Guest Post: Copyright Office Regulates the MLC: Selected Public Comments on MLC Transparency: MediaNet

By Chris Castle

The wisest among us learn to use their portents well
There’s no need to hurry, it’s all downhill to hell.

From “Don’t Stand Still“, written by Original Snake Boy, performed by Guy Forsyth

The Copyright Office has solicited comments on the transparency of The MLC and received quite a few well-thought out comments (if I say so myself).  MediaNet

has raised some very interesting questions about the NMPA’s relationship with HFA and The MLC that many have questioned both in prior comments and in the many lawsuits against HFA clients like Spotify for its various licensing failures.  (Note that I don’t really fault HFA all that much because I think it really boils down to choices made by Spotify, another Internet company that is in a rush to enrich themselves at the expense  of songwriters and artists.  If you can fault HFA for one clear choice in that cluster, it’s that they didn’t resign from the job both during and after their ownership by NMPA and SESAC.  Maybe they got stock, too.)

MediaNet raises this interesting point:

In passing the MMA, Congress recognized that the party who controls the database may enjoy an economic advantage over others.9 Although not applicable to the MLC-HFA contract, The Federal Acquisition Regulation System, codified at 48 C.F.R. § 1.000 et seq., provides guidance regarding the principle cited by Congress under the MMA. For example, under FAR 9.505 a contracting officer cannot award a federal contract to a contractor where an organizational conflict of interest (or “OCI”) cannot be avoided or mitigated.

But here’s the clincher:

Applying the principles from the FAR, the arrangement between MLC and HFA raises a number of questions regarding the potential for unfair economic advantage to HFA as a consequence of its control over the operation and administration of the MLC database, including the following:

· Who owns the database, MLC or HFA? [The answer is neither]

· If HFA is terminated by MLC, does HFA own or have a claim to any proprietary or intellectual property rights in the database?

· Will HFA have access to “Confidential” or “Highly Confidential Information” (e.g., contract terms, payments and financial information) of music publishers or other similarly situated organizations such as PROs and administration service providers?

· Will HFA have access to the reporting of usage and required payments of the administrative assessment by significant nonblanket licensees (“SNBLs”) in the notices of nonblanket activity (“NNBAs”) required under the MMA?

· Sources suggest HFA may offer [an “ethical wall”] between its work on the MLC database and other work for third parties not using the blanket digital license, and an audit right to ensure HFA complies with this separation. Can HFA effectively separate such third party work from the database it administers for the MLC?

What are the remedies for non-compliance with such measures?

MediaNet respectfully requests that the Copyright Office, as part of its regulatory and oversight authority to ensure transparency, require that the agreements between MLC and all of its vendors be made publicly available, and with respect to the MLC agreement with HFA, if the information requested above is not disclosed in such agreement, require MLC and HFA to submit answers to the forgoing questions.

It should be obvious to everyone that there is an inherent conflict of interest between NMPA and HFA.  Insufficient care was taken at the Copyright Office and at The MLC to create systems to reduce the fact of this conflict negatively affecting the operations of The MLC which presents an opportunity to leave the bad days behind.  But that didn’t happen and here we are again.

But let’s not forget that The MLC is essentially a quasi-governmental organization and must comply with the Copyright Office’s oversight role despite the intimidation tactics.  And the Copyright Office is already looking a bit ragged around the edges from even the little connection to corrosion they’ve had to date.

For example, the Copyright Office announced that “the Butler Report” was commissioned by the Copyright Office to poll ex-US CMOs about their black box practices, knowledge which likely was common to everyone on The MLC’s board.  I must have missed where this work product was put out for bid, which leads me to think it was a single source consulting contract which is what they use to pave the road to hell when good intentions have supply chain disruptions.  Nothing against Susan Butler who is very competent and engaging, but I can think of several academics who would be better suited and would have been peer reviewed.  We can disagree about that, but why not have them submit proposals?  And also deliver all the work product that the taxpayer financed?

MediaNet raises many more excellent points about the inherent conflicts in the NMPA-The MLC-The HFA relationship and The Copyright Office’s designation process that are well worth reading.  You can find the full comment here.

And keep this in mind:

MLC executive Richard Thompson said at the Copyright Office panel on unclaimed royalties last December,[1] “[A] lot of the time since July has been spent working very closely with the staff at HFA and ConsenSys, really starting to nail down how all of this is going to work at the, you know, lowest operational level, all of the things that we need to work out.”  (Referencing the July 8, 2019 designation of The MLC as the MLC.)  Of course, The MLC didn’t announce the selection of HFA and ConsenSys until November 26, 2019. [2]

If The MLC was already working with HFA in July as Mr. Thompson says, why did they give the world the impression that they had not picked a vendor until November?

