MOU 2 NMPA Late Fee Program
Important Update: The Group III, Phase A Distribution commenced at the end of December 2013. The Group III, Phase B Distribution commenced at the end of March 2015. Publishers who did not opt into the Late Fee Program before the deadline for Group III, Phase B may register for Group IV.
Group III and IV Overview
On November 10, 2009, the National Music Publishers’ Association (“NMPA”) and The Harry Fox Agency, Inc. (“HFA”) entered into a Memorandum of Understanding (the “MOU”) with the Recording Industry Association of America. In April 2012, the parties to the MOU agreed to extend similar arrangements through at least 2017 (“MOU 2”). MOU 2 creates a comprehensive program (“NMPA Late Fee Program” or “Late Fee Program”), whereby the Record Companies and music publishers will work together to improve mechanical licensing practices and encourage prompt dispute resolution. In exchange for waivers of certain late fees, the Record Companies must comply with the provisions of MOU 2, including paying participating music publishers and foreign societies their respective market shares of accrued pending and unmatched royalties (“P&U Royalties”).
Distribution of the initial installments of P&U royalties accrued for products released on or before December 31, 2008 (“Groups I and II”) has ended. Under MOU 2, distribution of P&U Royalties accrued for products released between 2009 and 2012 has commenced, and further P&U Royalties for products released between 2013 and 2017 will be distributed in two phases as follows:
Group IV, Phase A—P&U royalties accrued for products released in 2013 and 2014; and
Group IV, Phase B—P&U royalties accrued for products released in 2015 through 2017.
Who Is Eligible to Participate in Group III and Group IV of the Late Fee Program?
Registration for Group III, Phase A of the Late Fee Program ended on October 31, 2012, and registration for Group III, Phase B ended on November 1, 2014. Group IV of the Late Fee Program will be open to music publishers and foreign societies with musical compositions initially distributed by one or more Record Companies in the United States during the years 2013 through 2017 who did not opt into the Late Fee Program before the deadline for Group III, Phase B. Publishers and societies that opted into Group I and/or Group II of the Late Fee Program but did not opt into Group III, Phase A or Phase B will need to opt in again to participate in Group IV. Publishers who did not participate in Group I, Group II or Group III will be able participate in Group IV by opting into the Late Fee Program for Group IV. A Participating Music Publisher (but not a foreign society) must be a member of the NMPA on or before the date of the submission of the Group IV Opt-In Form.
What Do I Need to Do to Participate in Group III-B and Group IV of the Late Fee Program?
The deadline to submit the MOU 2 NMPA Group III-B Late Fee Program Opt-In Form to the Administrator was November 1, 2014.
Publishers will be able to register for Group IV of the Late Fee Program by following the steps below:
- The Publisher (unless it is a foreign society) must be a member of NMPA at the time it submits its MOU 2 NMPA Late Fee Opt-In Form ("MOU 2 Opt-In Form"). If a Publisher is not a member of NMPA, it may join by contacting the NMPA as indicated on the NMPA website at www.NMPA.org.
- An authorized representative of the Publisher must complete and submit the MOU 2 Opt-In Form to the Administrator. Unless the Publisher returns a valid MOU 2 Opt-In Form that is timely received, it will not participate in the Program for Group IV, Phase A and will not receive Group IV, Phase A funds distributed under the Program.
- The Publisher must submit a completed Catalog Registration Form, or, if the Publisher participated in Group I and Group II of the Late Fee Program, a Catalog Confirmation Form to the Administrator.
October 31, 2012
Registration Deadline for Group III, Phase A
Group III, Phase A Distribution Commenced
(Filed and Received)
November 1, 2014
Registration Deadline for Group III, Phase B
Group III, Phase B Distribution Commenced