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21 U. Denv. Sports & Ent. L.J. 19 (2018)
The Future of Streaming Music: The Music Modernization Act and New Copyright Royalties Regulations

handle is hein.journals/denversel21 and id is 23 raw text is: THE FUTURE OF STREAMING MUSIC: THE MUSIC MODERNIZATION ACT AND NEW COPYRIGHT ROYALTIES REGULATIONS By: Callie P. Borgmann* ABSTRACT This note details how the Copyright Royalty Board and Congress are seeking to change the music industry. In January of 2018, the Copyright Royalty Board introduced new regulations that outline new procedures for paying songwriters and record labels royalties that derive from streaming services. These regulations will increase royalties from streaming by nearly fifty percent over the next five years and will help to eliminate the disparity between streaming and terrestrial royalty compensation. Additionally, Congress has proposed the Music Modernization Act, which would ultimately create an administrative agency that would handle copyright within the music industry. In the end, these new regulations will influence songwriters, streaming services, and users. NEW ROYALTY REGULATIONS On January 26, 2018, the Copyright Royalty Board (CRB) introduced new regulations relating to royalties paid to songwriters for streaming services. This decision came as a result of a 2017 trial between the National Music Publishers Association (NMPA) and the Nashville Songwriters Association International (NSAr) (NMPA and NSAI are collectively the writers) against various streaming services such as Amazon, Apple, Spotify, and Pandora, as well as pressure from songwriters to increase streaming royalty rates.2 Over the next five years, songwriter royalty rates for interactive streaming will increase by nearly fifty percent.3 Prior to implementation of the new regulations, services were only required to pay * University of Denver, Sturm College of Law, Juris Doctor 2019. Callie is also a Managing Editor on the Sports and Entertainment Law Journal. 1 Press Release, Nashville Songwriters Association International, CRB Dramatically Increases Rates for Songwriters NMPA & NSAI Declare Victory (Feb. 12, 2018), https://www.nashvillesongwriters.com/crb-dramatically-increases-rates-songwriters- nmpa-nsai-declare-victory. 2id 3 Paula Parisi, Copyright Royalty Board Boosts Songwriters' Streaming Pay Nearly 50%, VARIETY (Jan. 27, 2018, 11:23 AM) http://variety.com/2018/biz/news/copyright-royalty- board-boosts-songwriters-streaming-pay-nearly-50-1202679 118/.