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Conversations In Advocacy #41

Photo: Recording Academy

News
Celebrating District Advocate Day 2018 celebrating-district-advocate-day-engagement-looking-ahead

Celebrating District Advocate Day Engagement & Looking Ahead

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Follow the story of this year's remarkable day of activism and see what lies ahead
Philip Merrill
Advocacy
Oct 26, 2018 - 12:50 pm

District Advocate day 2018 on Oct. 24 was an unprecedented coast-to-coast gathering for more than 1,500 Recording Academy members, their lawmakers and Congressional staff sharing ideas about the recent unanimous passage of the Music Modernization Act, now signed into law, as well as what issues matter most to the music community, looking ahead.

https://twitter.com/DarylPFriedman/status/1055456270663278592

Yesterday was historic. 1500 #DistrictAdvocate participants from coast to coast in 100s of districts. My sincere thanks to the amazing @GRAMMYAdvocacy staff in DC, the dedicated @RecordingAcad Chapter boards and staff, and all of our Team Captains for this important initiative! pic.twitter.com/uAR8XnwqhC

— Daryl P. Friedman (@DarylPFriedman) October 25, 2018

With coverage in Billboard and MusicRow, record-setting social activity on Instagram and Twitter, and many special messages for the day delivered via online video or on television, the level of engagement by the music community and elected representatives alike heralds an exciting future for what can be accomplished, thanks to the Recording Academy's political activism.

https://www.instagram.com/p/BpU5RoEH_Dq/?utm_source=ig_web_button_share_sheet

View this post on Instagram

A post shared by Bram Bessoff (@bram_rocks)

Local news interviews added another dimension of outreach by letting the public know that Recording Academy members are active and involved in creators' rights. "It's really about getting the support that we need to keep making great stuff," said producer Matt Squire to Washington, D.C.'s local news team on WUSA-TV 9.

"We all need to join together," Emily Estefan explained to Miami's NBC "6 In The Mix" hosts about the day's local rally. "This is just the beginning."

https://twitter.com/GRAMMYAdvocacy/status/1055156528137887745

It's all about the MUSIC! We had a great meeting and a jam session with @DwightEvansPA. Thank you for supporting music creators!

Join the chorus: https://t.co/HqxlkShV8s #DistrictAdvocate pic.twitter.com/jMi8qgBtlQ

— GRAMMY Advocacy (@GRAMMYAdvocacy) October 24, 2018

Among issues affecting music creators includes efforts to negotiate and establish a terrestrial radio performance right for performers and artists. The U.S. is alone among major nations in its legal stance that radio play is so automatically valuable for performers that no financial compensation whatsoever is necessary. Foreign artists receiving compensation abroad are also cut out from receiving royalties by this, and reciprocally, foreign royalties that are collected for the recorded performances of U.S. artists remain in special accounts instead of being distributed to Americans.

https://twitter.com/SandersTristin/status/1055181553628782592

Went to Representative Steve Scalise's office for District Advocacy Day to thank Rep. Scalise for his support of the #MusicModernizationAct. There's a lot more to be done and it's so important to have such influential people speaking for our music. @GRAMMYAdvocacy @SteveScalise pic.twitter.com/MnwqCIPvCc

— Tristin Sanders (@trissysanders) October 24, 2018

Modernization of the U.S. Copyright Office for the 21st century is another lively issue with tremendous implications for the years ahead. While federal computing infrastructure is due for an upgrade in many agencies, the Copyright Office is midway along this challenging learning curve. The Office has special needs, and so do the creators who rely on it, so progress must be spurred to create systems worthy of the innovations in America's new music marketplace and ecosystem. Our livelihoods rest on the foundation of copyright law and ultimately the Office's infrastructure must bear the load of its vital responsibilities. Being aware of this issue is the first step in fighting for overdue upgrades, and our elected officials need to know that we care.

https://twitter.com/dianedurrett/status/1055310663948660743

Honored to share a song with Tinsley Ellis playing a 1930s national for #DistrictAdvocate in our meeting @RepHankJohnson #recordingacademy #grammyadvocacy pic.twitter.com/rgluWha0wZ

— Diane Durrett (@dianedurrett) October 25, 2018

A conversation connected to U.S. Copyright Office modernization has long been the goal of allowing independent creators to protect their copyrights by means of some form of small claims process. Artists with major labels can assume aspects of protection are handled by professionals within the company, but indies don't have that luxury. Although this comes up with filing notices of infringement, it can also arise in much more straightforward examples of infringing uses. Just because a creator lacks access to thousands of dollars for attorneys or specialized music-law staff shouldn't leave them helpless to protect their work. Years of thought have gone into investigating this need and a practical answer should be put in place.

