Pptx lecture 2 copyright fall 2019
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Copyright seeks to balance author and public interests by protecting the expression of ideas but not the underlying ideas themselves. Copyright protects works that are fixed in a tangible medium and provides authors with a bundle of exclusive rights including reproduction, distribution, public performance, creation of derivatives, and digital audio transmission. Copyright duration for individual works is the life of the author plus 70 years. Mechanical royalties from streaming services are typically a fraction of a penny per stream and must meet certain thresholds to earn substantial amounts. Fair use is an exception that allows limited unauthorized use of copyrighted works for purposes like education or commentary.
Pptx lecture 2 copyright fall 2019
- 3. What is Copyright? Copyright seeks to balance the interests of Authors with the interests of society. Copyright protects the EXPRESSION OF IDEAS.. It does NOT protect IDEAS. For the EXPRESSION to be protected, it must be FIXED IN A TANGIBLE MEDIUM.
- 6. Bundle of rights…. The 6th Right #6. Sound recordings may be performed publicly by the use of Digital Audio Transmission Result: Reproduction Distribution Performance Derivative Display & Digital Audio Performance (Transmission)
- 7. Copyright Duration: Individual: Originally for shorter periods and with different requirements. Now: Life + 50 Years – 1976 Act LIFE + 70 years – 1998 Sony Bono Act – Supported by Disney & Gershwin More than 1 Author – Use the death of the longest surviving author Pseudonymous or Works for Hire = 95 years from Publication or 120 years from Creation, whichever is SHORTER.
- 13. Mechanical Royalties for Streaming •On-demand (or interactive) streaming is unique because it is primarily licensed and paid by the streaming services. These interactive streams pay fractions of a penny per stream to the songwriters and music publishers for two different royalties: public performance and mechanical. Payments for streaming mechanicals land in the ballpark of about $0.06 per 100 on-demand streams.
- 14. The average per-stream royalty for both the composition and recording on Spotify is around half a penny. The sound recording average is about $0.0038 per stream. That leaves $0.0012 to the composition, which is then split 50/50 between performance and mechanical royalties. • Using this figure, it would require approximately 1.6 million on-demand streams to earn $1,000 in streaming mechanical royalties. • The mechanical streaming rate is about $0.06 per 100 streams, or $0.0006 per stream.
- 15. To earn $1,000 in mechanical royalties here, you would need approximately 11,000 downloads or physical albums sold.
- 16. DOWNLOAD MECHANICAL ROYALTY FROM MAJOR LABEL TO MAJOR PUBLISHER
- 17. MECHANICAL ROYALTY PAYMENT TIME IS SHORTER FOR INDEPENDENT ARTISTS
- 19. EXISTING STREAMING MECHANICAL PAYMENTS LICENSED THROUGH MUSIC REPORTS
- 20. FUTURE STREAMING MECHANICAL PAYMENTS UNDER THE MECHANICAL LICENSING COLLECTIVE (MLC)
- 21. FOR INDEPENDENT ARTISTS THAT CONTROL THEIR COPYRIGHTS AND SIGN UP WITH THE MLC
- 22. HOW DOES THE MMA AFFECT MECHANICAL ROYALTIES? • The Music Modernization Act of 2018 helped update various aspects of the music publishing sector, especially for the mechanical streaming royalty rate. As previously mentioned, the MMA creates a mechanical licensing collective similar to how Europe handles its interactive streaming royalties. Like Europe, the MMA creates a blanket license and a Music Licensing Collective (MLC) to administer streaming mechanical royalties. • This blanket license system is designed to make it easier for streaming services to license songs without fear of copyright infringement for not correctly matching payments. They pay into the MLC coffers and the MLC figures out who to pay from there. This removal of legal liability was a big reason the major streaming services supported the MMA.
- 23. Under this law, virtually all U.S. mechanical streaming income will flow through the MLC. The MLC will also create a centralized copyright database, making it easier to track down rights owners, as well as for interested parties to claim their “black box” royalties. Many of the woes that brought MMA to law were due to sloppy record keeping and incomplete registration data from rights holders and creators. The aim of the MLC’s centralized database is to clear up this confusion and ensure accurate/timely payments. Additionally, the MMA has changed the rate setting proceedings for how the CRB can consider future mechanical royalty rates. In the past, the judges were barred from considering other free market rates (such as what a song could earn in a TV show or movie). Under the new MMA law, judges will be able to consider rates under a willing-buyer, willing-seller standard. This means a fair-market value will be considered in future mechanical royalty rate proceedings, which has never been done before. The hope is that this will cause mechanical royalty rates to rise.
- 25. FAIR USE: Exceptions to the Exceptions Fair use is an affirmative defense. Society often benefits from the unauthorized use of copyright protected materials, such as when the purposed of the use serves education, scholarship or the informed public. How can you tell in advance if something is Fair Use? YOU CAN’T… But you can look at the signs… 1) What is the purpose or character of the use? Is it commercial use or non-profit? 2) What is the “nature” of the copyrighted work? 3) What is the amount and substantiality of the portion used in relation to the whole? 4) What is the potential effect on the the market for the protected work? As a general rule, if you are using a small portion of someone’s work in a non-commercial and/or con- competitive way, and the purpose if to benefit the public in some way, then look at Fair Use. ON the other hand, takings of larger portions or a work and commercial uses are much less likely to be considered Fair Use.
- 26. Copyright Formalities: 1. Registration 2. Notice – Prior to 1976, no notice = public domain 3. Deposit Upon entering the BERNE CONVENTION AGREEMENT on MARCH 1, 1989, the US no longer requires these formalities for copyright to exist. But it is encouraged to follow all of them.
- 29. Some Copyright Defenses: 1. Independent Creation – Plaintiff must prove both ACCESS and COPYING 2. Fair Use 3. Public Domain 4. First Sale – An owner of a physical copy can sell or transfer ownership of that particular copy. 5. Statute of Limitations 6. Use was authorized by a license 7. Statute of Limitations Innocent Infringement is not a defenses, but it can lower potential penalties
- 35. Works for hire details. There are 2 ways a work for hire is created: 1. Work prepared by an employee in the scope of employment. 2. Commissioned works (require a signed agreement)
- 36. SOUND RECORDINGS: The sound recording does NOT have a performance right under the 1976 US law. (It was added to the digital performance of the SR, but still does not exist for analog transmissions) This means that traditional radio does not have to pay anything for use of sound recordings. BUT they do have to pay for use of the composition. This means songwriters get paid and performers don’t. Limited performance right given by the Digital Performance Right in Sound Recording Act of 1995
- 38. Trademarks vs Copyrights • Copyrights protect the “expression of an idea.” • Trademarks indicate the source of a good or service.