Artists Will Receive Nothing from the $3 Billion Beats Acquisition, Sources Say…| DMN

The three major labels secured an equity share in Beats Music as part of their licensing agreements with the service. But according to multiple sources close to those negotiations and Beats’ subsequent sale, artists on those labels will receiving nothing at all from the roughly $3 billion acquisition by Apple.

The reason is that acquisition earnings aren’t tied to actual sales or streams, and therefore are not accounted at all to label artists. “They will get nothing,” one industry attorney flatly told Digital Music News, while insisting on anonymity.

READ THE FULL POST AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2014/06/09/artists-will-receive-nothing-3-billion-beats-acquisition-sources-say

Would You Walk 400 Miles to the Googleplex to Protest Streaming Royalties?

#walkmilesformusic

Music Technology Policy

Any artist or songwriter who watched Pandora executives enrich themselves and then wring their hands about artist and songwriter royalties has probably wondered what can I do about it?  Anyone who has watched YouTube scam their way into existence hiding behind a “catch me if you can [afford it]” interpretation of the DMCA and then condescend to artists and songwriters has probably wondered how can I stop Google?  Particularly after establishing its monopoly power and using it to try to intimidate indie labels?  As The Street astutely observed:

Pandora claimed it wanted to create a musician’s middle class. However it has done very little to support those words with actions. If a musician’s middle class exists as a result of Pandora’s efforts, it must be out of sight and out of mind, sweeping floors in the mansions of Pandora’s filthy rich executives. Or maybe they’re doing construction…

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Credit Check: Serial “Bad Actors” Should Lose Access To Compulsory Licenses.

Here are the comments I filed with the Copyright Office concerning the continuing use of compulsory licenses by services with histories of non-payment and other abuse.

Dear General Counsel Charlesworth:

I am a songwriter and performer of some note. I have been writing, recording and producing albums for over 30 years. I have also been active as a songwriter and artists’ rights advocate. I have on more than one occasion submitted testimony to Congress on copyright and related issues and have testified before the House Subcommittee on Courts, Intellectual Property, and the Internet.   Today I write to you as a songwriter.

Many songwriters first find out they are being compelled to participate in a digital music service when they get a paper claiming to be a statutory notice under Section 115that is frequently late, backdated or otherwise noncompliant.  This notice may come with a letter seeking to induce the songwriter to agree to statutory terms as well as other terms they may not know that they are not required to accept. Sometimes the notices are accompanied by a statement showing the songs have already been used by the service. I have in my file cabinets dozens of these seemingly non-compliant notices covering hundreds of my songs.

Now, if the songwriter is savvy enough to recognize that the notice is deficient the songwriter may challenge the notice as defective.  I routinely hear from songwriters who have challenged defective notices that they receive no reply to their challenge and that the services concerned continue to use their works and may eventually even send royalty statements to the songwriter!

In order to get the service’s attention, a songwriter would likely have to hire a lawyer.  And if the notice is from one of the services operated by Amazon, Apple or Google the songwriter must find a lawyer willing to go up against one (or more) of the largest corporations in the world. Even if statutory damages and attorneys’ fees might eventually be available to a songwriter if victorious, it’s unlikely that expensive federal copyright litigation is the most likely outcome to incorrect notices or deadbeat services.

And what is the most likely outcome?  The service uses the songs in violation of the statutory requirement. They may even send payment!  I have files full of checks for pennies or (rarely) a couple dollars. I don’t deposit these checks because they often come with documents that seem to suggest that I’m agreeing to terms that I don’t understand. Who would consult a lawyer for a $0.11 check?

A similar process happens with some services or record companies when they send an “opt in” for electronic notification of compulsory licenses. I’m not an attorney, but these click through agreements seem to contain language that has little to do with electronic notification! I wonder how many songwriters blindly cash these checks or agree to mysterious and confounding terms that accompany an electronic notification opt in?

All this is what I call “licensing by attrition.” And it happens to independent songwriters on an ongoing basis because the compulsory licensee can continue to operate whether or not it has complied with the Copyright Act in the past.

