Indie Islands emagazine, a country music fan magazine, is allowing its visitors to ca
st votes for their favorite artist, who will be featured in their December issue in order of appearance. The winner will also be featured on the cover. Currently, my client Brittany Wells is leading with almost 50% of the vote, ahead of Sony recording artist, Tammy Cochran, who is in second place with 29% of the vote. Brittany's singles Somebody's Somebody and Too Long on the independent label, Spindletop Records, charted back to back on R&R's Indicator Charts in 2005. Show your support for Brittany by casting your vote at www.indieislands.com.
Friday, November 16, 2007
Brittany Wells vying to appear on cover of Indie Islands emagazine
Tuesday, November 13, 2007
Return fire by the music industry - artists to testify before Senate
The Senate Judiciary Committee is holding a high-profile hearing today on the subject of imposing additional performance royalties on so-called "over-the-air" or "terrestrial" radio stations (I'll just call them OTA's in this article). Investigative hearings such as these are usually precursors to legislation being introduced on the subject.
Grammy winner, Lyle Lovett and Chicago-based singer-songwriter Alice Peacock testified before the Committee this morning at 9:30 ET. Their testimony was broadcast live at C-SPAN.
So, what is the issue. OTA's and the music industry are currently engaged in one of the biggest industry and lobbying battles to hit Washington in quite some time. The OTA's fired a recent shot when a concurrent resolution was passed by Congress. Now, the music industry is firing back.
One of my recent blog entitled New concurrent resolution, H.Con.Res 244, introduced to combat performance royalties for record labels gives some background on the issue, which is basically this: Currently, OTA's pay performance royalties to ASCAP, BMI and SESAC in the U.S. for airplay performances of the musical composition copyright. They do not, however, pay a performance royalty to the owners of the sound recording copyright for over the air performances of the copyright. The sound recording copyright is distinct from the musical composition copyright.
This is because when Congress introduced new legislation in the mid-90's to grant sound recording copyright owners a right to performance royalties, it specifically excluded OTA's from the legislation on the basis that the artists and record labels who owned the sound recording copyrights benefited from the publicity of over the air performances, which offset the need for payment of a performance royalty. Keep in mind, again, that this does not apply to the performance royalties paid to songwriters and music publishers.
The effect of the Digital Performance Royalty in Sound Recordings Act of 1995 is that only digital performances of the sound recording copyrights are entitled to compensation. This applies only to Internet webcasters, Cable Radio and Satellite radio stations. These types of services -- Pandora, Sirius, XM Radio, Last.fm, for example -- pay performance royalties to both the owners of the musical composition copyright and the sound recording copyright. Many industry groups are rallying to rectify what is viewed as an unfair advantage for OTA's.
One such group is musicFIRST, which stands for "fairness in radio starting today." This organization is made up of a large and impressive group of recording industry groups and well-known artists. Unfortunately, the RIAA's involvement in this organization has diminished its reputation on many blogs, such as this article entitled Lovett goes to bat for radio royalties, the credibility of which is call into doubt by the fact that the writer is ostensibly unaware of Lyle Lovett's reputation and notoriety. But don't make the mistake of slanting your opinion against musicFIRST based on that organization's involvement. Check out the website and seriously consider the issues and you'll probably understand their perspective.
There is tremendous validity to the argument that radio broadcasts no longer hold the same sway over consumers that they did in 1995. One research study conducted by Dr. Stan Leibowitz, an economics professor at the University of Texas, compared record sales and music radio listening habits in nearly 100 cities across the United States and found that exposure for a song on the radio was a substitute for purchasing the music and, therefore, actually had a negative impact on sales of music. Critics point out that the study was funded, at least in part, by the musicFIRST coalition and say that there are studies which indicate the opposite, that is that radio airplay stimulates interests in new music and therefore encourages sales. Think about your own habits - when was the last time you heard a song on the car radio and rushed to buy it?
