MMF to review royalty reporting

Tue Feb 23 2010 16:36

The reporting of royalty income is to be investigated by the Music Managers' Forum (MMF).

The Music Managers' Forum (MMF) has announced it is to look at the way artists' royalty income is reported.

Speaking to CMU, MMF chief executive John Webster claims his organisation has set up an audit committee aimed at reviewing how record companies and collecting societies report income.

"Our members keep hearing about new revenue streams that their artists are due a share of, yet when they get a royalty statement from their record companies it can be hard to work out where that revenue is being declared, if at all," he states.

And while the publication notes artists can undertake their own audits of their label's royalty statements, doing so may not always be feasible.

The committee will be made up of managers and auditors, providing advice on topics such as withholding tax and how sites such as Spotify can have an impact on royalty payments.

With Mr Webster claiming that "some industry-wide standards" should be in place, royalty reporting software could be a useful way for labels and musicians alike to keep track of how much is owed.