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Future of Music Newsletter #16 (May 22, 2002)

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05.22.2002

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Hello again. It's hard to believe how much we've tackled in the five weeks that have passed since the last newsletter; from participating in the webcasting debate, to moving forward on our health insurance study, to filing comments with the FCC. Chalk it up to persistence, concern, and more hours of daylight. Now, shortly before this newsletter's release, we get word from the US Copyright Office that the Librarian of Congress has rejected the CARP proposals regarding webcasting rates and reporting requirements. While the Office's announcement did not include any particular reasons for the rejection, we assume that the collective effort made by webcasters, artists, and citizen groups to include their voices in the debate has had an effect on the process.

What's next? The Librarian has until June 20 to issue a final determination setting the rates and terms for the licenses. There's more information available on the Copyright Office's website here:
http://www.loc.gov/copyright/carp/webcast_process.html

We are interested to see what transpires in the next thirty days, and will continue to participate in the debate as much as we can. Now, onto the news!

  1. Dates Set for FMC Policy Summit 2003

    Get out your Palm Pilots! Mark your calendars! We have reserved January 5, 6, and 7, 2003 for FMC's third annual Policy Summit, which will again take place at Georgetown University in Washington, DC.

    We're in the early planning stages now, but things will move quickly. Look for early bird registration rates starting around September 1.


  2. FMC Participates in Webcasting Debate

    In February 2002, the US Copyright Office released its recommendations on webcasting rates and reporting requirements. Following the release, both webcasters and copyright holders (i.e. labels) mounted campaigns to express their often opposing views on the recommendations, urging their supporters to register their opinions with the Copyright Office and their elected representatives.

    Webcasters, copyright owners and artists are all concerned about the outcome of these proceedings because of the potential long-term effects on both musicians and internet webcasting. The FMC understands the concerns that various parties hold on these emerging issues, and find many of their arguments compelling. We support the growth of webcasting as a viable and necessary alternative to commercial/terrestrial broadcasting, however we also want musicians whose music is played on webcast stations to be fairly compensated for their work.

    Based on our interest in the outcome, the FMC participated in the webcasting debate through various channels. On April 5 we filed initial comments with the Copyright Office, which we reported on in last month's newsletter. Over the past month the FMC has published four other documents:

    A. CARP Fact Sheet
    B. Reply Comments to the Copyright Office
    C. Prepared Statement for the Roundtable
    D. Senate Judiciary Testimony on Webcasting

    A. CARP Fact Sheet

    The FMC recognizes that the CARP proceedings and the history behind this whole process are very confusing. In an effort to clarify some of these complicated issues, we drafted a detailed fact sheet. We passed our document by the US Copyright Office before posting it to make sure the information was as accurate as possible.

    Check out the CARP Fact Sheet here:

    The FMC encourages the webcasting and music community to use this fact sheet as a resource to better understand these issues and to learn how artists and citizens can participate in the decision-making process affecting webcasting.

    B. Reply Comments to the Copyright Office

    After reading the initially filed comments, FMC submitted reply comments. We found that many of the comments filed were articulate and reasoned, but that many organizations could not recognize a middle ground on the webcasting issue. In our reply we focused on two specific issues regarding reporting requirements:

    i) The FMC agreed with the statements made by many filers that the proposed "Listener Log" presented many problems both in regards to necessity in relation to compliance with Section 114 (d)(2), and in relation to listeners' expectations about privacy

    ii) The FMC also concurred with a number of filers regarding the undue burden that the proposed recordkeeping requirements would place on smaller webcasters.

    In addition, the FMC suggested potential remedies to these problems, some of which were different than those proposed by various filers in the comments phase. The FMC believes that, although the proposed recordkeeping requirements as they stand are onerous and burdensome, there are compelling reasons for webcasters to maintain accurate records of what is being played to ensure that musicians and artists will be fairly compensated.

    Read our reply comments here.

    C. Prepared Statement for the Copyright Office Roundtable

    On May 10, the US Copyright Office hosted a Public Roundtable on webcasting rates and reporting requirements. The all-day event, which included representatives from the webcasters, record labels, unions, and citizen advocates, was intended to give various stakeholders an opportunity to publicly state their cases before the Copyright Office.

    Both Jenny Toomey and Brian Zisk sat in on the panel discussions. We also prepared a statement that addressed our interest in participating in the event, which you can read here.

    There's some great coverage of the Roundtable here (scroll down halfway):
    http://www.kurthanson.com/archive/news/051302/index.asp


  3. FMC Submits Testimony to Senate Judiciary Committee on Webcasting

    On May 15, the Senate Judiciary Committee held a hearing on webcasting:
    Copyright Royalties: Where is the Right Spot On The Dial For Webcasting?

