Changes to Music Copyright Licensing

Rep. Jerrold Nadler (D-NY) is drafting comprehensive music copyright reform legislation, saying last month that such a bill would be the best way to address the problems he sees with the licensing system for songs.

Speaking at a House of Representatives hearing on copyrights, Nadler noted his support for the Songwriter Equity Act, H.R. 4079, the Respecting Senior Performers as Essential Cultural Treasures (RESPECT) Act, H.R. 4772 and other measures intended to improve music licensing. The changes sought through various music copyright bills, however, should go into an omnibus measure that brings “fairness and efficiency to our music licensing system” and ensures “no particular business enjoys a special advantage against new and innovative technologies,” he said.

“We can create a better system for radio competitors, for artists and songwriters, and for fans, all of whom depend on a vital healthy market for music and music services,” said Nadler, who is the top Democrat on the House Judiciary Committee's courts, intellectual property and the Internet subcommittee, which held the hearing as part of a review of safeguards for copyrighted material in the digital age.

Nadler didn't indicate when he planned to release comprehensive legislation, but said he is working with Republicans and Democrats to create the bill.

The Songwriter Equity Act, introduced by Rep. Doug Collins (R-GA) in February, would make changes within the rate courts and federal Copyright Royalty Board to help songsmiths get fair market value for their songs.

Rep. George Holding (R-NC), who introduced the RESPECT Act in May, said his bill's music-licensing change isn't the only revision the system needs. But Congress should move ahead on his measure, irrespective of omnibus legislation.

The RESPECT Act would require Sirius XM, iTunes Radio, Pandora and other online radio companies to pay federal performance royalty fees for songs recorded before 1972.

“I don't think waiting for an overall copyright review fix is a reason to forgo the fix of a discrete problem that is indeed an unintended consequence of law,” Holding said.

Neil Portnow, president and CEO of The Recording Academy, which represents musicians, producers and other members of the music industry and presents the Grammy Awards, said his organization backs a comprehensive bill. During the group's annual “Grammys on the Hill” Washington, DC, advocacy event in April, Portnow called for a “MusicBus proposal” for “harmony, unity and parity” for its members. See, http://bit.ly/1mpoyyt.

“Comprehensive is the way to go in the long run because piecemeal has not served us well,” Portnow said at the hearing.

Record Companies Ask for Help

Record companies are also broadcasting their concerns about the current system for licensing music, telling the U.S. Copyright Office that simplifying it would increase revenue for the music industry and help songwriters, composers and publishers receive fair market value for their tunes.

In a 52-page filing with the Copyright Office on May 23, the Recording Industry Association of America (RIAA) wrote that the licensing system isn't working for the music industry. See the submitted Comments at http://bit.ly/1qJ2QZa. The group, which counts Universal Music Group Inc., Sony Music Entertainment Inc. and Warner Music Group Corp. among its members, said that it made the submission as part of the Copyright Office's study on the effectiveness of the music-licensing system in the digital age. See, “Music Licensing Study: Notice and Request for Public Comment.”'

Change Needed, But Is There Consensus?

Despite agreement in the music industry about the need for change, the real challenge is finding consensus among various stakeholders who are trying to improve licensing, says the filing, submitted by Steven Marks, digital business chief and general counsel of the RIAA, and Susan Chertkof, RIAA's business and legal affairs senior vice president.

“We believe that fixing this system will require all stakeholders to work together to take bold steps, rather than just a little tinkering,” it says.

The RIAA calls for the end of court-set royalty rates and “right-by-right” licensing. Instead, the group is looking for the rates to come out of negotiations between industry members and is pushing for “blanket licenses” to cover various licenses from parties with overlapping rights.

The licensing system isn't working efficiently for Spotify AB, Beats Music LLC and other music-streaming services, Marks wrote in a blog post. See, “Making It Work In the Digital Era: Why Modernizing the Licensing System For Musical Works Is A Must.” In order for these companies to give customers access to a song, they must get licenses for the musical work and the sound recording, along with licenses from multiple organizations to copy and perform the music, he wrote. The situation would be similar to “Netflix having to negotiate not just with the motion picture company that created the film, but also with multiple representatives of the author of the book or screenplay,” he noted.

“No system is perfect, and we don't pretend to have all the answers,” Marks wrote. “But we have some ideas and we're eager to brainstorm with our industry partners on how to simplify the current musical work licensing system.”

The American Society of Composers, Authors and Publishers (ASCAP; www.ascap.com), the leading trade group for music creators, also is calling for changes to the music-licensing system. The organization is backing legislation intended to help songwriters, composers and publishers get more money for their music. See, “Atlanta Songwriters Urge Congress to Update Music Licensing Regulations at ASCAP Forum.”'

Andrew Ramonas is a Reporter for Corporate Counsel, an ALM sibling of Internet Law & Strategy.