Another argument propounded by the OTA's in opposition to payment of royalties to the owners of sound recording copyrights is that it would put them out of business. They simply can't afford to pay more royalties for the music they use. Of course, Internet webcasters and Satellite and Cable radio providers are saying "talk to the hand . . . call waiting!" But the truth is that OTA's get the bulk of their revenue from advertisers and their revenue increases if they attract larger audience by playing the latest music. Furthermore, stock analysts are predicting that advertising revenues, in general, are on the increase for the foreseeable future. One researcher, George Williams, reportedly found that the annual growth of radio advertising rates from 1996 to March 2007 was 10% a year, outpacing the Consumer Price Index by more than three times its 3% a year rate. It is very doubtful that OTA's revenues would be seriously altered by this legislation, in fact, the OTA's would more than likely simply pass the additional costs on to advertisers.
The bottom line, in my view, is that the legislation, when it is finally proposed, will create a level playing field for the broadcasting industry, providing that both digital and OTA's are required to pay the same royalties. This just seems fair, doesn't it? Now, whether the powerful OTA lobby will prevent the passage of such legislation is a blog for another day.
Friday, November 9, 2007
Nashville's Blue Bird Cafe is a songwriting legacy
Amy Kurland's Blue Bird Cafe on Hillsboro Road in Nashville is the kind of stuff of which fairy tales are made. Now, Kurland has left the legacy in the hands of Nashville's best songwriting organization, NSAI (Nashville Songwriters Association International) -- a fitting end a dynasty.
The legend of Blue Bird Cafe, which first opened i
n 1982, is widespread. Among others, Garth Brooks and Kathy Mattea both got their record deals after playing at the Bluebird. It was prominently featured in River Phoenix's last film, The Thing Called Love, and it also has been featured on television so often it is difficult to enumerate. It has been the subject of books, both fiction and non-fiction. Ask any songwriter in Nashville -- and for that matter in most parts of the country if not the world -- what venue they'd most like to play at, and the most likely answer is the Bluebird.
Although the terms of the deal are confidential, the basic deal points are that Kurland will continue to own the real estate and lease it to NSAI, and NSAI purchased the business at a price rumored to be in the low six figures.
"I couldn't think of anybody else other than [NSAI] that would have the same mission, the same love in their heart for songwriters," Kurland told the Associated Press.
The official announcement of the transfer was made before a performance by Kris Kristofferson. The transition takes place January 1.
Thursday, November 8, 2007
Copyright: it's the end of the world as we know it.
Abraham Maslow’s famous “hierarchy of needs” places self-actualization as the pinnacle of human behavior. To illustrate what the phrase "self-actualization" meant , Maslow said:
“a musician must make music, an artist must paint, a poet must write, if they are to be ultimately at peace with themselves.”
Of course, the thing that is important to note about Maslow’s hierarchy is that physiological needs are at it’s base, i.e., a person’s basic needs must be met before
that person can reach self-actualization. In other words, “a guy’s gotta eat”!
Maslow’s theories shed some light on the ongoing social debate on the Internet regarding whether musicians would continue to produce quality music if copyright as we know it were to be abolished. A different argument, though very related, is whether money motivates one to be creative.
One movement advocate such ideas is the "Free Culture Movement." Less extremist, perhaps, is Stanford professor, Lawrence Lessig's "Creative Commons" group, which advocates modified forms of traditional license agreements as a social compromise to "reconcile creative freedom with marketplace competition." For other research regarding this debate, see also this interesting discussion on the site Against Monopoly and watch Stanford professor Lawrence Lessig's video on TED entitled "How creativity is being strangled by the law."
The underlying assumption of some of these parties involved in the debate, which is ostensibly grounded in the record and movie industry's recent campaigns against infringers, is that all intellectual property should be free for the public to use without payment and that the antiquated copyright laws should be modified or abolished. In my opinion, this extremism ignores the foundation principle of Maslow's hierarchy of needs, that in order to achieve self-actualization, an artist's or musician's base needs must be satisfied.
Proponents of the free culture movement observe that creativity and survived many years without the structural form which copyright superimposed upon it. Indeed, it is often observed that the great works of Mozart were created without the existence of copyright laws. Let us not forget, however, that Mozart wrote many of his works while being employed by benefactors such as the Prince Archbishop of Salzburg, Heironymus Colloredo and Emperor Joseph II of Vienna, names that are certainly not as prominent as Mozart's. In fact, where would the world of the arts be without the billions of dollars that have been donated by benefactors such as J.P. Morgan, James Smithson, Bill & Melinda Gates, Andrew Carnegie, Henry Ford, John D. Rockefellar, just to name a select, if not elite, few. So, while it is true that "a musician must create music," it is also true that a musician has to eat.
