BMI has issued the following statement on the passage of Section 115 Mechanical and Digital Phonorecord Delivery Rate Adjustment Proceeding:
“While BMI is not a direct party involved in negotiations to establish mechanical fees for digital music delivery and use, we feel that the Section 115 agreement among the RIAA, DiMa, SGA and NSAI is a positive step for copyrights created and owned by songwriters, composers and music publishers. The proposal recognizes the financial value of music copyrights in the digital space and sets mechanical rates for the digital delivery of recordings in this medium. Essentially, the Section 115 settlement represents an agreement reached by the music publishers and digital music services regarding the value of mechanical rights in on-demand streams and conditional downloads. It also maintains the value of the pre-existing rates for the performance right, which has been negotiated between the performing right organizations (PRO) and the digital music services.
“By concluding that one transmission can trigger both performance and mechanical rights, this agreement also supports our long-held position that one transmission can embody multiple copyrights.
“We believe that the accord reached between digital music services and songwriters, composers and publishers is beneficial advancement for the marketplace.”