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MP3.com to pay songwriters Print E-mail
Thursday, 19 October 2000
The National Music Publishers' Association (NMPA), The Harry Fox Agency and MP3.com recently announced their agreement of a licensing arrangement that -- if approved by individual HFA music publisher principals -- will permit the use of over one million musical compositions on MP3.com's popular My.MP3.com service. The My.MP3.com service allows consumers to listen to music from CDs that they already own or which they purchase from MP3.com's retail partners. This proposed, 3-year licensing arrangement provides that MP3.com will pay upwards of thirty million dollars to the Harry Fox Agency for the benefit of approximately 25,000 music publishers and their songwriting partners as part of two equal funds. One fund will be used to pay HFA publisher-principals for past uses of music on the My.MP3.com service. The other will provide advance payments toward royalties earned under the prospective license. The number of songs licensed to MP3.com by the music publishers could potentially exceed one million.

In March of 2000, MP3.com was sued by MPL communications Inc. and Peer International Corporation over copyright infringement. The final settlement of the case, currently pending before the United States District Court for the Southern District of New York, is conditioned upon the finalization of this licensing arrangement. The terms of the prospective license calls for a payment of one quarter cent each time a song is streamed on demand to a customer from his or her My.MP3.com "locker" along with a one-time fee per track added to the My.MP3.com service.

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