What is the Allocation for Music Producers (AMP) Act and How Will It Affect Me?

This is part of the Music Modernization Act.

The AMP Act provides royalty payouts for producers and engineers when their recordings are used on satellite and online radio. Previously, those parties would have to apply through the artist for those payments, a process which could be extremely cumbersome.

It should be noted that the AMP Act will not create a new right. Producers and engineers will continue to collect the royalties they were previously due. However, the AMP act will establish a legal procedure for them to collect those royalties directly from SoundExchange, rather than from the artist in question. SoundExchange already allows artists to pay producers and engineers their share of royalties directly, by accepting “Letters of Direction,” but the AMP Act would formalize this process. It would establish a procedure for producers and engineers who worked on recordings made before 1995 to apply to be paid royalties directly.

Notably, this is the first time producers and engineers have ever been mentioned in copyright law, both a nod to the vital role they play in music creation and an acknowledgment of emerging trends in the way music is created and propagated.

You can learn more about the Music Modernization Act here.

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