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stories filed under: "licensing"
Culture

Culture

by Mike Masnick


Filed Under:
licensing, music, norway, sharing

Companies:
the pirate bay, tono



Norwegian Band Told It Can't Post Its Own Music To The Pirate Bay, Even Though It Wants To

from the how-nice dept

Having recently returned from Norway, where I was impressed at the optimism and the willingness to embrace new technologies and services, it's disappointing to read the following story (found via brokep) of a Norwegian band who recently released an album on their own label and decided to put it up on The Pirate Bay themselves, as more and more indie labels are doing. Except... the band members are a part of the Norwegian music collection society TONO, who is among those fighting to have The Pirate Bay blocked in Norway. Since the band has allowed TONO to enforce its copyrights in performance situations, TONO is claiming that it can forbid members from putting their music on sites like The Pirate Bay (translation from the original Norwegian):

The management contract in TONO means that we can not allow the TONO-members post things on your own at some commercial sites.
Once again, examples of these performance rights groups working against the wishes of artists, rather than helping them out.

24 Comments | Leave a Comment..

 
Failures

Failures

by Mike Masnick


Filed Under:
expense, licensing, music industry, music services, online, recording industry

Companies:
imeem, myspace, spotify



Recording Industry Making It Impossible For Any Legit Online Music Service To Survive Without Being Too Expensive

from the good-job dept

You just knew it would happen again. Every time the recording industry finally agrees to license a new music service to try to take the "sting" out of "piracy," it demands licensing terms that are ridiculous. From the execs at the labels' perspective, unless you pay an arm and a leg, you don't get to offer music. So, a few companies agree, and then realize it's impossible to make any money and shut down. In the meantime, the whole point of those legal licensed music services (to compete with "pirate" sites and services) is lost entirely. Wired is chronicling how all of the legal music sites are finding it impossible to survive and offer a free music service -- including MySpace music (which beyond not offering much of value in terms of user experience) "is struggling to keep up with its own payments to music copyright holders."

Of course, it's really no surprise that most of these sites have struggled. Beyond the ridiculously high licensing rates that the labels forced on them (often by negotiating through lawsuits), none of these sites put together a well thought-out business model. Instead, they all seemed to think that they could just slap ads on the site and that would be enough. But, of course, when you're listening to music, you're not looking at that website or paying attention to the ads -- and if the ads got too intrusive, they'd just go elsewhere. A real business model would have been setting up something more comprehensive, that gave listeners a real reason to buy associated with the music. Eventually we'll get there, but in the short-term, the graveyard of failed "licensed" music startups will grow, just as more and more "unauthorized" sites grow in popularity.

45 Comments | Leave a Comment..

 
Failures

Failures

by Mike Masnick


Filed Under:
australia, clubs, collection society, licensing, music

Companies:
clubs australia, ppca



Massively Increasing Music Licensing Fees For Clubs Down Under Massively Backfires

from the finding-non-covered-music dept

We've noted the ridiculous and self-defeating efforts by many music collections societies around the world to jack up their rates by ridiculous amounts. None was more ridiculous than the attempt in Australia by the PPCA where some of the rate changes would rocket up from figures like $125/year... to $19,344/year. Well, it looks like it's already backfiring badly. Reader Dan alerts us to the news that the organization that represents night clubs and similar businesses in Australia, appropriately named Clubs Australia, has set up a system whereby the organization will specifically go out and seek music by artists not covered by the collections effort, and distribute that music to clubs and other establishments. Then, these clubs, gyms, restaurants and the like can tell the PPCA to take a hike, and still play music. We'd already seen that some clubs had started doing this on their own, but now they've teamed up to share such music with each other in order to get out from under the PPCA entirely. So, nice job PPCA. Once again, in your effort to get people to pay more for every single use, you end up making it that much more difficult for anyone to actually hear -- or care about -- the musicians you supposedly represent.

