Irresistible Force Meets Oblivious Object: Pandora Stockholders Are the Latest to Revolt — MUSIC • TECHNOLOGY • POLICY

By Chris Castle Some say we have vigorously attacked Pandora over the years, some would read those same critiques and say we were just being honest. Maybe the cliched “brutally honest.” Now it looks like we were not the only ones–in a very readable letter from Corvex Management’s managing partner to the board of directors, […]

via Irresistible Force Meets Oblivious Object: Pandora Stockholders Are the Latest to Revolt — MUSIC • TECHNOLOGY • POLICY

Is The MMF Shilling for YouTube (Again)?

Irving Azoff recently posted an open letter to YouTube on a tech industry news site where he laid out the arguments against YouTube–we think very effectively.  He echoed many of our complaints against YouTube, particularly about how YouTube uses the “notice and shakedown” system of DMCA abuse in the form of “whack a mole” for Google’s own profit.

Of course, it’s not really correct to call it “whack a mole” because the mole never gets whacked. Google’s interpretation of the DMCA has effectively created yet another government mandated compulsory license, this time a compulsory license that is royalty free or more accurately  redistributive because it moves value from the artist to Google.  Add that to the vicious attacks on Prince by Google surrogate EFF in the ridiculous decision in the Lenz case and you’ve got a real recipe for disaster.

You would think that at least some of Irving’s fellow managers in the MMF would have rallied around him, but in the case of the Music Managers Forum in the UK, that’s not what’s happening at all.  As we’ve long suspected, the MMF (at least in the UK) is busily shilling for Google.

Here’s an email that MMF president John Webster blasted out to MMF members:

From: Fiona McGugan <fiona@themmf.net>
Reply-To: fiona@themmf.net” <fiona@themmf.net>
Date: Saturday, May 14, 2016 at 4:19 AM

Subject: ICYMI 85: Life at a Major, Start Ups, YouTube
Dear Manager,
 
Very instructive view of working at a major label:
 
http://pigeonsandplanes.com/2016/04/what-i-learned-from-3-years-of-working-for-major-labels/s/615114/
 
A digital veteran questions the role of the music industry in the demise of music based tech start-ups:
 
https://medium.com/@pakman/the-music-industry-buried-more-than-150-startups-now-they-are-left-to-dance-with-the-giants-ecfd0b20243e#.kf5m9m5c0
 
A creator defends You Tube:
 
http://www.recode.net/2016/5/10/11645760/youtube-hank-green-response-irving-azoff-artist-rights
 
And the Featured Artists Coalition has launched a survey about YouTube. Please take three minutes to answer on behalf of your artists;

https://fac1.typeform.com/to/DO8VQq


Best Regards

Jon Webster
President, MMF

About: The MMF UK is the largest professional community of artist management in the world. We exist to provide support, training, representation and opportunity for Managers. We want a transparent music business that respects the needs and aspirations of the artist and their fans. If you wish to unsubscribe, please do so by return email.

This email is quite incredible because it cites to “A creator defends YouTube” but never mentions Irving’s open letter that engenders that defense.  It only mentions the attack on Irving’s letter from a YouTuber who for whatever reason was defending Google against Irving.  If they want to give both sides, then fine, but they didn’t.  They only gave Google’s side.

Not surprising considering the email was from Jon Webster, but you would think that even he would be more careful about being balanced.  This is the Music Manager‘s Forum, right? Not the Google Managers Forum?  Wouldn’t it have made more sense to put a link to Irving’s open letter and then give the response rather than just giving the response?

Mystifying.  We’re sure that both Webster and the YouTuber would deny that they are in Google’s pocket which could be true.  They could be “useful idiots”.

If you read both Irving’s open letter and that response from the YouTuber, you’ll notice the response never brings up a really important point that Irving emphasized–YouTube’s utter failure at accounting transparency for the meager royalties it does pay after you cut through all the “DMCA license” and “fair use” claptrap.