 

 

 

[1] Transcript, United States Copyright Office Unclaimed Royalties Study Kickoff Symposium (Dec. 6, 2019) at 28 ln 15.  (my emphasis)

[2] Tatania Cirisano, Mechanical Licensing Collective Selects Leadership, Partners for Copyright Database, Billboard (November 26, 2019).

 

Pledge Music Fiasco is Weirder Than You Think PT II: Who is behind Panama company Dolan Services Inc?

It’s been awfully quiet over at Pledge Music.  After declaring in May they were going into administration (UK equivalent of bankruptcy) I can find no reporting that indicates Pledge has even started the process.

Here is the current website notice. Completely lacking in specifics. Nothing about administration. Maybe this is normal. Maybe it’s not. I will say that publicly available documents indicate the financial history of Pledge Music is extraordinarily complex.  And if I were an administrator or creditor I would have a lot of questions. This could be the reason for the delay.

My colleague here at the Trichordist, David Lowery published this extensive overview of the Pledge Music fiasco two months ago. In the article he goes beyond the SEC charges against one of Pledge Music’s current owners and looks into the strange structure of the company; the multiple sub companies; the related entities; the offshore “panama papers” shell companies; and an SPIV (special purpose investment vehicle).  Quite a complex structure for a company of its size.

Go read the piece: The Pledge Music Fiasco is Weirder Than You Think.

I’ve been looking at another loose end with Pledge Music.  Who was the original investor that funded the company?  Here is an excerpt of an April 2015 interview that Benji Roger (Co-founder of Pledge Music) did with Andrew Warner of Mixergy.

Andrew: Where did you find the angel investors who funded this and allowed you to actually bring it to fruition.

Benji: It was somebody I knew. I basically pitched them the idea and I said, “Who should I send this to?” I sent out, I think, five business plans originally and I said, “Who would you send this to? Who do you think this is a good idea for?” One guy wrote back and he was like, “I love this. This reminds me of how Obama was elected.”

Andrew: Who was the guy?

Benji: He was just a friend. He’s a private guy. He doesn’t want to–

Andrew: He doesn’t want–can you tell us what he does for a living that he can suddenly do this? Is he a musician? Is he an entrepreneur?

Benji: No. He’s in a totally other space. He’s in a totally other space. He’s a very private lad. I don’t want to–

Andrew: But you can’t even say what his background is?

Benji: No. He went to business school.

Andrew: That’s it?

Benji: That’s what I will say.

Andrew: Is it his dad’s money? His parents money?

Benji: No. It’s his.

Interesting.  Go to the UK website where UK companies file required corporate documents. Look up Pledge Music LTD. By process of elimination (all the other original investors are listed by real name) it seems the silent investor is represented by an anonymous Panamanian company called Dolan Services Inc. This is from the 2010 Shareholder list.

Here is one installment of the money coming into the company. This document was filed March 25th 2009.  

Notice the share amount matches Dolan Services Inc.  So it’s reasonable to conclude this is the “silent” investor, and clearly the source of the startup capital for Pledge Music. So who is Dolan Services? An archive of the Panamanian Corporate registry seems to provide an answer. Notice the company was formed approximately 3 months before Pledge Music declared the investment and shortly after Pledge incorporated. And this seems to be the company’s only investment.

So It’s these folks right?

 

Probably wrong.  These corporate officers are listed on hundreds if not thousands of Panamanian companies.  This is a classic shell company registration operation. Just drill down on one of the officers.

He is listed on all of theses companies as an officer. This is only a partial list. Hundreds of companies.

I’m using this archive of the Panamanian companies because I can’t seem to find Dolan Services in the Panamanian registry any longer.  It’s possible that I’m not searching properly as I do not speak Spanish. Strange. (Any help here is appreciated).

Dolan Services Inc. continues to be listed as the largest Shareholder in Pledge Music until late 2015.  Then the filings at the UK Company House become a mess.  At one point UK officials target Pledge Music with a form of “delisting.” Probably for not filing proper paperwork. But as far as I can tell Dolan Services seems to disappear from the Pledge Music financial documents after 2016. I could be wrong. Like I said the filings are a mess.

I don’t know what any of this means.  And I’m not implying anything, other than the fact Pledge Music was originally funded by an anonymous Panama registered company that seems to have disappeared.

PLEASE CORRECT ME IF I AM WRONG. Leave comment if you have more information.