Long before the existence of copyright laws, there was a strong relationship between money and the creation of arts and music, and it will be that way until we abolish our system of currency as we now know it. Walk around any great city and witness the existence of hundreds of pieces of commissioned artwork. Listen to the commissioned works of Mozart, Beethoven and other great composers, who existed at the hand of benefactors. Walk through the Museum of Modern Art and look at the works of art generously donated by J. P. Morgan and other benefactors. Whether it be a king or a record label, money benefits art. Creativity, like it or not, is often inspired by the almighty dollar, whether that is represented by paper currency or some other bartered for compensation which meets our base needs as human beings.
That's not to say that people would not continue to make music or art if they were not compensated for it - they would. That is an entirely different question in my mind. People's hobbies and past time activities are in a slightly different class than, say, Don Henley. If great singer-songwriters such as Henley could not make a living at playing music and writing songs, I would venture to bet that most of us would never had heard of The Eagles. Again, even a musician has to eat. If the musician cannot meet his base needs doing what he loves to do, a musician will meet those needs some other way and, therefore, there would be less time to do what he loves to do.
The only legitimate question remaining, then, is how should a musician get paid for the music he or she creates? How should the songwriter get paid for the songs he or she writes? The answer, in the United States, is by virtue of the rights created in the Constitution, Article 1, Section 8, Clause 8, which gives Congress the right:
To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Investors the exclusive Right to their respective Writings and Discoveries.
The portion of this Clause dealing with the arts is further codified in the various Copyright Acts and amendments thereto. In a nutshell, the Copyright Act creates a legal fiction, intellectual property rights, which gives creators certain exclusive rights in their works, including the rights to produce copies, create derivative works, perform or display the work, and to sell and assign the works, among other things.
The laws in the U.S. are based loosely on English concepts and laws that date back to the 17th and 18th century and are a direct result of the invention of the printing press. The first actual copyright law was the Statute of Anne, or the Copyright Act 1709. The concept of a copyright is a three hundred year old concept that has survived the evolution from printing press to piano rolls to digital media, and I have little doubt that it will survive the technological age, despite the rumblings of these groups.
As the law often does, though, albeit ever so slowly in most instances, it must evolve to encompass these new technologies and the debate that is ongoing will help us formulate new and improved amendments to the laws that will hopefully address the perceived dichotomy between the rights of free speech and free culture and those of the creators and owners of intellectual properties to receive just compensation for their efforts and investments.
In the end, this blog is the my response to viewing Larry Lessig's video, recently posted on the TED website, entitled How creativity is being strangled by the law (See the link above). In it, Lessig harkens back to the days of Sousa when children sat on the porch and sang songs, and used the analogy of Sousa decrying the advent of the phonorecord as the demise of creativity. He points out that in our current state, copyrights should be "democratized" because the new generation uses copyrights to create something different, as "tools of creativity" and "tools of speech." And since every such usage requires a copy, he continues, every such usage is presumably an infringement of someone's copyright. His solution is that the artist can simply license the use of their creation for free in the instance of "non-commercial" usages, and still retain the rights to exploit it commercially. He refers to this as the "Sousa Revival."
But my question to Professor Lessig is why does the fact that an entire generation of Internet users are using copyrighted material to create derivative works mean that the rights of copyright holders have to be abolished? Why do the creative urges of those who utilize other people's copyrights to create different works supercede those of the people who created the original works? Why should they?
Second, it is important to note that people would generally not pay money to hear most children sitting on the porch singing their songs, unless that child happens to be a Don Henley. That is the difference between most of the music on, say MySpace for example, and the music found on iTunes. There is a tremendous difference in the value of the spontaneous, albeit creative, songs of a child and the intricate lyrics and melodies which are the product of a genius the likes of Don Henley.
Let me illustrate the principles with an example for the world of physical property. Person A has a piece of property populated with a lot of trees. Person B, owns the lot next door, which is flat and has a nice stream of water running around its perimeter. Person C comes along, see this situation and, overwhelmed with creativity, cuts down Person A's trees and builds himself a house on Person B's lot and claims it as his own. When Persons A and B confront him, stating that the law says he cannot do what he did, Person C responds that his creativity is being strangled by the law and, therefore, the law should be abolished. Is this a good argument? This is the argument of the Free Culture Movement and the Creative Commons.
