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NMPA Calls on Congress for Copyright Act Overhaul Amid Spotify Battle Over Bundling

In a new letter to Congress, the NMPA calls for a Copyright Act overhaul amid its battle with Spotify over bundling.

On May 20, David Israelite, the organization’s president and CEO, teased this announcement in a guest column for Billboard, saying: “soon we will unveil a legislative proposal to permanently fix the power imbalance songwriters face by being subject to a compulsory license for their songs.” In the NMPA’s letter — addressed to Sen. Richard Durbin(D-Ill.), Sen. Lindsey Graham(R-SC), Rep. Jim Jordan(R-OH), and Rep. Jerrold Nadler(D-NY) — Israelite calls Spotify’s move a “manipulat[ion] [of] the compulsory licensing rules” and the latest in what he feels is the “continued abuse of the statutory system by digital services… [which] has made it clear that additional action by Congress is needed.” The next day, on May 16, The MLC joined in, filing a lawsuit against Spotify for “improperly” reclassifying its premium, duo and family plans and trying to get a discount, which would result in what Billboard estimates is a $150 million annualized reduction in U.S. mechanical royalties, compared to what they would have paid if these tiers never changed over.

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