 

 

Guest Post: The TAZ, Pirate Utopias and YouTube’s Obsession with Safe Harbors

Guest post by Chris Castle

“[A]s you begin to act in harmony with nature the Law garottes & strangles you – so don’t play the blessed liberal middleclass martyr – accept the fact that you’re a criminal & be prepared to act like one.”

Hakim Bey from “T.A.Z.: The Temporary Autonomous Zone, Ontological Anarchy, Poetic Terrorism”

YouTube’s CEO Susan Wojcicki is frantically wheeling around Europe this week in a despairing effort to establish a US-style safe harbor in Europe and undermine Article 13, the Copyright Directive for a Digital Single Market.

Let’s understand that the very concept of a safe harbor for YouTube has its roots deep in the pirate utopias of Internet culture–a fact that may get overlooked if you aren’t a student of the Silicon Valley groundwater.

The Value Gap really owes its origins to the anarchist Peter Lamborn Wilson who wrote the seminal text on pirate utopias under the nom de plume“Hakim Bey” entitled “The Temporary Autonomous Zone, Ontological Anarchy, Poetic Terrorism” (1991) or, as it is known perhaps affectionately in hacker circles, simply “TAZ.”  I for one am not quite sure what makes “poetic terrorism” different from unpoetic terrorism, utopian terrorism, anarchic terrorism, or just plain old terrorism, but it may explain why YouTube just can’t bring itself to block terrorist videos before they find an audience.

But the TAZ helps illuminate my own more truncated term for the Value Gap–the alibi. An alibi for a pirate utopia where the pirates run cults called Google and enrich themselves from the prizes they go a-raiding.

In the early days of online piracy there was a fascination with locating servers in some legal meta-dimension that would be outside of the reach of any law enforcement agency. Sealand, for example, captured the imagination of many proto-pirates, but Sealand is a little to clever to put themselves in a position requiring evacuation by the Royal Navy before the shelling begins.  So Sealand was ruled out.

Instead, Google–largely through YouTube–created its own pirate utopia through manipulation of the DMCA safe harbor, one of the worst bills ever passed by the U.S. Congress–and that’s saying something.  Google busily set about establishing legal precedents that would shore up the moat around their precious TAZ.  None of Google’s attacks on government should be surprising–anarchy is in their DNA.  As former Obama White House aide and Internet savant Susan Crawford tells us:

I was brought up and trained in the Internet Age by people who really believed that nation states were on the verge of crumbling…and we could geek around it.  We could avoid it.  These people were irrelevant.

And “these people” were stupid enough to give a safe harbor to protect the TAZ.  Because here’s the truth–the safe harbor that has made Google one of the richest companies in the world while they hoover up the world’s culture actually is the quintessential temporary autonomous zone.  It only exists in a changeable statute and the judicial interpretations of that statute, whether the DMCA or the Copyright Directive.  And like HAL in 2001: A Space Odyssey, they’re not going to allow that disconnection without a fight.

But YouTube’s CEO Susan Wojcicki will not be singing “A Bicycle Built for Two” as she flails about in the disconnect of YouTube.  Her basic argument is that “imposing copyright liability is destructive of value” for “open platforms” like YouTube.  “Open platforms” bear a striking resemblance to the TAZ, yes?  Ms. Wojcicki , of course, purveys a counterintuitive fantasy because unauthorized uses for which copyright liability accrues is what destroys the value of the infringed work.  What Ms. Wojcicki is harping about is how copyright infringement destroys value for YouTubeand its multinational corporate parent, Google.  This is what happens when stock options invade a pirate utopia.

Not only has she got it wrong, but what she is actually whingeing about is the threat posed to her YouTube pirate utopia by the Copyright Directive and the united creative community.  And as HAL might say, the YouTube mission is too important for me to allow you artists to jeopardize it.

 

The Values Gap: CD Baby Shows that the Safe Harbor is a Privilege to be Respected and Not an Alibi to be Cheapened

by Chris Castle, from Artist Rights Watch

It’s hard to believe that after a good ten years of being called out, YouTube still–still–cannot manage to stop neo-Nazi and white supremacist material from getting posted on its network.  We’ve been calling out YouTube on MusicTechPolicy and the Trichordist for these inexcusable failures again and again and again.  And yet they keep recycling the safe harbor as an alibi–and they’re doing it again in Europe on Article 13.

I can understand that YouTube doesn’t want to “censor” users and there may be close cases from time to time.  For example, I could understand why YouTube CEO Susan Wojcicki might not want to take down videos from Seeking Arrangement that encourages young women into a “sugar daddy” relationship to pay for college and health care.