You say you want transparency, and I agree that labels and publishers have not traditionally been the best at that. Two wrongs don’t make a right. You need to be transparent, too. Be transparent about your ability to keep illegal music off your platform.  Be transparent about your ability to keep your own content behind a paid wall.

Be transparent about your revenue and, when paying artists, include all the revenue that is generated by music including advertising on YouTube’s home page. If you do this, I pledge to you that I will pressure the labels and publishers to pass on that transparency and increased revenue to the artists.

We would have thought that Jon Webster would be rallying the troops behind Irving on the transparency issue when the shoe is on the other foot.  But Webster appears to have no interest whatsoever in criticizing Google about anything from his mealy mouthed defense of Google’s DMCA practices to this indirect slam of Irving Azoff standing up for his artists and our industry.

Not only is Webster out to lunch again when it comes to Google, he doesn’t even address Irving’s rather generous offer to actually help Google.  That is a major offer from a major manager who could definitely make a difference.  Google, of course, has ignored this generous offer.  Why?  Probably because it is conditioned on Google being transparent about their own revenues.  If they want to pay artists a share of advertising revenue, then Google should be transparent about how that share is calculated and where the money comes from.

They should also stop playing games with ContentID and doing things like putting speed controls in their YouTube viewer to make it easier to pitch bend around ContentID in the first place.

It makes you wonder whose side the MMF is on–if you haven’t made your mind up already.  The unity in the music industry against Google has gelled in a way that we haven’t ever seen before, and that’s what makes Google really nervous.  That’s why they trot out the YouTube lottery winners (many of whom make the real money from distasteful brand integration fees or product placements, not YouTube royalties), that’s why they try to tell us that music isn’t an important part of YouTube’s revenues (so why bother auditing), and that may very well be why they use the MMF to push their agenda.

As Irving said:

The root of the problem here is YouTube: You have built a business that works really well for you and for Google, but it doesn’t work well for artists. If you think it is just the labels and publishers who are complaining, you are wrong. The music community is traditionally a very fractured one, but on this we are united.

And just in case they haven’t figured this part out yet, we’re complaining, too.  We know where Irving is coming from, but Webster needs to decide which side he is on instead of standing shoulder to shoulder with Google and its surrogates.

Target Facebook: Is the Social Network Joining the “DMCA License” Group — MUSIC • TECHNOLOGY • POLICY

Americans are freedom loving people and nothing says freedom like getting away with it. From Long, Long Time by Guy Forsyth Facebook is unlicensed. Let’s be clear about that. We all know that Facebook profits from music, and some of us know that Facebook not only profits in a general sense from having music on […]

via Target Facebook: Is the Social Network Joining the “DMCA License” Group — MUSIC • TECHNOLOGY • POLICY

Google Party Celebrates Revolving Door to Obama White House — Artist Rights Watch

The White House has a reputation for being remarkably cozy with Google lobbyists, but apparently this relationship also extends after-hours. The National Legal and Policy Center, a government watchdog group, has released a video showing top Obama officials flocking to Google’s White House Correspondents’ dinner party earlier this month. Party attendees included David Edelman, the […]

via Google Party Celebrates Revolving Door to Obama White House — Artist Rights Watch

Spotify’s New Release Excuse Is Wrong

The latest excuse from Spotify (which strangely is being echoed by David Israelite (NMPA CEO) in a recent interview with Dale Kawashima  in Songwriter Universe) is that “most of the new music that gets released, you don’t know yet who owns it.”

Aside from being simply incorrect, this argument is simply unbelievable on its face.  First of all, every record deal has what’s called a “controlled compositions” license that covers songs written or co-written by the band or individual artist, the producer, or any co-writers who write with the artists.

That same contract requires the artist to deliver songwriter credits, publisher information and often “splits” or ownership shares in order to meet their contract obligations to their label (and get paid their “backend” advance).

Artists sometimes pass that obligation on to their producers.  The producers then have to get those splits and songwriter information (also called “label copy”).

