As we’ve mentioned time and time again, music streamers have been under legal battles for months now over royalty issues. Spotify, not being an exception, seems to have made some headway with a solution for royalty payments of ‘unmatched’ compositions played by them.
It’s a settlement agreement with the National Music Publishers Association (NMPA) that is reportedly between $2o and $25 million dollars.
It also includes a bonus compensation fund reported to add $5 million to the settlement.
From April, copyright owners can identify works and receive money set aside by Spotify due to their usage of unmatched works since the streamer launched through June of this year.
An online portal will be availed to allow the claiming of works and request of payments. Any royalties for songs that remain unmatched after each claiming period will be distributed to publishers and songwriters who participate in the settlement as a bonus.
“We must continue to push digital services to properly pay for the musical works that fuel their businesses”
“We must continue to push digital services to properly pay for the musical works that fuel their businesses and after much work together, we have found a way for Spotify to quickly get royalties to the right people,” said NMPA President and CEO David Israelite is a statement. “I look forward to all NMPA members being paid what they are owed, and I am excited about the creation of a better process moving forward.”
The agreement will not affect the royalties owed to any publisher or writer who aint participating. That’s a choice that those in songwriting and music publishing community will have to make pretty soon.
Let’s wait to see how it all pans out. Stay tuned.