    The FMC filed testimony for this hearing, through which we expressed our belief that webcasting is emerging as a vital new source for entertainment, music and news that can provide greater diversity and more choices for the public, and new revenue streams for musicians.

    After highlighting the inherent value of webcasting, we proposed an alternative licensing structures based on four recognizable "classes" of webcasters. We urged members to recognize the differences between the various classes of webcasters and craft licensing and reporting requirements that are scaled to ensure that the greatest number of webcasters have the ability to operate.

    In particular, we proposed an "incubator" license, under which small commercial webcasters would pay reasonable licensing fees and royalty rates and meet realistic reporting requirements for a specified period of time. If the station is successful in building revenue and audience size in the time allotted, it will transition to the standard rates and reporting structures established by the Copyright Office and the CARP. Second, we encouraged policymakers to establish non-commercial licenses and reasonable reporting requirements for webcasters who are not aiming to run a commercial venture through their service. This modified rate, offered solely to noncommercial/ nonprofit/college/hobbyist webcasters, should be based on existing precedents that have served non-commercial radio well for decades.

    We encourage you to read our 10-page testimony here.

    Read a critique of our testimony here:
    Future of Music Coalition Testimony to the Senate Falls Short

    While we appreciate Musicdish's careful reading of our testimony, we would point out that Musicdish's assertion that we ignored the terrestrial broadcasters is a bit misleading. The primary goal of our testimony was to focus on a proposal for a tiered rate and reporting requirement structure that would allow for both smaller commercial webcasters and nonprofit/hobbyist webcasters to flourish.

  4. FMC Files Reply Comments with FCC on Local Markets

    On May 8, the FMC submitted reply comments to the FCC on their Notice of Proposed Rulemaking concerning Multiple Ownership of Radio Broadcast Stations in Local Markets (Docket 01-317).

    Our brief reply comments addressed industry comments claiming that increasing concentration of radio ownership is compatible with the public interest. The FMC disagrees. Contrary to ar-guments that economies of scale would increase the diversity of radio programming, experience demonstrates that niche formats addressing significant but minority tastes have been aban-doned as ownership concentration increases.

    Read our reply comments here.

  5. FMC Participates in Future of New Orleans Music Conference

    On April 29-30, the FMC board headed down to New Orleans, not only for the crawfish and jazz, but also to participate in a two-day affair graciously hosted by the Louisiana Music Commission and Loyola University.

    Jenny Toomey, Walter McDonough, Michael Bracy and Brian Zisk joined others for the well-attended symposium, which covered a gamut of issues about music, technology, local grassroots campaigns, and new models for promotion, marketing and distribution. The overarching goal of the event was to educate and empower Louisiana's huge and diverse music community about the new tools available to them to help their community thrive.

    There's some info about the event here:
    http://www.loyno.edu/musicbiz/future_music/index.html

    We congratulate the hosts for putting together such a well-organized and informative event, and look forward to more events in New Orleans!


  6. Health Insurance Survey Continues

    The Future of Music Coalition is moving towards figuring out ways to help more musicians get better health care for less money. Our first goal is to quantify the musician/insurance landscape so, on March 15, 2002 we launched the first component, a musicians' health insurance survey. As members of the music community we know the lack of health insurance is a big problem, but before we start talking to insurance companies and legislators we need some hard numbers to make our case. Luckily we've had an immediate response from the music community with over 2700 surveys already completed. If you are a musician, stand and be counted. Please take five minutes, click on the link and answer the survey questions.

    http://www.futureofmusic.org/research/healthsurvey.cfm

    Whether you're a musician or not, we're hoping you can help us spread the word about the survey's existence to your network of musicians, songwriters, and artists. Feel free to post this link on appropriate newsgroups, newsletters or websites.

    When the survey is complete, the FMC will analyze the data and report the findings publicly. We hope that this survey can be a catalyst to create a broader and more results-oriented discussion about workable health insurance solutions for the music community.

  7. FMC in the News

    Power to the Peer
    You can lead consumers to music, but can you make them pay?
    By Judith Lewis
    LA Weekly, May 17-23 edition

    Forget Love -- All They Really Need is Health Insurance
    "The Recording Artists Coalition's fight against the seven-year contract statute and the music business' losing battle against downloading may get the headlines. But to thousands of musicians, there's an urgent issue that could prove the catalyst for organizing into a cohesive body: health insurance. That's the belief of Jenny Toomey, an independent musician and executive director of the Washington-based Future of Music Coalition."
    [...]
    By Steve Hochman
    LA Times, April 28, 2002
    Available through LA Times archive

