Industry News

Folie à deux: Will the Copyright Royalty Board Share the Madness of Pretending That Songwriters Aren’t Affected by Economic Inflation?

It is difficult to understand the reasons why, but the current proposal for mechanical royalty rates before the Copyright Royalty Board do not include an index for inflation. Until a 2006 it was customary to include a rate increase for mechanical royalties, often indexed to the Consumer Price Index (not the best index to chose, but serviceable). This practice began in 1978 but has been denied to a generation of songwriters since 2006 when certain mechanical rates were frozen and capped. Why? Because them what had the power to make the rules made that new rule and abandoned the old rule. And in the face of the edict from the rulemakers, the ruletakers simply sucked it up. They got away with it for 70 years when they froze the rate at 2¢, so why not try it again?

Read More: https://musictechpolicy.com/2021/06/02/folie-a-deux-will-the-copyright-royalty-board-share-the-madness-of-pretending-that-songwriters-arent-affected-by-economic-inflation/