Sure, one of her Google colleagues was murdered by a woman he met through Seeking Arrangement.  Maybe Seeking Arrangement is a close case, particularly for a company that opposed the Stop Enabling Sex Traffickers Act.

But you know what’s not a close case? It’s right there in the title of the song–“Who Likes a N—“.  You would think that one would get picked up in a simple text filter of debased language.  But it wasn’t ten years ago and it still isn’t.  Not a close case.

UPDATE:  Author’s note–this YouTube video has been taken down and the account deleted–AFTER this post.

And then there’s “Stand Up and Be Counted” by the White Riders.  It’s not that hard to figure out by listening to any of the many versions of this song that it’s a recruiting song for the Klu Klux Klan.  And it’s not that YouTube doesn’t know it–this version of the hate song has clearly been filtered by YouTube–oh, sorry.  Not by YouTube, but by the “YouTube community.”  But why is it that a KKK recruiting song doesn’t violate YouTube’s terms of service if it doesn’t shock Susan Wojcicki’s conscience?

White Riders

David Lowery called out YouTube and CD Baby for allowing hate rock to be distributed on their platforms.  Within hours, CD Baby pulled the account.  But not YouTube.

Let’s understand a couple things.  First, this is not hard.  The Anti Defamation League and the Southern Poverty Law Center have actual lists of these bands.  Both MusicTechPolicy and The Trichordist have been hammering this issue for years.  Simple word searches could accomplish a large percentage of the task–the N word, KKK recruiting and images of Adolph Hitler are not close cases.

And let’s understand something else.  When users post movies, television shows and recorded music on YouTube, all of those materials have gone through some kind of legal review for standards and practices.  That doesn’t mean there’s no fair use or that there are no parodies.  It does mean that a human has thought about it because free expression is a judgement call.

Free expression is deserving of human examination.  You cannot create a machine that will do this for you.  You cannot rely on crowd sourcing to stop all uses of these vile terms and images–because in every crowd there’s someone who thinks it’s all just fine.  That’s why they’re called mobs.

YouTube, Facebook and all the Article 13 opponents actually are using a complete spectrum of review.  The problem is that they are cost shifting the human review onto artists and to a lesser extent their users for two reasons.  First and foremost is that they hope not to be caught.  That’s what the safe harbor is really all about.  The value gap is just a part of it–the other part is the values gap.  How do these people sleep at night?

But I firmly believe that the real reason that they shift the human cost onto those who can least afford it is because they’re too cheap to pay for it themselves.  They are willing to take the chance because getting caught so far has been a cost of doing business.

The real cost of their business is the corrosive effect that they have on our discourse, our families and our children.  There has to be a way to make YouTube responsible for their choices–and CD Baby showed this week that it’s not only possible but necessary.

If YouTube and their paid cronies want to try to convince legislators that they deserve special protection, they need to live up to the standard that CD Baby set this week  And they need to do that before they get any further special treatment.

As we’ve said for years, the safe harbor is a privilege not an alibi.

Oops: Government Subsidized Satellite Broadcasting Monopoly Sirius Decries Lack of Competition Among Rightsholders

Someone somewhere at Sirius is not thinking clearly.  For some reason. We are not sure why. 

Liberty Media CEO Greg Maffei should maybe head over to the Sirius Washington DC communicastions shop and make sure they aren’t smoking weed with Joe Rogan and Elon Musk.

Chris Castle at MusicTechPolicy reports that Sirius opined in a recent op ed that regulators might want to consider existence of anti-competive monopolies in the music industry when making new policy.  We agree!

Using Forks and Knives to Eat Their Bacon: More Misdirection and Dodgeball from SiriusXM

We are gonna cover this strategic blunder by Sirius in more detail later.  But for now suffice it to say, it’s pretty stupid to make the argument that there is a lack of competition among record labels when Sirius is in fact a monopoly.  Not just any monopoly but a monopoly that relies on federal compulsory licenses that demand recording owners/performers/songwriters license to Sirius at a below market rates.

Further Liberty Media seems to be angling to combine Sirius, Pandora, LiveNation-Ticketmaster and even IHeartRadio into a single company.  You sure you want to bring up the competition issue? The public outcry to AT&T – Warner tie up was huge!  Imagine the difficulty for this merger. That said I’m probably in the minority but depending on how it is done, I don’t necessarily think that a tie up of these properties is necessarily bad for artists. For one I’d like to see some real competition for Apple, YouTube and Spotify.  However in order to do this Sirius and Liberty would need to get artists (and seemingly its own radio hosts!) on board. They’d need a really compelling vision.  Nickel and diming rights holders, performers and songwriters on the MMA is absolutely counterproductive.

