On Monday, April 13, Reps. Jerrold Nadler (D-NY), Marsha Blackburn (R-TN.), John Conyers Jr. (D-MI.), and Ted Deutch (D-FL.) introduced the Fair Play Fair Pay Act of 2015—a bill that, if passed, would accomplish a handful of things. The centerpiece of the legislation is the establishment of a public performance right for AM/FM radio. This would mean that performers and labels would be able to receive compensation for terrestrial radio airplay, a right that already exists in the rest of the developed world. read more
Rumors are flying around about the US Department of Justice (DOJ) potentially changing the rules that govern how performing rights organizations (PROs) ASCAP and BMI negotiate, collect and distribute publisher and songwriter royalties. read more
Have you ever used ASCAP’s ACE Title Search? We did, just the other day. A friend was trying to contact the publishers of an almost-but-not-quite public domain ditty to obtain permission to use the work in an original stage play. Unsurprisingly, he had no idea where to go to find this information. We cruised over to the ASCAP site and entered in the song title. It didn’t take long to find a match, and more importantly, the work had publisher contact information. Victory!
If only it were that easy across the board. read more
Post co-authored by FMC policy intern Bryce Cashman
A new bill has been introduced in the US House of Representatives that we hope will have a positive impact on the music community. On March 19, 2015, Reps. Joe Crowley(D-NY) and Tom Rooney (R-FL) introduced the Allocation for Music Producers Act (AMP, H.R. 1457)—legislation that would make it easier for producers to receive a percentage of digital performance royalties. read more
Since May 2013, the House Judiciary Subcommittee on the Courts, Intellectual Property and the Internet has undertaken a comprehensive review of the entire Copyright Act, including many issues of importance to musicians and songwriters. But the Act is not the only regulatory structure that impacts how creators are compensated.
It’s pretty weird when you think about it: when you hear “I Will Always Love You” performed by Whitney Houston on AM/FM radio in the US, neither the Houston estate nor her label get paid. But songwriter Dolly Parton does receive compensation, along with her publisher. We love Dolly a ton, but this seems unfair. That’s because it is.
Things look much different in the rest of the world, where performers, labels, songwriters and publishers ALL get paid for radio play. Consider how certain genres of music—like jazz and r&b—are powered by performances. “Respect,” belted out by Aretha Franklin. “My Favorite Things” as interpreted by the great John Coltrane. Yet due to a weird loophole in US law that exempts radio stations from paying performers or labels, countless American artists have been unable to collect money owed to them for airplay here and abroad. The problem is particularly acute for performers who aren’t in a position to tour, such as older, so-called “legacy” artists. When it comes down to it, the lack of a public performance right for over-the-air broadcasting amounts to the government giving away music to the rest of the world for free.
Welcome to Part Two of FMC’s look at transparency and why it matters to musicians and composers. In Part One, we described three different types of transparency, and outlined why each matters to anyone who wants to get paid in the digital age:
1. structural transparency: how different services function and how they compensate artists
2. rates and revenue transparency: how money is split, who gets paid what and why
3. repertoire transparency: readily available ownership information to facilitate more efficient licensing and accuracy in payment
Today, we’re going to look at a current hot topic—direct deals for performance rights in music publishing—as a case study.
Let’s say your metal band is playing a headlining club gig. At the end of the night, the promoter hands you an envelope containing $200. Is that a fair share?
Or say you’re a R&B singer with a CD released by an independent record company. Your label sends you quarterly royalty checks, but how do you know if the amount is correct?
Or imagine you’re the composer & lyricist of a popular country song that gets played on an on-demand streaming service. You get regular checks from your performing rights organization (PRO) for this use, but how do you know if the rate you’re getting is fair compared to what other songwriters get for plays of their songs?
When music is played on a non-interactive digital service like Pandora, Sirius XM, or cable radio, payment for the sound recording copyright is collected and distributed by SoundExchange, a non-profit performance rights organization. As we detail in our handy “Music and How the Money Flows” chart, this revenue is divided up in a standard formula: 45% goes to the featured artist, 50% goes to the sound recording copyright owner (usually a label), and 5% goes to the AFM/SAG-AFTRA Intellectual Property Rights Distrbution Fund, for distribution to backing players, session musicians, and backing vocalists. We’re fond of this system because it treats all artists equally, ensuring direct payment that can’t be held against recoupable debt to a label, with equitable splits.
But what happens if you’re a self-released artist who doesn’t work with a label, but owns the copyrights to your sound recordings? You are entitled to collect both the artist share and the label share yourself. Unfortunately, many artists don’t know this, and end up missing out on money they ought to be collecting, because they’ve only registered for the artist share. Other artists haven’t registered with SoundExchange at all.
CD Baby, a popular distribution service with a large userbase of mostly self-released artists, recently announced a change to their terms of service that allows them to collect the label share from SoundExchange for their roster of distributed artists. This move was met with some minor controversy, as indeed, artists are entitled to collect that money themselves directly from SoundExchange, without the administrative cut that CD Baby charges. We decided to go directly to the source: CD Baby CEOTracy Maddux answered our questions this week via email.