"SoundExchange won a big victory for artists this week by getting $150 million in unpaid royalties from Sirius XM. Now we need to pass the Music Modernization Act so artists won't have to sue to get paid fairly for their work on digital radio." — Conversations In Advocacy #23
On June 11, digital radio leader Sirius XM and rights clearinghouse SoundExchange announced the settlement of two lawsuits for unpaid royalties, from 2007 to 2017, for a lump sum payment of $150 million.
"We are happy to resolve this case with SiriusXM," said SoundExchange President/CEO Michael Huppe. "The settlement allows us to distribute additional royalties to SoundExchange's artists and rights owners while avoiding additional costly litigation."
<iframe width="620" height="349" src="https://www.youtube.com/embed/t87nhMDZQ04" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>
Huppe's phrase "costly litigation" describes the unfortunate default solution for settling claims in our current music licensing environment. While internet streaming promises new distribution channels and profits for the future, music creators and the organizations who support them, such as SoundExchange, need an updated copyright system so everyone can make a living and thrive without lengthy lawsuits playing its present prominent role in determining how royalties are paid. This is a direct symptom of the currently outmoded copyright rules.
As more and more people are learning, the summer of 2018 is a crucial time to push for the comprehensive reform bill that has already passed the House and is now pending in the Senate: the Music Modernization Act. There is unprecedented consensus both in the music community and among internet organizations that the MMA's package of reforms need to pass now.
Better laws instead of lawsuits help the little guy, who can't afford to take their claims to court, and with music leading internet topics and interests, a fair deal will enrich artistic creativity, just as the U.S. Constitution intended copyright law to function — as an effective incentive.
"For too long our licensing laws have disadvantaged content creators and sowed uncertainty," Sen. Orrin Hatch (R-Utah) said at a May 15 hearing of the Senate Judiciary Committee. "Our bill will bring our music licensing laws into the 21st century to ensure that songwriters are compensated fairly for their work, and that digital music services are able to operate without constant legal uncertainty."
While SoundExchange continues its fight for fair royalties, it's time for legislators to treat bigger issues and instill meaningful copyright reform to bring the system up to speed. With the improved copyright framework the MMA would put in place, the need for such lawsuits — and the costs that go with them — will be minimized.
Contact Your Senators: Tell Them To Support Comprehensive Music Reform
"Conversations in Advocacy" is your weekend digital tip sheet on music advocacy and the policies that affect music makers and their craft. New installments post every Friday.