40 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
antitrust, copyright, licensing, music, pricing power, syndication

Companies:
ascap, bmi, sesac



TV Broadcasters Suing Songwriters' Org SESAC Over Pricing Power

from the tug-o'-war dept

Missed this one when it first came out, but Copycense points us to the news that TV broadcasters have sued SESAC, one of the collections agencies for songwriters and composers (the smallest, after ASCAP and BMI), claiming that SESAC is violating antitrust laws in how it prices music used in television shows -- especially for syndicated shows. The details are really quite fascinating. Local stations quite often run syndicated shows (such as sitcom reruns). When they buy the rights to run those syndicated shows, the package includes all of the related copyrights except for performance rights for any of the music included. Those have to be purchased separately by the broadcasters themselves. Now, for SESAC, representing the songwriters, this presents a golden opportunity. It's the only thing standing between the broadcaster and being able to show the syndicated shows -- and thus, it can ask for extremely high prices, or -- more commonly -- pressure the broadcasters into a high-priced "blanket license." Since the broadcasters can't change out the music (it's in the shows already), they generally have no choice but to go along. So, the argument goes, SESAC effectively has a monopoly position, and is abusing it.

Of course, the real "monopoly" here is copyright. At a quick glance, it certainly looks like SESAC is doing exactly what copyright allows -- but the structure of licensing for syndicated TV content allows SESAC to make life difficult for the broadcasters. So, I'm not really sure SESAC should really be faulted here, as it seems to be doing exactly what it was enabled to do thanks to overly broad copyright laws. At the same time, it also makes you wonder why the broadcasters don't go back to the TV program owners themselves and demand that they bundle the music performance rights as well, since there's more negotiating power there. So, while it does seem unfair for the broadcasters as the market is currently structured, I'm not sure it's an antitrust violation on SESAC's part. More a problem with how the industry licenses are set up, combined with copyright being way too broad in such situations.

There's also a separate interesting element to this lawsuit -- which is why it's SESAC being sued rather than ASCAP and BMI. ASCAP and BMI are both already limited due to previous antitrust fights and consent decrees against them, whereas SESAC has been more or less free to act this way. Either way, it's yet another lawsuit concerning aggressive use of copyright to try to demand as much money as possible, even for music that is a small part of an overall presentation of content.

8 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
future, licensing, universe



Licensing Agreements Now Covering 'The Universe' And Future Media Not Yet Developed

from the about-time dept

In the past, we've had a bunch of stories about TV shows being released on DVDs having to change their music to deal with the fact that it wasn't licensed for DVD release originally (often because when the TV shows were on the air, there was no such thing as a DVR -- or even a VCR -- so it couldn't even have been predicted). Then, of course, there have been a series of famous lawsuits over whether or not publications can "republish" their old magazines in electronic format, because freelancers who wrote the original articles only signed licenses for the single publication.

However, it looks like lawyers drafting such legal arrangements are beginning to recognize this as an issue and are trying to prepare for such eventual new media opportunities. Eric Goldman alerts us to a WSJ article, highlighting how phrases like "in all media, throughout the universe" are becoming increasingly common in licensing contract language. While some decry this as being imprecise and overly broad, I tend to fall on the other side of the fence. Not having those types of clauses in agreements in decades past have resulted in a lot of long and drawn out lawsuits (and old content that simply cannot be repurposed for modern media). Better to have the language seem ridiculously inclusive than lose culture to history because no one predicted the next popular format.

36 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
licensing, music, paul simon, plays, sweden

Companies:
universal music



Universal Music Prevents Popular Play From Showing In Stockholm, Despite Not Having The Legal Rights

from the copyfraud... dept

As the major record labels and their lawyers and lobbyists run around the globe demonizing anyone for any sort of copyright infringement, we keep hearing stories of how they falsely claim rights over music for which they do not hold them. We recently covered the story of Edwyn Collins and his inability to offer free downloads of a popular hit song -- because Warner Music Group put in a copyright claim on the song. Reader Marius points us to a similar situation, over in Sweden. Despite theaters in Sweden being covered by a license agreement on musical performances by STIM, the Swedish performing rights collection society, apparently some music publishers claim that theaters still owe more money.

In one case, Universal Music (I assume its publishing arm...) threatened a theater because a popular play (that had toured without incident all over Europe) included a part where a Simon & Garfunkel record was playing in the background. The theater owner actually wrote a letter to Paul Simon to find out what his complaint was -- and received a response saying that Universal does not represent Paul Simon's music in theater contracts. Now, it's possible that there was some misunderstanding (language, cultural or legal), but this sort of thing seems to be happening more and more. When the theater owner informed Universal of this, Universal apparently retracted its demands for payment -- but the theatre company putting on the performance had already decided not to risk doing the play.

