which these platforms are built, are paid fairly.”
Pryor Cashman Intellectual Property Litigation Partners Donald Zakarin, Frank Scibilia, James Janowitz, Lisa Buckley, Benjamin Semel and Mona Simonian represent NMPA and NSAI in the rate-setting litigation.
