Save the Date: Artist Rights: The Future of the Copyright Royalty Board for Songwriters Webcast 4/7/23 at 1:45pm CT

More information here https://utcle.org/studio/ZAQ23/ and register here https://utcle.org/conferences/ZAQ23/order-form/

We are excited announce that Chris Castle will be moderating a panel on the future of the Copyright Royalty Board for songwriters (the “Phonorecords” proceedings) as part of the University of Texas School of Law Continuing Legal Education Artist Rights series.

The panelists are Mitch Glazier, RIAA, Clark Miller, Clark Miller Consulting, and Abby North of North Music Group.

The panel will be assessing both voluntary and statutory changes to make the Phonorecords process more representative and efficient and reprises the topic that David and Chris spoke on for the “Smartest People in the Room” series.

@northmusicgroup Calls Out The MLC’s Ability to Make “Law” Through Business Rules that Hurt Songwriters and Skew the Black Box to Benefit Majors — Artist Rights Watch/Music Technology Policy

In this comment to the Copyright Office, Abby North (independent publisher and Artist Rights Symposium III Moderator) calls on the Copyright Office to stop the MLC quango from unilaterally establishing “business rules” that hurt songwriters and their heirs and protect working families from these arbitrary actions of The MLC. The passing of Jeff Beck reminds us once again that we must take care to protect the heirs of creators.

Read the original comment here on Regulations.gov

January 5, 2023

Via Electronic Delivery

Comments of Abby North

Docket No. 2022-5

Re: Termination Rights and the Music Modernization Act’s Blanket License

To the United States Copyright Office:

My name is Abby North. I am a music publishing administrator based in Los Angeles. My views expressed in this letter are solely my own. 

With my husband, I am a copyright owner of the classic song “Unchained Melody,” among other copyrights. I also administer musical works and sound recordings on behalf of songwriters, their families and heirs. In many instances, I assist my clients in identifying their termination windows, assist in the research required, and interface with the attorneys who process termination filings.

Abby North, Helienne Lindvall, Erin McAnaly, Melanie Santa Rosa speaking at UGA Artist Rights Symposium III (Nov. 15, 2022 in Athens, GA)

I’m thankful for the opportunity to submit comments in support of the Copyright Office’s proposed rule.

The ability to recapture rights via the United States copyright termination system truly provides composers, songwriters and recording artists and their heirs, a “second bite of the apple.” Many of my clients exercise this right, and in doing so grow their family’s revenue, which, given today’s inflation and very high interest rates, coupled with a depleted stock market, is absolutely necessary.

Allyn Ferguson was a successful composer of film/television scores including “Little Lord Fauntleroy,” “Les Miserables,” “Charlie’s Angels,” and “Barney Miller.” According to Variety in its June 27, 2010 obituary, Ferguson was “among the most prolific composers of TV in the past 40 years.” My company North Music Group administers works controlled by Ferguson’s family.

In addition to his scores, Ferguson wrote songs performed by artists including Johnny Mathis, Count Basie Band and Freddie Hubbard. While the bulk of his film and television scores were created on a work for hire basis, and therefore are not eligible for termination under US copyright law, Ferguson’s commercial compositions and songs were not created as works for hire. Ferguson’s family has been able to exercise its termination rights in various musical works,

thereby increasing its earnings as it now collects the publisher share of United States royalties generated by the terminated works. Individual songwriters and composers and their heirs are not copyright aggregators. Every musical work, and every penny generated is very necessary to these families.

The Music Modernization Act created the blanket digital mechanical license. This move from one-off copyright licenses to a blanket license was a dramatic improvement in US mechanical licensing. However, the suggestion that rights held at the inception of this blanket license might remain, in perpetuity, with the original copyright grantee was frightening. I concur with the Office’s proposed rule and legal analysis of the relevant statutes and authorities.

I appreciate the Office requesting comments on the mechanics of solving the payment issues, because for the independent publishers I speak with and for me personally, many operational questions arise regularly regarding The MLC’s uncharted territories.

As one of The MLC’s statutory goals is to provide transparency to songwriters and copyrightowners, I would ask that the Office require The MLC to notify copyright owners (1) if The MLC’s unilateral termination policy has already been imposed on payments previously paid or that are being held in the historical or current black box, and (2) when the adjusting payment required by the proposed rule had been made.

