New Mechanical Rates Expected Today

The three Federal judges that make up the U.S. Copyright Royalty Board will decide mechanical royalty rates for downloads, CD’s and ringtones. A substantial change could set off a chain reaction in a sector still struggling to find its footing. Higher rates could cause a contraction and rate cuts might spawn innovation.

Opposing sides have been advocating for a change in the current 9.1 cent rate paid to songwriters and publishers. The Digital Music Association on behalf of all sizes and types of internet broadcasters is pushing to lower rates to 4.8 cents and the National Music Publisher’s Association is advocating for a rise to 15 cents. Stay tuned…