American songwriters have long faced challenges in receiving fair compensation for their creative works, often operating under a compulsory licensing system that robs them of control and equitable remuneration.
In a bid to address this longstanding issue, Congress passed the landmark Music Modernization Act (MMA) six years ago. The MMA aimed to modernize music licensing and ensure publishers and songwriters were compensated more fairly.
However, recent actions by music streaming giant Spotify have raised concerns among lawmakers that the company may be exploiting loopholes in the MMA to cut royalty payments to creators drastically.
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In response, a bipartisan group of legislators has taken the fight to the U.S. Copyright Office, demanding an investigation into whether Spotify’s moves align with the landmark legislation’s spirit and intent.
U.S. Senator Marsha Blackburn (R-Tenn.), Congressman Ted W. Lieu (D-Calif.), and Congressman Adam Schiff (D-Calif.) have jointly penned a letter to the U.S. Copyright Office, expressing their grave concerns over Spotify’s recent actions to re-designate its streaming service as a “bundle,” leading to a sharp reduction in royalty payments to publishers and songwriters.
As members of the Judiciary Committee, which was instrumental in the creation of the Music Modernization Act, the lawmakers are adamant that the law be faithfully implemented and that copyright owners are protected from any harm arising from the “bad faith exploitation of the compulsory system.”
“American songwriters create the music we love but have long labored under a compulsory licensing system that robs them of control over their work and the ability to receive fair compensation,” wrote the Members. “Six years ago, Congress passed the Music Modernization Act (MMA) to address that problem. It was a landmark compromise that benefited streaming platforms by modernizing music licensing while reducing legal liability for digital streaming companies, while at the same time ensuring publishers and songwriters were compensated more fairly. We believe it is essential, then, that Congress raise serious questions regarding whether Spotify’s recent actions are in step with the spirit of the Music Modernization Act.”
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“As members of the Judiciary Committee, which originated the Music Modernization Act, we want to see the law faithfully implemented and copyright owners protected from harm arising from bad faith exploitation of the compulsory system,” continued the Members. “Digital service providers should not be permitted to manipulate statutory rates to slash royalties, deeply undercutting copyright protections for songwriters and publishers. A fair system should prevent any big tech company from setting their own price for someone else’s intellectual property, whether the owner wants to sell or not.”
The Music Modernization Act was a landmark piece of legislation that aimed to address the longstanding challenges faced by American songwriters. It was a carefully crafted compromise that sought to balance the interests of streaming platforms and copyright owners.
On one hand, the MMA modernized music licensing, reducing legal liability for digital streaming companies. On the other, it ensured that publishers and songwriters were compensated more fairly for their creative works. The lawmakers argue that it is essential to uphold the spirit of this compromise and prevent any attempts by tech giants to manipulate the statutory rates to their own advantage.
According to the lawmakers, Spotify’s recent actions to re-designate its streaming service as a “bundle” have led to a sharp cut in royalty payments made to publishers and songwriters. This move, they argue, is a blatant attempt by the company to “slash royalties” and “deeply undercut copyright protections” for the very creators whose works drive the platform’s success.
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The legislators contend that digital service providers should not be permitted to manipulate statutory rates to their own benefit, effectively setting the price for someone else’s intellectual property without the owner’s consent. They believe this practice directly undermines the core objectives of the Music Modernization Act and jeopardizes the livelihoods of the very artists who are the lifeblood of the music industry.
American songwriters, the lawmakers argue, are the creative force behind the music that captivates audiences worldwide, yet they have long been subjected to a system that robs them of control and fair compensation for their work. The passage of the Music Modernization Act was a hard-won victory, intended to address this longstanding imbalance and ensure that publishers and songwriters receive their due.
However, the recent actions by Spotify threaten to undermine these hard-won protections, potentially depriving creators of the ability to be fairly remunerated for their intellectual property. The legislators contend that this is unacceptable and that the U.S. Copyright Office must take swift action to investigate the matter and uphold the integrity of the MMA.
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