Just as the law creates real property rights so that a person owns in a plot of real estate, the law creates intellectual property rights so that person can own an intellectual creation. Abolishing the one makes no more sense than abolishing the other.
Now, imagine that Person A's lot was full of reeds and twigs and Person B's lot was full of ravines, rocks and arid soil. Person C would never stop to take a second look! The argument of these movements misses the concept of intrinsic value.
What I do like about Lawrence Lessig's movement, Creative Commons, is that it is based on the Copyright Act. It is essentially using existing copyright laws to create a unique license which strikes a balance between fair use and full copyright reservation. In the end, however, the license are based on the rights already granted in The Copyright Act, proving that the current laws allow for the very thing that these groups seek. I can agree with him in that respect.
Wednesday, November 7, 2007
The long tail wags the dog! An independent artist succeeds using the Internet
I have often advised my clients in the past that the new direction for independent artists is what I refer to as "guerilla" marketing, meaning finding alternative means of marketing your product. One of the most explosive methods of doing that over the past few years has been the Internet. One of the problems with marketing yourself on the Internet, however, is how do you get people to come to you? The void of the Internet is so vast, that finding an artist whose sound is something that matches your musical taste is even more difficult than finding a needle in a haystack!
So, it is a beautiful thing to see an artist actually breaking into the Billboard charts catapulted in large part by her success on the Internet, particularly her MySpace page. Her success story gives hope to every artist whose desire is to put out a record, throw it up on the Internet, and have people flock to listen.
Enter Indianapolis, Indiana singer-songwriter Sally Anthony whose "eTeam" of over 125,000 fans, including over 40,000 friends on MySpace, helped propel Anthony to stardom. Thanks in large
part to that online community, Anthony's first album, Vent, released in 2004, sold over 175,000 physical and digital copies. Two releases from that album spent months on the R&R pop chart.
Her new album, Goodbye, released October 23rd, has already sold 14,000 digital copies. It has already reached the top of the pop charts at walmart.com, FYE Digital and iTunes and on November 7th landed at No. 9 on the Billboard Heatseekers Chart. The album is being distributed by her company, Gracie Productions, through Imperial Records/EMI.
Anthony is succeeding because she is treating the music industry as broader than just the radio promoted, hit-driven, plastic disc business the major labels seem stuck in. She is viewing the music industry as an entire package, generating buzz wherever she can, from the ground up rather than from the top down.
I predict that we will start to see more and more of these types of breakthrough artist as the popularity of YouTube, Facebook, MySpace and other online communities grow in popularity and as the pioneers of the Internet find more creative ways to index diverse product, match it to the tastes and purchasing patterns of Internet users, and make recommendations - sites such as LivePlasma, Pandora, Audiobaba, Last.fm, MyStrands and, of course, Amazon,
As radio fades into the annals of history alongside the monolithic corporate conglomerates that are r
ecord labels, these innovative types of indexing sites will help those artists in the deep dark recesses of the "long tail" find an audience for their music. By the way, if you haven't read Chris Anderson's treatise on this subject, The Long Tail, buy a copy and dissect it now. The long tail consists of that product that is not in the mainstream -- not on the shelves of Wal-mart -- but product that is still sought after and purchased by people. Maybe it's only ten people per month, but people still want and buy it. It is the millions of artist that fly below the radar of the "hit-driven majors." These are the artists who can benefit from the exposure the Internet can provide.
Monday, November 5, 2007
New concurrent resolution, H.Con.Res. 244 introduced to combat performance fees for record labels
For years now, a huge battle has been brewing between proponents of performance royalties for the owners of sound recording copyrights to be paid by terrestrial radio stations (those broadcasting through the air) and it has been gathering steam in the last several months.
The battle is being waged between the giants of industry, the RIAA, representing the four major record labels, a
nd organizations like the National Association of Broadcasters and the Free Radio Alliance, representing the broadcast radio industry. The latest round of fire was shot on Oct ober 31, 2007 on behalf of the broadcasters when two Texas lawmakers, Michael Conaway, a Republican, and Gene Green, a Democrat, co-sponsored concurrent resolution H. Con. Res 244, the "Local Radio F
ree Act."
