During negotiations, ASCAP and the publisher increased the pressure by refusing to provide Pandora the list of tracks that were being withdrawn, exposing Pandora to copyright infringement liability of up to $150,000 per work. At Pandora’s scale, such liability would be enormous. Faced with such potential liability, Pandora negotiated an agreement that resulted in increased rates. Shortly thereafter, additional major publishers took steps to withdraw their catalogs from ASCAP, again with respect to Pandora.

ASCAP created additional ways to circumvent its antitrust consent decree. Our motion also describes how ASCAP refused to provide Pandora a license under the same terms as the iHeartRadio service, for only one reason: iHeartRadio is owned by a terrestrial broadcaster.

This is a perfect example of the twisted incentives and strange results we get from a music licensing system that is based on who wants a license instead of just what they want to do with the music they’re using. This makes no sense. The law should treat like uses alike. Regardless of how high or low you think performance royalty rates for webcasting should ultimately be, there is no logical reason to give preferential rates to certain companies just because they arrived at the negotiation table first.

This has to be some kind of sick joke. Pandora bought an FM radio station to game the system in order to pay songwriters less?

Pandora continues to find new ways to give artists and songwriters a raw deal from the bottom of the deck. In their race to the bottom to see how little they can pay music creators, they have stooped to misleading legislation, bait and switch petitions, and now fronting as an FM radio station.

David Israelite, CEO of the National Music Publishers Association (NMPA), tonight interrupted his state-of-the-industry speech at the group's annual meeting in Manhattan to lash out at Pandora's decision to acquire a radio station in South Dakota. "Pandora is going to pursue lawsuits and gimmicks," Israelite told the hundreds of songwriters and composers in attendance. "Pandora is hoping to fraudulently sneak in the back door. Any shred of credibility that Pandora had is gone. They are at war with songwriters "

We've talked a lot about the problems with the whole idea of the collection society structure in the past, especially the fact that most societies are constantly pushing for higher fees and trying to extract money for ridiculous things, even though they have a poor track record of actually redistributing the money they collect to the artists they supposedly represent. But of course, the people behind the tariff talk it up as a boon for small musicians:

"We are trying to establish tariffs for the remuneration of everybody involved in the music — everybody that has some rights to receive some remuneration," said Gilles McDougall of the Copyright Association of Canada, adding that the tarriff will likely result in a few million dollars a year for performers.

Re:Sound spokesman Matthew Fortier said the money collected will make a big difference to small operations.

"Sometimes you think of the larger artists or record labels, but most often it goes to small, struggling artists and record labels — we have thousands signed up with us," he said.

But as Howard Knopf points out, small artists are the last ones to get anything out of a scheme like this. Megastars and their labels can make money—but even that pales in comparison to the real beneficiaries of the tariff:

Sadly, very little of this money through gets to the artists that need it the most. This is because the copyright collective system tracks and rewards commercial success. Celine Dion, U2, Lady Gaga and their record and publishing companies do very well by the this system but emerging creators see very little of this money. The ones who really and consistently benefit the most are those who run the collectives, those who are consultants to the collectives, and the lawyers who punctually pursue new and higher Copyright Board tariffs using money raised from the previous tariffs and paid for ultimately by the Canadian public. Many if not most Copyright Board hearings generate millions of dollars in legal fees in order to generate average annual payments to creators that are typically much less than a junior lawyer’s hourly rate.

As with many such licensing schemes, the specifics of the fees seem almost completely arbitrary. Karaoke bars pay a rate based on nights-per-week, parades pay a different rate per-float, and weddings pay a third rate that for some insane reason gets doubled if the wedding involves dancing.

Some people will look at the fees themselves, which in any singular instance only generally add up to a few hundred dollars at most, and ask what the big deal is. But that's ignoring the big picture: Canada loves copyright tariffs, and each one serves to shift massive amounts of wealth around, often with little justification and no way of ensuring that the money is being properly distributed. And we just keep piling new tariffs on top of old ones, with no clear idea of how effective they are—except at funnelling money to the collection societies:

It’s true that most people do not tend to get married very often. And many weddings cost $25,000 or more. So, some may not be too concerned about the macro or even microeconomic aspects this particular tariff item. It won’t likely harm Canada’s economy overall or even the institution of marriage.

But these little tariffs add up. The little tariffs such as $0.29 for a blank CD or $5.16 per year for each K-12 student, or $253.45 for a wedding soon add up to about $500 million a year in Canada. One is tempted to say that "A half billion here, a half billion there, pretty soon, you're talking real money." Copyright Board tariffs siphon huge sums out of the educational system, the broadcasting and telecom industries, businesses of all kinds that use blank media for ordinary data storage and transfer purposes, etc.

Now we can add this one to the bloated list. And you can guarantee it won't be long before Re:Sound is back before the Copyright Board, pushing to raise the fees and expand the tariff to new classes of events and venues. Copyright tariffs rarely decrease—even when they absolutely should.

