40 Law Professors Stop Suckling at Federal Teat to Write Senate Letter Urging No Pay for Artists

Classics_Act_IP_Professors_Letter_5.14.18

This has gotten completely out of hand. Here is another letter using the same arguments against The Classics act that Terry Hart previously debunked.

No, the CLASSICS Act is not a “term extension”

This makes my blood boil because many of these folks are paid (federally subsidized) salaries of over a quarter million dollars a year. To do what? Sit around and teach maybe a class or two every other semester.  Moan about how it’s so fucking unfair that the billionaire owners of various digital services might actually have start paying royalties to pre-1972 artists again cause their little crony capitalist loophole might get closed. Poor babies.

Remember when professors weren’t regressive crony capitalist ass lickers?

Here are the professors that want to keep the pre-1972 royalty loophole open.
Many of their salaries are publicly available. If you want to make your blood boil look em up.

Melissa B. Alexander
University of Wyoming College of Law

John R. Allison
McCombs School of Business at The University of Texas at Austin

BJ Ard
University of Arizona James E. Rogers College of Law

Derek E. Bambauer
University of Arizona James E. Rogers College of Law

Mark Bartholomew
University at Buffalo School of Law

Robert Brauneis
George Washington University Law School

Michael Carrier Rutgers Law School

Michael W. Carroll
American University Washington College of Law

Ralph D. Clifford
University of Massachusetts School of Law

Thomas Cotter
University of Minnesota Law School

Brian Frye
University of Kentucky College of Law

Kristelia A. Garcia
Colorado University Law School

Shubha Ghosh
Syracuse University College of Law

Jim Gibson
University of Richmond School of Law

Eric Goldman
Santa Clara University School of Law

Paul J. Heald
University of Illinois College of Law

Stacey Lantagne
The University of Mississippi School of Law

Mark A. Lemley Stanford Law School

Lawrence Lessig Harvard Law School

David Levine
Elon University School of Law

Yvette J. Liebesman
Saint Louis University School of Law

Jessica Litman
University of Michigan Law School

Lydia P. Loren
Lewis & Clark Law School

Brian Love
Santa Clara University School of Law

Glynn Lunney
Texas A&M University School of Law

Mark McKenna
Notre Dame Law School

Mike Mireles
University of the Pacific, McGeorge School of Law

Ira S. Nathenson
St. Thomas University School of Law

Tyler T. Ochoa
Santa Clara University School of Law

Aaron Perzanowski
Case Western Reserve University School of Law

Jorge Roig
Touro Law Center

Matthew Sag
Loyola University Chicago School of Law

Zahr Said
University of Washington School of Law

Pamela Samuelson
UC Berkeley School of Law

Sharon Sandeen
Mitchell Hamline School of Law

Jason Schultz
New York University School of Law

Lea B. Shaver
Indiana University McKinney School of Law

Jessica Silbey
Northeastern University School of Law

Kevin L. Smith
University of Kansas School of Law

Katherine J. Strandburg
New York University School of Law

Rebecca Tushnet Harvard Law School

Alfred C. Yen
Boston College Law School

 

 

Lessig is so Wrong on Classics Act He Should Retire

After yesterday’s epic piece on Lessig, I’m surprised to find myself blogging about him today. But the self described “copyright expert” clearly doesn’t understand copyright and the compulsory licenses so here I am again.  In a piece published in Wired magazine we find Lessig fear mongering about the proposed Classics Act:

Archives with recordings of music from the 1930s or 1940s would now have to clear permission before streaming their music content even if the underlying work was in the public domain.  Yet there is no registry anywhere.

Actually no. For non-interactive streaming there exists a compulsory blanket license for post 1972 sound recordings.  Non-interactive streaming services essentially notify the copyright office that they are going into the non-interactive streaming business and pay royalties through the federally established SoundExchange.  SoundExchange has a database it maintains.  ONCE CLASSICS passes user pre-1972 will be brought under this post 1972 compulsory licensing scheme.

Currently because pre-1972 recordings are in most cases protected by state copyright and state common law.  Federal copyright rules do not apply.  The compulsory blanket license for post -1972 recording is not available. Without the CLASSICS ACT a streaming service currently must go state by state and song by song to obtain a license.  And currently in some cases state copyright is perpetual, something that Lessig should really hate.

Lessig has the whole thing backwards. The Classics Act addresses and fixes the things he is complaining about.

Did he not bother to read the act?

There is so much more he doesn’t understand or incorrectly asserts in this article. Most of it seems to be the result of him not understanding that pre-1972 works are covered by a patchwork of State and common law. Harmonizing the rules under a single federal statute is actually a good thing for his beloved archives. You got to wonder if he just looked at someone’s twitter feed to get his “facts” about the Classics then wrote an article in Wired.

So sad.  The guy needs to retire.