A concurrent resolution is a legislative measure passed by both the House and the Senate generally used to address the sentiments of both chambers with regard to certain matters. Since they do not have the force of law, concurrent resolutions are generally used to provide for adjournments, recess, use of the Rotunda, and other such matters. The "Local Radio Free Act" is essentially a policy statement supporting free local broadcast radio and opposing any new performance fees, taxes or royalties for the public performance of sound recordings over the airways. Ever wonder what is behind all of this noise?
When a company wants to use a sound recording of a musical composition, there are two copyright owners with whom it must deal: the owner of the musical composition copyright and the owner of the sound recording copyright. For example, Dolly Parton (or her publishing company) owns the copyright to I will always love you, but two different record companies own the copyright in the sound recordings performed independently by Dolly Parton and, later, by Whitney Houston. And, of course, one of the rights granted by the Copyright Act to the owner of a copyright is the right to publicly perform the work.
For years, ASCAP, BMI and SESAC have collected the performance royalties on behalf of the composers and writers of the music compositions. All radio stations, whether terrestrial or digital (over the Internet or Satellite), pay performance royalties for the musical compositions they play over their broadcasts -- to the tune of around 500 million dollars per year. It wasn't until 1995 and the passage of The Digital Performance Right in Sound Recordings Acts that the public performance right was created in the sound recording of a musical composition. At that point in time, the digital broadcasters of music, including Satellite and Internet stations, were required to start paying a performance fee to the owners of the sound recording copyright, i.e., the record labels and artists who perform the song. The Act specifically exempts, however, the local radio stations that broadcast the music over the airways, ostensibly on the grounds that the recording artists and labels were receiving free publicity from the broadcast radio stations in exchange for the use of their sound recording.
Now, with the demise of the CD and the rise of illicit downloading, the record industry is pressing Congress hard to extend the Digital Performance royalty to the local broadcasters and, of course, those broadcasters, with their extremely old and strong political ties, are fighting hard against it.
The RIAA, for its part, is sending CEO Mitch Bainwol on
the interview circuit. Bainwol is consistently hailed by many Washington publications as one of the most powerful and influential lobbyist in Washington. In an L.A. Times article in which he discussed the performance fee, Bainwol is quoted as saying that "the creation of music is suffering because of declining sales." This group has the formidable support of the U.S. Copyright Office, which has support the removal of the exemption for terrestrial stations for many years, and the chair of the House subcommittee on intellectual property, California representative Howard Berman, who is actively pursuing legislation to remove the exemption.
The National Broadcast Association is fighting the RIAA with a barrage of print ads and radio ads in support of their position. They use the word "tax" as an emotive term to sway people to their side. The NBA stress that it is the major label conglomerates that would get the bulk of any new performance fees. The radio broadcasters are a formidable force themselves with corporate entities such as Cox Radio, Citadel, Cumulus, Clear Channel, just to name a few, in opposition to the expansion of the digital performance fee. This new legislation is a result of this group's hard fought efforts against any new measures, claiming that with profit margins already in the single digits in some instances, a performance tax would obliterate their business.
In the grand scheme of events, the concurrent resolution is probably a non-event. It is the efforts of one group's successful lobbying finding a materialization. Don't expect this to be the last word on the subject, however.
Friday, November 2, 2007
Last Man Standing - collaborating with other songwriters
See Jane.
See Jane write lyrics.
See Dick.
See Dick write melodies.
See Dick meet Jane.
See Dick and Jane combine their efforts and collaborate together to write a song.
This is one frequent story among Nashville's songwriting community. On any given afternoon in Nashville, there will be innumerable co-writing sessions occurring at any given moment. Those collaborative efforts certainly produce most of the top hits on the country charts. The odds are, however, that at least 9 out of 10 of those songwriters will not know the implications of collaborating with another songwriter on the creation of a copyright.
Rarely do songwriters consult an attorney or enter into any form of collaboration agreement prior to co-writing. Rarer still is the songwriter that fully understands the important consequences that flow from co-writing with another songwriter.
If a songwriter does happen to consult about this issue, the first thing I tell them is that it is very much like entering into a marriage relationship. When two songwriters get together and collaborate on the creation of musical composition, each songwriter is a co-owner of and equal and undivided interest in the whole copyright, i.e. each songwriter co-owns 100% of the copyright - regardless of the relative extent of their respective contributions. Ownership is not equally divided, as is commonly thought -- i.e. split 50/50 (that confusion comes from the fact that the royalties derived from the copyright are usually divided equally).