C3S is a collaborative effort to found a new and ground-breaking European collecting society for musical creators to register their works outside of traditional schemes, released under free licences for commercial exploitation. More than just for works published under Creative Commons Licences, C3S is open for other free licences as well.

"I said the hell with it! We only have music on Friday nights. It’s not worth $3000. How is a neighborhood restaurant running on a razor-thin margin in this economy supposed to afford an extra $3000? So I cancelled the band. Net result? Our customers suffered, local music suffered. A complete lose-lose situation."

The bottom line to BMI and other collective rights organizations? Your customers are not your enemies. Promoting live music is good for BMI and the artists they collect royalties for. Working together with local businesses rather than trying to bully and intimidate them will leave all parties better off.

Broadcast Music, Inc., the music licensing group, is suing the Lady Godiva's nightclub and its owner, Mark London, claiming the club has violated copyrights. BMI filed a lawsuit Tuesday in U.S. District Court in Grand Rapids, alleging the club played songs by artists Rivers Cuomo ("Say It Ain't So"), R. Kelly ("Ignition") and Amy Winehouse ("You Know I'm No Good") without paying the proper music license fees. The suit claims the songs were played at the club -- without BMI permission -- on September 27, 2010.

The specific acts of copyright infringement alleged, as well as the Defendant's entire course of conduct, have caused and are causing Plaintiffs great and incalculable damage.

Unless this Court restrains Defendants from committing further acts of copyright infringement, Plaintiffs will suffer irreparable injury for which they have no adequate remedy at law.

London tells WZZM 13 News that BMI is seeking to have him sign a licensing agreement registering his club as an adult entertainment business, which he says it is not. He says that while his club does feature women dancing it is not a topless venue, as a 2006 Grand Rapids city ordinance no longer allows nudity.

London says he is in good standing with ASCAP and other licensing agencies. But when he sent checks to BMI to pay for music rights, London says the group voided the payments.

Broadcast Music Incorporated sued Fosters and claimed in court documents that it called the restaurant 56 times and mailed 29 letters. BMI says Fosters ignored its requests to get a license to play music.

"We've been attempting to resolve this for two years now," said Robbin Ahrold, BMI's vice president of corporate communications and marketing. "It is our obligation when we sign an agreement with these songwriters to be diligent and do what we can do to collect their royalties."

Due to your lack of response, BMI found it necessary to have our music researcher conduct our own primary research into the music use [sic] at your business. That music researcher visited your business and confirmed that you are in fact publicly performing music which would require a public performance license.

[BMI] has sued Alley Cat and Andrew Blair's, both in Charlotte, Sharpshooters Sports Bar in Jacksonville, Forty Rod Roadhouse in Mint Hill and White Owl Tavern in Mooresville. WRAL News found a total of 38 suits filed across the country this year.

As previously noted, BMI argues that the public performing right has long applied to on-demand, interactive streaming. Additionally, it makes no difference if the audience for the transmission is only one person, who may receive the program at a unique time, and that MP3tunes’ attempt to make one to one transmissions into private performances is contrary to established law. We stress that it was only the existence of the unique copy made by each subscriber that was the critical factor that saved Cablevision from being an infringer. MP3tunes cannot evade that essential aspect of the court’s ruling on the grounds it would be more efficient to infringe with one copy in storage for all recipients.

1. The right to collect licensing fees has "long applied" to streaming services, and since it's been there before, it logically follows that it should always be that way, no matter the differences of each situation.


2. It makes no difference if only one person is listening -- it's still a public performance. BMI and their fellow performance rights groups have always been willing to grant individuals the rights of a crowd.


3. Storage efficiency = infringement.

The strength of the public performing right would be threatened by a ruling that broadens the Cablevision court’s private-performance ruling to otherwise-unlicensed services. Cloud computing will no doubt grow tremendously in the future and if MP3tunes’ argument is adopted by the court, unlicensed entertainment services in “the cloud” will steal audiences from existing licensed streaming services (as well as from more traditional media entities), and copyright owners will be harmed by such a ruling.

These efforts to diminish or circumvent the performing right point up the need for heightened vigilance on our part.

Let's be honest. The vast majority of LimeWire's users were interested in one thing and one thing only: downloading our music for free with the full knowledge that what they were doing was illegal. The harm done to the creative community when people are encouraged to steal our music is immeasurable. Disclaimer or no, when you offer a list of alternative P2P sites to LimeWire -- and include more of the serial offenders -- PC Magazine is slyly encouraging people to steal more music and place at risk the tens of thousands of music industry jobs -- including singers, songwriters, musicians and the technical professionals who put it all together. Even worse is offering a direct link to a "resurrected" Limewire as follows: "I went ahead and downloaded LimeWire Pirate Edition for *ahem* research purposes, and can report that it appears to be working very smoothly. In the event that you, yourself, would like to do some research, you can download the client here (direct link)."