It's difficult to see how anyone comes out ahead in such a scenario. The Swedish public doesn't get to see the play or hear the music. Paul Simon doesn't get to attract new fans. Universal Music doesn't get anything other than a lot of ill will from the theater community. Why even bother at all?

16 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
creative commons, licensing, olympics, photos, trademark



Olympics Clarifies Problems With Flickr Photos... But Still Doesn't Make Sense

from the you-don't-own-the-photos dept

Last week, we wrote about the International Olympic Committee's complaints concerning a guy, Richard Giles, who had posted some images he took at the Beijing Olympics on Flickr under a Creative Commons license. At the time, it wasn't entirely clear if the complaint was the license or that the photos were up, at all, but as we noted, either way, it didn't make sense. The IOC has responded and said the main complaint is with the Creative Commons license, but, again, it's difficult to see how the IOC has any argument at all. The photos were taken by Giles, and thus he has every right to license them as he sees fit -- including under CC licenses. Furthermore, as Thomas Hawk points out in the link above, once you license something CC, you can't go back on it. It's still not clear why the IOC sees this as a bad thing. Giles is helping to promote their event. For free. Next time, maybe he should just send them a bill.

34 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
eminem, itunes, licensing

Companies:
apple, universal music



Eminem's Misguided Lawsuit Against Apple Over iTunes Set To Start

from the apparently-not-yet-settled dept

Back in 2007, we noted that Eminem's publisher was suing Apple for offering Eminem tracks on iTunes. Apple pointed out that it had an agreement with Eminem's record label, and we wondered why Eminem wasn't suing Universal Music, rather than Apple. So, earlier this year, when Eminem and Universal Music went to court we assumed that the lawsuit had been refocused on the proper party. Apparently, we were wrong. The lawsuit against Apple is scheduled to begin Thursday if no agreement is reached today. However, remember that lawsuit against Universal earlier this year? Well, Universal won, with the court saying that Universal had the right to distribute digital offerings. So... why is the lawsuit against Apple still going forward? Am I missing something...?

12 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
allman brothers, itunes, licensing, royalties, sales

Companies:
universal music



Court Refuses To Dismiss Allman Bros. Lawsuit Against UMG; iTunes Royalties At Stake

from the a-license-or-a-sale? dept

There have been a number of lawsuits over the past few years from artists who are complaining about how the major record labels account for iTunes sales. The question is whether or not a song sold on iTunes is the same as a CD sale (a tiny tiny royalty) or more like licensing a song for a commercial (more like a 50% royalty). Obviously, the record labels want iTunes treated like a CD. But musicians have a reasonable argument that an iTunes sale may be a lot more like a typical license, as a big part of the reason in the discrepancy in the royalty rates is that there's no (expensive) physical packaging and distribution to handle. The Allman Brothers were one of the first to file lawsuits on this issue suing both Sony Music, and then a couple years later, Universal Music Group (I'm still not clear why they sued the two separately, years apart). Eminem also had sued UMG over this issue and lost, as a jury said iTunes was more like a CD sale.

UMG tried to get the case from the Allmans dismissed, but davebarnes alerts us to the news that the court has refused to dismiss the case, and it will proceed to a full trial. Of course, like Eminem, the Allmans may lose the trial, but it's better than having the case dismissed outright. Of course, if the Allmans win, it will create a bunch of similar lawsuits in short order, as pretty much every artist will be demanding a lot more iTunes revenue.

18 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
dvd, licensing, music, werewolf



Werewolf TV Show Blocked From DVD Release Due To Music Licensing

from the promoting-the-progress dept

We were just talking about how DVDs of various TV shows, like The State and WKRP in Cincinnati were being crippled by music licensing rights that forced them to remove the original, classic music, and replace it with bland copies. However, in some cases, it's much, much worse. Michael Scott lets us know that some TV shows are being totally prevented from coming to DVD. The latest is the TV show Werewolf, which was apparently working on a DVD release, but the project has now been shut down, due to music licensing problems:

The Shout Factory had to cancel the release because of two artists (which will remain unnamed) that would not play ball. Sony does not have the individual audio tracks, so they were unable to replace the songs, as the audio was mixed together. The two songs were featured over dialogue scenes that could not be cut. The Shout Factory's only option, even after spending a lot of time and money on it, was to cancel it and give the title back to Sony. If Sony had the audio tracks, it would have been easy to replace the two songs.
It's still difficult to see how this makes any sense at all. It shouldn't require relicensing, and even if it does, it's plainly ridiculous for the musicians to refuse. It's difficult to see how this benefits them in any way.

