State Champ Radio songwriters
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Reps. Ted W. Lieu (D-CA) and Ben Cline (R-VA) have joined together to re-launch and co-chair the bipartisan Congressional Songwriters Caucus to focus on advancing policies that support independent songwriters and strengthen copyright protections.
The new caucus has support from the Recording Academy, Nashville Songwriters Association International, BMI, ASCAP and the National Music Publishers’ Association (NMPA), according to a press release. No specific names of independent songwriters were included in the release, and a representative for Lieu has not responded to Billboard’s requests for more information.
The caucus was originally formed in 2003 by Sen. Marsha Blackburn (R-TN) when she served as a House representative for Tennessee. According to her website, part of her focus at the time was cracking down on China’s intellectual property theft and how that affected songwriters and other creatives.
The interests of musicians is also represented in Congress with the Recording Arts and Sciences Congressional Caucus, which was established in 2005 and continues today, helmed by Speaker of the House Kevin McCarthy (R-CA) and new Democratic Leader Hakeem Jeffries (D-NY).
Hailing from Southern California, Rep. Lieu says he understands first hand how “talented songwriters… contribute to so much of our culture and society. I’m thrilled to join Congressman Cline in co-chairing the new bipartisan Congressional Songwriter’s Caucus, which will work to support America’s brilliant songwriters by ensuring they can protect their work and make a living doing what they love. Music contributes so much to our way of life, and we must ensure those creating it are compensated fairly. I’m grateful to the numerous songwriter advocacy organizations who’ve partnered with us on the creation of this caucus and look forward to working together to support our artists.”
“Making art, specifically music, is a powerful way to leave a mark on the world,” says Rep. Cline. “It’s a part of our everyday lives, from what we listen to on our commutes in the morning, to the music we select for our most important life events, such as birthdays, weddings, and funerals. But today’s modern music landscape can make it more difficult for certain artists, especially independent songwriters, to make a living. That is why I’m proud to co-chair the Congressional Songwriters Caucus, which will play an important role in promoting the songwriting community by working to ensure the creative rights of songwriters are protected.”
“It All Begins With A Song,” says Bart Herbison, executive director of NSAI. “the entire music ecosystem. Since the Songwriters Caucus was initially launched 20 years ago, technology has completely changed the way music is delivered. American songwriters still face challenges in the digital era and we are very grateful to Congressmen Cline and Lieu for their bipartisan support.”
“On behalf of our over one million affiliates, I’d like to thank Representatives Cline and Lieu for co-chairing the Congressional Songwriters Caucus. Both have always been champions for creators, and we are in excellent hands with them leading the charge for songwriters and composers on the Hill. We stand ready to work with them to ensure creators are supported by strong copyright law and that they are fairly compensated for their work,” adds Mike O’Neill, president and CEO of BMI.
“Songwriters are the foundation of America’s vibrant music industry, and we appreciate Representatives Cline and Lieu recognizing the importance of ensuring we have champions in Congress. As technology transforms the music landscape, ASCAP looks forward to engaging with members of the Congressional Songwriters’ Caucus to protect the rights of American music creators and defend the value of their hard work and creativity,” says Paul Williams, president of ASCAP.
“We applaud Representatives Cline and Lieu for leading the Congressional Songwriters Caucus and we are excited about today’s launch. NMPA is the leading advocate for music publishers and their songwriter partners and we greatly look forward to working with the Caucus to advance policy interests that will protect creators and ensure that songwriters thrive,” says NMPA president and CEO David Israelite.
“The Recording Academy is proud to support the re-launch of the Congressional Songwriters Caucus which helps connect songwriters and composers with lawmakers to ensure that their unique interests are heard and understood. We are grateful to the new Caucus Co-Chairs, Representatives Ben Cline and Ted Lieu, for their support and leadership and we look forward to working with stakeholders across the songwriter community to advance the Caucus forward,” says Recording Academy CEO Harvey Mason Jr.
Tim Rice will be the 2023 recipient of the Johnny Mercer Award at the 52nd annual Songwriters Hall of Fame Induction and Awards Dinner, which is slated for Thursday, June 15, at the Marriott Marquis Hotel in New York City.
Rice, who teamed with Andrew Lloyd Webber to write such classics as Jesus Christ Superstar and Evita, is the first songwriter primarily known for his work in theater to receive this award since Stephen Sondheim in 1999.
Rice is the second EGOT recipient to receive the Johnny Mercer Award – following Alan Menken. The two songwriters shared an Oscar and three Grammys for their work on Aladdin.
He’s the fifth songwriter or songwriting team from the U.K. to receive the honor, following Jule Styne (1993), Phil Collins (2010), Elton John & Bernie Taupin (2013) and Van Morrison (2015).