To be clear, this rule must absolutely be retroactive to inception date of The MLC. Beyond the simple, clarifying amendment to the MMA, I believe there are additional, related issues that must be resolved:

1) What is The MLC’s “business rule” regarding the MLC/HFA Song Code for the terminated work? Prior to the inception of The MLC, the Harry Fox Agency would assign one HFA Song Code fr the work and its pre-termination parties, and a different HFA Song Code for the work with the post-termination parties.

What happens now? Do these multiple HFA Song Codes remain in The MLC’s database? Will there continue to be two separate MLC/HFA Song Codes, particularly given the Harry Fox Agency continues to license physical and download mechanicals on behalf of many publishers? Is it reasonable for the HFA Song Code to be the same as The MLC Song Code, when there is no derivative works exception in Section 115?

2) Which party is entitled to the Unmatched (Black Box) royalties, the related interest fees and to The MLC’s investment proceeds for a terminated work?

Finally, it should be noted that the initial concept proposed by The MLC Board (that the server fixation date should impact termination dates) most likely would have served large publishers, not songwriters.

It is crucial that the Copyright Office exercise vigilant oversight and governance of The MLC’s reporting regarding any payment obligations to copyright owners. Specifically, composers, songwriters and their heirs must have as significant a voice as the largest publishers and copyright aggregators.

Additionally, in the spirit of full transparency, I request full disclosure of board or committee votes, minutes of meetings or other documentation of process. For me and others like me, this would tremendously enhance our understanding of The MLC.

Decisions are being made by The MLC’s board and committee members, while the general MLC member or songwriters have no mechanism to gain information regarding the discussions, the decisions and the implementations thereof. Access to minutes and notes would provide valuable insights to the general membership.

I applaud the Copyright Office for moving swiftly to create this rule and clarify and codify how The MLC must treat copyright terminations. It is important that this rule be dictated by the Office as it is absolutely not The MLC’s job todecide who controls rights and is entitled to collect royalties. 

That said, a “business rule” established by The MLC could have the effect of law absent vigilance by the Copyright Office.

On behalf of my family and clients, I wholeheartedly support this proposed regulation, and I truly appreciate the Copyright Office’s consideration of my comments.

Sincerely,

Abby North

North Music Group LLC

@northmusicgroup Calls Out The MLC’s Ability to Make “Law” Through Business Rules that Hurt Songwriters and Skew the Black Box to Benefit Majors — Artist Rights Watch–News for the Artist Rights Advocacy Community — Music Technology Policy

Artist Rights Symposium III at @TerryCollege at UGA, Keynote by @MMercuriadis of @HipgnosisSongs

We’re back! David Lowery hosted the third annual Artist Rights Symposium at the University of Georgia’s Terry College in Athens on November 15 as an in-person event. The Symposium is an all-day event that allows students in the Music Business program to participate and interact with panelists as part of the music business program.

Our keynote speaker was the inspiring Merck Mercuriadis, long time songwriter advocate, manager and music industry veteran who founded and runs the Hipgnosis Songs Fund. Merck is an active songwriter advocate around the world, particularly with the recent inquiry into the music streaming economy by the UK Parliament’s Digital Culture Media & Sport Committee and the UK Competition and Markets Authority. As Kristin Robinson reported on Billboard

Merck explained why he feels the industry is in the “age of the songwriter.” “There has been a massive paradigm shift,” he said. “Forty years ago, the power was in the artist brand,” but now, most songs that top the Billboard charts are written by a larger number of songwriters than ever, meaning the demand has never been higher for good hitmakers. “But songwriters have to have a place at the negotiating table now,” he said, citing that in the United States, rates for mechanicals are set by the government’s Copyright Royalty Board, barring “free market” negotiations. “Let’s face it, [the government controlling rates] is insulting to songwriters.”

This year’s symposium topic was “The Future of Authorship and the US Copyright Office” and Merck and the stellar panelists had a lot to say about the many advocacy issues facing contemporary songwriters.

Fortunately, thanks to Terry College the symposium is available on YouTube at no charge and you can watch it in its entirety.

Welcome/Opening remarks

9:00 AM -9:10 AM David Barbe, Director, Terry College Music Business Program

Georgia Legislative Overview and Agenda 9:10 AM- 9:30 AM

Panel 1: Libraries vs Authors: The Internet Archive’s “Controlled Digital Lending” and Fair Renumeration for Authors. 9:35 AM- 10:50 AM

Panelists

Janice Pilch.  Rutgers University
John Degen:  Writer, Head of Writers Union Canada.
Stephen Carlisle: Copyright Officer Nova Southeastern University,Florida
Mary Rasenberger, CEO, Authors Guild and Authors Guild Foundation.