This is a losing strategy. Stop. Consider this an intervention. Put the pipe down.

You see the thing is Sirius has a point when it complains it is treated differently than its competitors on terrestrial radio. Terrestrial radio pays no royalties to performers.  This should be fixed. Performers and labels are allied with Sirius on this point.  Over the long term correcting this bit of unfair competition is more relevant to Sirius shareholders than trying to create single company carve outs in the proposed Music Modernization act.

Then there is the matter of what the real world looks like outside the beltway. Sirius, senators and music industry lobbying groups are not looking at the unintended consequences. As each successive special interest group adds a new carve out, support for the Music Modernization Act decreases among musicians and songwriters.  Don’t listen to inside the beltway experts. This blog has a better sense of what rank and file performers and songwriters are really thinking. The MMA seems at a tipping point with the rank and file. Something could easily tip that balance against.  Indie performers and songwriters still have options.  A single Senator could put a hold on a bill.  Already there is an ad hoc group of free market songwriters that have coalesced around Cornyn, Lee and Cruz.

It might not even be performers/songwriters that derail this bill.  This will go back to Rep Nadler in the house.  Gutting the MMA is not gonna sit well with Nadler. Especially as the pre-72 “Classics” provision was his baby. He is likely to become committeechairman in January. I’ll bet real money he drops the bill if it goes against his long held principles on Pre-1972s.

He knows what most rank and file performers know:

Performers/Songwriters don’t need the MMA. We will always have Paris.  And lawsuits. Digital services are the ones out of compliance with the law. Not rightsholders. The status quo works for rightsholders.  Further the Spotify/Sirius/XM class actions have demonstrated that there is an army of class action lawyers out there ready to take up our cause. So did we file 5 or 6 class action lawsuits? In all the excitement we lost count.

 

 

 

Guest Post @musictechpolicy: Using Forks and Knives to Eat Their Bacon: More Misdirection and Dodgeball from SiriusXM

By Chris Castle

Right on cue, SiriusXM attacks the Music Modernization Act at the 11th hour with a frothy op-ed in Billboard stringing together what I would argue are a lot of half-truths and misrepresentations in a desperate effort to fool both artists and the Congress into preserving the Sirius crony insider deal on subsidized royalty rates.

Sirius’s whingey Billboard post is a failed dezinformatsiya campaign focusing on a feigned concern for artist welfare that’s about as convincing as an ivory poacher joining PETA.  Sirius then makes mysterious assertions about how artists have given up getting a broad performance royalty for terrestrial radio which Sirius surely knows is false as negotiations continue between MusicFirst and the National Association of Broadcasters, and for a big finish adds some rhetorical bobbing and weaving that seems to boil down to kvetching about why can’t Sirius get recordings and songs for free.

Only a monopolist could pull off this kind of rhetorical thimblerig with a straight face and only a media consolidator like Sirius’s and Pandora’s owner Liberty Media could feel entitled to do so.  Sirius is getting bad advice–yet again.

The Charade of Horribles Begins Here

Sirius starts off with a blatant misdirection–somehow the monopolist satellite radio operator is oh so very concerned about how artists are paid under Sirius’s “licenses” for pre-72 works.  According to Sirius, “The Company wants to make sure that a fair share of the monies it has paid, and will pay, under these licenses gets to performers.”  Sounds good, right?

Wrong.  The statement is pure deception.  Sirius leaves important facts out of the argument: the only reason that Sirius is paying anything at all on pre-72 artists is because The Turtles and the major labels each sued Sirius in litigation that Sirius fought for years with all the wrath of big law firms trying to crush uppity artists.

The Sirius post in Billboard addresses the major label settlement of that lawsuit which itself had two components–a lump sum payment of $210 million that the labels have distributed or have committed to distributing to artists, and also a go-forward license.  (The Turtles got even more for the class action settlement–check here to see if you’re in the class.)

When Sirius refers to a “license” without also referring to the lawsuit that produced the license, it sounds like the “license” is just normal course business.  Not true–Sirius had to be dragged kicking and screaming through courts in California, Florida and New York to get to any conclusion at all.  So pretending there was a license without the lawsuits that drove Sirius to the table is quite the equivocation.

And frankly if it weren’t for The Turtles there probably would be no solution at all.  It sounds quite different to say that Sirius is so concerned about artists that they allowed themselves to be sued and are cheesed that artists still mistrust them as royalty deadbeats, right?