The Mercer Award, the SHOF’s highest honor, is reserved for a songwriter or songwriting team who has already been inducted in a prior year and whose body of work upholds the standards set by Johnny Mercer, a four-time Oscar-winner.
“I am truly honoured to be chosen to receive the Johnny Mercer Award,” Rice said in a statement. “My induction into the SHOF in 1999 was itself a highlight of my writing career and I never expected to receive any further recognition from the most distinguished gathering of songwriters in the world. So, I am bowled over (a cricketing metaphor) with gratitude. I have attended quite a few SHOF events in the past 25 years and they have always been among the most enjoyable of entertainment world extravaganzas – unpretentious, unpredictable, and spectacular. So, June 15, 2023, is a golden booking in my electronic diary.”
Inductees at this year’s Songwriters Hall of Fame Induction and Awards Dinner are Sade Adu, Glen Ballard, Snoop Dogg, Gloria Estefan, Jeff Lynne, Teddy Riley and Liz Rose. The recipient of a second honorary award, the Hal David Starlight Award, will be announced at a later date.
SHOF Chairman Nile Rodgers said, “Tim Rice is an artisan. He has crafted some of the greatest lyrics and stories in musical history with Jesus Christ Superstar, and his incredible work with Andrew Lloyd Webber being amongst my favorites.”
Rice has won an Emmy, five Grammys, three Oscars and three Tonys. He won an Oscar and three Grammys for his work on Aladdin; two Tonys, a Grammy and an Oscar for Evita and its film adaptation; a Tony and a Grammy for Aida; an Oscar for The Lion King and an Emmy for Jesus Christ Superstar: Live in Concert.
Rice has worked in music, theatre, and films since 1965. In addition to his work with Webber, Rice has worked with such other top composers as Elton John (The Lion King, Aida), Menken (Aladdin, King David, Beauty and the Beast) and Bjorn Ulvaeus and Benny Andersson (Chess). He has also written with Freddie Mercury, Burt Bacharach and Rick Wakeman, among others.
Rice’s recent musical From Here to Eternity returned to London in November 2022. A new Broadway presentation of Chess is set to open in the fall of 2023. In early 2024, a new production of Aida will make its U.K/West End début. Rice is currently writing and presenting a podcast, Get Onto My Cloud, in which he reminisces about his years in music, theater and film.
Arriving just before New Years’ Eve, on Friday (Dec. 30), the Copyright Royalty Board judges issued their ruling on streaming royalty rates for songwriters for the period of January 2023 to December 2027, upholding a settlement proposed by the National Music Publishers’ Association (NMPA), Digital Media Association (DiMA), and Nashville Songwriters’ Association International (NSAI) in late August. This ruling sets the rates for Subpart C and D of the five year period known as Phonorecords IV (or “Phono IV” for short), and it represents a compromise between the music industry and the streaming services, creating certainty around the royalties owed to songwriters for U.S. mechanicals.
According to the settlement, which the NMPA touts as the “highest rates in the history of digital streaming,” the headline rate will increase from 15.1% of revenue in 2023 to 15.2% in 2024 and then up a half a percentage point in each of the remaining three years, peaking at 15.35% in 2027, the final year of the term.
For stand-alone portable subscription offerings — like Spotify — the total content cost (TCC) component of the rate formula will be set at 26.2% of what’s paid to labels for the entire term, or $1.10 per subscriber, whichever is lower. Previously, those numbers were 21% of revenue and 80 cents per subscriber.
This means that the resultant TCC pool is measured against the total service revenue. Whichever is larger is designated the “all-in” pool, including both performance and mechanical royalties. After this is established, performance royalties are subtracted out, leaving behind solely the mechanical royalties.
Finally, the resultant mechanicals are compared against a pool, calculated by multiplying a streaming service’s total subscribers by 60 cents per person. Whichever of these two totals is bigger becomes the final mechanical royalty pool paid out to publishers and songwriters. Previously, the multiplier for the last 10 years had been set at 50 cents per subscriber.
This final ruling, reached two days before its rates are set to take effect, is a striking contrast from the lengthy proceedings to set streaming rates for Phonorecords III (2018-2022). Though that five year period is nearly over, its rates are still not finalized. In 2018, the music industry initially won the increase of the headline rate from 11.4% to 15.1% over the five year period, but the following year, Spotify, Amazon, Google and Pandora appealed, hoping to secure a lesser rate. This resulted in a legal back-and-forth that continues today, and although it is nearing its completion, it has created uncertainty surrounding what songwriters are owed for their work.
