Music Publishing News Roundup 8.19.16: New Songwriter Rate Proposal • $1B Blockchain Investments • Russian PRO Fraud
The National Music Publishers Association and Nashville Songwriters Association International have submitted a new rate proposal to the Copyright Royalty Board.
For digital licensing, the NMPA/NSAI are proposing a “three-pronged” formula to determine mechanical rates, with the enacted prong being whichever formula results in the most revenue at the end of each month. The two organizations are still petitioning the Copyright Royalty Board to eliminate Sony Music’s competing proposal from consideration in the rate-setting process.
• A recent survey by Greenwich Associates reports financial and technology markets will invest $1 billion in blockchain technology this year. Blockchain is a distributed, encrypted system of transferring assets, and the architecture behind bitcoin. It is considered by many in the financial industry as having the potential to transform finance, but it has also been considered to be a possible solution to improving data management in the music industry.
• RSP has broken ties with RAO, the Russian collection society, following fraud claims against the society. RAO’s general director Sergei Fedotov is in custody over allegations that he funneled $7.7 million out of the organization in a series of dubious real estate deals, though a spokesman for RAO states that the company maintains there are no grounds for the accusations. Since 2011, RSP has transferred to RAO over 1.3 billion rubles ($20 million) earmarked for rights holders and paid RAO a commission of 6.5 million rubles ($100,000).