Crunch Digital Launches Direct Licensing Service as an Alternative to Compulsory Licensing and NOIs
Los Angeles, CA, March 14, 2016 – Crunch Digital announced today the launch of a next-generation licensing and reporting solution that helps to eliminate the reliance on NOIs and build a healthy streaming economy. This streamlined direct license solution is an alternative to Section 115 compulsory licensing and addresses the mess and the issues that you’ve been reading about in the lawsuits filed against streaming services who have relied on sending NOIs to cover their licensing needs.
The new service will fall under the name “Crunch Digital Agency” and will compliment Crunch’s song data management and reporting service for music apps.
Direct licenses issued by Crunch Digital will have the same royalty rates as Section 115 for the same service types.
The royalty expense for a digital service is going to be the same.
Not only will digital streaming services benefit from this service, but music publishers and songwriters will be glad to hear that no commission is taken out of their royalty earnings on direct licenses that are issued by Crunch’s Agency.
It’s a 100% royalty earnings pass through to music publishers under a non-exclusive relationship between music publishers and Crunch Digital Agency.
When music publishers sign up with Crunch Digital Agency as their non-exclusive licensing agent, they will also be notified of opt-in licensing opportunities that Crunch administers on behalf of a digital service, music app, or other potential licensees.
Digital services can benefit from direct licenses which mitigate risk that comes from relying on sending out NOIs in the hope of insuring against copyright infringement claims. Music publishers who work with us can keep all of the royalties that are paid under a direct license we issue without commissions being taken,” said Keith Bernstein, Founder of Crunch Digital.
While it’s great to hear the news about settlement talks between streaming music services and music publishers for unpaid royalties, including future public facing websites for publishers to make claims, those amounts should not be sitting as unpaid in the first place.
As an independent company that is not tied to a trade organization or a PRO, Crunch is in a position to provide a direct licensing solution for streaming services that will work for all parties involved.