RAIN Summit East



DiMA, labels' publishing groups at odds over royalty
·Jan 9, 10:51 AM
Posted by: Daniel McSwain

From Billboard.biz: “Sony/ATV Music Publishing has instructed the Harry Fox Agency today to stop all future licensing of any of the publisher’s repertoire for streaming or limited downloads, Billboard.biz has learned.

“The instruction is expected to impact services like RealNetwork’s Rhapsody, Napster and MediaNet… It also raises the question of whether a service that offers a stream or a limited download of any of the publisher’s songs released on records after today would be intentionally infringing the publisher’s copyrights.

“The move is in response to the Digital Media Assn.‘s motion filed yesterday with the CRB. In the motion, DiMA argues that an interactive stream is not a digital phonorecord delivery (DPD) and, therefore, should not have to be licensed for reproduction. Instead, an interactive stream should only trigger a performance license from ASCAP, BMI or SESAC.

“The trade group asked the CRB to request the Copyright Office to issue a decision whether or not an interactive stream is a DPD. If a stream is not a DPD, then digital services would not be required to obtain a section 115 reproduction license (i.e., a DPD license) under copyright law.

“A source close to Sony/ATV says that the publisher sees DiMA’s move as ‘underhanded,’…

“Other major publishers are also expected to stop future licensing of the services.”

Read the entire article at Billboard.biz.


RAIN ANALYSIS: Just for clarity’s sake: Note that Sony/ATV is a music publisher (not a record label!).

The music industry has required two licenses for interactive services: (a) performance licenses, similar to those under which webcasters operate, and (b) mechanical licenses, usually associated with the reproduction of copyright music for the purpose of retail sales, which the Harry Fox Agency handles.

DiMA’s argument, according to its filing, simply says that those mechanical licenses should not be required for interactive/on-demand services.

Bottom line for webcasters: Non-interactive services don’t need to be concerned with any direct impact of this development. Nonetheless, it may have indirect implications farther down the line… and we’ll continue to update the situation as more details emerge. — PM



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Comment

  1. Daniel

    I was under the impression that it unclear that whether streaming services require as mechanical license or not. Can you clarify this?

    Michael Christoff · Jan 10, 02:09 PM · #

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