Spotify buys Loudr to enhance tracking songs and paying royalties

Via Bloomberg, April 12, 2018:

“Spotify is buying rights company Loudr in a move to beef up its ability to track and pay royalties to music publishers. The move comes a day after the House Judiciary Committee approved legislation that would revamp digital licensing rules. Loudr will contribute to Spotify’s “continued effort towards a more transparent and efficient music publishing industry for songwriters and rights holders,” Spotify said on its website. Loudr will add a team of publishing specialists and technologists to the company, which may aid the streaming service in navigating conflicts with artists over pay.”

The terms of the transaction were not disclosed. According to data provided via Crunchbase Loudr had only two financing rounds since being founded in early 2013 amounting to 600.000 US-Dollars. 

What are the goals of the Music Modernization Act.

US legislators are preparing a new digital licensing act, in order to adjust to changes in listening habits and music distribution, most notably via streaming platforms where consumers pay a subscription to access huge catalogs of music. The new legislation will cover a variety of areas, but one core goal is to pass the “Music Modernization Act” and make it effective

Quote from a post on the website of the Recording Industry Association of America (RIAA):

The Music Modernization Act  (H.R. 4706, S. 2334) is the most significant update to music copyright law for songwriters in a generation. The bill improves both how, and how much, songwriters are paid. The bill reforms Section 115 of the U.S. Copyright Act to create a single licensing entity that administers the mechanical reproduction rights for digital uses of musical compositions – like those used in interactive streaming models offered by Apple, Spotify, Amazon, Pandora, Google and others. It also repeals Section 114(i) and, consistent with most federal litigation, utilizes random assignment of judges to decide ASCAP and BMI rate-setting cases – two provisions that will enable fairer outcomes for songwriters and composers.

More background here.

 

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