    Expert Sound-Off: The Law that Could Kill Webcasting
    Brian Zisk discusses the recent Copyright Office licensing and reporting requirements that have many webcasters up in arms.
    by Brian Zisk
    CNET, April 24, 2002


  8. Other Great Articles in the Newsstream

    Kazaa, Verizon Propose to Pay Artists Directly
    By Jefferson Graham
    USA Today, May 14, 2002

    File Sharing a Hit, Despite Legal Setbacks

    By Jefferson Graham
    USA Today, May 14, 2002

    Ask the Artists: Ian MacKaye and Mike Watt

    A fantastic interview with punk/DIY icons Ian MacKaye (Dischord Records/Fugazi/Minor Threat) and Mike Watt (Minutemen, fIREHOSE) about the current state of the music industry.
    Starpolish, April 2002

    Rocking radio's world

    Commercial radio may be in its worst shape ever, with listeners tuning out
    and legislators calling for investigation into corporate control of public
    airways.
    By Greg Kot
    Chicago Tribune, April 14, 2002
    Free, but registration required


  9. News from our Friends and Allies

    First Annual TAPE OP conference
    May 31 - June 2, 2002
    Crest Theater, Sacramento, CA

    A get-together aimed at engineers, producers, studio owners, musicians and home recordists - and any combination thereof. In the spirit of the magazine, there will be a lot of interaction - one will experience active panels and Q and A sessions instead of passive entertainment.

    Panelists such cool recording folks as Steve Albini, J. Robbins, Bob Weston, Larry Crane, Rob Christiansen, J. Mascis, Jack Endino and Don Zientara. Sounds great to us!

    Also on the calendar:
    Jenny Toomey speaking at NXNE - Toronto, June 6-8, 2002
    http://www.nxne.com

  10. What We Are Doing

    Jenny Toomey
    Jenny Toomey has been working on the health insurance initiative and the CARP filings. She spoke at the Future of New Orleans music conference and at the Copyright Office Roundtable. Aside from FMC she just mastered her new record "Tempting" which will be released in October.

    Michael Bracy
    After surviving a treacherous office move, Michael Bracy is calling on his summer-job glory days as a summer camp swim instructor to recapture the art of keeping one's head above water. Momentum is quickly building on a number of issues near and dear to the FMC's heart, including radio consolidation, low power FM rollout, webcasting rates and reporting requirements and copyright reversion rights. The FMC DC staff is working closely with the policy community, consumer groups, the media and citizens in our effort to both articulate these issues and work toward specific remedies to some of the challenges in the space. Finally, what summer would be complete without some blockbusters? Is it possible the policy community will start paying attention to the other "Attack of the Clones" -- this one presented courtesy of the commercial radio industry? Will artists and music fans be learning more about the "web" of corporate dominance that has made radio such a "sticky" mess? You never know how these things will play out, but the hunch here is that some folks may soon be walking on walls....

    Walter McDonough
    Walter McDonough has spent the spring enjoying the surge of Boston Red Sox while he speaks to parties throughout the United States in search of possible settlements to the webcasting royalty controversy. He is also continuing work on his book and an upcoming law review article of compulsory licensing which should be published before year's end.

    Kristin Thomson

    Kristin has been busy as ever, preparing testimony and Copyright Office documents, keeping the website functioning, managing the health insurance survey, and overseeing the radio consolidation study. Kristin's Philly band Ken is preparing to go into the studio in June, while her DC band Tsunami, which also includes Ms. Toomey, has penciled in practice weeks in July and August. Is a reunion afoot? Only those smart enough to attend Ladyfest DC (www.ladyfestdc.org) will know the truth.

    Peter DiCola
    Peter DiCola has begun his work on the FMC's study of radio industry consolidation in earnest now that the summer months have begun (if not the summer weather) in Ann Arbor. His immediate focus is on analyzing radio station data, to determine the reach of consolidation and to learn about the new structure of the radio industry. Anyone who can recommend good books on industrial organization or media economics should send him an email at pcdicola@umich.edu

    Brian Zisk
    Brian (with Walter and everyone else) has continued working to attempt to resolve the webcasting controversy in ways which will work for all parties. He traveled extensively, speaking on panels, and with webcasters, artists, elected officials and their staffs, citizens, recording industry representatives, and the RIAA. These travels have taken him to such spots as New Orleans, Washington D.C., Boston, and Benbow. He's communicated through the press with folks who read publications such as the L.A. Weekly, and has publicly written quite a bit on this issue, in venues as varied as CNET, and comments submitted to the Library of Congress.


  11. 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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up front

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Upcoming Washington, DC show and benefit EP from OK Go & Bonerama
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Successful New Orleans Concerts Aid Big Easy Musicians
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FMC Statement on FCC Media Ownership Proceeding
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PDF of document