Universal Music reaches groundbreaking deal with publishers
The pact also could end up providing additional royalties for songwriters and music publishers in emerging platforms like ringtones.
As a sign of how tense the relationship has become, last February in TheWrap, Matt Pincus, founder and CEO of Songs Music Publishing, slammed Vevo for earning $150 million in revenue without cutting independent publishers in on the money.
"Are record companies to blame for relying on shoddy language to withhold royalties, or is it Vevo's responsibility to insure that the songwriters that helped it pull in $150 million this year share in their success?" Pincus wrote. "Whatever the case, this issue of fairness must be addressed."
"The agreement announced today is an important first step in resolving industry-wide music video issues," David Israelite, NMPA president and CEO, said in a statement. "UMG deserves credit for being the first record label to partner with the entire songwriting and music publishing community through this model licensing deal."
Under this license deal, music publishers will grant the rights necessary for the synchronization of their musical works with music videos, and, in return, receive royalties from these videos based on a percentage of Universal's receipts.
The agreement also enables songwriters and music publishers to receive retroactive compensation for past use of their musical works in UMG's music videos. In addition to music videos, the agreement provides songwriters and music publishers compensation for additional UMG product offerings including ringtones, dual disc, multi-session audio and locked content products.
For more information on the 17th Annual USA Songwriting Competition, go to: http://www.songwriting.net