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Wednesday, June 20, 2012
NMPA, Universal Music Group Reach Licensing Agreement on Music Videos


The National Music Publishers' Association (NMPA) has negotiated a licensing deal with Universal Music Group (UMG) on music videos, which allows songwriters and music publishers to share in revenues for music clips played on online services such as Vevo.

The agreement, to be offered to all NMPA member music publishers, will allow songwriters and music publishers to share in revenue from music videos, an important revenue stream for music creators. UMG is the first record label to provide such opportunity to all songwriters and music publishers.

"We're all navigating through a rapidly changing business environment," said David Israelite, NMPA President and CEO, "and NMPA's job is to ensure that the rights of every songwriter and music publisher are protected. This is a model example of how record labels along with songwriters and music publishers can move forward together to ensure that the licensing process is more effective and efficient, and that all creators are fairly compensated.

Music videos have become an important part of the music business ecosystem. They are not simply promotional tools to help sell recordings. The agreement announced today is an important first step in resolving industry-wide music video issues. UMG deserves credit for being the first record label to partner with the entire songwriting and music publishing community through this model licensing deal."

Under this license opportunity, music publishers will grant the rights necessary for the synchronization of their musical works with music videos, and, in return, receive royalties from these videos based on a percentage of UMG's receipts. The agreement also enables songwriters and music publishers to receive retroactive compensation for past use of their musical works in UMG's music videos. In addition to music videos, the agreement provides songwriters and music publishers compensation for additional UMG product offerings including ringtones, dual disc, multi-session audio and locked content products.

Every U.S. music publisher that is a member of NMPA can participate in the agreement, which will be made available by UMG to publishers on an opt-in basis.


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