Future of Music Newsletter #7 (June 5, 2001)

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06.05.2001

Hello

Summer's here and the time is right... for consolidating the major music/tech companies (Mp3.com, Myplay, and Emusic) securely in the hands of the same corporations they used to compete with.

Here at FMC we can't help but wonder how this benefits musicians or consumers? But first, let's get down to business.

1. Groups Support FMC Testimony

   On April 3, 2001 Jenny and Michael attended the Senate Judiciary hearing on Music and Technology and the FMC submitted written testimony that summarizes our perspective on how the music and technology space impacts the majority of musicians.

   The testimony also reveals our priority action items for 2001. We are advocating for:

1. Competition for collection and distribution of the digital royalty

2. Direct payment of the digital royalty to the artist

3. Fostering of non-commercial space on the radio and on the Internet

4. Ensuring artists have the right to keep their recordings in print

Since some of these are complicated policy issues involving copyright law and digital distribution, we encourage those who are interested to read the 12-page testimony for further explanation, which is available as a PDF at http://www.futureofmusic.org/news/FMC_testimony_4.3.01.pdf .

We are also working with great success to get all of the groups that represent artists in the space to agree to these issues. We hope to present a list of supporters in the next newsletter.

1. Shift of Control in Senate and Impact on Issues

   The big news in Washington is the sudden shift in control of the Senate from Republicans to Democrats after Senator Jeffords of Vermont left the Republican party. This could have a dramatic effect on issues important to artists, as the GOP essentially has a sorry record of recognizing media consolidation as an area of concern. In particular, Senator Trent Lott, the former majority leader, was personally responsible for supporting the Appropriations rider last session that gutted the FCC's Low Power FM Radio initiative. The impact on specific areas of interest will be less dramatic, as Senator Patrick Leahy takes over the Judiciary Committee from Orrin Hatch. Leahy and Hatch have been in essential agreement over their preference that their committee serve less as a venue for specific legislation related to music-technology issues as opposed to a public forum for hearings that examine any roadblocks in the way. We do not anticipate that this leadership shift will dramatically impact the direction of this committee as it relates to music/tech issues.

2. New Website Design! New Sections! New Articles!

   Beginning around July 15, 2001, you'll see a redesigned and vastly expanded website at http://www.futureofmusic.org. There will be new sections that compile articles from our board members, press releases, FMC in the news, and a vocabulary list. Plus, we're building the "Wall of Shame" where we are collecting stories from former major label artists about their experiences in the music industry. In addition, a number of entertainment lawyers have been working on "The Major Label Contract: What it Says, What it Means" as a way to ferret out those dangerous clauses that all us should be aware of. These two pieces are just a part of an ongoing effort to build a public history of the failures of standard industry practices to serve the majority of musicians.

   That's just the tip of the iceberg! There will be reports on ongoing research, more interviews and articles, and invitations to participate in future FMC events. Expect another website launch alert in the next couple of weeks, after it's gone live.




3. Health Insurance Survey

   Anecdotal evidence suggests that the overwhelming majority of musicians do not have health insurance. As far as we can tell this is based on three reasons:
   A. Most record label contracts do not include health insurance as part of the standard agreement between the label and the artist
   
   B. Musicians are poor so health insurance seems like a luxury
   
   C. Musicians tend to apply for health insurance as individuals which means they can not appreciate the benefits and lower premiums of group plans.
   
   The FMC is currently researching a number of ways to offer inexpensive, comprehensive health insurance to musicians in the United States. But our first step is to get a sense of if and how the existing music community is covered. We are also studying the policies that are available through other artists' organizations.
   
   In an effort to better understand the percentage of musicians who do not have health insurance, we will be posting an online survey where you can answer a short list of questions about your experiences with our without health insurance.
   
   The survey is currently being pre-tested and should be available on the revised FMC website within the next couple of weeks. We'll let you know!
   

4. Future of Music Policy Conference Parties

   We've got videotapes of all of the panels from the 2001 FMC Policy Conference, which was held at Georgetown University in Washington, DC last January. We will be setting up a series of video viewings where musicians and interested folks can get together and watch the conference and relive the fireworks. In Washington DC we'll be doing it on the back stage of the Black Cat on July 2nd and 9th. It should be fun to get together in a rock club with a beer to learn about music/technology.
   
   If you are interested in doing something similar in your neck of the woods, contact Jenny at simplejt@aol.com and we'll try to figure out a way to get some copies into circulation.
   
   You can always do this informally on the web thanks to the folks at Webnoize, who videotaped the entire conference and offer digital streams version of the various panels in the Real Audio format. Go to http://www.Webnoize.com/ to see the panels and presentations.
   
   

5. Summer Reading Course

   In order to flex our mental muscles and focus on the bigger picture in an environment of seemingly endless details, the board members of the FMC are engaging in a reading course this summer dealing with activism, music, technology and copyright issues. The first book we will be reading is Paulo Freire's "The Pedagogy of the Oppressed", and the second will be Bernard Lietaer's recently released "The Future of Money: Creating New Wealth, Work, and a Wiser World". Curious folks are heartily encouraged to read along and join the online discussion. If you want to join, send an email to Kristin at tsunamismr@aol.com and she'll add you to the group. I believe we will be doing a book or essay every two or three weeks for the summer.



