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Court Finds California Public Performance Right For Pre-1972 Recording Artists
On Sept. 22 central California's U.S. District Court ruled in favor of a motion for summary judgment by former members of the Turtles against SiriusXM for public performances that infringe the band's pre-1972 recordings. The separate issue of whether reproductions of the recordings were infringing could not be determined as factual disputes must be evaluated via trial. Federal copyright protection for sound recordings went into effect in 1972, therefore earlier tracks are governed by states' statutory and common laws. The district judge rejected SiriusXM's proposed construction of a California statute and found that the law's grant of "exclusive ownership" in sound recordings contains artists' public performance right. The court also found that SiriusXM violated California's unfair competition law and is liable for unlawful conversion and misappropriation. "Oldies" released before 1972 are broadly used by digital music services without compensation to the performers, an injustice federal lawmakers have sought to remedy with this year's RESPECT Act. "While we are thrilled with the Turtles' legal victory, it's unfortunate that artists and labels were forced to pursue litigation just to receive fair payment for their art," said SoundExchange President/CEO Michael Huppe. "It is outrageous that some digital radio services believe they can use the music of legacy artists for free." Other lawsuits are in litigation on similar facts and the decision is likely to be appealed, but this District Court ruling still rates The Hollywood Reporter's description of it as "a legal earthquake."
Report Finds Cyberlockers' Millions In Revenue Based Mostly On Piracy
Nonprofit coalition Digital Citizens Alliance released its second 2014 study on online piracy profits on Sept. 18. Titled "Behind The Cyberlocker Door: A Report On How Shadowy Cyberlocker Businesses Use Credit Card Companies To Make Millions," the report follows February's report "Good Money Gone Bad: Digital Thieves And The Hijacking Of The Online Ad Business," both of which pursued a follow-the-money approach, diving deep into financial data gathering and estimates. DCA's latest report looked at the top 15 downloadable cyberlocker sites and the top 15 streaming cyberlocker sites. Infringing content constituted more than three-quarters of the files available. These 30 sites enjoy more than $96 million in estimated annual revenue. Approximately $69 million of that revenue is profit, thanks to ads (some by major brands) and payment processing for subscriptions by major credit card companies. Notably, only one site accepted PayPal, reflecting the service's real progress in meeting antipiracy goals. Commenting on the report's findings, Rep. Adam Schiff (D-Calif.), co-chair of the International Creativity and Theft-Prevention Caucus said, "Unscrupulous cyberlockers are realizing millions in profits through a business model that turns a blind eye, or even encourages, large-scale piracy. It's incumbent on payment processors, advertising networks, and other online services to take voluntary steps to reduce the profits realized through massive theft of U.S. content."
Movie News: Digital Titles And Drones Available
On Sept. 25 MPAA Chairman/CEO Chris Dodd called attention to two new developments. Calling a new research study the first of its kind, Dodd described how research firm KPMG surveyed 34 authorized online video services and found that 94 percent of the top movies and 85 percent of the top TV shows were available on at least one service. Digital availability of recent and popular titles helps legitimate businesses compete with online piracy. Separately, the U.S. Federal Aviation Administration will allow six movie and television production companies a regulatory exemption assisting their commercial use of unmanned drones for aerial shots. "Today's announcement is a victory for audiences everywhere as it gives filmmakers yet another way to push creative boundaries and create the kinds of scenes and shots we could only imagine just a few years ago," said Dodd.
The Recording Academy actively represents the music community on such issues as intellectual property rights, music piracy, archiving and preservation, and censorship concerns. In pursuing its commitment to addressing these and other issues, The Recording Academy undertakes a variety of national initiatives. ArtsWatch is a key part of an agenda aimed at raising public awareness of and support for the rights of artists. To become more involved, visit Advocacy Action @ GRAMMY.com and sign up for Advocacy Action E-lerts.