I have seen instances where a supposed compulsory licensee has failed to comply with its payment obligations for years, ignored termination notices, and yet is still able to continue to receive the benefits of new statutory licenses for songwriters who await the same fate.

Nothing in the Section 115 license scheme requires any consideration of the creditworthiness or trustworthiness of the compulsory licensee.  The songwriter has essentially been compelled by the government to grant a license with absolutely no care given or concern shown by the government as to whether the compulsory licensee is unreliable.  The entire burden of determining whether the licensee complies with even the most basic terms is entirely shifted to the songwriter—often after the fact.

Now in theory songwriters can attempt to terminate under Section 115, but this seems to require that the songwriter acknowledge that there was a valid license in the first place. Plus it assumes that the compulsory licensee will pay any attention to a termination letter from a songwriter.

Given the fact some services habitually fail to comply with the statute particularly when they “carpet bomb” notices of intention to use songs, it seems unlikely they live in fear of some individual songwriter.   Without a court order I suspect none of these supposed compulsory licensees would comply. And I suspect, given the small amounts often involved, these compulsory licensees realize it isn’t worth it to the songwriter to bear the expense of going to court even with the promise of an eventual reward of statutory damages and attorneys’ fees for those who have jumped through the registration hoops.

But even if a songwriter can find a way to sue the deadbeat, why on earth should the government compel songwriters to submit to new licenses for a licensee with a history of nonpayment?

Would it not be both prudent and efficient to empower songwriters to request the Copyright Office deny habitual offenders the ability to rely on new compulsory licenses? Shouldn’t songwriters have some recourse short of a lawsuit to stop the corrupt compulsory licensee from abusing the government’s awesome power to force songwriters to license to all comers, even the deadbeats?

What I am suggesting is that songwriters have the ability to report noncompliant compulsory licensees to the Copyright Office and that after a suitable investigation, the Copyright Office have the ability to publish a notice that certain parties lose the right to use the compulsory license under Section 115.

In an arm’s length direct license, I certainly would not choose to make a new license for my songs with someone who didn’t respect my rights or honor the terms of my agreement in the past—particularly someone who owed me money. Why should a compulsory license be any different?

Sincerely

David Lowery

Cracker/Camper Van Beethoven

Swimming Against the Stream: Musicians Fight for Their Worth in the Internet Era | SF Weekly

The cops were getting lots of calls. Drivers were worried. There was a woman walking down the road — the narrow part of Highway 1, just north of L.A. And she was pushing a baby carriage.

When the cops found her, it turned out she was not a crazy person. She wasn’t even a mother.

She was a musician on a mission.

The woman was Suzana Barbosa, a longtime Toronto singer and leader of the band Lumanova, who had lately become fed up with the state of the music industry. She’d had it with the paltry amounts paid to songwriters and performers by streaming services like Spotify. She’d had it with our culture’s preference for glamorizing starving artists instead of paying them decently.

Barbosa was so fed up with the music business that she decided to walk some 400 miles, from Los Angeles to the Google campus in Mountain View, to publicize what she sees as an existential threat to the world’s independent musicians.

READ THE FULL STORY AT THE SF WEEKLY:
http://www.sfweekly.com/2014-06-04/music/beats-apple-unsound-spotify/

Van Dyke Parks on How Songwriters Are Getting Screwed in the Digital Age | The Daily Beast

Forty years ago, co-writing a song with Ringo Starr would have provided me a house and a pool. Now, estimating 100,000 plays on Spotify, we guessed we’d split about $80. When I got home, on closer study, I found out we were way too optimistic. Spotify (on par with other streamers) pays only .00065 cents per play.

There’s less support for all the arts today, and the blade gets duller with every cut in arts funding. It degrades dance, opera, even academia and, significantly, the art of journalism. As a result, in the U.S., public opinion suffers from what we call “infotainment.” That’s a genre of media news that is not informing, entertaining, or remedial. And it’s a direct result of a vacuum of patronage (and by patronage, I don’t mean just Medici-style sponsorship but the willingness of all arts consumers to pay for what they listen to, read, and watch, and for the industry to fairly recompense creators).

