PHEW! Copyright Royalty Board rules to keep the current stat rate

Last Friday the Copyright Royalty Board (CRB) ruled to keep the current statutory rate of 9.1 cents.

This decision should have us all breathing a sigh of relief- Here’s why:

The National Music Publishers Association (NMPA), who represents the interests of songwriters and publishers, wanted an increase in the rate from the current 9.1 cents to 12.5 cents. An increase would have been nice- but perhaps not so realistic.

On the flipside, the Recording Industry Association of America (RIAA), the folks who issue your records platinum and/or gold, wanted the rate reduced to 6 cents.

During the NMPA, RIAA drama, Apple appealed to CRB saying that an increase in the rate could force online retailers like Itunes to close.

This is a significant win for us. A reduction in rates could have been a disaster in an industry already struggling with declining sales and rampant piracy.

In case, you wondering how this directly impacts you- that 9.1 cents stat rate is the money owed to the songwriters and publishers of a song when an album is bought, a single is downloaded, or even a ringtone is bought. A reduction in that 9.1 cents may sound small- but could be the difference in thousands of dollars hitting your account...

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