The system for licensing musical works in the U.S. and internationally is fractionalized, complex, regulated, adjudicated, derivative, and lacks sensitivity to market forces. Unlike other works covered by copyright, in which copyright owners and licensees simply make deals to use copyrighted works, the licensing of musical works is governed by complex statutes, consent decrees, rate setting boards, and copyright courts. Payments for the use of musical works varies widely depending on whether the use is of a composition or digital performance, during live events, over terrestrial radio, or on the internet, and depending on whether a music service is interactive. Likewise, the compensation rates for different types of licensing vary widely, and often without direct correspondence to supply and demand. In addition, the model for the production of some music, such as pop, has evolved towards more distributed, team-based production. All of this has resulted in a music licensing market that is in chaos and does not always serve the interests of participants in the market, or the public. In December 2017, the Second Circuit upheld a rejection of the DOJ’s attempt to interpret its consent decree with BMI to prevent fractional licensing of copyrighted works.
Congress has been debating music licensing reform for over five years. Now a coalition of industry participants seem to be coalescing around a number of bills pending in Congress, including the Music Modernization Act (reforming digital mechanical licensing), the Classics Act (providing compensation for pre-1972 recordings played on internet and satellite), and the Allocation for Music Producers Act (providing royalties for producers and engineers). Real changes to the system may finally be upon us. In this teleforum our experts will discuss music licensing, its flaws and features, and suggestions for reform.
Featuring:
Mr. Mitch Glazier, President, Recording Industry Association of America
Prof. Lawrence J. White, Robert Kavesh Professorship in Economics, Leonard N. Stern School of Business, New York University
Moderator, Prof. David Olson, Associate Professor, Boston College Law School
Please consider reading papers on this topic by the experts below.
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