READ THE FULL STORY AT THE DAILY BEAST:
http://www.thedailybeast.com/articles/2014/06/04/van-dyke-parks-on-how-songwriters-are-getting-screwed-in-the-digital-age.html

T Bone Burnett’s plea: The piper must be paid| LA Times

Fans can still hear the work of America’s musical pioneers, thanks to online and mobile services. Through downloads and streams and services such as Pandora and Sirius XM Radio, these giants’ recordings continue to captivate and influence young musicians, singers, songwriters and producers.

Yet some of these same companies have made the decision to devalue the music of these artists for their own profit by not paying for it. In doing this, they devalue the substance of their own medium. For the last 20 years we’ve witnessed an assault on the arts by the technology community — especially when it comes to music.

This devaluation is troubling because music is not only the creation of people who make this art for us; it is how they earn a living. Music is how they feed their kids and provide for their futures.

READ THE FULL STORY AT THE LA TIMES:
http://touch.latimes.com/#section/-1/article/p2p-80409552/

YouTube Bullying Tactics Results in Indie Labels Taking Fight to Brussels and UK Government

Music Technology Policy

MTP readers will recall YouTube’s bully boy tactics against indie labels–threatening to cut off indie label access to Google’s YouTube monopoly if the labels didn’t take the hillbilly deal for a new Google music streaming service.

The indies have aligned with the Featured Artist Coalition (can the publishers be far behind?) and are launching complaints with the UK government soon to be followed by a formal complaint with the European Union Competition Commission in Brussels.  This is not a good look for Google as Google has been trying to thimblerig their way into a settlement with the EC Competition Commission for several years to avoid significant penalties in the billions of dollars.  That settlement is predicated on Google being misunderstood little kiddies who just love unicorns and Birkenstocks.

Already failing with a broad coalition of consumer groups in Europe, other EC officials and elected representatives, Google’s hoped for settlement is…

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No, Silly, Piracy is Theft | DevTopics

A classic, with illustrations.

A much better analogy for digital piracy is sneaking into a theater to watch a movie.  You are not stealing a copy of that movie, and the theater is free to show the movie to others.  But you are stealing revenue that the theater would have earned had you rightfully purchased a ticket.

So when you pirate music, video or software, you are stealing income from the seller.  You are receiving something of value without paying for it.

READ THE FULL POST AT DEVTOPICS:
http://www.devtopics.com/no-silly-piracy-is-theft/

Thank you Pandora: DOJ to Review ASCAP and BMI Consent Decrees #irespectmusic

Music Technology Policy

Score one for the songwriters.

After the travesty of the Pandora rate court decision, a lot of people (including MTP) have been banging the drum about the unfairness of the ASCAP and BMI rate courts.  Nowhere has the Kafka-esque absurdity of the rate courts been more prominently on display than in Pandora’s recent lawsuit against ASCAP songwriters.

But however much Pandora has galvanized the creative community in a united response against greedy, entitled Silicon Valley overreach, the first step in correcting this festering wrong is for the PROs to convince the Antitrust Division of the U.S. Department of Justice to review the 70 year old consent decrees which haven’t been reviewed since 2001 in the case of ASCAP–a year before Napster entered bankruptcy–and 1994 for BMI, a year before the Congress recognized a performance right in sound recordings.

Thankfully, the DOJ is reconsidering fundamental reform of the rate court process

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File sharing is alive and well, to the tune of 300 million users a month | GigOm

Surprise: P2P isn’t dead, after all. 300 million users swap files via BitTorrent every month, according to new numbers from media intelligence startup Tru Optik, which estimates that every month, more movies and TV shows get downloaded by file sharers than are sold on iTunes, Google Play and Amazon together.

And we’re not just talking about users in countries where media would otherwise be inaccessible. Users in the U.S. download more movies, TV shows, music and software than any other country, according to Tru Optik. The only exception to this rule is video games, where users in Brazil are more active than their U.S. counterparts.

READ THE FULL STORY AT GIGAOM:
http://gigaom.com/2014/05/28/file-sharing-is-alive-and-well-to-the-tune-of-300-million-users-a-month/