Panel 2 Managing a longer Table at the Copyright Royalty Board 11:10 AM to 12:25 PM

Dr. David C. Lowery Moderator
Rick Carnes, Songwriters Guild of America
David Turner, Penny Fractions, SoundCloud
Crispin Hunt, Songwriter, Ivors Academy, #BrokenRecord

Lunch and Fireside Chat with Merck Mercuriadis 12:45– 2:00 PM

Panel 3 #DoubleStat: The Future of Compulsory Rates 2:20 PM – 03:35 PM

Chris Castle Moderator, Founder Christian L. Castle, Attorneys, Austin and MusicTechPolicy blog
Richard Burgess, CEO of the American Association of Independent Music (A2IM)
Helienne Lindvall, President, European Composers and Songwriters Association
Samantha Schilling, Songtradr, IAFAR

Metadata, Matching and Claiming at the MLC 3:55 – 5:10 PM

Moderator Abby North, North Music Group
Erin McAnally, Artist Rights Alliance
Helienne Lindvall President, European Composers and Songwriters Association
Melanie Santa Rosa, Word Collections, The MLC

Please leave a comment if you have any questions!

#FrozenMechanicals Take 2: Chelsea Crowell, Erin McAnally, and Abby North Comments to CRB

[Trichordist says: The Copyright Royalty Board reopened the comments on frozen mechanical song royalties in Phonorecords IV rate setting and the filings are coming in, especially from songwriters! We will be posting the comments (or excerpts from the long ones. First up is a straight from the heart contribution from Chelsea Crowell, Erin McAnally and Abby North.]

Copyright Royalty Board 37 CFR Part 385
[Docket No. 21–CRB–0001–PR (2023–2027)]
Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords IV)

Interim Chief Copyright Royalty Judge Suzanne Barnett
Copyright Royalty Judge Steven Ruwe
Copyright Royalty Judge David R. Strickler
US Copyright Royalty Board
101 Independence Ave SE
Washington, DC 20024

SECOND REOPENING PERIOD COMMENTS OF ABBY NORTH, ERIN MCANALLY
AND CHELSEA CROWELL

To Your Honors:

Thank you for the opportunity to submit additional comments, now that the details of the
Memorandum of Understanding (MOU4) apparently related to the Subpart B mechanical rate
settlement negotiated by the NMPA, NSAI and three major labels have been made available.

Only the NMPA’s 300 or so publishers are potential parties to the MOU, assuming the opt in
terms are the same as those of MOU3 (http://nmpalatefeesettlement.com/mou3/faq.php). The
publishers that opt in to the MOU4 settlement will receive money for their participation, and in
exchange for this money, the NMPA Board members have agreed to freeze the Subpart B
mechanical rate at the $.091 rate that’s been in place since 2006.

In this exchange, NMPA publishers have a stream of revenue (the MOU4 money) that offsets the
negative effect of the lack of rate increase in the Subpart B mechanical.

Although foreign CMOs could opt into the current MOU3 settlement, rightsholders that are not
NMPA members may not opt in and will not receive the buffer that the MOU4 money provides,
yet they are subject to the frozen mechanical rate that is an apparent condition of the negotiation
related to the proposed settlement of the Subpart B rates and terms.

Thousands, if not tens of thousands of songwriters in the world have songs published or
administered by those NMPA publishers that are party to the rate freeze settlement, but neither
these songwriters nor the vast number of songwriters around the globe were given a say in the
decision to freeze the mechanical rate.

The concern we have is not that there is a settlement. The concern is that the settlement does not
provide for a base rate greater than $.091, plus annual increases to adjust for inflation.

To quote the NMPA’s Supplemental Comments: “…mechanical royalties from Subpart B
configurations now constitute only a small part of total mechanical royalty revenue in the U.S.,
and that share is expected to get smaller during the period covered by this proceeding.”

That concept only resonates with a corporation that aggregates thousands or millions of
copyrights.

To an individual songwriter or a small rightsholder, it doesn’t matter if Subpart B mechanicals
constitute 1% or 15% or 50% of total royalties. Why? Because every single penny counts.

