Background on Ricardo Ochoa and the Mexican Music Industry
Ricardo Ochoa, a renowned composer, performer, and producer of rock music, has been tirelessly advocating for fair royalty distribution among Mexican musicians across all genres. The issue is particularly severe for rock musicians, many of whom were young and contractually exploited or deceived by managers and producers. Following the censorship of rock music after the Avándaro festival in 1971, Ochoa, like many other rock musicians, emigrated to the United States, where he has resided for nearly 50 years.
Challenges Posed by Digital Music and Streaming
The advent of digital music and streaming has complicated the calculation, collection, and distribution of royalties. In the United States, this challenge was successfully addressed through SoundExchange (SE), a non-profit collective management organization established in 2003. SE is the sole organization designated by the U.S. Congress to collect and distribute royalties for digital audio recordings’ performance.
- SE collects over $1 billion annually for distribution.
- A portion of the royalties is deducted for administrative costs, with the remainder divided between performers and copyright owners of a work.
The legal foundation for SE is the Music Modernization Act of 2018, which aims to modernize and simplify mechanisms for creators to collect their royalties, especially from digital music. This law established the Mechanical Licensing Collective, enabling authors to register their works more easily for tracking and royalty collection. This results in a vast database that facilitates distribution through SE.
Mexico’s Existing Music Royalty Organizations
In Mexico, the Sociedad de Ejecutantes de Música de México (SOMEM) has existed since 1971 as a collective management organization of public interest. It is a non-profit entity representing performing musicians and handling royalty collection. Additionally, the Sociedad de Autores y Compositores de México (SACM) has served the same purpose since 1945. However, political disputes between SOMEM and SACM have hindered efficient royalty management.
- SACM has simple agreements with its U.S. counterparts, while SOMEM does not.
- The digital royalty process is dispersed and inefficient, requiring modernization.
Ricardo Ochoa’s Call to Action
Ochoa urges the Mexican government, Congress, SOMEM, and SACM to address and regulate digital royalty distribution. Collaboration with U.S. counterparts is essential to ensure fair compensation for Mexican musicians’ creativity, especially rock musicians who often face precarious living conditions in old age. Recovering royalties can help alleviate these hardships.