47 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
copyright, dvds, licensing, the state



Once Again, Music Licensing Harms The DVD Release Of A Classic TV Show: The State Goes Generic

from the sad-days dept

Fans of The State have a cultish connection to the fantastic sketch comedy series that was on MTV in the 90s. Recently, DVDs of the show were released, and reader Milodon points out that like WKRP in Cincinnati, The Wonder Years and a variety of other classic TV shows, The State was unable to use the original music it had used when the shows aired:

Back in the free-wheeling 1990s, we had access to a huge library of popular songs to use as a soundtrack for the show. Today, licensing this music for the DVD would have cost us millions of dollars, and most of it was unavailable to us at any price. However, we have worked very closely with original series composer (and consummate rock star) Craig Wedren to carefully replace certain tracks, while maintaining the spirit of the original sketches as much as possible. The only moment in the whole series that we could not include on the DVD is a 15-second "link" where characters are singing a Pearl Jam song which we could not get the rights to.
Of course, we've seen how closely "the spirit" of the original music has been drained out of those other shows. Part of the reason these shows are such classics was their use of timely and evocative music. It still boggles my mind that it should even require any additional licensing. The music was licensed for the show. The DVDs are simply the same show. The music was already licensed. Why should it need another license? And, even if you grant the idea that it should get the license, why would anyone not let that happen? Having the music in these shows is never going to harm the market for that music or those musicians. It can only serve to draw more attention to that music, especially for people nostalgic for the time when the show aired.

Also, the page about the DVD notes one other bizarre change:
A few brand names and images had to be blurred or replaced for legal reasons.
I'm still trying to figure out what these "legal reasons" are. Last month we wrote about a lawyer whose job it is to make sure no brands appear unblurred in movies, but I'm struggling to understand the legal rationale behind this. It's not a trademark violation to use a brand in a movie or a TV show. There's not going to be any "confusion" from showing a brand or dilution of the brand because a long-off-the-air TV show isn't competing with those brands. This is yet another sign of the ridiculous levels to which intellectual property law has taken culture these days.

32 Comments | Leave a Comment..

 
Politics

Politics

by Mike Masnick


Filed Under:
business models, cab drivers, competition, free, licensing, tampa



No Free Competition Allowed In Tampa Bay Taxi Business

from the competition-is-bad dept

Back in June, we wrote about how cab drivers in Tampa Bay were trying to get the city council to outlaw new competitors in the form of free ad-supported transportation from some owners of electric vehicles. Like so many cities, Tampa Bay's cab system operates on a license system, which the city and the existing cabbies work closely to limit, and do make sure prices remain artificially high. However, the free electric vehicles had thought they got around this by noting that the permit system only applied to cabs for hire. Since they weren't charging, they weren't covered. Until now.

EEJ alerts us to the news that Hillsborough County transportation officials have announced that the free electric vehicles need to get permits as well -- except, oh by the way, there aren't any available. Too bad. At least one of the electric vehicle operators plans to go to court to fight this, but it may be an uphill battle. While the officials are hiding behind "safety" claims, the truth is that it's a typical move of regulatory capture by the cab companies, limiting competition so they can keep their prices artificially high and avoid any sort of business model innovation.

31 Comments | Leave a Comment..

 
Say That Again

Say That Again

by Mike Masnick


Filed Under:
copyright, free market, licensing, property



How Copyright Can Be Viewed As Anti-Property

from the removing-rights dept

One of the regular discussions we get into around here is over the question of whether or not things like copyright and patents are really property. The IP lawyers who insist that it's just like property focus on a rather simplistic (and wholly inaccurate) explanation of why it is property: which is that if it's a bundle of rights that can be transferred, then it is property. But that's misleading. Because it mixes up a couple of key elements that make this definition quite inconvenient. The key among them is that those who hold IP rights rarely sell them (yes, it does happen, but it's a rare transaction when it does). Instead, they mostly license the rights. And that's rare with real property. Again, it does happen sometimes, but not very frequently -- and, when it does, it's always represented quite clearly as a rental or a lease rather than a purchase. It's not even thought of in the same framework. So, you have a major difference right there.

