New issue of Music & Copyright

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

EC backs blockchain with the rollout of Observatory and Forum
The European Commission (EC) has created the EU Blockchain Observatory and Forum (BOF) to highlight key developments in blockchain technology and promote European stakeholders actively involved in blockchain activities. The BOF is set to work alongside established funding projects and research programs. Blockchain technology, on which cryptocurrency Bitcoin is built, is being held up by reformers in the music industry as a means of creating a fairer distribution system for content creators. Proponents say it could bring transparency to rights metadata, instant remuneration to artists, and new forms of monetization to music.

Appeals court orders new trial in Cox–BMG copyright infringement case
US ISP Cox Communications and music rights management company BMG must face each other again in a copyright dispute, following a decision by a Fourth Circuit panel of judges to remand for a new trial. Cox was sued for copyright infringement by music companies BMG and Round Hill Music in 2014. Round Hill was removed from the case on the grounds that the publisher had not proved exclusive ownership of the rights to the music cited as being infringed. A Virginia district court ruled at the end of 2015 that Cox was guilty of willful contributory copyright infringement and awarded BMG $25m in damages. The ISP appealed the decision, but the district court dismissed the claim. Cox subsequently filed an appeal with the Fourth Circuit. That court has now upheld the district court’s decision that the ISP is not entitled to the safe harbor protection defense, but ruled that a new trial must be held because of certain errors in jury instructions.

New York court rules no copyright infringement in U2 plagiarism claim
A New York federal judge has ruled that U2 did not copy any part of English songwriter and performer Paul Rose’s track Nae Slappin for the creation of the band’s hit song The Fly. Rose had claimed that U2 had infringed his copyright by willfully copying fragments from his track to create a guitar solo for The Fly. However, the judge found that Rose did not plead a plausible claim of infringement and that his claims were too vague. The judge also said that no reasonable juror listening to the entirety of the two songs could find that they were similar. Most music plagiarism cases rarely reach court given the difficulties for authors in establishing whether another author has copied their work. Equally problematic is the cost of bringing cases to court, particularly given that an accused will often have significant resources with which to defend any claim.

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New issue of Music & Copyright with Netherlands country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

Subscriber growth, artist moans, and missing royalties cap an interesting week in streaming
Over the course of just a few days, developments in the music subscription sector have illustrated both the potential for growth for music access services and the problems faced in convincing some in the recorded music industry that their future is in safe hands. First, Apple announced some fairly impressive metrics for its four-month-old Apple Music service, and then came news that Spotify had pulled the catalog of indie label Victory Records from the service because of a dispute over publishing royalties. Claims from copyright administration service Audiam that millions of dollars of authors’ royalties was missing followed, along with a couple more artists complaining that their streaming royalties were unacceptably low.

Aurous teases the RIAA into a restraining order and copyright infringement lawsuit
Unlicensed music streaming service Aurous has quickly found itself in hot water after drawing the ire of the US trade body the RIAA. Three days after launch, the RIAA served Aurous with a copyright infringement lawsuit and gained a temporary restraining order. In the run-up to launch, the service’s creator Andrew Sampson publicly championed the technology behind Aurous, which allows users of the app to stream content via the BitTorrent network. Concerning for music companies is the fact that Aurous’ app does not use any external servers and so is almost impossible to shut down. A hearing at the end of October will determine whether the restraining order remains in place and when the copyright infringement claims will be heard in court.

Music artists and firms look to the blockchain to reform a “broken” system
Blockchain technology, on which leading crypto-currency Bitcoin is built, is being held up by reformers in the music industry as a means of creating a fairer distribution system for content creators. It could bring transparency to rights metadata, instant remuneration to artists, and new forms of monetization to music. The blockchain – as it is often referred to, in the singular – is a nascent technology that not many outside geeky developer circles know about or understand, but which has a huge disruptive potential and which, in recent months, has begun to make its presence felt in the music industry.

Netherlands country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Netherlands music industry profile. The Netherlands, like most European music markets, has suffered big falls in recorded music sales in the past decade or so. Download sales went some way to countering losses from falling CD sales but the rate of the demise of the once popular physical music format pulled total trade revenue down. That was until 2013. Although download sales went into reverse for the first time, a big rise in consumer interest in music subscriptions meant trade revenue from recorded music increased for the first time since 2009. Last year, trade income edged down slightly but streaming sales were again positive and hopes are the market will return to growth in 2015. Total authors’ rights increased in 2014 with both performance rights society BUMA and mechanical rights collections by STEMRA rising year-on-year. The live industry experienced a difficult year with ticket sales down on 2013 and the buoyant festival sector is showing signs that it is heading towards the saturation point.

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