https://twitter.com/hifihillbillies/status/1055228622771052544

Thank you @TomColeOK04 for your huge support of Oklahoma music creators!#DistrictAdvocate @GRAMMYAdvocacy pic.twitter.com/qfQpogSzQz

— The Hi-Fi Hillbillies (@hifihillbillies) October 24, 2018

One of the outstanding benefits of the unity on display through our District Advocate day is the ability to work together to enact meaningful change. There are other issues growing become hot-ticket items. Trade deals and negotiations are one area where this can come up at unexpected times and the creator community always needs to be informed and active when their voices are needed to make a critical push.

https://www.instagram.com/p/BpVhfBQBXV3/?utm_source=ig_web_button_share_sheet

View this post on Instagram

A post shared by Joy Villa🇺🇸 (@joyvilla)

Another recurring issue that comes up on schedule with the federal budget is arts funding and particularly for the National Endowment of the Arts and music education programs. We've made a difference in preventing damaging reductions in funding, but this battle continues. Too many times, hoping to cut costs, lawmakers lose track of or do not realize the differences funding for the arts achieves in our national life.

On these issues and other matters ahead, we will build together on the unity and engagement of District Advocate day 2018 to make a real difference. Kudos and thanks to all who participated.

Thank Your Lawmakers For The Unanimous Passage Of Copyright Modernization

"Conversations in Advocacy" is your weekend digital tip sheet on music advocacy and the policies that affect music makers and their craft. New installments post every Friday.

Conversations In Advocacy 40

Photo: Courtesy of Soundtrack Your Brand

News
Report: Small Businesses And Music Streaming bringing-streaming-music-revolution-small-businesses

Bringing The Streaming Music Revolution To Small Businesses

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Music adds so much to atmosphere, and commercial background-music services can help deliver competitive advantages to business customers
Philip Merrill
Advocacy
Oct 19, 2018 - 2:23 pm

"Licensed soundtracks for small businesses offer a win-win musical opportunity" — Conversations In Advocacy #40

Innovation in U.S. compensation for music's creators took a huge step forward last week as the Music Modernization Act was signed into law, but this week it's worth looking ahead to what streaming can do for small businesses. Nielsen conducted two studies earlier this year, commissioned by Soundtrack Your Brand, that showed a multi-billion dollar opportunity for the streaming revolution to add value and proper licensing to global business environments.

"Music makers are being shortchanged without knowing it," said Soundtrack Your Brand Chairman/Co-founder Andreas Liffgarden. "Consumer streaming companies have millions of customers who are actually businesses, who may be unknowingly misusing their services and not paying music makers the money they are entitled to, which is potentially in the billions of dollars."

World-wide, background music in business settings was estimated as a $12.3 billion industry, in itself. But among small businesses with at most 10 employees, Nielsen estimated that 83 percent are using unlicensed music in the workplace. Liffgarden was an executive during the start-up days of Spotify and sees this market as a promising opportunity, bringing streaming services with business background-music licenses into professional settings bound to benefit. Large brands are more likely to know better and comply, but tens of millions of small businesses with music playing are likely to be using personal accounts with services only licensed for consumer listening — about 83 percent of businesses on average.

https://twitter.com/SoundtrackYour/status/1049658854756237314

Sounds like magic, but it’s science.
See how music can give you happier customers and higher sales. https://t.co/bfYIS1vdmB

— Soundtrack Your Brand (@SoundtrackYour) October 9, 2018

For example in the United States, 71 percent of small business owners are under the mistaken impression that using a personal, consumer service is all the licensing they need. In the UK the figure is 60 percent. For marketing experts, this is the difference between two acronyms — B2B for business-to-business licensing versus B2C for business-to-consumer licensing. A commercial B2B license is intended to serve a larger number of listeners, as major brands already realize. In the U.S. that gap has been valued at an estimated $888 million annually.

"We weren't surprised by the results per se, but the scale of it was a little bit daunting, to be honest," Liffgarden told Rolling Stone. "The music industry at large needs to do better to educate. You instinctively know that you can't use your Netflix account and open a cinema — you'd surely roll your eyes and say, 'of course I knew that' — but the same isn't true for music." The "educational journey" that he believes in should provide benefits for all stakeholders.