"On behalf of our songwriters, composers and music publishers, we will not allow this ruling to stand without an appeal," said Del Bryant, BMI President & CEO. "Our writers and publishers should not be expected to lose more than half of their income from DMX based on the court’s erroneous holdings, which substantially reduce the value of their creative efforts."

The music community we represent believes it is vital that any Internet policy initiative permit and encourage ISPs and other intermediaries to take measures to deter unlawful activity such as copyright infringement and child pornography.

One afternoon, I sat with Baker at her cubicle. Besides pictures of her fiance, Mike, and her nieces, she also has a smiley-face chart. Her boss made it up for all the licensing executives, to remind them that their moods and their tones will determine their success. The chart is like a traffic light. There’s a green smiley face, a straight face in yellow, then a face in red, frowning. "You never wanna be on the red," Baker said.

Friends I talked to had a similar reaction. To a one, they said: "Jesus. Sounds like Big Brother." When I mentioned this to DeBusk, he smiled ominously. "Yes. Well. We're here to help."

Baker accepted Ross's invitation and sat down in the booth with Ross and her pug, Frank. Out came the checkbook. "I could tell she was low on money," Baker told me later. "I could tell it was hard for her to shell out the money."

DMX's accounting to publishers and writers for direct licensed works features quarterly accounting 45 days after the end of each quarter, as opposed to the typical performing rights organization schedule of 9 or more months after a performance. DMX also provides direct counts of the number of plays of each work.

Why does Landmark Digital Services think they hold a patent for the concepts used in my code? Even if my code works pretty different from the Shazam code (from which the patents came).

What they describe in the patent is a system which:

1. Make a series of fingerprints of a media file and/or media sample (such as audio, but could also be text, video, multimedia, etc) 2. Have a database/hashtable of fingerprints as lookup 3. Compare the set of hashtable hits using their moment in time it happened This is very vague, basically the only innovative idea is matching the found fingerprints linearly in time. Because the first two steps describe how a hashtable works and creating a hash works. These concepts are not new nor innovative.

But, with a bit of imagination one could (possibly) argue that my code (again, written completely by myself in a weekend with some spare time) does the same thing as the patent describes.

As I'm sure you are aware, your blogpost may be viewed internationally. As a result, you may contribute to someone infringing our patents in any part of the world. While we trust your good intentions, yes, we would like you to refrain from releasing the code at all and to remove the blogpost explaining the algorithm.

Across New England, church coffeehouses, library cafes, and eateries that pass the hat to pay local musicians or open their doors to casual jam sessions are experiencing a crackdown by performance rights organizations, or PROs, which collect royalties for songwriters.

"I am 100 percent in compliance," Hopper said. "I'm not charging cover at the door. I'm not paying the bands, and they are just playing songs they wrote. They essentially said to me, 'We don't care. We have this low-end licensing fee you must have because there is a chance your band might play a cover song.' "

"We answered the complaint, but they (BMI) wanted us to do ridiculous stuff. Our attorney said to take it to court and see where it goes."

"It's definitely about the money as well as the judgment," Bailey said. "We will take appropriate steps to secure the judgment. This is not new to us. We are experienced in this area. Our attorneys know what to do."

Advertising Photographers of America
American Association of Independent Music (A2IM)
American Federation of Television and Radio Artists (AFTRA)
American Society of Composers, Authors and Publishers (ASCAP)
American Society of Media Photographers, Inc. (ASMP)
Association of American Publishers (AAP)
Broadcast Music, Inc (BMI)
Commercial Photographers International
Directors Guild of America (DGA)
Evidence Photographers International Council
Independent Film and Television Alliance (IFTA)
International Alliance of Theatrical Stage Employees (IATSE)
Motion Picture Association of America, Inc. (MPAA)
National Music Publishers Association (NMPA)
NBC Universal
News Corporation
Picture Archive Council of America (PACA)
Professional Photographers of America (PPA)
Recording Industry Association of America (RIAA)
Reed Elsevier Inc.
Society of Sport & Event Photographers
Software & Information Industry Association (SIIA)
Stock Artists Alliance
Student Photographic Society
The Advertising Photographers of America
The Walt Disney Company
Time Warner, Inc.
Universal Music Group
Viacom Inc.
Warner Music Group

"Basically, we don't know," said Dave Ascher, the SESAC Music Licensing Consultant who sent the letters. "To make a long story short, there's no way, logistically, for us to know whether on a day-to-day basis they're playing SESAC music."

"I'm sorry to hear that, but what I would like to tell him is that he needs to write a hit song," BMI's Bailey said.

"Yesterday, I received a check for 2 cents. I'm not kidding. People think we're making a fortune off the Web, but it's a tiny amount. We need multiple revenue streams or this isn't going to work."

"These guys are afraid that the business model is shifting away from public performances to a model of private performances," [David] Potter [from the Digital Media Association (DiMA)] said. "This is a turf battle. They are saying, 'The songwriters aren't getting paid.' Baloney. Songwriters are getting paid. They're paid sync rights and (mechanical) rights. They aren't getting paid for the public performance in a download because there is no public performance in a download."