Not to mention–it’s unclear that there actually are any licenses to pay on in the first place if you think a license should actually have like, you know, terms and stuff.   Sirius evidently is taking extreme positions in a negotiation with the major labels that is very contentious according to the New York Times.  So the reality doesn’t exactly comport with the Sirius fantasy.   Shocking, I know.

Now Sirius wants to run to Congress at the 11th hour to use the MMA to amend a private settlement agreement because they are so concerned about payments to artists under private contracts?  Sorry, that dog won’t hunt.  If there’s a royalty dispute between artists and labels, it’s not going to get fixed by either SiriusXM or the U.S. Congress.  It will get fixed by artists, their managers and lawyers just like always.

What Sirius want to do is gin up a fake 11th hour issue to try to derail the MMA altogether.  Why?  They’re doing it partly because it looks like MMA is going to limp across the finish line in the coming weeks, but they’re doing it mostly because they think we’re all idiots.

So don’t come crying to me about how much Sirius care about artists when they would be happily stiffing artists to this day if the artists hadn’t sued them into submission.  (Safe harbor fans take note.)

My, What Big Teeth You Have 

Sirius then goes on to spread squid ink about the Congress getting out of the free market by ending the Sirius subsidized royalty rate–subsidized by the very artists who they profess to care about so much–in favor of the “willing buyer/willing seller” standard which tries to approximate a free market negotiation.   You have to love the irony in this line from the Sirius op-ed:

The willing buyer/willing seller standard functions well in competitive markets. In fact, it would work great if there were 100 labels to buy music from, but there isn’t — in an overwhelming majority of cases there are only three.

Actually–there are well over 100 labels to “buy music from”, and saying otherwise is an insult to independent labels around the country and all over the world.  But…there’s only one monopoly satellite radio carrier–SiriusXM,  which itself is a combination by takeover of Sirius’s competitor XM Radio which we remember fondly as the brainchild of one of the greats, Lee Abrams.

Sirius’s point is exceptionally ironic and some might say entirely disingenuous when you consider the company’s control over Pandora acquired as a result of corporate hard ball in its head fake merger negotiations with Pandora–which strangely enough also took the Sirius position on stiffing pre-72 artists and got sued right along side the satellite monopolist.

And of course it must be said that all of these machinations are orchestrated by media consolidator Liberty Media, the massive conglomerate whose CEO Greg Maffei “…is chairman of Sirius-XM, Pandora Media, Live Nation Entertainment (which owns Ticketmaster), Liberty TripAdvisor and Qurate Retail — the recently rebranded owner of QVC, HSN and Zulily. He’s a director of Charter Communications, the No. 2 cable operator (Liberty is the largest stockholder), and online real estate service Zillow” according to Variety.  “[Maffei] last year made $19.8 million — up 17% over 2016 and equal to 223 times the $88,786 that the average Liberty Media employee collected.”

And then there’s the persistent story about Liberty Media acquiring iHeart (see term sheet here).  So that’s all pretty cozy cronyism.

It will come as no surprise to Sirius that when you ask someone to invest in your company, that usually results in that investor getting shares of stock–like when an artist subsidizes the Sirius royalty rate.  I see no shares of Sirius on offer here, and it’s just the usual drivel that is based solely on “I don’t wanna goo goo goo.”  The free ride is over (hopefully).

IRFA Much?

As if the trip to Sirius’s alternate universe weren’t weird enough, we now have this nonsense statement that requires a trip back to messaging for the failed Internet Radio Fairness Act supported by Pandora, SiriusXM and Google Shill Listersthe Electronic Frontier Foundation:

SiriusXM is asking the simple question: “Why are we changing the rate court evidence standard for musical compositions in this legislation?” So, artists have agreed that they do not want to fight for terrestrial radio to pay sound recording royalties, SiriusXM has accepted that decision. But why is terrestrial radio given another break in rate court for the musical composition rights?

Let’s disabuse Sirius of the idea that artists have given up anything on the fight for artist pay for radio play.  Those negotiations are on-going and last time I looked the #irespectmusic campaign was alive and kicking.  It’s a marathon not a sprint.

I can understand that Sirius is envious that Big Radio has succeeded in administering an ass kicking to artists for a long time, but those days are ending.  Thanks to Ranking Member Jerry Nadler and his “Fair Play Fair Pay” bill, radio may soon be paying their fair share in the new Congress.  And remember–for quite some time, Sirius has not wanted broadcast radio to be royalty-paying like Sirius, instead Sirius wanted to be royalty-free like broadcast radio.  Sorry, the answer is artists have not given up anything on fairness.