Digital music piracy by consumers was viewed 20 years ago as a problem caused by technology, but now digital music royalties amount to more than half of global music revenue — because the problem was solved by technology, working with stakeholders to build a complete ecosystem. In the U.S., the Music Modernization Act helps to complete this virtuous circle.

For Soundtrack Your Brand, the opportunity to offer digital music for business is clear and the challenge is to get more than 20 million global places-of-work on board by enticing them with great service. There are many costs on commercial ledger sheets, for example janitorial service or providing complimentary coffee. Music is more than just another cost and comparatively, it is not a large cost — especially if it can be made more convenient, like a 'no-brainer.' Music's creators would clearly benefit from being rewarded with the money they don't receive from small businesses. But these businesses are also missing out by believing consumer services meet their commercial music needs.

"There's no doubt the overwhelming majority of small business owners are willing to pay to use music in their business," says Jody McKinley, North America Managing Director for Soundtrack Your Brand. "After all, it makes their business environment better. It helps create an experience for their customers or helps motivate their staff. Business owners understand that music adds value. What they don't understand is how to ethically source the music they are using in their business. We want to help fix that."

It will most likely be the benefits for small businesses that will help drive them along the educational journey. Creating an atmosphere that is good for business productivity distinguishes competitors, as shops and restaurants know. Aside from the legal liability of misusing B2C services in B2B settings, business owners are missing out by taking a passive approach to background music. Over time, digital playlists in various commercial environments should benefit from the same types of practical analysis that goes into choosing wall colors or determining how many tables or countertops are ideal. There is tremendous growth space for business creativity, backed up by data science and analytics.

Nielsen's "largest-ever international study into background music" supplies the vision and promising data to embark on a new streaming revolution — to mobilize consumers to get out of the house and go somewhere that offers a wonderful atmosphere. It's not just a matter of getting some owners to pay more for the right licenses. By helping brands stand out, music can drive customers and employees to want to spend time in their place. It's clear why that journey is a billion-dollar proposition that will help internet traffic become foot-traffic.

Thank Your Lawmakers For The Unanimous Passage Of Copyright Modernization

"Conversations in Advocacy" is your weekend digital tip sheet on music advocacy and the policies that affect music makers and their craft. New installments post every Friday.

GRAMMYs

Photo: Robert Alexander/Getty Images

News
U.S.–Mexico Trade Agreement: Risky For Copyright? copyright-conditions-hazy-preliminary-us%E2%80%93mexico-trade-agreement

Copyright Conditions Hazy For Preliminary U.S.–Mexico Trade Agreement

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While trade negotiations have been fruitful, preliminary "in principle" conditions for copyright need a closer look
Philip Merrill
Advocacy
Aug 31, 2018 - 9:57 am

“It’s great to see some progress made on trade negotiations to modernize NAFTA. But I hope policy makers keep in mind that intellectual property – like music – is one of our most important exports and must be protected.” — Conversations In Advocacy #33

On Aug. 27, the United States and Mexico announced, in principle, revised trade agreement conditions, sparking many reactions from stakeholders, including the music community. Concerned with provisions affecting copyright, the music community responded with an immediate response asking for the Safe Harbor provisions of the 1998 Digital Millennium Copyright Act to be revised, not extended — because the last 20 years of experience demonstrate the difference between neutral internet hosting and the way certain content platforms, like YouTube, abuse Safe Harbor protections. Let's dig a little deeper as negotiations on this work-in-progress continue.

https://twitter.com/WhiteHouse/status/1034472181328236544

President Trump secured a "major victory on trade" with the U.S.–Mexico Trade Agreement. It's also "a win for Mexico," Christian Whiton writes.

Read more in today's edition of West Wing Reads: https://t.co/xb9E3Be3a3 pic.twitter.com/6eNZFRBOq5

— The White House 45 Archived (@WhiteHouse45) August 28, 2018

The U.S. Trade Representative provided details of the terms agreed to in principle, including many specifically related to intellectual property. While seeking to provide a strong and firm foundation for the future, both for physical goods as well as online, a few deserve scrutiny as the terms proceed to be finalized. For example, the agreement to limit the liability of internet platforms that host or process third-party content. When in reality many platforms, like YouTube and Facebook, that are hands-on content publishers have abused similar such provisions as contained in the language of the 1998 DMCA Safe Harbor protections. Although other terms of the pact address this indirectly — ensuring the effectiveness of rights management technologies and notice-and-takedown provisions, IP owners have learned through real hardship that this is a loophole abusers love to exploit.

