The U.S. Department of Justice Ruled Against Increasing Songwriting Royalties

Some major decisions have been made.

Those attempting to pen the next big hit for another, more high-profile artist might not be receiving as much financial compensation as they hoped for. As XXL reports, the U.S. Department of Justice has just ruled against increasing royalties for songwriters. Besides that, the DOJ has denied songwriters' requests to rework the current licensing laws regarding performing rights societies/PROs, which allow PROs to license a track their client has worked on despite the level of involvement from the songwriter on the record. They have also blocked the ability for songwriters "withdraw their catalog from digital licensing altogether." Giving his thoughts on the matter, Sony/ATV Chairman and CEO Martin Bandier delivered the following statement:

"We are incredibly disappointed by the unjust way the Department has decided to interpret the consent decrees. Its decision is going to cause a tremendous amount of uncertainty and chaos in a marketplace that has worked well for years and will adversely impact everyone in the licensing process, including PROs, licensees, music publishers and most of all songwriters who can ill afford to hire lawyers to figure out their rights under this inexplicable ruling. The decision raises more questions than answers.”

You can read through an entire breakdown of the ruling at Forbes.

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