And, in fact, there's a reasonable argument that when most of the transactions are licenses but are represented as purchases, it's actually very much against the basic principles of property, rather than for them. Martin points us to a fascinating and thoughtful writeup, by Nicklas Lundblad, originally written in Swedish, but the Google translation is quite readable, that discusses how the recent actions by Amazon to delete purchased George Orwell ebooks on the Kindle demonstrates just how anti-property "licensing" is (my own edit of part of the translation):

What is interesting with the time, however, is that it illustrates an example of a conflict that has not been seen very often - between the copyright and ownership of individual copies of a work which we have purchased legally. As noted in the article above, we would probably flinch [if someone] knocked on the door, courteously explained that the publisher who sold us the last part of Harry Potter no longer wants to provide a paper edition, and that therefore they had brought with him a little gasoline to burn up our copy . Most of us would probably shut the door again, put on a little coffee and [laugh]... [if anyone] would try their hand at this. But in the transition to the digital economy it will make it harder for us to protect our own space and our property, as more and more terminals are now sold [with what is] charmingly called a "kill switch". The iPhone will have, like the Kindle and other terminals: an opportunity to, at a distance, without our consent in the case (but we have certainly agreed to it in any agreement anywhere) change the content of the technologies we use.
And that very fact is incredibly anti-property. The idea that something we believe we have legitimately purchased can suddenly be snatched away from us, at a distance, with no recourse is not property. It's the opposite of property. In the comments to our original post, someone pointed out that for all the copyright maximalists who like to refer to infringement as "theft," Amazon's deletion of 1984 was a lot closer to "theft" in that people who had purchased something suddenly found that it was gone. Poof. That is extremely anti-property, and anti-free market -- and that's a problem:

The original article goes on to note that while a contractual agreement is the cornerstone of the free market, a license agreement built on copyright is quite different. It's built with a very strong imbalance, backed up by government protectionism, that changes the free market structure. Lundblad notes:
The license is like a parody of a contract because the contract coordinating effect been eliminated from the outset by a law which gives one party all the bargaining power.
While I have no doubt that this will upset and anger the folks who believe that copyright is absolutely 100% property, it's a rather compelling explanation of how copyright isn't just not like property, but in many ways is anti-property in that it violates some of the basic tenets of true property and true property rights.

50 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
beck, free, licensing, music, recording, royalties



Beck Re-Recording Other Classic Albums And Giving Them Away For Free

from the licensing? dept

Hypebot points out another fun experiment by a popular musician. Beck is apparently gathering random friends, and each week (with little or no rehearsal) they're picking someone else's classic album and re-recording it in its entirety and then giving away a free song from the session. This is the sorta thing that makes tons of sense (Hypebot calls it "a GOOD IDEA") and is something that's fun to do, and can help energize Beck's fans, the fans of the other artists playing along and the fans of the original performers/songwriters, as well. But, of course, there's always a cloud that hangs over any fun music project. Already in the discussion on Hypebot there are questions about royalties and who has to pay whom for what rights. When recording cover songs there are compulsory rates, but even then the matter isn't entirely clear, apparently. And, of course, some people are complaining that this just shows that he's "unoriginal." Of course, that simply shows a near total misunderstanding of the history of music -- which has always been about sharing and recreating the works of others.

21 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
licensing, music, performing rights, sweden

Companies:
stim



Swedish Performing Rights Society Demands Cash From Companies That Let Employees Listen To Music

from the oh-come-on dept

It appears that the Swedish performing rights society STIM is taking lessons from ASCAP (in the US) and PRS (in the UK) in trying to extend the definition of a public performance in order to demand licensing money from just about anyone. In this case, STIM has apparently sent out demand letters to thousands of Swedish companies telling those companies that if anyone at the company listens to music on the job, the company needs to pay for a license:

Perhaps someone has the radio on or is listening to a CD and if so, you need to have a permit that allows for music to be played the workplace... A workplace isn't private and therefore you should have a license for music to be played so that the copyright holders get paid.
This is, of course, quite misleading. The copyright holder has already been paid if they're listening to the radio or a CD. This is an attempt to get paid multiple times for the same thing. We've been hearing stories about how these various collection societies are in trouble lately due to low interest rates and poor investment choices, but watching them flail around and start demanding money from everyone, and trying to get paid multiple times for the same work is really quite an amazing abuse of power. Why isn't any gov't agency cracking down on such an abuse?