To raise concern to this potential provision in the U.S.-Mexico deal, the Recording Academy joined with 19 other leading music organizations — including A2IM, ASCAP, AFM, BMI, NMPA, SESAC, RIAA and SoundExchange — to state the problem, and their concern, in clear terms.

"We are deeply concerned by the efforts of some to use the agreement to lock in flawed interpretations of pre-Internet 'safe harbors' perpetuating the theft of American music, creating safe havens preventing successful enforcement efforts within our trading partner nations, and severely harming our country's creators and their contributions to U.S. growth, jobs and surplus," read the statement in part.

This goal of finding the right balance so as not to "reward those seeking to profit unjustly from American creators" will ensure that future disruptions caused by internet innovations build a reliable marketplace for licensed goods as well as ideas. This is especially vital to indies trying to build livelihoods without backing because most creators begin as small businesses, trying to make ends meet and juggle countless real pressures. A stable distribution environment will also help larger firms represent the interests of their artists and clients, providing just the sort of "firm foundation" for innovation envisioned by the agreement in principle.

Known abuses of Safe Harbor provisions should inform the debate as future details to protect U.S. trade and innovation are negotiated. The American music industry was cut in half by the imperfect, early visions for internet innovation. Movies, television and live sports have also been severely hurt. The ingredients that are needed appear in the Administration's current plans, but how they are mixed together and put into practice should profit from lessons learned.

Contact Your Senators: Tell Them To Support Comprehensive Music Reform

"Conversations in Advocacy" is your weekend digital tip sheet on music advocacy and the policies that affect music makers and their craft. New installments post every Friday.

Conversations In Advocacy #30

Photo: S3studio/Getty Images

News
What Engages Social Media Users Most? Music report-what-engages-social-media-users-most-music

Report: What Engages Social Media Users Most? Music

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On internet social media platforms, playlists, shares, likes, and engagement, music is the number one leading category
Philip Merrill
Advocacy
Aug 11, 2018 - 11:41 am

"More than half of Instagram and Twitter users follow a musical artist or band, and 44 percent of Facebook users liked one." — Conversations In Advocacy #30

On Aug. 6, Russ Crupnick blogged the results of an April 2018 MusicWatch survey demonstrating that music artists and bands top the  social media charts in terms of following and user engagement. TV and movie stars follow in second place, but music reigns supreme.

Today's internet marketplace of ideas is more crowded and vital than ever. Platforms are more dominant and new types of interactivity compete to replace yesterday's winners constantly. Among monthly and frequent users of Facebook, Instagram, Snapchat, and Twitter, more than a third pay for a subscription music service and more than a third are in the youth demographic between ages 13 and 24.

Social Media Infographic

Reporting on how these survey results impact the music industry, The Tennessean wrote, "Social media is no longer a side dish in an artist's career. It is the lifeblood of the entire music industry."

Summarizing their interview with Crupnick, they observed, "The relationship isn't simply static. Fans don't passively follow artists." While hip-hop is the most-followed genre, managers and agents must help all of their clients navigate this "new battleground" to reach their fan community.

The explosion of social media is one example of how the digital media landscape has changed music. The continued growth from services like Spotify, Apple Music and YouTube are another. Now more than ever the laws governing the music industry need to be updated to reflect this shift to digital consumption, and artists are using their social media platforms to raise awareness and galvanize momentum for change. The Music Modernization Act is the only solution to meet the digital realities of today, and to position creators for success as social sharing, interactivity and connectivity shape the future marketplace.

"You can't make one thing and put it on Facebook, Twitter, Snapchat and Instagram and expect the same level of engagement," said United Talent Agency agent Nick Barnes. "Viewers are looking for something different from each one." Fans and followers are especially interested in objective news about their favorite artists, for example, tours, release dates and meaningful announcements such as teasers for upcoming tracks or projects."

Crupnick adds that, "Together, social media and the music industry create a unique harmony." He believes artists' "sustained cultural influence" and "credibility" opens new paths platform advertisers should be more aware of. As new varieties of interactivity keep evolving around music, finding fresh ways to share music is a trend worth even greater attention.

You never know what great artists will come up with next. Being better able to continue and concentrate on their artistic development increases the odds that internet engagement will take on new dimensions and rise to a level beyond today's imagination. It's happened before, and with music as our top social media engagement driver, it seems to be our culture's top contender to make it happen again.

Tell Congress to Pass the Comprehensive Music Modernization Act!

