Legal Dispute Over American Unions’ Performer ER Fees Closes in on an $8 Million Settlement
A dispute over the fees charged by American performer unions AFM and SAG-AFTRA in relation to the payment of equitable remuneration royalties to session musicians in the US is seemingly close to being settled. According to Law360, the judge overseeing the case – Christina A Snyder – gave preliminary approval to a proposed settlement deal yesterday.
This all relates to a lawsuit filed in 2018 by songwriter and record producer Kevin Risto, which formally became a class action last year. Risto took issue with the management of the IP Rights Distribution Fund, an entity set up by AFM and SAG-AFTRA to administer royalties due to performers.
That includes the so called Performer ER royalties that are due to session musicians whenever their music is played on online or satellite radio services in the US. That money is initially collected by the collecting society SoundExchange, which then directly pays on any royalties due to record labels and featured artists. However, the cut of the cash due to session musicians is handed over to the IP Rights Distribution Fund, which then works out which musicians need paying.