58 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
copyright, education, fair use, licensing, music, ron rosen



Copyright Insanity: The Need To Get Licenses Just To Demonstrate A Legal Point

from the that-seems-problematic dept

Over at Against Monopoly, Alistair Kelman, points out yet another quirky problem with copyright law. He's discussing a book by Ron Rosen, who was the attorney for famed composer John Williams in fighting a copyright infringement claim saying that Williams copied a phrase in the score for the movie E.T.. The book is called Music and Copyright, and (according to Kelman) is quite a worthwhile read in thinking about some of the modern legal issues that will be faced thanks to mashups and other musical compositions that run up against copyright questions.

Kelman's one issue with the book, is that it would really be aided quite a bit by being able to hear the actual music in question, rather than just seeing the musical notation. So, the suggestion was, why did Rosen put up an online video lecture, playing the music samples so that people could better understand the issues at play. The answer, it turns out, is copyright law. Rosen wrote Kelman, noting:

"...about the need for aural examples, that is something we wanted to do for this edition, but as a new publication, the need for licenses and the budget foreclosed our doing so."
So even though this is a somewhat scholarly effort to look at these issues, apparently Rosen can't even demonstrate his points with music, because copyright forbids it, and requires hefty licensing fees. If ever there were a case where "fair use" should apply, this would seem to be it -- but I'm sure some would argue against that point since this book is a "for-profit" endeavor. Of course, whether something is commercial or not is only one of the four fair use factors, and it seems that if it's just a snippet of the music, a strong fair use case could be made (especially since it's hard to see how this could possibly harm the market for the music itself). However, as copyright system defenders love to point out on a regular basis, they see fair use as a "defense, rather than a right" and thus, the only way to prove that this is fair use would be to go to court -- something that is expensive and time consuming. What an unfortunate state of affairs.

64 Comments | Leave a Comment..

 
News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
business models, cab drivers, competition, free, licensing, tampa



Cab Drivers Angry About Having To Compete With Free As Well

from the it's-called-competition dept

There's just something about having to compete with "free" that gets people really, really angry. It's silly of course. In traditional competition, if someone lowers their price and it's lower than your own costs, you simply have to figure out other ways to compete (such as by adding more benefits and value). It's the same thing when you compete with free -- but for some reason, people see that big $0 and they stop thinking, not realizing it's no different if someone is charging $0 or if they're just charging less than you. You need to figure out some way to compete. EEJ points us to a story from a couple months back, noting that in Tampa, Florida, some entrepreneurially minded folks have started up free transportation services using electric vehicles. The operators of these vehicles make their money by wrapping the cars in ads and accepting tips. Other than that, the ride is free.

But... wouldn't you know it? Local cabbies are pissed off and demanding regulations to stop this sort of competition. Rather than coming up with better ways to compete, they feel the need to run to the government and get protectionist help. Doesn't this sound familiar? Amusingly, it's actually taxi regulations that have created some of this problem in the first place. At least one of the electric car owners notes that he approached the city about getting a license, but he was denied, because of the artificial scarcity the city places on cabs via such regulations (which help keep the cost of a cab ride artificially high). But... the loophole is that the regulations only apply to hired transportation. If the transportation itself is "free" then there are no regulations.

42 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
licensing, music, negotiations, streaming

Companies:
emi, grooveshark



Record Labels Continue 'Negotiating Through Lawsuit'

from the it's-why-they're-so-lovable dept

We've noted in the past that the record labels have a pretty well established operating procedure when it comes to "negotiating" with startups that are actually doing the innovative things in the music delivery and promotion space. They open "negotiations" with these startups... and then after a certain point, they file a lawsuit. It's purely a negotiating tactic (and a way for record label lawyers to keep busy), that makes the "negotiation" a lot more antagonistic, and often ends with the startup agreeing to give up way too much. Warner Music perfected this trick, such as when it sued iMeem only to then invest in the company as part of the settlement. Of course, because iMeem had no choice but to cave in order to deal with the lawsuit, the terms of the deal were so onerous that iMeem nearly went out of business -- until Warner Music wrote off the investment and recently renegotiated.

