Current copyright royalty formulas rest on a legal framework that dates back to the early part of last century, and “the time is ripe to question the existing paradigm,” U.S. Register of Copyrights Maria Pallante said in a 245-page February report on “Copyright and the Music Marketplace.”
The copyright board’s proceeding covers the bulk of payments to recording artists and labels made by Pandora and other digital music providers. By December, the board will decide Internet radio royalty rates through 2020.
Traditional AM and FM radio stations — such as KXMZ — are exempt from these royalties. read more
Yesterday, the U.S. District Court of Central California ruled in favor of Flo & Eddie, Inc., allowing for a class action lawsuit to proceed against Sirius XM. Flo & Eddie—original members of The Turtles—had already achieved a victory in their initial lawsuit against Sirius XM back in 2014. The latest ruling opens up the possibility of restitution for any artist whose music was recorded before February, 15 1972 and is played by the satellite radio giant. For Sirius XM, this could mean a great deal of money spent on appeals or settlements. We wonder whether the potential expense exceeds what they’d have paid if they hadn’t stopped compensating for pre-’72s.
As Judge Philip Gutierrez writes in his decision, “given SiriusXM’s aggressive litigation tactics … and its decision to continue to perform pre-1972 recordings without authorization, it may be cost-prohibitive for owners with smaller value claims to pursue their claims against SiriusXM in this environment.” We think it’s a positive when individual creators’ rights are recognized alongside those of the big media companies. A closer examination of the case, however, indicates that Flo & Eddie sued as copyright owners, not performers. We are unclear on what this might mean for the larger community of musicians who don’t own their copyrights but should be compensated for digital performances nonetheless.
Since May 2013, the House Judiciary Subcommittee on the Courts, Intellectual Property and the Internet has undertaken a comprehensive review of the entire Copyright Act, including many issues of importance to musicians and songwriters. But the Act is not the only regulatory structure that impacts how creators are compensated.
Streaming music is getting a lot of attention lately. Some of this is because country/pop superstar Taylor Swift removed her catalog from Spotify, and majormediaoutlets like to ask folks like us what it means. But Spotify isn’t the only streaming game in town: there’s also Internet radio, which is an entirely different animal when it comes to how royalty rates are calculated and how musicians are paid.
Who gets paid, how much and under what terms when music is played on digital and AM/FM radio? Answering those questions isn’t easy, even for experts. But one thing is clear: 2014 has been a big year for the laws and policies that determine royalty rates for all forms of radio, and the intrigue will likely continue into 2015. read more
The court fights involving the use of recordings made before February 15, 1972 continue to rage on. Earlier, we told you about a ruling from a California court in a case brought by Flo & Eddie (formerly of the Turtles) against satellite broadcaster SiriusXM. Now the duo has filed another suit, this time against Pandora. (There is also separate litigation from the major labels against Pandora and SiriusXM in other courts). read more
Today, news broke that Merlin—a global rights agency representing independent labels—entered into a deal with Internet radio leader Pandora that seems to align the incentives of both parties while maintaining direct payment to artists.
Overall, we are glad to see a major music service commit to better serving indies using technology, and with a shared goal of growing audiences for that music (and thereby generating more revenue).
The House Judiciary Subcommittee on Courts, Intellectual Property and the Internet held its second hearing on music licensing on June 25, welcoming input from a variety of interest groups and organizations as a continuation of the ongoing reexamination of our country’s copyright system. You can find our coverage of the prior hearing here.
Nine witnesses testified before the committee, offering opinions that varied in focus but all highlighted major areas of potential reform. Witnesses for this hearing included singer/songwriter Rosanne Cash representing the Americana Music Association, Cary Sherman (CEO of the Recording Industry Association of America, or RIAA), Charles Warfield on behalf of the National Association of Broadcasters (NAB), Darius Van Arman on behalf of the American Association of Independent Music (A2IM), Ed Christian of the Radio Music License Committee (RMLC), Paul Williams as President of the American Society of Composers, Authors and Publishers (ASCAP), Chris Harrison of Pandora, President of SoundExchangeMichael Huppe, and David Frear, CFO of Sirius XM.
In yesterday’s congressional hearing on music licensing, Chris Harrison, VP of Business Affairs at Pandora, expressed concern for the viability of internet radio, making reference to popular internet broadcaster East Village Radio having shut down its operations last month, “because they couldn’t afford the [royalty] rates.” As fans of EVR’s wildly eclectic programming, we were saddened to hear that the station was closing down. But Harrison’s account of the reasons behind the closure isn’t the full picture.