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Business News (more headlines) 06-11-2017

Sound Royalties Opposes 100 Percent Licensing And Pledges Support For Songwriters

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The Department of Justice shocked the music community last week by preparing an eleventh-hour appeal, seeking to overturn a September ruling from the U.S. Southern District of New York. The prior ruling had determined that consent decrees don't require full-works or 100 percent licensing, and supported fractional licensing, which has been an industry standard practice for decades.

Sound Royalties, a specialty financing company tailored to the needs of music professionals, today released the following statement: "This is a dangerous development for songwriters and everyone who believes that the men and women who write the songs that form the soundtrack of our lives deserve to be fairly compensated for their work," said Alex Heiche, the CEO and Founder of Sound Royalties. "The reality is that 100% licensing forces the songwriters of co-written pieces to potentially sell their work to the lowest bidder."

"What started out as songwriters and publishers hoping for new rules and regulations around licensing music in the digital age, somehow morphed into re-interpreting practices that have worked successfully since the 1940s. Challenging the earlier court ruling could put immense financial strain on songwriters who are already under growing pressure to make a living, and will deal a blow to musical creativity."

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