Preserving Business Efficiencies for Creative Partners

Preserving Business Efficiencies for Creative Partners

Daryl Friedman, Maureen Droney, Neil Portnow, Michael Huppe, and Nile Rodgers at the 57th GRAMMY Awards

L-R: Daryl Friedman, Maureen Droney, Neil Portnow, Michael Huppe, and Nile Rodgers at the 8th Annual P&E Wing Celebration, 57th GRAMMY® Awards, 2015. Photo courtesy of National Association of Recording Arts and Sciences.

Background

SoundExchange believes that everyone involved in the creative process that brings music to life should receive fair compensation for their work, creativity and investment. We have a long-standing practice of honoring an artist ‘letter of direction’ to provide compensation to producers who helped them during the creative process.

Legislation to Codify SoundExchange’s Practice of honoring Letters of Direction from Recording Artists

In 2017, SoundExchange worked with a bipartisan group of lawmakers, including Representatives Thomas Rooney (R-FL), Joe Crowley (D-NY), and Senators Chuck Grassley (R-IA) and Dianne Feinstein (D-CA) to introduce the Allocation for Music Producers (AMP) Act. This legislation improved royalty payouts for producers and engineers from SoundExchange when their recordings are used on satellite and online radio.

The “Win”

Provisions from this bill were included in the MMA which was signed into law in October 2018. Notably, this is the first time producers have ever been mentioned in copyright law. Now, the right of music producers and engineers to collect digital royalties through a consistent, permanent process is in the law.