 

 

Poker the Bear: The Sad Unraveling of Lawrence Lessig

Harvard Professor and author of copyright skeptical tomes like “In Defense of Piracy” and “Free Culture” defends himself from accusations of shillery. Lowery digs deep and discovers there is a lot more to this story than meets the eye. 

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This story is of particular importance to artists because Google’s support of ad supported piracy (MegaUpload) and YouTube’s “whac-a-mole” takedown policy have been a financial disaster for artists.  Much of the the intellectual arguments (some would say propaganda) in defense of Google’s practices arise from the work Lessig has done at Harvard, Stanford’s Center for Internet and Society and Creative Commons. Whether artists know it or not Lawrence Lessig has shaped, if not defined the debate over artists rights and the internet.

Lawrence Lessig has posted a long Medium post defending himself against claims made by Jonathan Taplin (and others myself included) that he has effectively acted as a “shill” for Google and other Silicon Valley interests. Don’t get me wrong, I think it is great that Lessig has finally responded to accusations that his research, litigation and advocacy seems to benefit Google while at the same time the institutions with which Lessig is associated receive substantial money from Google and other Silicon Valley interests. The world is a complicated place. No one can ever avoid every appearance of impropriety.  And to be clear I am not accusing Lessig of actual impropriety. The problem is Lessig has not been forthright (as I shall demonstrate) in his answers. Lessig is less than candid about the breadth of the funding,  and continually downplays the importance of his work to Google and others who exploit artists. But most importantly by defensively denying that there is even an appearance of impropriety, he raises more questions than he answers. The   esteemed professor, his work, his finances and foundations deserves a thorough examination.

First let’s consider the enormous amount of Google funding which seems to surround Lessig and associated institutions like a cloud of stale cigar smoke.

The list of institutions with which Lessig has been formally associated is too long to reproduce here. So lets just look at the most prominent. All of the following are tied to Google in three ways:Google funding; Support of Google in amicus briefs/litigation; and other public support of Google policy priorities including op-eds, academic papers or other public statements.

Center for Internet and Society Stanford University
Electronic Frontier Foundation
Public Knowledge
Creative Commons/iCommons
Free Press (Perhaps most notable for it’s praise of Hugo Chavez’s press restrictions)

Lessig lately has fancied himself a political operative. And as a result two other notable Lessig related enterprises have received heavy Silicon Valley funding including Google.

MayDay SuperPac
Lessig for President 2016

(Yes he ran for President of the United States.  But let’s leave all of that for a later post.)

The reason so many of us involved in advocating for the rights of artists find it hard to believe that Lessig is impartial is precisely because of his numerous ties to Google funded institutions.  It strains credibility for Lessig to maintain he is an impartial player when it comes to copyright issues that impact the bottom line of Google and other Silicon Valley companies. For these companies, their employees and shareholders have long been benefactors of institutions with which Lessig is associated. This is a well established pattern going back nearly two decades. Despite his claims to the contrary there is scant evidence he has ever opposed Google on any substantive issue.

Let’s start with the Stanford Center for Internet and Society

You can tell Lessig is now sweating the partnership between Google and CIS because of the logical gymnastics he engages to maintain the idea he did not benefit financially from this relationship.

From his recent blogpost:

“I have never worked for Google. I have never been paid by Google. I got my job at Stanford before Google was giving money to anyone. My job at Stanford did not include the obligation of raising money for anything. The Dean at the time, Kathleen Sullivan, allowed me to found the Stanford Center for Internet and Society, and agreed to fund it and its work while I was at Stanford. Google became a funder of Stanford to support the work of the Center after that. That was not my doing (again, I didn’t raise money at Stanford), that didn’t benefit me (my salary and the Center’s budget was set and independent of law school fundraising), and it didn’t stop me from doing lots of work that really pissed off Google (see, e.g., “For the Love of Culture”). Google didn’t fund my work at Harvard. It doesn’t fund anything I work on now. And yes, Google has taken policy positions consistent with my own, but most of the important positions were ones I took long before there was a Google policy shop.”

Now let’s look at the announcement from Stanford at the time:

https://web.archive.org/web/20180520181855/https://law.stanford.edu/press/google-inc-pledges-2m-to-stanford-law-school-center-for-internet-and-society/

Stanford Law School today announced that Google Inc. has pledged to contribute $2M to help fund the Center for Internet and Society (CIS) at the law school. The Center, founded in 2000 and located in the heart of Silicon Valley, is a public interest technology law and policy program focused on emerging technologies and the law. The collaboration of Google and CIS seeks to establish a balance between the right to access and use information and the ownership of information.

“This is an ideal partnership,” said Larry Kramer, Richard E. Lang Professor of Law and Dean. “One that stands to benefit not just our two institutions but also the world around us. The work done at CIS, exploring how to enhance availability of knowledge and information while supporting its producers and owners, addresses one of the most important questions of our time. And Google is unique in private industry for the depth of its commitment to finding fair and workable solutions to this same question.”

