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Tech Giants, Music Publishers, Major Labels Propose A 12 Cent Mechanical Rate

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(CelebrityAccess) — A new motion to the Copyright Royalty Board recommended substantially increasing the rate paid for mechanical royalties from 9.1 cents to 12 cents per track, an increase of 32%.

As reported by Variety, signatories on the motion include major players in the tech world such as Spotify, Google, and Apple, as well as stakeholders such as the Recording Industry Association of America (RIAA), the National Music Publisher’s Association (NMPA), and the Nashville Songwriters Association International (NSAI), and major labels including Warner, and Universal.

The new rate, if ratified by the CRB, will go into effect next year and will settle an ongoing dispute over mechanical rates for the 2023-2027, covering everything from physical product such as CDs and vinyl records, as well as digital downloads, including ringtones.

“This new settlement gives songwriters a 32% raise on sales of vinyl, CDs and downloads—raising the rate from 9.1 cents to 12 cents—and critically also includes a yearly cost of living adjustment to address inflation,” said NMPA President David Israelite in a statement provided to Variety. “This extremely positive result is due in large part to the creators who made their voices heard in the CRB process. With this settlement filed, we clear the way to focus solely and tirelessly on raising streaming rates. As we battle the biggest companies in the world, who are pushing for the lowest royalty rates in history, songwriters and their advocates stand more united than ever.”

“We want to thank the CRB for signaling an opportunity for an increase on physical rates. The 32% increase on CDs, Vinyl and downloads is welcome and the fact that the cost of living adjustment is built in helps us maintain increases in the future,” added Bart Herbison, executive director, NSAI.

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