January 2008
Dear Songwriter, Composer and Publisher:
I hope you had a wonderful holiday season and I wish you and your loved ones a happy, healthy and prosperous New Year.
As you may know, two legislative bills were recently introduced in the Senate and House of Representatives recommending the expansion of the Performance Right In Sound Recording, which will create a new revenue stream for recording artists and record companies by providing them with a royalty for over-the-air radio broadcasts. BMI is poised to support such a right with the conditions that the bills have correct and effective language that will protect authors, composers and music publishers’ performing right revenue streams and BMI’s ability to collect those revenues on their behalf.
BMI has proposed specific language and is working as part of the One Music Coalition with ASCAP, SESAC, NMPA, SGA and NSAI to ensure that songwriters, composers and music publishers’ rights do not diminish and are fully protected within these bills. BMI will work diligently with members of the One Music Coalition and the Senate and House of Representatives to do everything in our power to ensure that final versions of these bills include language that is necessary to fully protect the interests of our affiliates.
Please note that effective with BMI’s next royalty distribution in March 2008, the total amount of royalties you earn in any quarterly distribution must total at least $250.00, or BMI will hold that amount in your account until subsequent quarterly earnings in that year bring the total to $250.00 or more. However, in no event will we hold those royalties beyond the final distribution of the calendar year in which they otherwise would have been paid, provided that the accumulated royalties total at least $25.00, as the cost of issuing and mailing checks for smaller dollar amounts is prohibitive.
You can, however, avoid any delay in receiving royalty payments totaling $2.00 or more by signing up for either Direct Deposit to your bank account or “The Card,” which allows songwriters and composers who do not currently have a bank account to enjoy the advantages of an ATM card for access to their BMI royalties. Both Direct Deposit and “The Card” offer instant access to your royalty payments without the worry of waiting for checks to arrive, cashing them or misplacing them. Applications for both programs accompany this letter and are also available on bmi.com.
In recent years, BMI has entered into blanket license agreements with Muzak, Music Choice and numerous other commercial background music services, ending years of negotiations. We believe, however, that we have reached an impasse in negotiations with another such service, DMX, and, as a result, we may commence a rate court proceeding in early 2008. Subsequently, we would like to call your attention to the fact that your BMI agreement requires you to advise BMI in the event you have entered into a direct license with any background music service or other music user.
Our congratulations go to Kanye West, Amy Winehouse, Ne-Yo, T-Pain and all those songwriters and composers nominated for this year’s Grammy Awards, set for February 10 in Los Angeles.
Once again, my best to you for the New Year.
Sincerely,
Del Bryant
President
Chief Executive Officer