“This support from Google will be critical to achieving a healthy balance between copyright protection and creative license. We will use this support to build a network of legal resources to achieve in practice the balance that copyright law and the First Amendment intend,” stated Lawrence Lessig, Founder and Director of the Center for Internet and Society, Director of the Fair Use Project and the C. Wendell and Edith M. Carlsmith Professor of Law.

This seems to tell a different story. Lessig seems to clearly understand what he was expected to do with this corporate support. Read between the lines: he is to equivocate in a manner that moves the perceived center of the debate towards Google. This is some real “merchants of doubt” shit.  For those of you not in the copyright policy world, all creators know what a “healthy balance” between copyright protections and first amendment issues really means:  The “right” of commercial third parties like YouTube to profit from infringing content while hiding behind their “users.”  It is at this crucial moment in 2006 we begin the horror of whac-a-mole copyright infringement takedown abuse by YouTube. Songwriters and other creators have not been impoverished by digital disruption rather it is this questionable legal maneuver by Google (and a ideologically compliant 9th circuit) that has created the massive market failure for music in the digital marketplace.  Lessig and CIS were right there from the very beginning to support YouTube.

Shortly after this funding event,  Lessig fully engages in a very public fight on behalf of YouTube without ever disclosing any Google funding.  As Robert Levine writes in Free Ride(2011):

Five days after Viacom filed its suit [Against YouTube/Google], the law professor Lawrence Lessig argued in the opinion pages of the New York Times that Viacom was trying to get a court to overturn the Digital Millennium Copyright Act and darkly warned that such a decision would stifle innovation.”The internet will now face years of uncertainty before this fundamental question about the decade-old legislative deal gets resolved,” Lessig wrote, in an essay that mostly took YouTube’s point of view.  He neglected to mention that Google which had just bought YouTube, had recently given $2 million to the Stanford Center for Internet and Society, which Lessig founded and ran when the donation was paid.

Levine continues:

Google announced its gift to the Stanford center on November 28, 2006, two weeks after closing its deal to buy YouTube. (Lessig says he didn’t disclose the donation since the money didn’t directly benefit him and he had no role in raising money at Stanford.) The company knew its acquisition of the video-sharing site could draw litigation: it set aside $200 million to deal with lawsuits.  But Google also apparently wanted some academic firepower on its side.  Although the center’s policy allows only unrestricted gifts that can be used for any purpose, it announced that Google’s donation would be used to “establish a balance between the right to access and use information and the ownership of information”-presumably by the center’s Fair Use Project [Lessig]. While the center says it “avoids litigation” involving Google, much of its work involves challenging copyright laws in ways that would benefit the company.  Further this in turn could help Stanford: John Hennessy, the dean, serves on Google’s board of directors, and the company has given stock to the university.

Now it’s helpful to take a pause here and note that Lessig is the former director of the Edmond J. Safra Center for Ethics at Harvard University 2009-2015.  That’s right the “ethics professor” was carefully parsing his language to Levine when he denied he should have disclosed the financial ties in his op-ed. Most people would regard this as unethical. But this is par for the course for Lessig. It is built into his ethical DNA. Lessig has constructed a very unique view of his ethical responsibilities as an academic and lawyer.  It’s certainly more contorted and restricted than what most individuals would view as their ethical responsibilities. You be the judge. He helpfully provides a detailed overview in the disclosure statement on his personal website:

It begins:

The simple version is just this:

I do not shill for anyone.
The more precise version is this:
I never promote as policy a position that I have been paid to advise about, consult upon, or write about.
If payment is made to an institution in a way that might fairly and reasonably be said to benefit me indirectly, then I will either follow the same rule, or disclose the payment.

The precise version need to be precisely specified, but much can be understood from its motivation: “Corruption” in my view is the subtle pressure to take views or positions because of the financial reward they will bring you. “Subtle” in the sense that one’s often not even aware of the influence. (This is true, I think, of most politicians.) The rule is thus designed to avoid even that subtle force.

Lessig would seem to continually violate his own rules.  The problem is that Lessig doesn’t see it that way and thus follows the above simple statement with a series of definitions, delimitations and exceptions that seem to eviscerate the above paragraph. As well as any normal understanding of ethics.  For example:

“that I have been paid “: “Paid” means directly or indirectly. “Directly” would be direct compensation to me, or support for my research, or other funding I otherwise wouldn’t have been entitled to.