The change to the rate court evidence standard for songs is hardly a break for terrestrial radio given the package of rate court relief in MMA–if anything, it allows songwriters a greater opportunity to argue for higher rates.  More rhetorical magic tricks at the thimblerig table.

Let’s be clear–Sirius is using rhetorical tricks and sleight of hand to draw artists’ attention away from the prize.  Whatever problems we may have in the family, we’re not going to take advice from them in their starched white shirts using forks and knives to eat their bacon.

@mikehuppe: Broadcast Radio Makes an Ironic Plea for Fairness — Artist Rights Watch

SoundExchange’s CEO says it’s time radio starts paying all music creators fairly for their work.

On Monday, a group of radio broadcasters penned a letter in support of the National Association of Broadcasters’ (NAB) push for deregulation of the $14 billion radio industry. Their letter was based on the NAB’s petition to the FCC this past June, in which the NAB sought to allow expanded broadcaster ownership of radio stations (i.e., increased consolidation) throughout the country. The NAB’s justification: broadcasters must adjust their business model to the realities of the new streaming world.

As a representative of the many creative parties who help craft music, we are frequently on the opposite side of issues from the NAB. And while I can’t comment on NAB’s specific requests, I was delighted to find so much common ground in their FCC filing in June….

I agree with the NAB that the law should “finally adopt rules reflecting competitive reality in today’s audio marketplace” and should “level the playing field” for all entities in the music economy.

If radio truly wants to modernize, it can start by taking a giant leap into the 21st century and paying all music creators fairly for their work. Stop treating artists like 17th century indentured servants, just so radio can reap bigger profits. If radio wants to have rules that reflect the music industry of today, then that should apply across the board.

We should resolve this gaping unfairness to artists before we begin talking about allowing radio to consolidate even further.

 

Read the post on Billboard

h/t Artist Rights Watch

Factiness EU Style: A Dedicated Group of Like Minded People Carpet Bombs The European Parliament–MusicTechPolicy

 

EU Hackathon is right! Google’s sleazy EU lobbying firm at the center of the controversy over spam email, robo call, and twitter bot campaign against MEPs supporting articles 11 and 13 of copyright directive. 

I am republishing this from the MusicTechPolicy blog as this is completely relevant to our coverage of information warfare style tactics used to overwhelm communications channels with MEPs on copyright directive. See here, here and here.  Much of this activity came from groups associated with Google and appears to have been controlled and directed by Google’s lobbyist N-Square.  This should be investigated as the use of these tactics will likely increase as Google now faces a steep antitrust fine from the EU.

 

by Chris Castle

As MTP noted in Fair Copyright Canada and 100,000 Voters Who Don’t Exist back in 2009, the legitimate desire by governments to use the Internet to engage with the governed is to be admired.  But there have been incredible and probably illegal uses of the Internet to overwhelm elected officials with faux communications that reek of Google-style misinformation and central planning in the hive mind of the Googleplex.

We saw this again with the Article 13 vote in Europe last week with what clearly seems to be a Google-backed attack on the European Parliament for the purpose of policy intimidation.  That’s right–an American-based multinational corporation is trying to intimidate the very same European government that is currently investigating them for anticompetitive behavior and is staring down a multi-billion dollar fine.

Vindictive much?

Advocacy against Google’s interests on artist rights and copyright issues (not to mention human trafficking, advertising illegal drugs and counterfeit goods) can no longer be just about making a good argument to policy makers.  It has to anticipate that Google will pull these DDOS-type stunts capitalizing on what seems to be the element of surprise.

Except there shouldn’t be any surprise.

There is a real problem with policy-by-DDOS governing.  For example, Cass Sunstein, then the Administrator of the Obama Office of Management and Budget, issued a memo in 2010 to the heads of executive branch departments and regulatory agencies which dealt with the use of social media and web-based interactive technologies.

Specifically, the Sunstein memo warned that “[b]ecause, in general, the results of online rankings, ratings, and tagging (e.g., number of votes or top rank) are not statistically generalizable, they should not be used as the basis for policy or planning.”  Sunstein called for exercising caution with public consultations:

To engage the public, Federal agencies are expanding their use of social media and web- based interactive technologies. For example, agencies are increasingly using web-based technologies, such as blogs, wikis, and social networks, as a means of “publishing” solicitations for public comment and for conducting virtual public meetings.

The European Parliament would do well to take a page from Sunstein’s thinking and limit the amount of anonymous contact that anyone can have with MEPs when the European Parliament is suffering a DDOS-style attack.

