Wednesday, March 5, 2008

"More than a Feeling" - Momma, look what they've done to my song!

I received a call from one of my readers to address the topic of whether a songwriter has the ability to restrict the use of his or her composition in the instance it is being used in advancing a cause opposite to that espoused by the songwriter.  This was spawned, of course, by the recent allegations of Tom Scholz, lead member of the group Boston, that his 1970's mega-smash "More than a Feeling" was being used by Mike Huckabee, whose views were oppBostonosite those held by Scholz.  It is an interesting inquiry, and one that has simple solutions, mostly based in contract law.

There are two contract concepts that are usually incorporated into standard music publishing agreements which impact this issue:  one is the concept of droit or moral rights and two is the restrictions on exploitation.  I'll address them in reverse order.

Grant of Rights

Typically, when a songwriter assigns his copyright in a song to a music publisher, there is grant language contained in the agreement expressly establishing the rights he or she is granting to the music publisher.  In that contract language, there is typically a clause that reads something like this:

The Publisher shall have the right to administer, use and exploit all interests in the Compositions . . . provided, however, that the approval of Writer shall be required for the use of any Composition:

             (i)    in any motion picture which Publisher has actual knowledge of an "X" or equivalent rating; 

             (ii)    in any advertisement or other promotion for  tobacco, firearms or personal hygiene products; or

             (iii)    in connection with religious or political purposes.

As you can plainly see, in this instance at least, the music publisher would be contractually required to obtain the approval of the writer prior to authorizing the use of the composition in a political rally, among other things. 

If this type of language is not included in the songwriter agreement, or if the grant language included in the songwriter's agreement is, in general, more broadly worded, then the rights of the songwriter to restrict the use of the song would be greatly impaired.

Droit or Moral Rights

The other legal concept which comes in to play, both from an historic perspective and contractually, is the concept of droit or "moral" rights, although it is important to realize up front that this concept is most often applied, in the U.S. at least, to works of visual art, not musical compositions. 

First, in connection to the copyright concept, don't infuse the the word "moral" with the ethical connotations generally associated with in in the United States.  The use in this concept is much more in the sense of an embodiment of a type of something, i.e., the Monet painting is the moral equivalent of impressionist art.  As used in this sense, it refers to the ability of the creator of a copyright to control the "embodiment" of his work, or its "integrity."  The French-derived word "Droit" is, perhaps, more to the point when discussing copyright:  it means "a legal right." 

So, in the United States at least, the phrase "droit" or "moral rights" generally refers to the right of the copyright creator to prevent third parties from taking credit for, revising, altering, or distorting his or her creation, regardless of who owns the work, i.e., regardless of whether the copyright has been assigned or transferred. 

In contrast, the concept has generally received much broader application in European states.  France, for example, recognizes four moral rights: 

  1. the right of disclosure;
  2. the right to correct or withdraw works previously disclosed to the public;
  3. the right of attribution; and
  4. the right of integrity (the right to "respect" the work).

When the U.S. joined the Berne Convention, Congress attempted to bring its copyright laws into line with those of the other signatory companies by passing Visual Artists Rights Act of 1990 (VARA) codified generally at 17 U.S.C. §§106, 106A, and 113.   As implied earlier, however, this statute applies solely to visual arts and not musical compositions.  Nonetheless, the concept of droit or moral rights may be invoked when dealing with the misappropriation of a songwriter's musical composition.

In addition to copyright law, there a several other legal concepts which may be implicated in this situation.  For example, if a person is somehow giving false attribution to a creative work, e.g., attempting to pass off an creator's work as his or her own, that person may be liable under the concept of "unfair competition," which is barred by the Lanham Act (15 U.S.C. §1051).  Or, if the creation is widely recognized as a work of the creator, any distortion or alteration of the creation may constitute trademark "dilution" under trade dress laws and statutes.   More generally, if authorship of a work is somehow falsely attributed, the creator may have a state action for defamation against the person responsible for the false attribution.  If a person uses the identity of an songwriter, or the compositions, for his or her own benefit without permission, a violation the songwriter's right of publicity may have occurred.  Thus, there may be several remedies available in this type of situation.

