Songwriters Enter Digital Copyright Fray

Upset with last year’s Justice Department ruling that tightens restrictions on what songs music royalty clearinghouses could offer for licensing, the Songwriters of North America have filed a lawsuit. They say the ruling oversteps the Justice Department’s authority, and violates the property rights of songwriters by potentially nullifying private contracts between writers who worked on the same song. Last year, DOJ insisted that ASCAP and BMA – the two largest clearinghouses – must institute 100 percent licensing, meaning if a song has multiple writers, the clearinghouse must be able to represent the entire song or remove it from their catalogs. The songwriters say that would disrupt decades of common practice in the industry, wherein writers form private contracts among themselves. The Justice Department suggested writers in such agreements should renegotiate. At the heart of the conflict is the debate over the royalties digital streaming services like Pandora or Spotify owe to artists and songwriters, which they say is far too low. Last year’s DOJ ruling denied that charge, but BMI has said it will appeal the ruling.