If the song is not written by an artist, producer or co-writer (also called “outside writers”), most of the time the splits are also known and delivered by the artist or producer.

If the song is a cover, the splits and publisher information is usually easily findable through public databases maintained by ASCAP, BMI, SESAC or the Harry Fox Agency (“HFA”).  HFA was hired by Spotify to clear the publishing on songs used by Spotify.

If there is a sample, most of the time the recording won’t be released until the samples are cleared (the infamous “legal hold” on an artist’s release).

So it is simply false to say that “most of the new music that gets released, you don’t know yet who owns it.”  In fact, the opposite is true.  Most of the music that gets released, you do know exactly who owns it.

Even if you strain to try to make some sense of this statement, the most you could say is that the writers may be known but the splits may not be known on a handful of new releases day and date with the release.

This is a tiny handful of songs, and even those are irrelevant when it comes to Spotify because they could easily send the required notice to each of the known writers.

It is also irrelevant for sending the “NOI” or “notice of intention to use” the song under the compulsory mechanical license.  Here’s the regulations which confirms in a nutshell that “ownership” or “splits” are not required.  The rules require that the notice go to “A copyright owner of the work, if known”.  “A copyright owner”–not all–“A”.  As in at least one.  If known.

(d) Content.

(1) A Notice of Intention shall be clearly and prominently designated, at the head of the notice, as a “Notice of Intention to Obtain a Compulsory License for Making and Distributing Phonorecords,” and shall include a clear statement of the following information:

(i) The full legal name of the person or entity intending to obtain the compulsory license, together with all fictitious or assumed names used by such person or entity for the purpose of conducting the business of making and distributing phonorecords;

(ii) The telephone number, the full address, including a specific number and street name or rural route of the place of business, and an e-mail address, if available, of the person or entity intending to obtain the compulsory license, and if a business organization intends to obtain the compulsory license, the name and title of the chief executive officer, managing partner, sole proprietor or other person similarly responsible for the management of such entity. A post office box or similar designation will not be sufficient for this purpose except where it is the only address that can be used in that geographic location.

(iii) The information specified in paragraphs (d)(1)(i) and (ii) of this section for the primary entity expected to be engaged in the business of making and distributing phonorecords under the license or of authorizing such making and distribution (for example: a record company or digital music service), if an entity intending to obtain the compulsory license is a holding company, trust or other entity that is not expected to be actively engaged in the business of making and distributing phonorecords under the license or of authorizing such making and distribution;

(iv) The fiscal year of the person or entity intending to obtain the compulsory license. If that fiscal year is a calendar year, the Notice shall state that this is the case;

(v) For each nondramatic musical work embodied or intended to be embodied in phonorecords made under the compulsory license:

(A) The title of the nondramatic musical work;

(B) The name of the author or authors, if known;

(C) A copyright owner of the work, if known;

(D) The types of all phonorecord configurations already made (if any) and expected to be made under the compulsory license (for example: single disk, long-playing disk, cassette, cartridge, reel-to-reel, a digital phonorecord delivery, or a combination of them);

(E) The expected date of initial distribution of phonorecords already made (if any) or expected to be made under the compulsory license;

(F) The name of the principal recording artist or group actually engaged or expected to be engaged in rendering the performances fixed on phonorecords already made (if any) or expected to be made under the compulsory license;

(G) The catalog number or numbers, and label name or names, used or expected to be used on phonorecords already made (if any) or expected to be made under the compulsory license; and

(H) In the case of phonorecords already made (if any) under the compulsory license, the date or dates of such manufacture.

Nobody who knows anything about the real music business will give any credence to Israelite’s statement.  Particularly because it’s exactly the kind of statement that infringers have been hiding behind since the Napster case that somehow we don’t know what we own.

Not true, not legally required and not helpful.

(Errata: This post first referred to the interviewer as Dean Kay instead of Dale Kawashima.)