When an individual is paying a mortgage, tuition or a car payment, every single penny counts.
When a health crisis occurs, every penny counts. When existing off the very low streaming
royalties generated by even a hit song, every penny counts.

Physical and download mechanicals are still an extremely relevant revenue stream to individual
songwriters and small publishers.

At the current retail price of $.99 for a download, the $.091 mechanical is 9.2%.

The streaming royalty pool for songs is roughly 10.5% of the total, possibly as much as 15.1%,
per the CRB III hearing results (after all this time, still under appeal). The NMPA has suggested
an increase of the streaming royalty rate to 20%. This would be an exceptional improvement.

How is the download royalty not at least the same percentage as the streaming royalty?

Why is the value of a downloaded song less than that of one that is streamed?

We suggest the Subpart B rate and the streaming mechanical rate (based on percentage) should
be on no less than a most favored nations basis with one another.

To songwriters and most publishers, every royalty type and every revenue stream matters. The
move from physical to digital, the unbundling of albums in favor of singles and the unlivable
streaming royalty rates absolutely substantiate the need for an increase in Subpart B mechanicals,
at least to reach the percentage paid on the streaming side, and with periodic adjustment for
inflation. 3

We appreciate the opportunity to submit these additional comments, and we ask the Judges to
recognize that songwriters and small publishers are individuals who do not have the luxury of
collecting royalties from the aggregation of hundreds of thousands of works.

It is not fair that songwriters signed to the NMPA publishers have a frozen mechanical rate
forced on them, and it is remarkably egregious that non-NMPA publishers and their writers are
also forced into this horrible reality.

Respectfully,

Abby North, North Music Group LLC
Chelsea Crowell, Songwriter
Erin McAnally, Songwriter/Factory of Strange Tones

Frozen Mechanicals Crisis: @NorthMusicGroup Comment to Copyright Royalty Board

July 26, 2021

Via Electronic Delivery

Copyright Royalty Board 37 CFR Part 385

[Docket No. 21–CRB–0001–PR (2023–2027)]

Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords IV)

Copyright Royalty Judge David R. Strickler
Chief Copyright Royalty Judge Jesse M. Feder
Copyright Royalty Judge Steven Ruwe
US Copyright Royalty Board
101 Independence Ave SE
Washington, DC 20024

To Your Honors:

My name is Abby North. I am a music publishing administrator based in Los Angeles. My views expressed in this letter are solely my own.

With my husband, I am a copyright owner of the classic song “Unchained Melody,” among other copyrights.  I also administer musical works on behalf of songwriters, their families and heirs. My clients depend on royalties to pay for life’s essentials.

It is imperative that the Judges understand that despite what some parties may argue, Subpart B royalties absolutely are meaningful to songwriters.

There is no dispute over the fact that streaming is the most prominent form of music distribution, as reported in the popular press.  But mounting evidence shows a significant and consistent growth in vinyl production.  CDs remain popular among some listeners. Other listeners prefer to have permanently available digital copies, i.e., downloads.

Vinyl, once written off for dead, has enjoyed almost 15 years of consecutive growth, with more than 19 million vinyl records sold in the US so far this year.  Per Digital Music News, this is an increase of 108% over the previous year. The Judges need only look to this year’s Record Store Day on July 17 for confirmation of the vinyl resurgence.  

Amazon Music now offers a “Vinyl of the Month” club, curated by “the experts at Amazon Music.”

Vinyl pressing plants are overwhelmed by the volume of orders they are fulfilling, and it is commonly understood in the industry that vinyl sales would be far higher if production could keep up with demand.

Vinyl is now treated as a merchandise item by many labels and artists, and as such it is a significant contributor to the overall earnings of many artists, from the smallest independent to Taylor Swift.

An artist/songwriter of Taylor Swift’s stature may not rely on earnings from vinyl, but other songwriters most certainly do. This is particularly true of artist/songwriters who have seen their high margin vinyl sales cannibalized by streaming (as was noted in the recent report by the UK Parliament’s Digital Culture Media & Sport Committee on the Economics of Music Streaming).  And ALL songwriters rely on any source of revenue available for exploitation of their songs.

As a rightsholder and administrator of legacy and current copyrights, I can testify that mechanicals from physical and download media are a substantial share of overall royalties.