"Conversations in Advocacy" is your weekend digital tip sheet on music advocacy and the policies that affect music makers and their craft. New installments post every Friday.

Makan Delrahim

Photo: Al Drago/Bloomberg/Getty Images

News
Makan Delrahim On The Music Modernization Act makan-delrahim-supports-mma-2018-national-music-publishers-association-meeting

Makan Delrahim Supports MMA At 2018 National Music Publishers Association Meeting

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The Department of Justice Assistant Attorney General addressed the consent decrees at the recent conference, while also voicing support for the Music Modernization Act
Philip Merrill
Advocacy
Jun 22, 2018 - 2:20 pm

"Assistant Attorney General Makan Delrahim voiced support for the Music Moderization Act during the recent National Music Publishers Association meeting, another good sign this critical legislation will make its way through Congress soon." — Conversations In Advocacy #24

At the 2018 National Music Publishers Association annual meeting in New York City on June 13, Department of Justice Assistant Attorney General Makan Delrahim addressed attendees in a keynote speech. Prefacing his remarks with his love of music while framing its unique role in our culture, he proceeded to expand on regulatory ideas he expressed in March at Vanderbilt Law School. Overseeing his agency's Antitrust Division, Delrahim faces the complex job of ensuring consent decrees governing music licensing remain relevant, as regulations.

Returning to his previous topic of the 1,300 consent decrees presently in force and the need to review them for relevance, Delrahim promised nothing either way for stakeholders for and against the current system of regulation. "Some have commented that because the industry has grown up around these … decrees, they should never be changed, apparently ever," he quipped. In addition to his love of music, he committed to consistently approaching the questions of relevance by considering innovation, regulation and competition. "Protecting competitive markets in which innovation and consumers thrive" is how Delrahim summed these up.

Delrahim borrowed from the philosophy of author Nassim Nicholas Taleb to dub the music business, with respect to innovation, as "antifragile." "Things that are antifragile … actually thrive in change and they grow stronger with stress," he said. "The more things develop and change, the stronger the music business seems to grow, and we are all better off for that."

Although streaming presents different immediate challenges than those the blanket license solved decades ago, prediction is not the goal. "We aren't anywhere close to the end of the road," said Delrahim. "Markets and technology will continue to develop as music evolves with them. We can't imagine what that future holds, but we embrace it."

"In the 1930s, the Antitrust Division became concerned about the competitive effects of exclusive blanket licenses, and it sued ASCAP under the antitrust laws," he said summarizing the legacy state-of-affairs today. "In 1941, ASCAP settled that lawsuit, and BMI entered into a separate, but similar settlement. The resulting consent decrees, with some modifications over the years, still regulate most aspects of public performance licensing today, more than 75 years later."

Delrahim said the recent litigation over full versus fractional works licensing revealed that the Antitrust Division does not have a smooth path, simply choosing options that superficially seem pro-competitive. Saying, "The core mission of the Antitrust Division is to protect and preserve this kind of competition," Delrahim used the GRAMMY Awards as an example that musical competition is thriving.

Although some feared his equanimity meant swift and hasty action to upend the consent decrees in a potentially disruptive fashion, Delrahim sought to reassure stakeholders that DOJ would undertake a careful, measured consideration of the issues: "The Antitrust Division has not reached any conclusion about whether the ASCAP and BMI decrees strike the best balance among competition, innovation, and regulation." Billboard observed that as soon as the speech concluded, a group in favor of keeping the decrees released a statement. What Delrahim went on to say, however, is likely more significant.

"Congress … is also paying proper attention to the industry," Delrahim continued. "It is taking a hard look at the Music Modernization Act, and we look forward to seeing that legislation enacted and the results of those changes, which have involved several years of process and input from various interested parties."

In other words, the Department of Justice Antitrust Division knows what stakeholders across the creative and internet industries agree, the MMA provides overdue copyright law reform, providing an improved platform from which to consider other issues, including those old consent decrees.

Contact Your Senators: Tell Them To Support Comprehensive Music Reform

"Conversations in Advocacy" is your weekend digital tip sheet on music advocacy and the policies that affect music makers and their craft. New installments post every Friday.

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Some of the content on this site expresses viewpoints and opinions that are not those of the Recording Academy. Responsibility for the accuracy of information provided in stories not written by or specifically prepared for the Academy lies with the story's original source or writer. Content on this site does not reflect an endorsement or recommendation of any artist or music by the Recording Academy.