The Good, The Bad… & The RIAA

By: 09.25.08

It appears things will be looking up for sites like Muxtape which have recently come under the scrutiny of the RIAA. Earlier this week along with DiMA (the Digital Media Association), NSAI (Nashville Songwriters Association International), and SGA (Songwriters Guild of America) the RIAA came to terms for artists to be compensated for limited downloading and interactive streaming audio sites.

Limited download and interactive streaming services will generally pay a mechanical royalty of 10.5 percent of revenue, less any amounts owed for performance royalties. In certain instances, royalty-free promotional streaming is allowed. Outside the scope of the draft regulations, the parties confirmed that non-interactive, audio-only streaming services do not require reproduction or distribution licenses from copyright owners.

This will allow sites to continue providing the content listeners want to hear and allow artists/writers to receive some sort of royalty for their work. At the end of the day, despite questionable actions at times, the RIAA has the creators of the music in mind. Major artists may not care much about royalties from a streaming audio site (although the time is coming), this is a major coup for the songwriters and behind the scenes players whose lives are more similar to ours than say Jay-Z or Bono.

Major Music Industry Groups Announce Breakthrough Agreement [RIAA]

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