In hopes of streamlining the process and avoiding lengthy proceedings, the three settling parties worked together to propose a settlement for approval or denial by the CRB. Though other participants and interested parties outside of those who took part in the settlement were given the opportunity to explain their point-of-view during the month-long “comment period,” which ran from Nov. 7 to Dec. 7, the board explained in its ruling that its role is to either adopt or decline the settlement’s terms as presented, not to “modify” or add “requested adjustments.”
The ruling makes note of concerns provided by the 20 total commenters who weighed in on the settlement during the period, including that to some independent songwriters “the proposed rates might seem inadequate” and that several commenters prefer “alternative methods for inserting inflation adjustments.” “However,” the board states in the ruling, “the settlement is what is before the judges for consideration, not alternative rates or proposals for alternative procedures.”
In a statement Friday, NMPA president and CEO, David Israelite, celebrated the news. “Starting January 1, songwriters will enjoy the highest rates in the world and the highest rates in the history of digital streaming,” he said. “Thanks to the many songwriter advocates who worked hard to make this happen. There are still many challenges ahead to ensure that songs receive their proper value, but the future is bright.”
DiMA president and CEO, Garrett Levin, added, “We appreciate the Copyright Royalty Board for recognizing the benefits of this landmark agreement and the certainty it provides for streaming services, publishers, and songwriters alike. Thanks to the agreement, we can kick off 2023 focused on fans and continuing to grow streaming for the benefit of all stakeholders.”
Additional Reporting by Ed Christman
Songwriters have something to celebrate this holiday season. Though it seemed rulings on royalty rates for the period of 2018-2022 (Phonorecords III) and 2023-2027 (Phonorecords IV) would not receive final judgement by the Copyright Royalty Board in time for Christmas, there is finally clarity about at least one type of royalty. The board on Friday (Dec. 16) accepted a proposed settlement to hike the royalty rate for U.S. mechanicals for physical products (like vinyl records, CDs, cassettes), permanent downloads, ringtones and music bundles.
Taking effect on Jan. 1, 2023, as part of Phonorecords IV, songwriters will earn 12 cents per track or 2.31 cents per minute of playing time or fraction thereof, whichever amount is larger for physical products and permanent downloads. This will also include inflation-based adjustments for subsequent years of the rate period, a major change for composers who have historically been locked into stagnant penny rates for sales, despite the increasing cost of living. Ringtones will remain at the same rate as they were previously, and the money earned for each element of a music bundle will be decided according to the rates for that element.
The new ruling today approves what is known as “Settlement 2,” which was formed by the National Music Publishers’ Association (NMPA), Nashville Songwriters Association International (NSAI), as well as the major music companies: Universal Music Group, Sony Music Entertainment and Warner Music Group earlier this year.
As the name of the settlement implies, there was one that preceded it. In 2021, the same parties proposed “Settlement 1” which would have upheld the long-standing 9.1 cent penny rate for physical goods and permanent downloads. That proposed settlement was sent to the Copyright Royalty Board judges for approval last year, but it triggered backlash among some in the independent writer community.
The 9.1 cent rate has been in effect since 2006 and has not risen with inflation. George Johnson, an independent songwriter who often pushes back against settlements at the Copyright Royalty Board in favor of higher rates, and other interested parties objected to continuing this 9.1 cent rate for another five year period. They also noted other issues with Settlement 1, like the lack of adjustments for inflation, and questioned a memorandum of understanding (MOU) between the major labels and the NMPA, which could have provided waivers on late fees the U.S. Copyright law allows when payment deadlines are missed.
In response to concerns, The CRB judges concluded the proposed settlement did not provide a reasonable basis for setting statutory rates and terms as stated in proposed settlement 1.
For many years, the CRB rate proceedings have primarily focused on achieving fair compensation for streaming rates. In 2021, audio digital services paid out about $1.3 billion to publishers and songwriters, according to data from the Mechanical Licensing Collective.
While sales formats comprise roughly 15% of the recorded music market, the NMPA estimates those formats produce just 5% of U.S. publishing royalties. If streaming continues to grow at its current pace, some say that within three years these sales formats that are covered by the subpart B configurations might only account for 1% of publishing royalties.
The NMPA has also pointed out in the past that rate litigation is expensive — often in the tens of millions of dollars — as a reason why they have focused on fighting for high streaming rates rather than what formats are covered by subpart B, noting that the cost of litigation could end up equaling or outweighing whatever additional money a higher subpart B hike could achieve.
In Friday’s ruling, however, the court notes that the royalties generated by vinyl, CDs, downloads and other formats covered in subpart B “should not be treated as de minimis, or as a ‘throw away’ negotiating chip to encourage better terms for streaming configurations.” They also noted the improvements to Settlement 2 as “distinguishable” from the first proposed settlement.