As unbelievable as it may be, the major record labels apparently don't recognize that "deals" negotiated at the end of the barrel of a gun tend not to work out very well in the long run. They're certainly not mutually beneficial.

And yet... the process continues. While Warner Music has done a bunch of these sue-to-negotiate deals, EMI seems to be involved in many of the more recent lawsuits of this nature. Its latest target is GrooveShark, one of a bunch of sites that lets you listen to streaming music online. Apparently the two companies had been negotiating terms... and then suddenly EMI sued. Par for the course. In the meantime, if you're a music startup hoping to do a licensing deal with a major label, make sure you have some litigators on your legal team. You're going to need them.

8 Comments | Leave a Comment..

 
Culture

Culture

by Mike Masnick


Filed Under:
business models, copyright, jim griffin, licensing, music, questions

Companies:
choruss



Tens Of Thousands Of Students Have Signed Up For Choruss... Even Though No One Knows What It Is?

from the am-I-missing-something? dept

A bunch of folks have sent in the story in The Register about Jim Griffin's appearance at the World Copyright Summit, where he apparently told the crowd that "tens of thousands" of students at universities have agreed to voluntarily pay for Choruss. But, unfortunately, nobody seems to know what it is. Plenty of folks have been asking for an actual description of what it is -- and every time we're not told anything other than that it's "an experiment" that we're not to criticize. So, I'm curious who these tens of thousands of students are, and exactly what they've signed up for. If any of them is willing to share with us the details of what they signed, that would be great.

At one time, we were told that Choruss would be mandatory, but lately, Griffin has suggested that it will be voluntary. A voluntary system is much better, so that's definitely a step in the right direction, if that's true. But there are still plenty of other problems with such a system, many of which I've outlined elsewhere. It still seems like the entire program is based on a negative benefit ("you won't get sued") rather than a positive incentive ("here's a reason to give money in exchange for something you want") and a distortionary effect on the market (i.e., inserting unnecessary bureaucracy into a market, such that artists will actually make less). But, the fact that supposedly tens of thousands of students have agreed to pay for this when no details of what "this" is have been offered seems quite odd.

Separately, I should note that in our last post about Choruss, we solicited questions to be sent to Griffin which he has promised to answer. Due to my own hectic travel schedule, I haven't had time to go through the responses yet and whittle the list down to a more reasonable level, but I'm hoping to do that shortly. Alternatively, Griffin is free to answer questions and discuss these issues in the comments, but to date he has preferred not to do so, which is his right, of course. Still, if you have any additional questions for Griffin, feel free to add them in the comments, and I'll include them in the potential list (which will be narrowed down, so as not to overwhelm Griffin).

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Culture

Culture

by IC Expert,
Blaise Alleyne


Filed Under:
licensing, music, video games

Companies:
ascap



ASCAP Thinks That Video Game Providers Should Pay Music Performance Royalties

from the just-make-the-internet-like-tv-so-we-don't-have-to-change dept

Despite claiming to represent the interests of songwriters and composers, ASCAP has consistently provided bad advice on how they should respond to digital technology and the internet. For ASCAP and many other collection societies, anything that doesn't involve royalties seems automatically bad (despite all the success from artists who've been freeing up their content), and other questionable practices raise serious doubts over how royalty money is handled once collected. Now, ASCAP wants to increase the toll on video games and is encouraging video game music composers to reserve performance rights (via Michael Scott). Typically, game developers purchase rights (including performance rights) from music composers, but ASCAP's Director of Legal Affairs, Christine Pepe, argues that the practice no longer makes sense. She suggests adopting the model that was developed for film and television, where composers and songwriters often negotiate contractual provisions for performance royalties.

Not surprisingly, there are some major problems with the article.

