(Alliance News) - Hipgnosis Songs Fund Ltd on Monday said it welcomes the decision the US Copyright Royalty Board to disallow an appeal by various streaming services.
The appeal was against the copyright royalty board decision to increase mechanical streaming royalty rates for songwriters and publishers.
With the appeal disallowed, there will be an increase in statutory minimum rates for streaming paid in the US.
It will be an incremental increase covering the period starting from January 1, 2018 and ending December 31, 2022, and will culminate in a 44% uplift in mechanical and performance rates.
Commenting on the decision, Founder & Chief Executive Merck Mercuriadis said: "We still have plenty of room for improvement before we have a rate that's genuinely fair and equitable but this is an important step on the road to finally, properly recognising the value that songwriters bring to the industry."
Shares in Hipgnosis were up 3.0% at 111.67 pence each in early dealings on Monday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Hipgnosis Song. (SONG)