In the Dick and Jane analogy above, for example, Jane does not separately own the lyrics and Dick separately own the melodies. Dick effectively owns 100% of the song, including both the lyrics and music and Jane effectively owns 100% of the song, including both the lyrics and the music. The concept is very similar to the legal principle of tenancy in common. Unless they agree to the contrary in writing, each songwriter has the right to administer the entire copyright without consulting with the other songwriter, i.e., each songwriter may issue nonexclusive licenses to the entire copyright or issue first use licenses. The only obligation each co-owner has to the other is to account for any profits earned by the exploitation. A co-owner may not, however, without the permission of the other co-owner, transfer exclusive rights to use the work or transfer the entire copyright to a third party.
To be absolutely clear, the Copyright Act does not really define "joint authors," but rather defines a "joint work" as a "work prepared by tow or more authors with the intention that their contributions be merged into inseparable or interdependent parts of a unitary whole." 17 U.S.C. 101. The key here is intention -- i.e., the parties must intend that their work be integrated or merged to form a united whole at the time the work is created. The legislative history that accompanied the act specifically states that a work is "joint" if the authors collaborated on its creation. See H.R. Rep. No. 1476, 94th Cong., 2d Sess. 120 (1976); S. Rep. No. 473, 94th Cong., 1st Sess. 103-104 (1975).
Take for example the circumstance that arises when a person creates a poem, which is registered as a copyright. Then, later on, a second person takes the poem and modifies the words, adding music to create a song. The situation described is different from the collaborative effort in that there was no intent, at the time the poem was created, to merge it with the second creative effort. The second work, the song, is a derivative work, and its writer needs permission from the creator of the poem to create the derivative work.
While we're on the subject of derivative works, each co-owner of a joint work may create derivative works independently of each other and without the permission of the other, and, without any obligation to share the royalties derived from the exploitation of the derivative work.
Now, not to further confuse the issue but, in the eyes of the law, there is a difference between co-ownership in the copyright and split of the royalties. To get back to the Dick and Jane analysis, the typical understanding is that Dick and Jane would split any royalties received from the exploitation of the copyright on a 50/50 basis. It is important to understand once again, however, that this understanding can be modified with a written agreement between the co-writers. A songwriter whose reputation is strong enough can certainly request that he or she receive a greater percentage from the royalties, and even ask for a greater percentage ownership interest in the copyright. These types of exceptions, however, must be expressed in writing between the parties in order to be enforceable.
Another complication arises in circumstances where a party merely contributes an "idea" to the collaborative effort. Is that person entitled to be a co-owner? I've had this issue arise in litigation. Two parties are collaborating on a song and have most of the song written. In walks a friend who is also a songwriter. He listens to the song and contributes an idea that is incorporated into one line of the song. He leaves, the song is finished, and becomes a hit. Does the third songwriter have an interest in the song? The answer to the question is inevitably determined by the particular facts and hinges on whether the third party merely contributed an idea, or actually contributed the expression of an idea.
As a final observation, let's overlay the life of the copyright over the co-ownership of a collaborative work to give our brains a final flash fry if you will. Assuming the work to have been created after January 1, 1976, the life of the copyright is life of the author plus 70 years. In the event of a joint work, however, it is the life of the surviving author plus 70 years. What this means in realty is that one of the co-writers in a successful hit song, i.e., the last man standing, will eventually become co-owners with the heirs of the deceased songwriter, either in the form of a wife or a child.
Most songwriters, of course, are not thinking this far down the road when they make their daily co-writing appointments. But that's the real thrust of this article. If you're a songwriter, you should consider the possibility of a collaboration agreement. Most songwriters, I admit, do not think about this sort of thing because it cramps the creative vibe that needs to be created in a collaborative effort. This, in my opinion, is not a wise idea. At the very least -- and this is not my recommendation -- the writers should have some conversation about the consequences of their efforts. Considering the consequences, the best course of action would be to consult with qualified legal counsel and get a collaborative agreement drawn up and signed -- or at least have a written statement of intent signed by both writers -- at some agreeable point before the co-writing session begins, so as not to interfere with the creative efforts.
