Spotify, Amazon Music, Google Play & Pandora have filed their appeal of the Copyright Royalty Board's mechanical rate determination
The NMPA also filed an appeal, arguing that the CRB erred in granting DSPs certain subscription discounts.
Following a rate trial, as part of the rate-determination process, the Copyright Royalty Board eventually issues its initial determination, which occurred in January 2018. That allows for the participating parties to comment on the determination; it also ultimately sends it to the U.S. Register to review to ensure it followed copyright law and other regulations in making its determination.
In fact, the services appeal filing reads like a cut-and-paste job from CRB Judge Switzer, embellished by legal citations from their own research, notating past rulings by the court that apply to the numerous objections to the determination raised by the services in their appeal.
Despite numerous publicly stated warnings from National Music Publishers Association president and CEOthat the services shouldn't appeal the ruling — which publishers and songwriters viewed as a victory because it gave them higher rates — the digital services filed notice in March of 2019 that they were going to appeal.
Usually, the 80 cents-per-subscriber bucket is the larger amount, which means it rarely came into play, according to sources. But dropping that step from the formula is cited as one of the reasons why the CRB's rate determination is flawed and needs to be vacated, according to the services’ appeal.
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