20 Apr OPINION: Why The Music Modernization Act Needs Media Support

Posted at 02:54h in Advocacy, Blog, News by
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Today we celebrated another  where members of The Recording Academy such as artists, songwriters, producers, and engineers reminded Congress that current music legislation needs to be updated in order for music creators to properly get compensated. The Music Modernization Act is currently at the center of Congress and with coverage from the media, I am most certain we will get them to pass this bill and make 2018 the year we modernize music legislation.

 
Aside from the often heard title of me being a “Multi-platinum, GRAMMY-nominated songwriter” who’s written for Whitney Houston, Monica, Keyshia Cole and SWW to name a few, I take the greatest pride in saying that as a voting member of The Recording Academy, I’ve evolved into a music advocate who has been pushing music reform for over the last three years. We’ve rallied together with leading politicians throughout the country to gain their support, shared our stories and shown our gratitude for their attention to issues that are dear to our hearts.
 
music modernization act tami latrell

Representative Doug Collins pose photo with recording academy members Trey Bentley, Andrew Bentley, Tami LaTrell, Michele Caplinger, Tai Anderson, Rep. Collins, Chris “Tricky” Stewart, Diane Durrett, Hannah Thomas on March 26, 2018 in Gainesville, Georgia. (Photo by Moses Robinson/WireImage) 

 
I am completely in support of the Music Modernization Act and here’s why:
 
Now let me start off by saying, I’m not a politician, accountant, or an attorney, but I do know that since the emergence of digital streaming, my royalty checks have definitely seen a huge decline. It seems as if no one outside of the Recording Academy’s initiatives, some music business blogs, a few attorneys and PRO’s like BMI and ASCAP, truly understand why this is important – hence the lack of media coverage. Is unfair compensation over the average person’s head or too hard to understand I’m guessing?
 
It’s safe to say as a country, we failed to consider technology’s effect on music and how it would literally shatter the music industry. The Music Modernization Act is a chance to make it right for creators. To give us hope again.
 
No one is talking about the depression and unease many creators have had to face during this transition. It’s embarrassing to discuss. Some writers (producers included) are having to go get jobs now in totally different industries when they have been writing and billboard charting all of their lives to support their families. No one is talking about how hard artists have to work now to support their families and are literally on tour every year and back in the studio when they are off tour – it’s extreme pressure that eventually sucks the life out of your creativity!
 
Aside from the drastic decline in physical sales affecting the health of the music industry, the increase in unregulated digital streaming destroyed the integrity of music’s fabric in America.
Labels who were already facing declines in revenue were then hit with merges, causing major job loss across all departments even outside vendors like agencies and promotional companies – to save themselves. Some publishing companies (let me be clear – not ALL) have become greedy and are doing some of the worst publishing deals to capitalize on “trendy singles” instead of building classic catalogs and negotiating deals with richly talented songwriters and producers – all to save themselves. Not to mention, some publishing companies that house some of the best writers in the world are not even willing to renegotiate old deals that don’t currently support the new digital environment we now live in so that creators are at least able to recoup their advances. So writers feel stuck – like they have no help or no support. And when they finally do get a royalty check – some are devastated that their royalties are shockingly lower than ever!
 
It’s freaking “survival of the fittest” out here…But no one is talking about this. 
 
It’s sad that the value of music has become watered down by streaming, evolved into a “single -driven music economy” and the exploitation of these digital service providers literally took the industry by the balls and ran with it, made billions and stood there like “yep we did it, our subscribers love it, so what are you gonna do about it? The media isn’t talking about this.
Coverage from the media, interviews and real life stories from creators would help spread the severity of why outdated music laws must change. But above all, media coverage can also influence why Congress must act.
 
I applaud streaming companies like TIDAL, Rhapsody, and XBOX music  for paying out higher royalty rates than the other popular streaming giants Spotify, Pandora, and Apple Music but it’s not enough – songwriters, artists and producers deserve more.
 