First of all, Pepe cites Rock Band, Guitar Hero, Dance Dance Revolution and Stubbs the Zombie to highlight the prominence of music in video games nowadays. These are all cases of popular songs being used in games, rather than music being written for games... yet she's presumably addressing people who write music for video games. Early versions of Guitar Hero used covers to make licensing easier, so composers weren't even part of the negotiation. This licensing is about synchronization or mechanical rights -- not performance rights. Labels have complained that these games aren't paying enough for the music, but it's the games that increase the value (and sales) of the music, not the other way around. These games could simply choose other good music and still be popular. ASCAP clearly doesn't understand that, while music can add value to games, games add value to music. Pepe says that older video game music is "probably difficult to imagine... in a context other than the games themselves." She isn't trying very hard to use her imagination, as there are plenty of examples of older video game music having a life outside of the games. Would anyone care about the Mario theme if it weren't part of the game? The lesson from old video game music isn't that performance royalties used to be negligible. It's that success for a video game music composer isn't just about writing good music, but about having that music associated with successful games.

Second, Pepe's argument that there's a public performance of music in video games seems like a real stretch:

Now, because video games are being delivered by entities other than developers and on transmission-based platforms such as the Internet, there is no reason that composers of music for video games should sign away their rights. Take for instance, X-Box — it is now fully integrated with the Internet and allows users to stream games (instead of just purchase the physical product in the store). Internet-based services that now offer streaming of video games are causing the music contained in such games to be publicly performed. The providers of these video game services typically have or should have a license from ASCAP (and possibly other public performance right organizations). [emphasis mine]
What does "streaming" a video game even mean? A video game is interactive; it's not a one-way broadcast, but communication over a network. Is Pepe suggesting that there's a public performance simply because software communicates over the internet? Email happens on the internet. Is that a public performance? There's such a thing as private communication over a network. Games like Gears of War, for example, allow you to play in co-op mode with another player in the same room or online. I find it hard to believe that the location of player two would determine whether or not the music is being publicly performed. What about a multiplayer game on a local area network? Why would that be any different, in terms of a public performance of music, from a multi-player game with everyone in the same room? Simply playing a game over a network doesn't make it a performance, nor does that make it public.

But maybe Pepe isn't referring to having players in remote locations, but having games in remote locations. She uses the Xbox as an example, which seems odd because, as I understand it, the Xbox Live Arcade lets you download games, but that's quite different from streaming. It's the video game equivalent of the iTunes Music Store, not an internet radio station. Digital distribution doesn't mean public performance -- the game is still played locally, just off a hard drive instead of a plastic disk.

Okay, so maybe Pepe was trying to talk about a platform that actually hosts and runs games on a remote computer. Still, it's pretty hard to believe that just because software is run remotely it's a public performance of the music, when the act of hearing the music would be indistinguishable if the software were run locally. Is it a "public" if I check my email using the Gmail web interface instead of Thunderbird? I have a music server running at home which lets me login and listen to my library from anywhere -- is using that a public performance? Do I need a license to listen to my own library because it's on a different hard drive? How does playing music in a video game become a public performance simply because of the hard drive the game resides on or the CPU that runs the process?

Furthermore, let's pretend there's actually public performance taking place. Is it even in a composer's best interest to demand these royalties? (This is not about a composers "right to get paid;" composers are getting paid -- upfront.) Making it harder for people to hear your music is rarely a good idea. Like with theme music for WKRP in Cincinnati or House in the UK, game developers may just seek other music if the licensing requirements are too burdensome. Focusing on getting every penny for every use of the music ignores the value of being included in a game, film or television show. The lesson from video game music of the past and present is that having your music included in a great game is extremely valuable. Not only are you getting paid to be promoted, but the game developers are even doing the hard work of getting fans to connect with the music! Rather than demanding compensation for every use, composers and songwriters should look at other ways to take advantage of the opportunity to make more money from the increased fan base. If ASCAP were really representing their interests, it would be helping them do this instead of pretending that the internet and video games are like television and insisting on performance royalties which will only get in the way of new business models. Of course, don't expect ASCAP to promote anything that isn't about increasing royalties. If your only tool is a hammer, everything looks like a nail...

Blaise Alleyne is an expert at the Insight Community. To get insight and analysis from Blaise Alleyne and other experts on challenges your company faces, click here.

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