BMG removes controlled composition clause from all its contracts

BMG will eliminate the application of the controlled composition clause which reduces royalty payments for artists that write their own songs, for all releases going forward, regardless of what each artist’s contract says, Music Business Worldwide reports. The control composition has been used to reduce songwriting royalty payments, allowing labels to pay such artists/songwriters only 75% of the statutory mechanical rate, currently 9.1 cents per song; and to limit royalty payments to 10 songs, even if an album has 14 songs. German music company made the move as part of its ongoing review of historic artist and songwriter contracts for anomalies or inequities.