The event marks the biggest rate increase for songwriters for physical goods and permanent downloads in almost two decades.
Now, just one final step remains: the register of copyrights has to check and make sure this is compliant with the copyright statute, and if approved — which is typical — this will go into effect at the top of the year. However, participating parties also have 30 days to file an appeal to the CRB’s determination.
Music business lawyers, songwriters, and other professionals gathered at the University of Georgia in Athens for the Artist Rights’ Symposium on Nov. 15. Hosted by senior lecturer, songwriter and member of band Cracker, Dr. David Lowery, the day-long conference discussed ways for the music industry to better champion songwriters, to address the problem of metadata inaccuracies, and to explain the differences in rate setting across different countries.
The series of panels was bisected by a lunch and fireside chat with Hipgnosis CEO and founder Merck Mercuriadis, moderated by attorney Chris Castle, who explained why he feels the industry is in the “age of the songwriter.” “There has been a massive paradigm shift,” he said. “Forty years ago, the power was in the artist brand,” but now, most songs that top the Billboard charts are written by a larger number of songwriters than ever, meaning the demand has never been higher for good hitmakers. “But songwriters have to have a place at the negotiating table now,” he said, citing that in the United States, rates for mechanicals are set by the government’s Copyright Royalty Board, barring “free market” negotiations. “Let’s face it, [the government controlling rates] is insulting to songwriters.”
Mercuriadis said he’s a supporter of the recent Phonorecords IV settlement, which set the U.S. mechanical streaming rates for 2023-2027, and was formed by the National Music Publishers’ Association (NMPA), the Digital Media Rights (DiMA) and Nashville Songwriters Association International (NSAI) banding together earlier this fall for “one main reason:” he believes it will provide the industry with stability for the next five year period. This would contrast the current five-year period (2018-2022), Phonorecords III, in which publishers, rights holders and songwriters have not had a clear idea of what rate they would be paid due to a lengthy appeals process that has tied up royalties.
He detailed an ambitious hope for the future, to “get out of the CRB in the next five years and into the free market.” Mercuriadis’ vision, he said, was inspired by the screenwriters guild — The Writers Guild of America — which has been able to secure fair compensation for those who create the scripts the industry is reliant on through advocation, unionization and bargaining with its titans of industry. Mercuriadis has certainly espoused his vision for a coalition of songwriters in the past and stood by that vision during his chat at the symposium, but he did not reveal many new details of his plans to build it.
“I have tremendous faith,” he said of it happening, despite the challenges and legal roadblocks he faces to achieve this scenario, adding that artists could be a major potential ally to songwriters getting what he thinks of as fair opportunities. As a leader in the catalog acquisition business, Hipgnosis has financial interests that overlap with songwriters regarding compensation rates.
Some panelists who flew in from Europe and South America for the event broadened the discussion beyond the U.S. borders. Crispin Hunt, the former chair of the U.K.’s Ivors Academy, explained how whatever rates are set in the U.S. often act as a benchmark for other countries during their respective negotiations with the same services. Also during the panel, Hunt added that he felt this was “an incredibly critical moment for songwriters,” as traditional offline broadcast income continues to fall and is replaced more with each coming year by digital.
Samantha Schilling of Songtradr brought her perspective from working in Brazil and with a mostly Latin American music business. She pointed out the differing standards that separate her business with that of the U.S. and how the two regions might learn from each other. For example, she said, while commonplace in the U.S., some Latin American countries prohibit work for hire agreements for songs written for TV/film. She said this helps songwriters maintain ownership and secure royalties on the backend. “That was put in place to protect songwriters,” Schilling noted. “Netflix tried to change it… but we were able to fight for songwriters to get that backend income.” In the U.S., some streaming video on demand (SVOD) companies are rumored to be asking songwriters to give up their backend royalties, a crucial component of income for those working at the intersection of music and visual media.
The day ended off with a discussion of the importance of metadata — which is often incomplete or incorrect, causing misallocation of songwriters’ royalties — and registering properly with the Mechanical Licensing Collective (MLC) to collect due compensation. Led by Abby North (North Music Group), Erin McAnally (Artists Rights Alliance), Helienne Lindvall (European Composer and Songwriter Alliance, Ivors Academy) and Melanie Santa Rosa (Word Collections, The MLC), the conversation harkened back to Hunt’s earlier point about the growing importance of digital income streams, which according to CISAC’s 2021 annual report, comprises of $3.62 billion to the worldwide music business, and how the industry can clean up its rocky start to collecting from these sources.