Why Does the Center for Democracy & Technology Take Millions from Google? — MUSIC • TECHNOLOGY • POLICY

A recent story in the Daily Caller reported on some good open source analysis by a corporate ethics group that demonstrated Google’s funding of the “Center for Democracy and Technology”, a Washington, DC based lobby shop long associated with Google. The Daily Caller reports that: An influential tech industry watchdog group that has received millions […]

via Why Does the Center for Democracy & Technology Take Millions from Google? — MUSIC • TECHNOLOGY • POLICY

Cal State Chico Students and @KCSCRadio Say #irespectmusic in a Big Way! — MUSIC • TECHNOLOGY • POLICY

Blake Morgan asked me to post his statement on these awesome students at Cal State Chico, the student run SOTA Productions and especially KCSC Radio with big congratulations on their campus #irespectmusic event campaigning for artist pay for radio play! An uplifting surprise before Blake’s panels at Canadian Music Week next week when he takes […]

via Cal State Chico Students and @KCSCRadio Say #irespectmusic in a Big Way! — MUSIC • TECHNOLOGY • POLICY

Drivers, Über Is Selling Your Job: Google, Über and Lyft Revolving Door Lobbyist Asks Feds for Driverless Cars — MUSIC • TECHNOLOGY • POLICY

As is well known, Über is as close to Google as 1 is to 2. So, if there’s any silver lining in the Über corporate power grab going on in Austin right now over a ballot measure to bring Über drivers in line with background checks on taxi drivers, it’s that all the world can see just how […]

via Drivers, Über Is Selling Your Job: Google, Über and Lyft Revolving Door Lobbyist Asks Feds for Driverless Cars — MUSIC • TECHNOLOGY • POLICY

What YouTube Could Learn from Record Companies

Don’t forget that Google faces EU charge over Android ‘abuse of dominance’ http://www.bbc.com/news/technology-36092441 Google doesn’t need any more bad publicity.

Music Technology Policy

Peter Mensch gave voice to what many in the music business believe as reported by the BBC:

“YouTube, they’re the devil,” [Peter Mensch] told a BBC Radio 4 documentary on the music business. “We don’t get paid at all.”

He said the site’s business model, in which artists make money by placing ads around their music, was unsustainable.

“If someone doesn’t do something about YouTube, we’re screwed,” he said. “It’s over. Someone turn off the lights.”

YouTube’s reaction?  It’s not them, it’s the labels, the “gatekeepers”.  YouTube pays high royalties for music, it’s that it’s not getting to the artists because it’s being siphoned off by “gatekeepers”.  According to YouTube’s Chief Business Officer–the Suit of Suits–Robert Kyncl:

“There are middle-men – whether it’s collection societies, publishers or labels – and what they do is they give advances and they want those recouped. So it’s really hard when there’s no…

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The DMCA Still is Not An Alibi: How is Google Search Like the Ford Pinto?

As YouTube founder Steve Chen said of infringing CNN videos on YouTube: “[I] really don’t see what will happen. what? someone from cnn sees it? he happens to be someone with power? he happens to want to take it down right away. he gets in touch with cnn legal. 2 weeks later, we get a cease & desist [takedown] letter. we take the video down.”

Music Technology Policy

The Pinto Gap

Google frequently defends what I would call the “Pinto Gap”–Google’s business practice named after the notorious Ford Pinto model with the exploding gas tank.  Why the “Pinto Gap”?  Because one would have to believe that Google has determined, just like Ford, that the cost benefit of programming their search algorithm to play whack a mole with artists profits them more than “doing the right thing.”  One day we may find out if there is a “Pinto memo” at Google.

google motto

Recall that the reason Ford was nailed so badly for products liability on the Pinto was that it turns out that Ford knew that the Pinto gas tank was dangerous and would probably explode.  Ford made a horrendously cold-blooded decision to put the Pinto into commerce anyway.  Why?  Because during the gap between the time that Ford put the car into commerce and the…

View original post 1,447 more words