“Indirectly” means compensation to an entity that I am responsible to raise money for from an easily identified interest. This line is hard to draw in many cases, but relatively easy to draw as it applies to me: I am not hired to fundraise for my law school. Thus, if you give a substantial amount of money to Harvard, you don’t, in my view, indirectly benefit me — because you have not made my life any different from how it was before you gave that money. (Indeed, given the hassle that usually runs with such gifts, you’ve likely made my life more difficult.) [emphasis added]

First, Lessig is relying on a dodgy loophole of his own creation to avoid violating his own rules. In his own words, just because he isn’t “responsible” for asking donors for money, a donor like Google can give money to an institution for which he works, and by his carefully delimited definition he doesn’t directly or indirectly benefit?  See how that works? Also “easily identified interest?”  What is the point of that exception?  One could read that as an advertisement to wash money through third parties.  Right?

Second, Lessig is surely smart enough to understand that money is by definition fungible. A donation that can only be used for staff, building, travel and events, frees up funds that can then be used for his salary.  You see that he leans on this distinction in his latest blog post.  Further when a company like Google gives money to an academic center you run, this raises your academic profile, and likely raises your marketability and salary down the road.  Lessig does not address these ancillary benefits that are decidedly financial. Third in the case of Stanford Law the money was given to support his work.  He doesn’t use that as his helpful example in his “disclosure” now does he?

I have to say it again. Lessig is the former director of the Edmond J. Safra Center for Ethics at Harvard University.

But it gets worse.  Let’s look at how he defines “promote”

“I never promote as policy a position“: This is meant to distinguish work as a lawyer from work as an advocate. I don’t typically do legal work for money. But everyone should understand that when a lawyer speaks for his client, he speaks for his client. The corruption I am targeting is a lawyer or academic speaking not for a client, but presumptively, for the truth.

“promote” means in any public forum — so an op-ed, testimony, or a lecture.

I frankly don’t quite understand this.  But let me make a stab at it. He is an academic so he doesn’t really have any clients as a lawyer.  So this essentially let’s him “advocate” on behalf of a donor like Google without disclosing the donation as long as it’s the truth? I’m not sure I’m right on this. (I’m glad to be corrected on this one). Although I may not understand exactly what he’s trying to say, I do know a Mack Truck sized loophole when I see it.  This is basically a boilerplate escape valve to let him do whatever he wants. This also appears to be a post facto justification of his failure to disclose his funding in the NY Times op ed.

This time let’s say this all together: Lessig is the former director of the Edmond J. Safra Center for Ethics at Harvard University 2009-2015.

I’m a curious person.  And I did what anyone might do when contemplating Lessig’s curiously delimited disclosure ethics.  I stuck some full paragraphs of his disclosure into a search engine to see what came up.  I got this blog:

https://jpalfrey.andover.edu/2010/07/11/guest-blog-post-lawrence-lessig/

Strange.  It’s a guest blog written by Lawrence Lessig hosted on the Andover academy website?!?  The blog is hosted by John Palfry a fellow at the Google-funded Berkman Klein center and also Head of School at Phillips Academy Andover. (For Brits think Eaton).  At first I thought Lessig was defending himself from something to do with his copyright positions.  Oddly, no. He was in fact defending himself from an seemingly unrelated appearance of impropriety. The Register (UK) reported that his iCommons foundation received money from an online poker tycoon. This was his response.

Wait what?! Online poker? What on earth does this have to do with copyright? Good question. In a nutshell The Register article explains that at least one Lessig affiliated institution (iCommons) appeared to have indirectly benefitted from the infamous for-profit piracy website MegaUpload.

And this is the moment the public image that Lessig has so carefully constructed begins to unravel. For if you follow the story all the way down, Lessig looks less a virtuous defender of liberty, free speech and the rule of law and more like a run of the mill academic/civil society huckster looking for money.

One may be forgiven for wondering at this point if Lessig has more to worry about than looking like a cats paw for Google.  This is criminal conspiracy stuff after all.

Indeed, court documents show that Google, through it’s subsidiary Adsense, AdBrite and an outfit called PartyGaming PLC helped MegaUpload generate hundreds of millions in revenues. From the Mega conspiracy indictment:

Before any video can be viewed on Megavideo.com, the user must view an advertisement. Originally, the Mega Conspiracy had contracted with companies such as AdBrite, Inc., Google AdSense, and PartyGaming plc for advertising.

And as Andrew Orlowski reported in 2010 this is how the money went into the Lessig affiliated foundation:

Shortly after [US anti-] gaming legislation was passed, iCommons received three large donations. Two were from newly-formed and secretive offshore trusts,  while the third was from the founder of PartyGaming, Russ DeLeon.

The first of the trusts was called IETSI, the International Electronic Trade and Services Initiative (IETSI) which made a substantial $1m donation to iCommons. IETSI describes itself as promoting e-commerce regulation, operating under Manx regulation, with a website registered in Gibraltar. But who was it a lobbying vehicle for? On its website, in addition to the Lessig vehicles its only other declared affiliation is with the Remote Gambling Association, the voice of online gambling.