In the US, however, it is accepted practice that if a person can waive a right, such a waiver will be in a contract.  This is no exception.  Again, there is language in most songwriting agreements which "waives all droit or moral rights" in the copyright.  Such a waiver would likely nullify any of these general legal remedies available to the songwriter.

As always, I highly recommend that any songwriter contemplating a deal with a music publisher contact a reputable entertainment attorney.

Thursday, February 28, 2008

Columnist David Pogue sings a humorous diddy about the RIAA

New York Times technology columnist and Emmy-award winning CBS news correspondent David Pogue is featured in this YouTube video singing a fun diddy about the digital wave of media on the Internet, ending with a humorous take on the RIAA and its wave of litigation against college students nationwide.  Enjoy

 

Tuesday, February 26, 2008

Atlantic Records et al. v. Brennan: Federal Judge Denies Default Judgment for RIAA

U.S. District Judge for the District of Connecticut  Justice Janet Bond Arterton, handed down a very pointed and decisive opinion hammering the RIAAR.I.A.A. for its boilerplate style of pleading in the nationwide wide campaign against illegal file sharing.   Justice Arterton was appointed by President Clinton in 1995.  The full decision is here:  Decision.  At several key junctures in the opinion, Justice Arterton based her opinion on the fact that the Plaintiff's complaint was based on "information and belief" rather than direct evidence.

The two areas of concern in the opinion, one is whether to grant a default judgment under Federal Rule of Civil Procedure 55(b)(2) and the second is whether the complaint fails to state a claim for which relief can be granted under Rule 12(b).

Default Judgment Analysis under Rule 55(b)(2)

The granting of default judgment is generally almost a "rubber stamp" kind of process.  If the defendant is properly served and fails to respond to the complaint, a default judgment is almost always automatic.  If the complaint demands an exact amount as judgment, the default judgment can even be entered by the court's clerk under Rule 55(b)(1).  If not, then the court holds a hearing to determine the amount of damages under Rule 55(b)(2).  In this instance, however, the court stepped in and took it upon herself to examine the validity of the claims.

Reasoning from a 2nd Circuit case, Au Bon Pain Corp.v. Artect, Inc., 653 F.2d 61 (2d Cir. 1981), the court found that the default judgment process is not, in fact, automatic, but that “a district court has discretion . . . to require proof of necessary facts and need not agree that the alleged facts constitute a valid cause of action.”  Artect, at 65, citing Wright & Miller, a well known legal treatise on procedure. 

Looking a another legal treatise, Moore's Federal Practice, Justice Arterton reasoned that the analysis should combine elements from Rule 55(c), the rule allowing the setting aside of a default judgment, and Rule 60(b), a more generic rule allowing  a court to set aside judgments.  Finding support for this analysis in 2nd Circuit case law, the court held that three factors arose in determining whether to set aside a judgment under either of the two rules:  (1) “the willfulness of default”; (2) “the existence of a meritorious defense”; and (3) “the possibility of prejudice to the plaintiffs should the default judgment be vacated.”

In weighing these factors, the judge determined that the latter two factors shifted in favor of the defendant, i.e., there were abundant meritorious defenses raised in similar cases filed by the RIAA across the country, and the Plaintiff would not be prejudiced by being required to produce more specific evidence.  In both instances, the court again mentioned the language that the Plaintiff's complaint was based on "information and belief."

Failure to State a Claim Upon Which Relief Can be Granted under Rule 12(b)(6)

The more telling section of the opinion is the court's ostensibly sua sponte (i.e., of its own accord) analysis of whether the Plaintiff's complaint failed to state a claim under Rule 12(b)(6) of the Federal Rules of Civil Procedure.  This rule generally givesscales5 the defendant a right to raise this defense in a response to a complaint.   Ostensibly, the court raised this issue in the context of possible meritorious defenses.

