Billboard reported that according to the National Music Publishers’ Association, a music publishing agreement with YouTube is ready to go into effect that will have YouTube paying $4 million upfront for royalties due for user-generated content that contains published songs.
YouTube will also have to pay for user-generated videos that feature master recordings at a rate of 15 percent net advertising revenue, which is based on a “pro-rated basis of the publisher’s share of the songs.”
The payments are administered by the Harry Fox Agency, and publishers have until Jan. 16 of next year to sign up for eligibility to receive their portion of the advance. The agreement is set to run through Aug. 2014. The article also points out that this doesn’t cover “public performance” payments, which would include live performances of songs. The HFA will charge a 7.5 percent administration fee for the service.
“At our very core, HFA exists to ensure publishers and songwriters are paid for the use of their work and this unprecedented agreement with YouTube represents a new phase in commerce for our industry,” HFA president/CEO Gary Churgin said in the article. “HFA’s unwavering dedication to technology innovation makes us the perfect service provider for YouTube and we are proud to have been selected to administer the agreement ensuring publishers and songwriters share in the revenue generated by YouTube’s far-reaching presence.”
You can view the entire agreement here.