In reviewing my clients’ 2Q21 statements, one legacy songwriter received 57% of his period royalties from physical mechanicals and 9% from download mechanicals. Another writer had uniquely high grand rights and sync royalties for the period, but still saw 17% of overall royalties from physical and download mechanicals. If we remove the grand rights and sync amounts, the overall total from physical and download mechanicals is 35%.

It is clear that streaming rates, even at 15.1%, are not sustainable for most songwriters. It is obvious that without a more equitable streaming revenue distribution model, we will continue to see songwriters leave the business entirely, or at least be forced to pick up side gigs to increase their income.

These facts provide the undeniable case against freezing the Subpart B rate at $.091 per unit.  Arguments I have heard from insiders defending their decision to freeze the rates are that downloads will decline if Apple stops supporting iTunes, and that physical sales are so negligible that they just do not matter. Walk into any record store or follow fans to the merch stands at a concert and you will see and hear the real story. Also, Apple is not the only distributor of digital downloads.

It appears that significant and impactful decisions are allowed to be made by a tiny group of participants that is in the room primarily because this group has tens of millions of dollars to fund legal expenses. This very small group with undeniably substantial resources and very deep pockets decided that it is in support of a rate freeze.

This very small group is now asking the Judges to apply its private deal to each and every songwriter in the world.  And yet, almost none of these songwriters were included in that decision to freeze the rate.

The ability for just two trade organizations to have such an oppressive global impact is staggering. What about the rest of the songwriters and independent publishers and their due process rights?

Respectfully, I implore the Judges to keep in mind that the NMPA does not represent all music publishers, and the NMPA itself owns no copyrights.   At best, the NMPA Board of Directors could speak solely for the music publishers that employ them.

NSAI is one of many United States songwriter organizations, and like the NMPA, owns no copyrights. It most certainly does not represent all songwriters from all US songwriter organizations, and it certainly does not represent songwriters around the world who are not affiliated with songwriter organizations. 

As an illustration of global songwriter opposition, both the UK’s Ivors Academy and the European Composer and Songwriter Alliance have each come out against frozen mechanicals.

I ask the Judges to recognize that NSAI and the NMPA do not have such broad authority to reasonably put forth decisions that affect all the world’s songwriters and publishers.

In the recent Web V decision, the Judges acknowledged the need for an inflation-indexed increase in the statutory rate for sound recordings.  Due to the inevitable decline in buying power created by inflation, the physical and download mechanical rate must correspondingly increase.

I have no objection to a settlement related to mechanicals. I do have an objection to a freeze proposed without authority that does not both increase the old $.091 rate and also include an adjustment for inflation at a bare minimum.

To freeze the rate for 20 years ignores the debilitating impact of inflation, ignores the needs of songwriters and truly independent music publishers like me who are not represented before the CRB, and frankly, displays a willingness to undervalue music.

It is imperative that in the future, publishers and songwriters at large, domestically, and globally be given a mechanism to participate in the rate-setting process, whether or not they have millions of dollars to spend on lawyers.

Music is crucial to human well-being. The American Songbook and its many creators are a treasured element of United States, and in fact, world culture.

How can something so important, so meaningful and so rare not be deserving of a rate increase that at least mitigates the effect of inflation?

Sincerely,

Abby North

North Music Group LLC

Save the Date! January 14 at Noon CST, Zoom Panel with @musictechpolicy @northmusicgroup @sealeinthedeal for Independent Songwriters

This image has an empty alt attribute; its file name is https%3A%2F%2Fcdn.evbuc.com%2Fimages%2F122288515%2F87998774455%2F1%2Foriginal.20210105-173522

By Chris Castle

I’m grateful to Texas Accountants and Lawyers for the Arts, Austin Texas Musicians and the Austin Music Foundation for hosting an information webinar next week on the impact of the new blanket mechanical license under the Music Modernization Act on independent songwriters. We will also cover the nuts and bolts of dealing with The MLC, Inc. and a unit on the Digital Licensee Coordinator.

I couldn’t be happier to have two great panelists in music publisher and song data solver Abby North and my fellow Austin music lawyer Gwen Seale.

While this panel has an Austin origin, the topics are not Austin-centric and will apply to all songwriters in the world just like the MLC does.

Please RSVP to Eventbrite if you think you might attend at this link and also take a moment to complete the anonymous 10 question MLC Awareness Questionnaire on Survey Monkey at this link. The Zoom code to join will be posted through Eventbrite.

I’ll be posting some other materials, but for those who want the more nitty gritty background, you can read this package of documents at this link.