Justice Arterton cites the recent Supreme Court opinion that a complaint “does not need detailed factual allegations, [but] a plaintiff's obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief’ requires more than labels and conclusions.”  Bell Atl. Corp. v. Twombly, 127 S. Ct. 1955, 1964–65 (2007).  She then observed that Plaintiff's complaint in this case was almost identical to the one filed in Interscope Records v. Rodriguez, where the court held:

Plaintiff here must present at least some facts to show the plausibility of their allegations of copyright infringement against the Defendant. However, other than the bare conclusory statement that on “information and belief” Defendant has downloaded, distributed and/or made available for distribution to the public copyrighted works, Plaintiffs have presented no facts that would indicate that this allegation is anything more than speculation. The complaint is simply a boilerplate listing of the elements of copyright infringement without any facts pertaining specifically to the instant Defendant. The Court therefore finds that the complaint fails to sufficiently state a claim upon which relief can be granted and entry of default judgment is not warranted.

Rodriguez, No. 06-2485, 2007 WL 2408484, at *1 (S.D. Cal. Aug. 17, 2007).  Citing the Second Circuit case Greyhound Exhibit Group, Inc. v. E.L.U.L. Realty
Corp., 973 F.2d 155, 158 (2d Cir. 1992), which held that the entry of default “constitute[s] a concession of all well pleaded allegations of liability," Justice Arterton ruled that Plaintiff's complaint was "speculative" and "inadequate."

Eric Bangeman, of Ars Technica reports that the RIAA plans to file a brief, probably accompanying a motion for reconsideration, and possible an amended complaint, as they did in Interscope v. Rodriguez.  The amended complaint provided additional details about dates, times, and IP addresses.  Whether the additional details of that amendment will alter the application of Rule 12(b)(6) is still unknown, as the judge in that case has since retired.

Monday, February 25, 2008

Nashville Mayor Announces "Country Radio Week"

Nashville Mayor Karl Dean issued a proclamation declaring the week of March 3, 2008 "Country Radio Week."  The mayor will present the official proclamation to Country Radio Broadcasters, Inc.'s Executive Director Ed Salamon and President Becky Brenner whenCRS39 he officially welcomes attendees to the 39th Country Radio Seminar (CRS-39) on March 5th.

The mayoral proclamation recognizes that "Country radio promotes Nashville tourism daily by broadcasting information about [Nashville] and its attractions. Country radio is the primary medium for exposure of Country music, an endeavor that employs many Nashvillians as artists, writers and producers. "

The 39th Country Radio Seminar takes place from March 5th through the 7th at the Nashville Convention Center.

Ed Salamon, Executive Director of the CRB stated, "We are gratified that Mayor Karl Dean recognizes the considerable economic impact that country radio has on Nashville and Davidson County and has given radio its own week"

This honor reinforces the reputation of the Country Radio Seminar  as the premier forum for education and information for members of the country music industry. Along with continuing education panels for industry professionals, the 39th Annual Country Radio Seminar agenda includes research presentations, artist showcases and discussion forums. Issues that impact country radio sales and programming, as well as the record industry in general, will be covered during the three-day event.

Agenda and registration details are available at www.crb.org or by calling the CRB office at 615-327-4487.

Friday, February 22, 2008

New Copyright Legislation, H.R. 4279, being considered by House Committee on the Judiciary

The U.S. House of Representatives introduced a 69-page bill entitled the "Prioritizing Resources and Organization for Intellectual Property Act of 2007."  The legislation is significant in that it increases civil penalties for copyright infringement, expands criminal enforcement, and creates both a new federal agency and a new division of the Attorney General's office of the Department of Justice.   The full text of the proposed legislation is here:  H.R. 4279.  I have established an RSS feed in the column of my blog for tracking purposes. 

copyright_symbol It is important to realize that, up front, that this is proposed legislation.  This is the first step in the legislative process. The first step in the life of a bill, if you recall your Schoolhouse Rock song, I'm Just a Bill, is referral to a committees that deliberates, investigates, and revises the proposed legislation before it is recommended that it proceed to general debate by the full House of Representatives.  This process can take a long time, or get stalled.  In fact, the majority of bills never make it out of committee.  The ones that do often do not resemble the proposed legislation very much at all, as sometimes the text goes through numerous iterations before it gets recommended, if at all. Other times, sections of a proposed bill may be incorporated into another bill, and in those cases the original bill, as it was introduced, is abandoned.  That is say that a lot can happen before this process ends.  Once a bill is approved by the House of Representatives, the process starts all over again in the Senate!

