WASHINGTON, DC – Future of Music Coalition continues its pursuit of equitable structures for musicians with the release of the Principles for Musician Compensation in New Business Models (or “Artist Principles”) — a set of broad guidelines outlining best practices for ensuring creator compensation in an evolving music landscape.

Crafted by artist advocate Ann Chaitovitz with input from industry experts, the principles offer a clear framework for those looking to utilize musicians’ creative works in the pursuit of new business models. 

“Future of Music Coalition has always supported novel and innovative ways to get music to fans,” says Chaitovitz. “Artists, whose music creates the value and attracts listeners and investment capital, must receive their fair share of the revenues their music generates. Equitable structures that reward artists also bring legitimacy to new services, making them more likely to be supported by fans. Artists must ensure that the business models of the future do not replicate the flawed models of the past.”

“There is tremendous need for thoughtful discussion about how musicians get paid in the digital era, especially given the state of the economy and where businesses are headed,” says FMC Board President and co-founder Michael Bracy. “These principles take FMC’s major label contract critique one step further into the digital age, and represent the first of several FMC initiatives to document the extraordinary complexity of musicians’ income streams.”

The advent of new technologies has fostered incredible opportunity for the lawful discovery and acquisition of music, with new sites and services emerging every day. Fans can now connect to wide array of music across genres and platforms. Business arrangements between rights holders and digital innovators can be potentially fruitful, but without reasonable guidelines, performers and songwriters may be excluded from these revenues.

The Artist Principles apply lessons learned from new music services that launched without clearly defined creator compensation  — for example, where labels received equity stakes and advances or where independent artists did not have access to the platforms. The Principles are likewise informed by instances where artists have successfully ensured fair compensation and oversight of other new royalty streams.

A variety of individuals and groups support these Principles:

Nan Warshaw, co-owner, Bloodshot Records
“These principles provide a straightforward outline of how to proceed fairly with new media royalty and income streams. If the music industry can adhere to these basic practices, artists may be spared many of the abhorrent and inequitable business models of the past.”

Bertis Downs, General Counsel and Advisor, R.E.M.; Adjunct Professor, University of Georgia School of Law
“With the various new music business models and proposals emerging, the fundamental principal of equitable compensation for artists remains paramount. And while everyone is seemingly is in agreement that ‘artists should of course be compensated,’ devising structures and systems to make that a reality is proving far from easy. These Principles for Musician Compensation in New Business Models are an important step forward in the right direction.”

Tim Quirk, VP Programming & Creative for Rhapsody; Musician, Too Much Joy and Wonderlick
“As a Rhapsody executive, I know what and how we pay the copyright owners from whom we license music. As a musician who’s been signed to indies and majors, I wish I could say I had as clear a view into how that money gets shared with the original creators. I endorse any effort to ensure artists get compensated fairly and transparently.”

Tom Lee, President of the American Federation of Musicians of the United States and Canada, A.F.L.-C.I.O.
“Fair and transparent compensation to musicians and songwriters is the best way to insure the growth and vitality of the music industry. If we want great music, those who make it must be paid.”

Fred Goldring, entertainment lawyer, entertainment/new media/marketing strategist, Goldring, Hertz, and Lichtenstein LLP; Membrain, LLC
“For well over a decade, my partners and I have been very vocal about the need for our industry to embrace and explore the opportunities presented by technological innovation and disintermediation, rather than just fighting it in an attempt to stem the tide and preserve long-existing business models. While it is certainly encouraging to see that new business models are now being seriously considered at a rapidly evolving rate, it is critical that the actual creators, the artists and not just the business entities and copyright holders, have a significant financial stake in the results and that they are compensated fairly and properly.”

Rick Carnes, President, Songwriters Guild of America
“Whenever you encounter a masterpiece of art, whether it is a painting, a sculpture or a Gershwin tune, you are experiencing the work of a professional creator, not a hobbyist. Professional creators need to be paid if we are to get the benefit of their incomparable talents.”

Pat Collins, President and Chief Operating Officer, SESAC
“New business models are constantly changing and evolving and all reasonable concepts that offer compensation to creators, both songwriters and artists, should be considered.”