MOU 3 NMPA Late Fee Program


Please note that the following is not intended to be a comprehensive or exact characterization of the terms of MOU 3 or the MOU 3 Final Release, Waiver and Indemnification Provisions (“Final Release”) attached as Attachment 1 to the Summary of NMPA Late Fee Program Terms. For complete and precise terms, please refer to MOU 3 and the Final Release. To the extent any information contained in the Definitions conflicts with MOU 3 or the Final Release, the provisions of MOU 3 and the Final Release control.

1. What is the "CRB"?

The Copyright Royalty Board, empowered under U.S. Copyright Law to set compulsory mechanical royalty rates to be paid by music users.

(collapse all)

2. What are the "Record Companies"?

The major record companies participating in the program.

(collapse all)

3. What is the "NMPA"?

The National Music Publishers’ Association.

(collapse all)

4. What is "HFA"?

The Harry Fox Agency LLC, the MOU 3 Program Administrator.

(collapse all)

5. What is the "RIAA"?

The Recording Industry Association of America.

(collapse all)

6. What is the "MOU"?

The Memorandum of Understanding – 3 entered into in October 2016 by The National Music Publishers’ Association ("NMPA") and the Recording Industry Association of America (“RIAA”) and the major record companies in response to the imposition of the late fee by the CRB ruling. MOU 3 extends the program (“Late Fee Program” or “Program”) whereby record companies and music publishers, including non-U.S. mechanical collecting societies (“Foreign Societies”) (music publishers and Foreign Societies referred to together as “Publishers”), will work together to improve mechanical licensing practices and encourage prompt dispute resolution.

In exchange for waivers of Late Fees and releases from publishers that choose to participate (“Participating Publishers”), the major record companies (“Participating Record Companies”) will make bulk payments of “pending and unmatched” royalties (“P&U Royalties”) to be distributed to Participating Publishers. P&U Royalties are royalties due for the use of musical compositions that the Participating Record Companies have accrued but not paid due to a failure or inability to clear or obtain a license or to associate the royalties with a particular license or Publisher. The product covered by the Late Fee Program under MOU 3 includes CDs, full downloads, ringtones and certain other physical and digital product distributed in the United States, and is divided into two phases: “Group V, Phase A Product,” which is product released by a Participating Record Company in the years 2018 and 2019; and “Group V, Phase B Product,” released in the years 2020 through 2022.

(collapse all)

7. What is the "NMPA Late Fee Program" or "Late Fee Program"?

A comprehensive program to improve mechanical licensing practices and distribute "pending and unmatched" royalties.

(collapse all)

8. What are "P&U Royalties"?

"Pending and unmatched" accrued royalties that have not been distributed to the music publishers.

(collapse all)

9. Who is the "Program Administrator"?

The NMPA has engaged The Harry Fox Agency LLC (“HFA”) to determine and distribute payments to music publishers and foreign societies under MOU 3.

(collapse all)

10. Who are "Participating Publishers"?

Music publishers and foreign societies that have chosen to participate in the MOU 3 agreement by 11:59 PM (Eastern Time) on July 2, 2018.

(collapse all)

11. What is a "Foreign Society"?

A mechanical rights organization located in a country other than the U.S.

(collapse all)

12. What is "Group V, Phase A Product”?

Product released by the Participating Record Companies between 2018 and 2019.

(collapse all)

13. What is "Group V, Phase B Product"?

Product released by the Participating Record Companies between 2020 through 2022.

(collapse all)

Expand all