Spotify, Google, Amazon and Pandora have launched an appeal to overturn increase in songwriter royalties.
The four industry leaders in music streaming have filed a 92-page appeal with the District of Colombia's Court of Appeals, which outlines their aim to limit artist earnings from streaming.
The US Copyright Royalty Board has officially approved a 44% increase in streaming royalty rates following a campaign last year led by songwriters and publishers.
The new rates will now come into affect, but streaming services such as Spotify, Apple Music and Tidal have 30 days to challenge the increase. Publishers have however issued a strong warning to streaming services not to lodge an appeal.
In light of Beatport's failure to pay its labels for the last quarter, Music Week reported today that "trapped" royalty funds have been released to major labels, whilst small indie imprints are yet to receive their payments.
Beatport will not be paying royalties to labels this quarter and will only pay 5% of streaming money for mixes, reported Music Business Worldwide today.
The music purchasing and streaming service has written to labels to inform them that it will be freezing all owed royalties until its parent company, SFX Entertainment, completes its privatisation procedures.
The royalties, that were due for payment last Thursday 30th June, were said to be held up by the company's "going private" process that had “trapped certain earned label payments”.