But the most important thing for the European Commission to take into account is that a company that is the target of multiple investigations is using the very market place monopoly that caused the competition investigations to intimidate the European government into bending to its will on Article 13.  (That, of course, is the biggest difference between the Europeans and Article 13 and the Americans and SOPA–the US government had dropped the US antitrust investigation into Google and it had unparalleled access to the White House.  So the two are really nothing alike at all.)

The European Commission needs to launch a full-blown criminal investigation into exactly what happened on Article 13, particularly since there is another vote on the same subject coming in September.  Properly authorized law enforcement acting swiftly can set sufficient digital snares to track the next attack which surely is coming while they forensically try to figure out what happened.

Advocates need to understand that Google is a deadly force and this is the endless war.  Good arguments are clearly not enough anymore, particularly as long as the government and law enforcement do nothing to protect democratic values from bully boy tactics.

Are Data Centers The New Cornhusker Kickback and the Facebook Fakeout? — Music Technology Policy

In case you were scratching your head about why Nebraska Senator Ben Sasse decided to stick his beak into trying to continue discrimination against recording artists who had the misfortune to record before 1972–here’s a possible explanation.  Maybe he was just getting his beak wet?

Remember, Senator Sasse introduced an amendment to the Music Modernization Act in the dead of night the day before the markup of MMA in the Senate Judiciary Committee. While Senator Ron Wyden–another data center beneficiary of Amazon, Facebook and Google–was at least trying to dress up his complicity in a Chanel suit and Louboutin shoes.  Senator Sasse went the more direct route:

Now why might Senator Sasse be so interested, particularly given Nebraska’s musical history?  It turns out that there is quite the competition between Nebraska and Iowa for Silicon Valley’s data center business, particularly given the renewable energy profile of each state (wind is 37% of Iowa’s electricity production and about 20% of Nebraska (including hydro).  That checks the box for Silicon Valley.

Of course, as we see from Senator Sasse’s tone deaf foray into copyright lobbying, Silicon Valley thinks they can play the rubes in return for building data centers in their state, just like they did with Senator Ron Wyden and the people of Oregon.  What does stiffing pre-72 artists have to do with data centers?  Nothing.  What does it have to do with playing footsie with royalty deadbeats like Google and Facebook?

Everything.

And rumor has it that there is a deal in the wings for a new Google data center in Nebraska.  Which also explains a lot.

But somehow, Facebook knows that its Silicon Valleyness may not be that popular with the rubes.

According to the Data Center Dynamics site, Facebook has been going to great lengths to hide its involvement in massive data centers being built in Nebraska, which gives “Cornhusker Kickback” (or Facebook Fakeout) a whole new meaning:

Operating under the alias Raven Northbrook, Facebook has its eyes on Nebraska, DCD can exclusively reveal.

Late last year, local council officials granted approval for a large data center project in Sarpy County, Nebraska, but the company behind the huge facility was kept a secret.

Now, DCD can confirm that the corporation hoping to build four 610,000 square foot (56,670 sq m) data center halls at the Sarpy Power Park is Facebook.

You can run servers, but you cannot hide them

SHOW FULLSCREEN

Raven Northbrook, certificate of authority, Facebook

Source: Nebraska Secretary of State

Sarpy County documents reveal that the company, which is publicly represented by infrastructure engineering and design solutions company Olsson Associates, goes by the name Raven Northbrook.

So maybe the Sasse sledgehammer amendment to discriminate against pre-72 artists is easily explained–just another swamp dweller swamping up the cash.

Read the post on Data Center Dynamics

 

Here Comes the Shiv: Sen. Sasse to Move to Strike the CLASSICS Act and Screw Pre-72 Artists With the MMA Bait and Switch— Music Technology Policy

Trichordist readers will not be surprised to learn that Senator Sasse is circulating an amendment to strike the CLASSICS Act from the Senate version of the Music Modernization Act. The amendment appears to have been drafted by the Google Shills at Public Knowledge–bringing the bait and switch right on cue.

This is, of course, the classic back stabbing we have come to expect from Public Knowledge, so is par for the course.  What that means, of course, is that Google gets to screw the pre-72 artists and get their new reachback safe harbor that the songwriters and publishers gave up.

We need to move on this quickly.  If you can call your Senator and ask them to oppose the Sasse amendment to the Music Modernization Act (bill number S. 2823), that would be great.  You can look up your Senator’s information on Phone Congress at this link.  Choose “Any Other Topic Not Listed Here” on the pull down “Topic” menu.

via Here Comes the Shiv: Sen. Sasse to Move to Strike the CLASSICS Act and Screw Pre-72 Artists — Music Technology Policy