The other donation was from the Kasuma Trust, a Gibraltar-based charitable trust devoted to at-risk children, educational work… and internet initiatives. Kasuma was set up by Anurag Dikshit and Soma Pujari in early 2007

It’s not really clear why the online poker tycoons contributed to iCommons. But obviously the donors had their reasons. Maybe some kind of shared unregulated internet ideology? Regardless shortly after his donation to iCommons, Dikshit cut a plea for violations of US online gambling laws and paid a $300 million dollar fine to the US Treasury. That’s a criminal plea.

Naturally the ethics professor directed iCommons to return the money.

No.

This time lets sing this all together in Queen Bohemian Rhapsody style harmony: Lessig is the former director of the Edmond J. Safra Center for Ethics at Harvard University 2009-2015.

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It makes me slightly queasy to type this final section.  It’s one thing to point out the hypocrisy of someone like Lessig based on the logic of his own arguments.  It’s another to point out that there is something deeply wrong and off kilter about the tone of his response to the Register article. Yet I must. This is the man who clearly established the shape of the debate as “artists v internet.”  Therefore his character is important. In his response to Orlowski Lessig is completely unapologetic and constructs elaborate even implausible self-referential justifications for why his actions are “correct.” He is particularly concerned that the public know his actions are completely consistent with his “disclosure” policy.  He can’t seem to admit his own fallibility. Yet nobody can live up to the standards they set for themselves, Lessig thinks that he has to pretend he does. It is sad and suggests to me an unraveling.  Read his response for yourself.  Here.  You’ll never see Lessig the same way again.

I’ve reproduced a portion of it here,as I suspect the Palfry blog will soon disappear:

Seventh, and most critically, iCommons.org is not a “for profit” entity. It is a not-for-profit entity. And it is not simply “registered in London.” It is a British Charity. Its first Chairman was Japanese. Its second Chairman was Brazilian. Its first Executive Director was British. Its second was South African. The majority of the board (I believe, but have not checked) has always been non-American. It is not subject to the jurisdiction of US law, except to the extent that it engages in activities here in the US. Since being launched as a UK charity, iCommons has never held any event in the United States.

I say all that to throw into relief the central confusion at the core of Orlowski’s essay. The nub of his charge against me is that I should have engineered the return of contributions to the iCommons charity because one of the two entities that contributed to it has pled guilty to violating US law.

Ok, but remember: iCommons is a UK entity. Whether or not Dikshit violated US law, neither he nor the founders of IETSI have been charged with violating UK law. I know Orlowski has US envy, but I should think THE REGISTER would recognize that the UK is neither a state nor a colony of the United States. And so why an alleged violation of US law should obligate a UK charity to return a charitable contribution is completely beyond me. If BP had advertised on The Register’s site, would The Register be obligated to return the advertising fee?

The most troubling bit of Orlowski’s piece, however, was the part he didn’t include. He ends his piece with the sanctimonious “[p]erhaps it’s naive to expect academics to uphold the values they preach.”

One might expect then that if he was charging me with not upholding the values I preach, he would at least mention what those values are. In my email to him, I had referred him to my “disclosure which states my “values.” Orlowski omitted that link in his essay. As that disclosure makes clear, my “values” are that I will not “promote as policy” positions for people who pay me, or who give a significant amount to a non-profit for which I have fundraising obligations.

Have I lived up to those values?

First, neither IETSI nor Dikshit ever paid me anything. Zero.

But second, the gift to iCommons plainly would trigger the obligation that I not “promote as policy a position” in the commercial interests of IETSI or Dikshit. That’s because I had a fundraising obligation to iCommons, and IETSI and Dikshit helped relieve that obligation through their gifts.

Orlowski nonetheless suggests that I violated this policy. But as I advised him by email (another bit of my email that he omitted from his essay), I had explicitly told the founders of IETSI and Mr. Dikshit before they gave their gifts that their funding iCommons would mean that I would not become involved in any policy debate that would advance their commercial interests. And indeed, I have not. I have never testified publicly, or promoted privately, any change in policy with respect to online gambling or poker. Instead, my behavior with respect to both of these contributors is precisely consistent with “the values [I] preach.”

Orlowski knew this all this, yet he wrote an essay that states precisely the opposite.

I don’t know what explains his fabrication. It may simply be the product of an extraordinarily sloppy mind. But the pattern here may suggest something more.

This piece is just the latest in a series of sloppiness or slander by Orlowski. The first was published almost a decade ago. In that piece, Orlowski apparently fabricated a quote he had attributed to my assistant. When she came to me in tears, I asked him to correct it. He refused, but invited me to dinner instead. I told him I was not interested in dinner with him; I simply wanted him to correct his error. He didn’t. Three years ago, he reported on a speech I gave at CISAC. That piece too was filled with apparently fabricated quotes, attributed to me. When I posted a blog entry that included snippets from a recording of the speech, demonstrating the fabrications, The Register cleaned up the quotes, but defended the piece by claiming — you can’t make this up — that Orlowski had invited me to dinner the night before the talk.