The major sections of the proposed legislation are:

* TITLE I—Enhancements to Civil Intellectual Property Laws  One of the more significant amendments to Section 104 of the Copyright Act, pursuant to this proposed legislation, is that it would allow courts to make "multiple awards of statutory damages" when compilations are infringed or when both derivatives and the original are infringed.  

 

TITLE II—Enhancements to Criminal Intellectual Property Laws   This is one of the more extensive expansions of the proposed legislation, allowing for stricter enforcement of willful, criminal infringement. 

TITLE III—Coordination and Strategic Planning of Federal Effort Against Counterfeiting and Piracy

This title is perhaps the most sweeping part of the proposed legislation.  The effect would be the creation of a new federal bureaucracy called the United States Intellectual Property Enforcement Representative (other reports state that is it called the "White House Intellectual Property Enforcement Representative, or WHIPER, but that designation does not appear in the proposed legislation). The head of this new agency would be a member of the Executive Branch and, therefore, would be appointed by the president and confirmed by the Senate.

The new post would report directly to the president and serve as his or her principal advisor and spokesman regarding intellectual property matters, including, for example, identifying countries that don't adequately protect IP rights or are not in compliance with international treaties.

As part of this new agency, a new "interagency" committee would be established for the purpose of intellectual property enforcement.  The new committee would be composed of the enforcement representative, who would chair the committee, and senior representatives of various departments and agencies involved in intellectual property enforcement, appointed by the respective heads of those departments and agencies.  Those agencies include the DOJ, the Trademark Office, the Copyright Office and Homeland Security, just to name a few.

TITLE IV—International Enforcement and Coordination

Under this section, the Trademark Office will appoint 10 intellectual property attachés to serve in United States embassies. The 10 appointments shall be in addition to personnel serving in the capacity of intellectual property attaché at United States embassies or other diplomatic missions on the date of the enactment of this Act.

TITLE V—Department of Justice Programs

In this section, the proposed legislation would created within the U.S. Justice Department's an "Intellectual Property Enforcement Division" to subsume the IP-related functions that the department's computer crime section in the criminal division currently performs. The new division would receive $25 million per year to start with.

This is by no means an exhaustive analysis of this proposed legislation, so take the time to read it for yourself and, if appropriate, contact you local representative to comment on the proposed legislation.

 

Tuesday, January 29, 2008

Copyright Royalty Board begins critical hearings

On Monday, January 28th, the Copyright Royalty Board (CRB) began what will be four weeks of hearings.  The CRB will hear testimony from interested parties on both sides of issues which will ultimately determine the statutory mechanical rates for songwriters and music publishers. The CRB sets these rates periodically, but these particular hearings are more critical than usual because, in addition to setting rates for physical products, rates will be set for the first time ever for digital products such as digital downloads, subscription services and ringtones.

On one side of the issue is the Recording Industry Association of America (the "RIAA"), which represents the major record labels' interest,  is proposing that the current rate of 9.1 cents per mechanical copy produced be reduced to 6 cents!  That reduction would roll back the rates to, well, let's just say to well before the birth date of most of the college students the RIAA is prosecuting across the country for downloading.  For digital reproductions, the RIAA is proposing an even lower rate of 5 to 5.5 cents per track.

On the other side of the issue, representing the publishers and songwriters, is the National Music Publishers Association, the NMPA.  In contrast, the NMPA proposes increasing the statutory rate to 15 cents, and for digital reproductions, a rate of the greater of 12.5% of revenue, 27.5% of content costs, or a micro-penny calculation based on usage.

This are important issues, and I'll try to keep you posted here on Law on the Row as developments happen.

Monday, January 7, 2008

The Virtual CFO

Rarely do you get the opportunity to meet with some one who has the same "soul" that you have.  I had an interesting meeting with Scot Justice over the hScot Justice olidays.  Scot is a fellow blogger who writes the Virtual CF blog over at Typepad.  His article about out meeting can be found here.  Scot and I share a mutual client who found us both through out blogs.  After a good long conversation with Scot, I would recommend him for you small business accounting needs.  Like me, Scot's background is extremely diverse, ranging from small businesses to large corporations.  His experience gives him a very broad base from which to offer counsel to small business clients.  I like what Scot is doing.   One article I found particularly helpful was the one dealing with CPA Mortgage Letters.  Check out his blog!