Rep. Jerrold Nadler (D-NY) is drafting comprehensive music copyright reform legislation, saying last month that such a bill would be the best way to address the problems he sees with the licensing system for songs.

Speaking at a House of Representatives hearing on copyrights, Nadler noted his support for the Songwriter Equity Act, H.R. 4079, the Respecting Senior Performers as Essential Cultural Treasures (RESPECT) Act, H.R. 4772 and other measures intended to improve music licensing. The changes sought through various music copyright bills, however, should go into an omnibus measure that brings “fairness and efficiency to our music licensing system” and ensures “no particular business enjoys a special advantage against new and innovative technologies,” he said.

“We can create a better system for radio competitors, for artists and songwriters, and for fans, all of whom depend on a vital healthy market for music and music services,” said Nadler, who is the top Democrat on the House Judiciary Committee's courts, intellectual property and the Internet subcommittee, which held the hearing as part of a review of safeguards for copyrighted material in the digital age.

Nadler didn't indicate when he planned to release comprehensive legislation, but said he is working with Republicans and Democrats to create the bill.

The Songwriter Equity Act, introduced by Rep. Doug Collins (R-GA) in February, would make changes within the rate courts and federal Copyright Royalty Board to help songsmiths get fair market value for their songs.

Rep. George Holding (R-NC), who introduced the RESPECT Act in May, said his bill's music-licensing change isn't the only revision the system needs. But Congress should move ahead on his measure, irrespective of omnibus legislation.

The RESPECT Act would require Sirius XM, iTunes Radio, Pandora and other online radio companies to pay federal performance royalty fees for songs recorded before 1972.

“I don't think waiting for an overall copyright review fix is a reason to forgo the fix of a discrete problem that is indeed an unintended consequence of law,” Holding said.

Neil Portnow, president and CEO of The Recording Academy, which represents musicians, producers and other members of the music industry and presents the Grammy Awards, said his organization backs a comprehensive bill. During the group's annual “Grammys on the Hill” Washington, DC, advocacy event in April, Portnow called for a “MusicBus proposal” for “harmony, unity and parity” for its members. See, http://bit.ly/1mpoyyt.

“Comprehensive is the way to go in the long run because piecemeal has not served us well,” Portnow said at the hearing.

Record Companies Ask for Help

Record companies are also broadcasting their concerns about the current system for licensing music, telling the U.S. Copyright Office that simplifying it would increase revenue for the music industry and help songwriters, composers and publishers receive fair market value for their tunes.

In a 52-page filing with the Copyright Office on May 23, the Recording Industry Association of America (RIAA) wrote that the licensing system isn't working for the music industry. See the submitted Comments at http://bit.ly/1qJ2QZa. The group, which counts Universal Music Group Inc., Sony Music Entertainment Inc. and Warner Music Group Corp. among its members, said that it made the submission as part of the Copyright Office's study on the effectiveness of the music-licensing system in the digital age. See, “Music Licensing Study: Notice and Request for Public Comment.”'

Change Needed, But Is There Consensus?

Despite agreement in the music industry about the need for change, the real challenge is finding consensus among various stakeholders who are trying to improve licensing, says the filing, submitted by Steven Marks, digital business chief and general counsel of the RIAA, and Susan Chertkof, RIAA's business and legal affairs senior vice president.

“We believe that fixing this system will require all stakeholders to work together to take bold steps, rather than just a little tinkering,” it says.

The RIAA calls for the end of court-set royalty rates and “right-by-right” licensing. Instead, the group is looking for the rates to come out of negotiations between industry members and is pushing for “blanket licenses” to cover various licenses from parties with overlapping rights.

The licensing system isn't working efficiently for Spotify AB, Beats Music LLC and other music-streaming services, Marks wrote in a blog post. See, “Making It Work In the Digital Era: Why Modernizing the Licensing System For Musical Works Is A Must.” In order for these companies to give customers access to a song, they must get licenses for the musical work and the sound recording, along with licenses from multiple organizations to copy and perform the music, he wrote. The situation would be similar to “Netflix having to negotiate not just with the motion picture company that created the film, but also with multiple representatives of the author of the book or screenplay,” he noted.

“No system is perfect, and we don't pretend to have all the answers,” Marks wrote. “But we have some ideas and we're eager to brainstorm with our industry partners on how to simplify the current musical work licensing system.”

The American Society of Composers, Authors and Publishers (ASCAP; www.ascap.com), the leading trade group for music creators, also is calling for changes to the music-licensing system. The organization is backing legislation intended to help songwriters, composers and publishers get more money for their music. See, “Atlanta Songwriters Urge Congress to Update Music Licensing Regulations at ASCAP Forum.”'

Andrew Ramonas is a Reporter for Corporate Counsel, an ALM sibling of Internet Law & Strategy.