The good news about this latest is that at least this slander came with no invitation to dinner. For that I am grateful.

 

Before You Fire Off That Angry Email: Feinstein Supports the MMA Package!!

Just a quick note here.  Seems like there has been some confusion in the artist community about Sen Feinstein’s position on the MMA, specifically whether she supports the Pre-1972 provisions.  There should be no confusion. The ranking member clearly supports all three elements of the bill.

In her own words:

I’m proud to sponsor [the AMP Act] with Chairman Grassley which would for the first time provide federal copyright protection to the sound engineers and producers for the royalties to which they are entitled.

I know Smokey Robinson is here but we will do a more formal introduction in a few moments.

I want everybody to know that I’m pleased to support legislation to ensure artists are paid for their works that were recorded before 1972. One of the bills before us today would erase an arbitrary distinction under current law that provides the same copyright protections for digital streaming for all artists.

I also strongly support establishing new licenses that will make it easier for digital music companies to broadcast more music to larger audiences. The at the same time it’s important that the pass legislation that we don’t create unintended consequences.

Now the Senator did make some comments about the composition of the governing boards and treatment of unclaimed royalties that could be regarded as critical. But I think some folks have misinterpreted her comments as overall hostility to the act. This is ridiculous.  I suggest you look at the transcripts yourself, or better yet watch the hearings. The body language suggests a love fest.

For the tl/dr crowd here is the key section from Feinstein:

I’ve heard some estimates that the unclaimed royalties could be in the hundreds of millions of dollars.  This is indeed a very big deal and requires a good long look.  When looking at how to treat such a significant sum we need to ensure that the legislation does enough to find a songwriter that wrote the music… Are these individuals properly protected and are there sufficient incentives in place to find the people that the money belongs to?  And that is the great question I have in mind.

The Senator is echoing the same concerns voiced by dozens of songwriters on the division of unclaimed royalties. The Senator would appear to be an ally of songwriters on this issue. What other way is there to interpret this?  If anything she may be intending to provide more accountability and transparency to the unclaimed royalty process.  If you’re gonna send an email to Sen Feinstein, it should simply say “Thank you.”

Head of Justice Dept Antitrust Division to Speak At Publisher Conference–can end of ASCAP/BMI Consent Decrees be coming?

Really great news!  It was recently announced that the head of the Justice Department’s Antitrust Division will speak at the National Music Publishers Association annual meeting in June!

This year’s keynote will be presented by United States Department of Justice (DOJ) Assistant Attorney General for the Antitrust Division, Makan Delrahim.

As David said a few weeks ago before this announcement, Mr. Delrahim is reviewing hundreds of DOJ consent decrees that have accumulated over the decades to see if these government orders should be continued.  This review includes the ASCAP and BMI consent decrees that Mr. Delrahim specifically mentioned in an address at Vanderbilt Law School earlier this year.  He seems to have come to this idea all by himself.

What’s really great about this is that it could mean the end of consent decrees in a relatively short period of time.  Since it’s never happened before, we don’t know exactly how the end of the consent decrees would impact ASCAP and BMI, but presumably the impact would be positive and quick. Goodbye rate court!  The smart money would probably be on existing rate court cases continuing, but disallowing new cases.  (Mr. Delrahim has been clear that the enforcement side would remain in place, meaning we guess that actual antitrust law violations would be dealt with case by case, just no ongoing regulatory oversight by unelected rate courts.  Example would be Global Music Rights awesome antitrust case against the broadcasters after the broadcasters brought one against GMR.)

It could possibly open the door to both organizations getting into the mechanical licensing administration business in competition with whatever comes of the collective established by the Music Modernization Act (which permits voluntary licenses outside of the collective).  In fact, BMI has already said they intend to pursue licensing outside of performances because their consent decree allows them to do so unlike ASCAP’s:

BMI is also evaluating the option of licensing beyond the performing right. We have long believed our consent decree allows for the licensing of multiple rights, which is why four years ago we asked the DOJ to amend our decree to clarify that ability, among other much-needed updates.

Of course, the last thing that anyone would want is for the DOJ to end the consent decrees, just to be replaced by some other bunch of regulations or bureaucracy.  For once, broadcasters will just have to suck it up.

So it’s a great idea that NMPA is inviting Mr. Delrahim to speak to the publishers who are most in the position to take advantage of a new dawn in songwriter freedom.  Many if not most of the NMPA members will be in the voluntary licensing category under MMA and outside the collective.  They would be in a fantastic position to support a one-stop shop for performance and mechanical licensing from ASCAP and BMI in line with what SESAC/HFA can offer, and presumably GMR could do as well.

