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RIAA Claims Ownership of All Artist Royalties For Internet Radio

ISurfTooMuch writes "With the furor over the impending rate hike for Internet radio stations, wouldn't a good solution be for streaming internet stations to simply not play RIAA-affiliated labels' music and focus on independent artists? Sounds good, except that the RIAA's affiliate organization SoundExchange claims it has the right to collect royalties for any artist, no matter if they have signed with an RIAA label or not. 'SoundExchange (the RIAA) considers any digital performance of a song as falling under their compulsory license. If any artist records a song, SoundExchange has the right to collect royalties for its performance on Internet radio. Artists can offer to download their music for free, but they cannot offer their songs to Internet radio for free ... So how it works is that SoundExchange collects money through compulsory royalties from Webcasters and holds onto the money. If a label or artist wants their share of the money, they must become a member of SoundExchange and pay a fee to collect their royalties.'"

10 of 458 comments (clear)

  1. when I was a young boy by yagu · · Score: 5, Interesting

    When I was young, my Dad told me the RIAA was good because they took care to ensure our music was reproduced with as high fidelity as possible. For example, the RIAA worked with the recording industry to establish techniques and standards for "storing" bass on vinyl by attenuating it, but incorporating offsetting amplification to restore the bass to its correct presence allowing for more music on a single vinyl disk. Thus the RIAA was there to ensure or help ensure the best possible music experience.

    Oh how things seemed to have changed. I don't know if my Dad was correct (I didn't do the research), but regardless, the RIAA certainly seems to be the antithesis to the "old" RIAA. Today the RIAA sounds more and more like organized crime, except that to date, for some reason, every thing they do seems to be deemed legal.

    So, it seems the RIAA has become evil. It's probably time people tried to fulfill their musical quests elsewhere as much as it may be possible. If you still need and want to listen to Janet Jackson, so be it, but:

    Someone on slashdot turned me onto this before, I feel it important others check it out... I've signed up and have been a member of emusic for a while now, and now have over 300 non-drm'ed mp3s and love it. And, I don't have to worry about the RIAA, at least I don't think I do. After reading their staked "claims" in the article, I'm not so sure. Regardless, should it actually be so, check emusic out.

    1. Re:when I was a young boy by omeomi · · Score: 4, Interesting

      For example, the RIAA worked with the recording industry to establish techniques and standards for "storing" bass on vinyl by attenuating it, but incorporating offsetting amplification to restore the bass to its correct presence allowing for more music on a single vinyl disk. Thus the RIAA was there to ensure or help ensure the best possible music experience.

      I believe what you're referring to is usually called RIAA equalization, or the RIAA curve.

    2. Re:when I was a young boy by NoTheory · · Score: 5, Interesting

      Try again, AC :P

      I'm not clear that this would fall under RICO, and none of my lawyer (or law student) friends are awake at this hour. I'm not clear that you're allowed to take payment for someone who has not given you the right to do so. I'm certain that such a scheme could be legalized by the US Government (i.e. designate a single authority to handle some particular issue [ICANN for instance]), but a random corporation just reaching out and grabbing it is pretty fucking brazen. But given their relations with their sock puppets over at FCC, it's still a possibility i suppose.

      --
      There are lives at stake here!
    3. Re:when I was a young boy by Workaphobia · · Score: 5, Interesting

      > "Someone on slashdot turned me onto this before, I feel it important others check it out... I've signed up and have been a member of emusic for a while now, and now have over 300 non-drm'ed mp3s and love it. And, I don't have to worry about the RIAA, at least I don't think I do."

      eMusic comes up regularly on Slashdot, and every time it does, I try to mention Magnatune.com. Yes, eMusic has DRM-free music and a decent selection (from what I hear, I never subscribed), but Magnatune has that plus the ideology. While the former got rid of DRM as a business decision in order to enter an under-exploited market, the latter is actually trying to change the face of music in the internet age.

