Important Update: The extended submission deadline for Opt-In Agreements and the deadline for Direct Licensing Income Forms passed on September 2, 2011.
On November 23, 2011, the Limewire Settlement Distribution was sent out to Participating Publishers. This Distribution represented each Participating Publisher’s Market Share of the $14 million Limewire Settlement Distribution (less reserves, administration expenses, Plaintiff expenses, NMPA legal and Program costs, and the Initial Distribution, if any). For more information about the Limewire Settlement Distribution, please review the Program Summary and Frequently Asked Questions.
NMPA Limewire Settlement Distribution Program Overview
On June 16, 2010, the National Music Publishers' Association ("NMPA") and eight representative publisher plaintiffs filed a copyright infringement lawsuit in the Southern District of New York against Limewire, Mark Gorton and various entities owned or controlled by Mark Gorton. NMPA and the eight plaintiffs settled the lawsuit. The settlement required Limewire to pay $14 million in damages to NMPA.
All NMPA publisher members who are active affiliates of The Harry Fox Agency, Inc. ("HFA") and non-U.S. mechanical collection societies who have entered into reciprocal agreements with HFA could participate in the Limewire Settlement Distribution. An "Active HFA Affiliate" is a publisher who received at least one-third (33.33%) of its Mechanical Royalties from HFA during the period July 1, 2007 through June 30, 2010.
In addition, NMPA publisher members who are not affiliated with HFA ("Non-HFA Affiliates") or have an affiliation but do not actively use HFA and, therefore, received less than one-third (33.33%) of their Mechanical Royalties from HFA ("Inactive HFA Affiliates") during the period July 1, 2007 through June 30, 2010 could participate in the Limewire Settlement Distribution if they agreed to join the NMPA Partnership Program (the "Partnership Program" or "Program"). ("Non-HFA Affiliates" and "Inactive HFA Affiliates" are sometimes collectively referred to as "Non-HFA Publisher(s).") HFA has been designated the "Program Administrator" to administer the initial phase of the Program and to allocate and distribute the Limewire settlement funds.
NMPA Partnership Program Summary
To join the Partnership Program, a non-HFA publisher needed to agree to a three-year commitment, during which time the Participating Publisher will pay a pro-rated share of the annual NMPA budget equal to its market share of United States mechanical royalties as determined under the rules of the Program. The first market share evaluation was conducted in conjunction with the Limewire Settlement Distribution. If a non-HFA publisher opted into the Limewire Distribution Program and is a participant in the NMPA Partnership Program, it had the right to receive its pro-rated market share of the Limewire Settlement Distribution, less its annual assessment for the 2012 annual NMPA budget. As a result of the payment by the non-HFA publisher of its annual assessment under the Program, it receives the same benefits as NMPA members who are Active HFA Affiliates. The annual assessment for 2012, 2013, and 2014 shall be paid by the Non-HFA Publisher to NMPA in lieu of the dues owed by Active HFA Affiliates.
Participating in the NMPA Limewire Settlement Distribution Program
Specific details concerning how a publisher could participate in the Partnership Program and the Limewire Settlement Distribution, including how a publisher's market share was determined, are set forth in the NMPA Limewire Settlement Distribution Program Summary and the Frequently Asked Questions on this website. More details regarding the NMPA Partnership Program are described on the NMPA website.