I’ve compiled a breakdown of the proposed Music Modernization Act that was presented by Dina LaPolt (LaPolt Law, P.C.) and Songwriters Of North America (SONA) in case you or others are interested in what the act covers. Maybe this will bring about some clarity and garner support from other journalists and the media as a whole:
  • Currently, publishers are not always obligated to share royalties from unmatched work (underlying music) with songwriters. Under the MMA, songwriters are obligated under law to receive at least 50% of all royalties for unmatched works.
  • When ASCAP and BMI cannot negotiate performance royalties with licensees, they go in front of the same two rate court judges, who decide their royalty rates. The MMA Proposes that when ASCAP and BMI go to rate court, they can be randomly assigned to any federal judge instead of being stuck with the same one who decides their rates. This is referred to as “the wheel” and benefits us because the DSPs and other licensees won’t be able to game the system by going to a judge they believe will give them a more favorable rate. 
  • Currently, mechanical royalty rates are set using an outdated four-part formula (801(b), resulting in below-market rates. Under the MMA, rates will be based on what a willing buyer and a willing seller would agree to reflect market negotiations which substantially increases our compensation.
  • Currently, songwriters have no involvement in or direct influence over the mechanical licensing system. Under the MMA, Songwriters have positions on three boards governing the operation of the licensing entity: 
  • Self-published songwriters will have four seats (out of fourteen) on the licensing entity board of directors.  
  • Songwriters comprise half of an advisory committee (five of ten seats) overseeing the unclaimed royalties process. 
  • Songwriters comprise half of a dispute resolution committee (three of six seats), which oversees and resolves disputes over ownership of musical works and distribution of royalties.
  • Rate Courts setting public performance royalties for musical works cannot consider all market evidence, including sound recording rates, when determining songwriter compensation. The MMA proposes that courts can now consider all market evidence, including sound recording royalties, when setting rates for public performances of musical works. This was another key provision in the Songwriter Equity Act which should help songwriters get higher payments going forward. 
  • Digital service providers (DSPs) such as Spotify and Apple Music have been avoiding paying for works that aren’t registered with the Copyright Office by sending large quantities of Notices of Intent (NOIs) as a loophole. With the MMA, the DSPs will now be required to pay for all uses of our works, even if they cannot find an owner, rather than avoiding payments.The MMA also establishes a clear process through which copyright owners can claim ownership of songs and receive royalties that DSP’s are just sitting on as unmatched and unclaimed. 
  • Currently, there is no transparency of mechanical rights ownership information for copyrighted works. The MMA will enforce a free, public, searchable database of musical works with mechanical rights ownership information. This will help songwriters get paid accurately for use of their works. 
  • Currently there is no right to audit the digital music providers’ usage of music and royalty payments. The MMA will ensure new licensing entity can audit digital services to ensure proper reporting and payment of royalties. Copyright owners will be able to audit the licensing entity to ensure that they are being paid accurately. Both audit rights ensure that songwriters are able to get answers about whether they are being paid accurately.
The current copyright system for music creators is rooted in the distant past and does not reflect the current digital environment, resulting in below-market compensation for performers, songwriters and studio professionals.
 
As a member of the Recording Academy, creator, and supporter of fellow creators, we are urging Congress to co-sponsor The Music Modernization Act and to support other consensus music issues that are being considered in the House:

  1. The Allocation for Music Producers (AMP) Act, creates a way for producers and engineers to receive direct payments from SoundExchange when recordings are used on satellite radio and online radio services like Pandora. Remarkably, it will be the first time producers and engineers are mentioned in U.S. copyright law.

  2. The CLASSICS Act, The law would close a flawed loophole that leaves classic artists out of the federal copyright system. Currently only sound recordings made after 1972 receive payments from digital radio services under federal law. So for example, SoundExchange would distribute royalties for pre-‘72 recordings played by Internet, cable and satellite radio services just as it does for post-‘72 recordings.

  3. The Fair Play Fair Pay Act which require artists be paid for songs played on broadcast radio, heretofore considered “promotional.” Well unfortunately, according to Variety.com, that provision – strongly opposed by the National Association of Broadcasters and championed by the Recording Academy – will presumably be addressed separately…

 

GAINESVILLE, GA – MARCH 26: (L-R) Representative Doug Collins and Tami LaTrell meet at Representative Doug Collins office on March 26, 2018 in Gainesville, Georgia. (Photo by Moses Robinson/WireImage) *** Local Caption *** Doug Collins,Tami LaTrell

A special thanks to Congressman Doug Collins for being the driving force behind the MMA.

 
Tami LaTrell – @tamilatrell
Songwriter, Music Advocate and Entrepreneur
TamiLaTrell.com
 

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