@christycrowl: The Music Modernization Act Creates A Database — Is It A Landmark or Landmine for Music Creators, Producers, and Performers? (Part 1) — Artist Rights Watch

From what we have gathered, on May 15, the Senate [held a hearing] on the Music Modernization Act (which now includes the Classics Act and the AMP Act). It’s flying through the walls of government faster than anything we’ve ever seen. Some call it unprecedented. Some say it’s been a long time coming. The music member organizations are touting this as if we are finally getting our moment in the sun. But are we really?

ASIDE FROM CREATING A DATABASE — IS THE MMA A LANDMARK OR LANDMINE FOR MUSIC CREATORS, PRODUCERS, AND PERFORMERS?

There are arguments on both sides from within the music creator community, and it is hard to know who is “right.” All we know is that all of the “member” organizations that directly impact how musicians and music creators get paid (the AFM, ASCAP, BMI, SoundExchange) have communicated to their members to support this bill, to sign numerous petitions to Congress to ensure it passes, etc., without much member discussion on what the cons are of the legislation. In addition, the advocacy organizations (NARAS, SONA, NSAI, the SCL) have also trumpeted support without much point by point member discussion or debate, which to us is deeply concerning.

Is the MMA truly a landmark win for ALL music creators? Will money start flowing to the “little guy” who doesn’t have a publishing deal and plans to utilize streaming services to distribute his/her music, who is totally DIY, who doesn’t understand/care about the inner workings of the music industry and what the difference is between AFM, SAG-AFTRA, ASCAP, BMI, SoundExchange, and Advocacy-only groups such as NARAS, SONA, and NSAI? (This, by the way, is the majority next generation DIY musicians who upload millions of tracks into the streaming services every year.) What will REALLY change for that DIY music creator, producer, or performer? Can he/she plan to retire off of the whopping increase in earnings that passing the MMA will provide? Will they be able to figure out how to register to get their windfall in time before the publishers who are behind the MMA claim it?

If the MMA legislation is so much of a windfall moment for all music creators, producers, and performers — why is it so hard to find a concrete example (or have the advocacy groups even CREATE an example to relate to) of a DIY music creator and how the MMA will help him/her earn more income for their music (or musical contribution) from streaming? Why haven’t the member organizations provided examples of “if you wrote this, recorded this, produced this, and/or released it on a streaming platform, this is how passing the MMA will improve your music creator/producer/performer life” as a part of their non-stop rally of support for this bill? And what about the musician unions? If they want musicians to support the MMA, why haven’t they provided any examples of how a session musician (or lead singer) who played/sang on a track that is now released on a streaming service will benefit?

YOU HEARD IT HERE FIRST: THE “LANDMARK” DATABASE WILL MAKE OR BREAK THE MMA’S (THE MLC’s) SUCCESS

Read the post on Medium

 

No MMA Bait and Switch #irespectmusic: @terrencehart: No, the CLASSICS Act is not a “term extension”

Lemley Google Transparency

Mark Lemley’s record from Google Academics.

Artist Rights Watch--News for the Artist Rights Advocacy Community

[Editor Charlie sez:  As David Lowery has posted, it’s looking like the Senate version of the “Music Modernization Act” may not include the CLASSICS Act which would require royalty deadbeats at the Digital Media Association, SiriusXM and Pandora to pay their fair share of performance royalties for our legacy artists who recorded before 1972.  This loophole has been exploited and defended by the head of the Digital Media Association while he was formerly at SiriusXM and Pandora.  David caught him promoting a position from Google shills Public Knowledge and now Terry Hart has called out Professor Mark Lemley for trying to pull the bait and switch from the House bill to the Senate version of MMA (which means “Music Modernization Act” not “Make More Algorithms”).  Professor Lemley has plenty of entries in the “Google Academics” database, a handy tool for tracking Google’s influence.]

On April 25, the U.S. House…

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@mikehuppe: “We are Making Major Progress on Music Licensing Reform – Together” #irespectmusic — Artist Rights Watch

While several pieces of music legislation have been introduced in the Senate, there is not a single comprehensive package yet. We are encouraging our Senate allies to bring these many issues together into a single, comprehensive Music Modernization Act, like the bill passed in the House.

via @mikehuppe: “We are Making Major Progress on Music Licensing Reform – Together” #irespectmusic — Artist Rights Watch

Frog Gives Scorpion Ride: Is DiMA Trying To Strip MMA of Pre-1972 and AMP Protections in Senate?l

Artists give Digital Media Association (DiMA) ride from House to Senate (illustration Mīrzā Raḥīm 1847 public domain).

Wikipedia summarizes the fable of the Scorpion and the Frog as follows:

A scorpion asks a frog to carry it across a river. The frog hesitates, afraid of being stung, but the scorpion argues that if it did so, they would both drown. Considering this, the frog agrees, but midway across the river the scorpion does indeed sting the frog, dooming them both. When the frog asks the scorpion why, the scorpion replies that it was in its nature to do so.

