The Harry Fox Agency is reporting $393.5 million in 2007 royalty collections, up nearly 4% from the previous year. Excluding collections from royalty compliance examinations (audits), collections still reached $361.2 million, an increase of 3.4%.

"In the context of a declining market for CDs, HFA's continued positive performance validates our efforts over the past several years to upgrade our technology and business approach to licensing and, most important, to collections and compliance examination results," says Gary Churgin, HFA president/CEO. "Our licensing arrangements for tablature with MusicNotes, the collaboration agreement with AudibleMagic and other new offers reflect our sustained effort to bring more valuable opportunities to the publishing market."

During the year, HFA issued more than 1.5 million mechanical licenses, 82% of which were for digital formats (digital phonorecord delivery - or DPD - licenses) including permanent downloads, interactive streams and limited (subscription service ) downloads. This brings the total number of licenses being administered to more than 13.9 million.

HFA also added almost 200 new licensees to its bulk DPD licensing program, a standardized method of submitting large quantities of license requests by exchanging digital files, bringing the number of companies participating in this program to 813.

HFA issued more than 2 million licenses for lyrics and tablature under its arrangements with LyricFind and Musicnotes.

Collections from royalty compliance exams of licensees were $21.1 million, a decrease from $29 million the previous year. HFA reports that the decrease was due in part to the conclusion of a significant exam in 2006 and HFA's concentration on conducting more frequent exams covering shorter time periods. In total, 26 exams were concluded last year, while 47 are still in progress.

More than 80% of HFA's mechanical licenses are now requested and executed electronically, either using the company's eMechanical system or through the exchange of electronic files. Almost 253,000 new song entries (75%) were requested using HFA's eSong and the catalog administration application Common Works Registration (CWR), compared to 130,000 (57%) the previous year.

In April 2007, HFA's commission on distributed royalties increased from 6.75% to 7.75%. The additional 1% directly funds the National Music Publishers' Assn.'s efforts on behalf of the music publishing community before the Copyright Royalty Board.

The company represents nearly 35,000 publishers with more than 1.9 million songs available for licensing.