5 Jul 2022 07:02
5 July 2022
ROUND HILL MUSIC ROYALTY FUND LIMITED
("RHM" or the "Company")
Update of the USA's Copyright Royalty Board Appeal
The Board of Round Hill Music Royalty Fund Limited welcomes the news that the US Copyright Royalty Board (CRB) III ruling has been upheld, allowing the royalty rates for songwriters and publishers to be paid at the increased headline rate of 15.1%, which comes into effect from 1 January 2022. The headline rates over the past 5 years have been confirmed as:
· 2018 11.4%
· 2019 12.3%
· 2020 13.3%
· 2021 14.2%
· 2022 15.1%
Over the past five years revenues owed to copyright owners have been paid at the CRB Phono Mechanical II rate of 10.5%, therefore the Company can expect to receive backdated royalty payments for the period in question. The streaming services have been informed of the changes and have 6 months to pay the uplift in rates to the Mechanical Licensing Collective (MLC) who will backdate the royalty payments to music publishers. It should be noted that the streaming services have asked for an extension of the 6 month accounting period. RHM confirms it will robustly defend the CRB's decision and is highly supportive of the outcome.
Digital Service Provider (streaming) revenues make up a significant proportion of RHM's total revenue base.
The ruling will require the MLC to process a significant number of additional streaming service royalty statements covering the royalty uplift from 2018 to date. RHM is liaising closely with the MLC to work through the details of the past accountings and agree principles on how to handle processing income where rights holders may have changed since 2018.
Josh Gruss, CEO of Round Hill commented:
"We are delighted to see the CRB appeal overturned in favour of increasing the royalty rates, per the original CRB ruling. The Company has been acutely aware for some time that songwriters and publishers have been disproportionately paid by streaming services in the USA and this ruling goes some way to address the imbalance. The CRB IV negotiations for the next five year period from 2023 to December 2027 have now commenced, with the writers/publishers asking for a mechanical streaming royalty rate of 20%, something that we hope will come to pass when the times comes.
"We have continually voiced our support for National Music Publishers' Association (NMPA) and applaud its tireless lobbying on behalf of all writers and publishers for fairer pay from digital service providers."
FOR FURTHER INFORMATION
Round Hill | |
Josh Gruss, Chairman and CEO | via Buchanan below |
Steve Clark, COO | |
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Cenkos | |
Sales: | |
Justin Zawoda-Martin | +44 20 7397 1923 |
Daniel Balabanoff | +44 20 7397 1909 |
Andrew Worne | +44 20 7397 1912 |
Corporate: | |
James King | +44 20 7397 1913 |
Will Talkington | +44 20 7397 1910 |
Buchanan | |
Charles Ryland | +44 20 7466 5107 |
Henry Wilson | +44 20 7466 5111 |
Hannah Ratcliff | +44 20 7466 5102
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Notes:
The Company is a non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP, to be ancillary thereto.
Founded in 2010, Round Hill is a fully integrated owner and operator of music copyright properties and the sixth largest music publishing company in the US. Headquartered in New York with additional offices in Nashville, Los Angeles and London, Round Hill has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.