Something similar appears to be happening as MMA moves to the Senate. The part of the scorpion is (naturally) being played by DiMA (Spotify, YouTube, Google, Amazon, Apple etc).

As you may have heard the Music Modernization Act passed the house 415-0 vote. Unprecedented.  The show of unanimous support was largely the result of a grand compromise that gave everyone something.  Songwriters, publishers, PROs,  performers, labels, producers and digital services all will see some benefits from the bill.

The Music Modernization Act achieves this consensus  by combining three separate bills:

  • Original Music Modernization Act which reforms how compositions are licensed in the digital realm and rates are set.  Championed by publishers, streaming services and many songwriter groups.
  • Classics Act: Fixes pre-1972 “loophole” that has allowed digital services like Google, Pandora and Sirius argue they do not have to pay performers that had the misfortune to record before 1972.   Championed by performers,  labels and some digital services.
  • AMP act: Allows producer and mixer royalties to be paid directly from SoundExchange. Currently most producers and mixers  have to wait for labels to process digital public performance royalties (if they get them at all).  Championed by National Recording Academy (Grammys), mixers and producers.

Something for everyone.  This is how compromises work.

DiMA represents digital streaming services and policy is heavily dominated by Google and Spotify. 

Now it appears that through the use of proxies  and two-faced lobbying DiMA is trying to abrogate the entire compromise by stripping out the Pre-1972 and producer/mixer protections.  There is a little inside baseball that must be explained here.  Public Knowledge is an astroturf organization that appears to uniformly represent the interests of Silicon Valley.  As one former employee remarked to me in 2012 “policy is 100% Google.”  This is evidently true, just look at their policy positions. 

Curiously the day after the full MMA passed the house Public Knowledge posted this story advocating stripping out pre-1972 protections from the act:

Public Knowledge Urges Senate to Consider Music Modernization Act and CLASSICS Act Separately

Now pay attention. Think there is no connection other than the Google funding?

Here is the CEO of DiMA seven weeks earlier (March 7th) retweeting Public Knowledge letter which advocates stripping out elements of MMA that protect pre-1972 performers.  This is not his personal account.  This is the official @CEO-DiMA account.  This is while Christopher Harrison and DiMA are supposedly singing Kumbaya with performers and rights holders.

Centruroides vittatus

On top of that we see are told by reliable sources that the  US Representative from Google -oops I mean Mountain View  (Zoe Lofgren) was poised to offer an amendment that would have effectively stripped the MMA of the Pre-1972 protections.  At the last minute she dropped her amendment.  We now see why. There was a plan afoot to strip it out in the Senate.

This clearly was the plan all along:

  1. Get all rights holders and services together on a compromise bill in the House.
  2. Strip out crucial elements of compromise in Senate and pass a bill that favors digital services.

If this looks like the SESTA House/Senate shenanigans it’s because it is largely the same companies and lobbyists on digital side.

Now that DiMA has been exposed our hope is that those that represent songwriters, performers, producers, labels and publishers direct the same opprobrium at DiMA that they directed towards dissenting rightsholders before the compromise came together.

We’re not sure but we think the above paragraph might be an excerpt from an alternate-reality sci-fi novel based on Lavrenty Beria’s diary. 

Spotify’s Big Lie, Streaming Habits Mirror Purchasing Habits

One of the biggest lies told by Spotify is that streaming will provide more revenue over the life of a record because every play will be monetized. This as opposed to the one time payment earned from a transactional purchase where all the revenue from the purchase of the record is paid at once. There is however, a very big problem with this theory, which is that the consumption curves of streaming match the consumption curves of transactional sales.

So, what about that so called long tail? Well, it doesn’t exist. Not for music consumption. Or we should say, it doesn’t exist any different for streaming than it did has for transactional sales. What do you think is more profitable in generating revenue? Is it the album sales of artists catalogs, or is streams?

Keep in mind, streaming is a fixed cap market. So it does not matter how much the market grows in actual consumption, the revenue is capped by the amount of revenue earned by the hosting provider. If consumption doubles, but revenues stay flat, every stream is worth half of what it was previously.

We’re already seeing this trend as we noted earlier this year that Spotify per stream rates appear to be dropping steadily by about 8% per year. This is likely a combination of both the growth of consumption and the slowing of revenue across both subscriptions and advertising.

If anyone truly believes streaming is going to generate more revenues than transactional sales, we have a bridge in Brooklyn to sell you cheap. The fix is simple. The industry must move towards adopting an industry standard streaming penny rates. Only by setting fixed per stream rates will compensation scale with consumption.

[NOTE:] Chart from a mid size indie label showing revenues from Downloads and Streaming. The Spikes indicate new release activity / hits which reveals that revenue tails off for streaming the same way it does for transactional downloads.