6. More Published Resources

The free flow of information over the web makes it difficult to keep unfair business practices private. As imbalanced standard industry practices become common knowledge to people outside the music industry, those people can't help but begin to see these businesses and institutions as hostile to musicians, greedy and morally corrupt.

Recent articles that make a good case that the music business is broken are:

A. Salon, April 30, 2001
"Radio's Big Bully: Dirty tricks and crappy programming. Welcome to the world of Clear Channel, the biggest station owner in America" by Eric Boehlert.
http://www.salon.com/

B. CNN, May 10, 2001
"Musicians Find Net Success Without Record Labels" by Julene Snyder.
http://www.cnn.com/2001/TECH/

C. LA Times, May 28, 2001
"Logs Link Payments with Radio Airplay" by Chuck Phillips.
http://www.latimes.com/
(Registration required)

D. Salon, June 1, 2001
"The Music Revolution Will Not Be Digitized" by Janelle Brown.
http://www.salon.com/tech/

E. Salon, June 5, 2001
"The "Bootylicious" Gambit" by Eric Boehlert.
http://www.salon.com/ent/


7. FMC in the NEWS

   Positive responses from the press keep coming in many major and independent media outlets. This last month it includes two mentions in Billboard, Interviews on Tech TV, mentions in Yahoo Internet Life and Magnet Magazines, and elsewhere.
   
   Check out the digital archive of Walter and Jenny on panels at a recent conference on music/technology issues heald at Harvard. On Walter's panel there is a particularly interesting exchange between Harvard law professor Charles Nesson and Matt Oppenheimer of the RIAA about Oppenheimer's recent letter to Princeton professor Edward Felten strongly discouraging him from releasing his research about the hacks of the watermarks in the SDMI watermark removal contest.
   
   Walter's Panel http://www.webnoize.com:80/live/item.rs?ID=12803
   
   Jenny's Panel http://www.webnoize.com:80/live/item.rs?ID=12801
   
   

1. What We Are Doing

   Jenny Toomey
   Jenny has spent most of her time speaking and writing about music/technology issues. She participated in panels at the American Assembly, Harvard's Berkman Center, Temple Law School and Washington Area Lawyers for the Arts. She has been writing extensively to contribure to the new artist's area of the FMC website focusing mostly on The Wall of Shame and the critique of major label contracts. She has also been working to try to organize all of the PROs (BMI/ASCAP/SESAC), the musician unions, the artists' groups and the webcasters to present a unified front behind the four points outlined in the FMC's recent Senate Judiciary testimony. Jenny was recently asked to participate on the board of Public Knowledge, an organization that is working to preserve the information commons. On a rocker note, she also completed the mastering on her new double album which will be released in the fall on Misra Records and did a 5 date tour of the east coast with a 6 person band. Her performance on WFMU should soon be archived on their http://www.wfmu.org/ site.

   Michael Bracy
   Over the past month we have continued to be impressed with the level of interest on Capitol Hill to both understand these complicated issues and to work toward creative solutions. We will continue our educational meetings on the Hill throughout the summer, and will also begin expanding to relevant agencies, like the NEA, FCC, NTIA and the Copyright Office. It is clear that policymakers here in Washington enjoy the opportunity to learn more about this space and brainstorm on ways to improve artists' ability to make a living.

   Walter McDonough
   Walter has been traveling back and forth across North America speaking at music conferences and law schools. He has recently participated in panels at the Harvard Law School Journal of Law and Technology Forum, Suffolk Law School, and the NEMO Music Conference (among others). Walter has been continuing his research into international copyright law and how it impacts musicians. As always, the FMC is looking for attorneys and law students to assist with our efforts. The current research topics are focusing on how artists, producers and independent record labels are paid by foreign governments. Those who are interested should contact Walter McDonough at digitalmusiclaw@yahoo.com.

   Brian Zisk
   Brian's been working hard on a project which will hopefully create a new economic reality, one which financially benefits artists who have been able to retain their rights. He's also been writing articles (which will appear on the new website, as well as in publications such as Streaming Magazine) addressing such topics as what the non-interactive restrictions in the statuatory webcast license were designed to accomplish, and how instead they are being used as a stick to deter innovation.

   Kristin Thomson
   Kristin has recently finished graduate school, in the process winning an Urban Affairs and Public Policy Alumni Award that recognized her thesis research on "The Internet as an Agent of Change" and her contributions of usable social knowledge. Now with more free time, Kristin has been working on the FMC website redesign, the creation of the health insurance survey, some more interviews and articles, and some of the logistics on the upcoming FMC events. If you want a PDF of her thesis sent to you (not all at once, now!) send her an email at tsunamismr@aol.com.

   Peter DiCola
   Peter DiCola has received a grant from the John M. Olin Center for Law and Economics at the University of Michigan to study compulsory licenses for digital music and their possible effects on the labor market for musicians. He will also be revising an article about MP3.com and its community of musicians.

2. How are we doing?

   If you have any feedback, questions, or suggestions please send an email to suggestions@futureofmusic.org, and let us know how we're doing.
   

Thanks for your support and see you next time.

xo Jenny Toomey
Executive Director, Future of Music Coalition
Jenny@futureofmusic.org

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