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SiriusXM still gets accused of not advantageous labels and artists for pre-1972 recordings, aback in actuality they are advantageous labels and artists for those recordings — it aloof took a brace of lawsuits to accomplish that happen.

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After clearing with the above labels in 2015 and the Flo & Eddie chic activity accusation in 2016, both settlements agitated avant-garde a licensing accouterment that would accomplish added payments to artists and labels. (Both settlements are said to be at a discounted bulk from the ability bulk SiriusXM pays for post-1972 recordings.) The above label’s go-forward ante were not bent in the settlement, so afterwards a ancient $235 actor acquittal to the labels all parties would go to adjudication if they couldn’t accede on a ability bulk for pre-1972 recordings.

For 2018, sources tell Billboard that SiriusXM agreed to acceding with Universal Music Group and ABKCO Music & Records, but not with Sony Music Entertainment or the Warner Music Group. Consequently, aback those ante haven’t been set, artists at those labels with pre-1972 recordings ability not accept yet accustomed royalties this year. But those recordings are accountant and ability payments will be forthcoming, already the ante are set. 

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So, what’s the adjournment on ambience rates? Sources advance Sony and Warner accept been acquisitive the Music Modernization Act (MMA) will aftermath at adjudication a bulk for the pre-1972 recordings that is the aforementioned as the bulk for post-1972 recordings. 

Revenue Arrears Mystery Solved

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On Tuesday (Sept. 18), the MMA was submitted afore the Senate with diction about modifying acclaim for the assembly from avant-garde nuclear ability facilities. According to industry sources complex in the process, that had to do with accoutrement the MMA’s $48 actor acquirement shortfall, due to the actuality that it creates $175 actor in new tax acquirement but will bulk the government $223 actor to baby-sit its regulations.

As it turns out, that accent was aloof there to acquiesce the Senate to abode the bill, aback abandoned the House of Representatives can accession revenue. According to sources, the House affairs on allotment the arrears by extending the aeon covered by community users’ fees for appurtenances entering the country.

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The Blow by Blow on Adjustment Talks With SiriusXM

SiriusXM was actually activity discriminated adjoin by the MMA and fought aback agreeably with months of behind-the-scenes lobbying and op-eds in the press. That affect was due to two accommodation carveouts in bill: the industry accordant to extend Music Choice’s accepted Copyright Ability Lath (CRB) ante until 2027 (although what actually that accord was didn’t become accepted until Friday night, Sept. 14); and earthbound radio’s amnesty from accepting its publishing ante afflicted by agenda radio’s ability to labels. 

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While some sources say that beforehand in the action SiriusXM had been offered a work-around through a delayed accomplishing of the the accommodating buyer-willing agent allocation of the MMA that the aggregation begin so onerous, sources accustomed with SiriusXM say that is actually not the case. Regardless, apprenticed on by senators on Tuesday, SiriusXM, the RIAA, above labels and Sound Exchange assuredly formed out a accommodation acceding in the afternoon that insured the bill’s passing.

That compromised focused on an beforehand CRB bulk assurance that ordered SiriusXM pay 15.5 percent of acquirement to labels and artists from 2018-2022. That bulk is up from the 11.5 percent of acquirement bulk that SiriusXM had paid in 2017, arch the accessory radio account to put in a motion apparent by abounding as the aboriginal footfall in ambrosial that decision.

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The way that appeals action works is aboriginal a licensee charge ask the CRB to analysis its bulk assurance and, if the lath decides to upholds the rates, again the licensee can booty its case to an appeals court. SiriusXM had already put in a motion requesting a analysis of its 2018-2022 ante and while the CRB has not yet adumbrated whether it would analysis the appeal, let abandoned change the rates, aback it responded to that motion it said it was absorbed in audition acknowledgment on why the bulk should abide at 15.5 percent of acquirement or be bargain to 14.7 percent for the aing bristles years. Some saw that acknowledgment as an aboriginal adumbration the CRB was accessible to blurred Sirius’ rate. 

While beforehand MMA negotiations with SiriusXM included the aforementioned blazon of accord accustomed to Music Choice, those discussions stumbled over whether the bulk would be at the 15.5 percent bulk that the industry already won or the 14.7 percent lower bulk that it looked like SiriusXM ability get in a CRB review, sources say. 

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SiriusXM capital the diction to say that the activity avant-garde bulk to 2027 would be whatever the CRB absitively in its review, while the labels capital the 15.5 percent rate. Late Tuesday afternoon, the parties agreed the accommodation would absorb the closing bulk and so the MMA includes such wording, appropriately precluding it from ambrosial and extenuative CRB action fees for all parties activity avant-garde until the bulk expires on Dec. 31, 2027.

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