      Magnatune's policies include: No DRM, multiple free formats, medium quality songs distributable for free (the full-length samples are Creative Commons licensed!), choose your own price, 50-50 split between label and artist, and more. Check out the info link for details.

      Disclaimer: I am not affiliated with Magnatune, I simply am a very satisfied customer.

      --
      Evidently, the key to understanding recursion is to begin by understanding recursion. The rest is easy.
  2. Its madness by Dr.+Eggman · · Score: 4, Interesting

    There exists a line. A line between everyday villainy and cartoonish supervillainy. The SoundExchange didn't just cross that line, they picked it up and moved it up with them. This is just in the realm of the unbelievable now.

    --
    Demented But Determined.
  3. Re:Surely this must be a joke... by omeomi · · Score: 4, Interesting

    How could they not get slapped in court? What judge could take such a claim seriously?

    If they actually start enforcing this, I'm just going to start an internet radio station with my own music. Other artists should do the same. Just let them try to sue me for royalties on music that I wrote/recorded/produced.

  4. Re:All your base... by spyowl · · Score: 4, Interesting

    There are things called contracts which point out who the copyright owner is of a certain intellectual property (music). The RIAA cannot claim that it owns royalties of something it does not own.

    Doesn't matter. There are laws in many countries that mandate that certain portion of the sale price of a recording device, or a recording medium go to RIAA or their respective equivalent in that country. You could claim all you want that you never recorded or dealt with an RIAA copyrighted content and you never recorded any of it using that device or medium you purchased, but that doesn't exclude you from the RIAA tax - you still have to pay it.

    The same general principle could apply to the Internet radio and given that it has successfully worked for the recording devices/media, there is no guarantee that all of a sudden lawmakers in all countries, including the U.S., will come to their senses and deny the RIAA their "right" to purchase their share of legislation.
  5. Mod parent up. by Animats · · Score: 5, Interesting

    Mod parent up. The original article reflects a complete misunderstanding of the compulsory license system. It's compulsory against owners of rights in sound recordings. They have to grant a license whether they want to or not. However, there's nothing prohibiting owners of sound recordings and a distribution service of whatever type from making a deal outside the compulsory license system.

    For example, someone could set up a Free Music Foundation to offer free licenses to Internet radio stations, unknown bands could grant distribution rights for their stuff to the Free Music Foundation, and Internet "radio stations" (really streaming download sites) could play exclusively Free Music Foundation material, without any compulsory license or statutory royalties.

    Or, at the other extreme, you could have Payola Internet Radio, where bands pay to put their stuff on the stream. Again, no statutory royalties.

    This isn't a big issue in the industry. The big issue with compulsory licenses right now is whether they apply to ringtones. The Copyright Board said they do last year, which makes ringtones much cheaper. The Harry Fox Agency is dragging their feet on this, but it's now established that if you download an entire song and use it as a ringtone, that's covered under the compulsory license. Arguments continue about using only part of the song.

  6. Re:RIAA Curve by scalarscience · · Score: 5, Interesting

    The RIAA was lawyers back then as well. The reason that the phono preamp filter/eq has the name 'RIAA curve' is because they PATENTED it and used it to control who had access to recording technology able to cut vinyl using their patent. There were several successful recording studios in Texas and Louisiana who recorded some well known Jazz artists due to the 'Hollywood effect'. Ie, they were far enough away from the upper East Coast that they were able to avoid the long arm of the RIAA and so artists would go there to get recorded when they couldn't in NYC or surrounding areas.

    Sounds like an apt forerunner of the RIAA we know today...

  7. Re:RTFA by Sledgy · · Score: 5, Interesting

    I'd like to point out that I'm not a US citizen, I don't live in the US, I've never been to the US and the US Govt cannot assign away anything that is mine to a US organisation. In fact I am going to change the copyright of my music to state that it is open to be copied, played (on any device), sampled provided the copyright is attributed EXCEPT by any agent, member or affiliate of the RIAA.

    I have a very strong dislike of this crowd, and they have absolutely no right to collect royalties on anything I produce or allow to be played by on an Internet radio station.