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Music Streaming Companies Appeal a Ruling to Increase Artist’s Royalties

Music Streaming Companies Appeal a Ruling to Increase Artist’s Royalties

Music streaming platforms like Spotify, Google, Amazon, and Pandora have appealed a ruling by the Copyright Royalty Board to increase royalties creators should receive. Currently, Apple is staying out of the appeal.

In January 2018, the board has ruled to increase royalties payable to artists by 44%. The board further pushed to simplify the payment structure, which should result in more transparency and easier oversight.

A joint statement has been released on Thursday by Google, Spotify, and Pandora stating that the ruling raises serious substance and procedure concerns. If the rule lets to stand, both copywriting industry and music licenses will be damaged – “So we are asking the US Court of Appeals for D.C. circuit to review the decision.”

The National Music Publishers’ Association  criticized the appeal and stated that “when the music was digitized, there was a hope of betterment for the songwriters but the hope is snuffed today when the giant companies shamelessly attempt to cut off the payments of songwriters by one third” said David Israelite, CEO of NMPA.

The board has ruled to increase the payments to artists last year and the thirty-day window for appealing against the ruling started last month. Israelite has praised Apple for not involving itself in this appeal and also said that he is ready to take on the other four companies that have filed the appeal. He further added that “we thank Apple Inc. for accepting the court’s ruling and continuing to be in favor of the artists. Amazon and Spotify are hoping to play out this in a courtroom and it is the high time for both songwriters and music lovers to be united.

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