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Copyright Board Lawyer Responds On Pandora's End

mattnyc99 writes "A month ago we talked about the impending death of streaming music site Pandora thanks to a very backwards fight over royalties. PopMech follows up with an article that, besides noting how insane it is that Pandora has to pay record labels for the bad songs that users skip, also gets the (three-member) Copyright Royalty Board to try and defend itself about why the government is determining royalty rates for the music industry. Quoting: 'It was uninvited,' says Richard Strasser, senior attorney for the Copyright Royalty Board. 'I don't think anybody was jumping up and down with joy in the government that they have this responsibility, but the former systems just weren't working out.'" No one seems to be trying to defend or explain why Internet radio is being hit so much harder than satellite or broadcast.

41 of 174 comments (clear)

  1. Well, hell by Creepy+Crawler · · Score: 2, Insightful

    Why doest Pandora just strike up with indie studios and go mono e mono with musicians for play rights?

    And if Congress is forcing internet radio companies to pay to some RIAA-hole, countersue them under RICO. After all, they're pooling their money. And isnt payola illegal?

    --
    1. Re:Well, hell by clang_jangle · · Score: 2, Funny
      mono e mono

      Unless you were referring to simulated stereo, you mean "mano a mano".

      --
      Caveat Utilitor
    2. Re:Well, hell by Red+Flayer · · Score: 4, Interesting

      Why doest Pandora just strike up with indie studios and go mono e mono with musicians for play rights?

      Because the demand for indie music is dwarfed by the demand for big-label music. I know I'd stop listening to Pandora most of the time if they stopped offering music from the 70s and 80s that I listen to the most.

      And if Congress is forcing internet radio companies to pay to some RIAA-hole, countersue them under RICO. After all, they're pooling their money. And isnt payola illegal?

      Please explain exactly how the RIAA could be prosecuted under RICO. I don't mean to pick on you, but I often see remarks that the RIAA should be prosecuted under RICO, and I have yet to see a clear analysis of how exactly they violate RICO laws. And as for payola, this is the opposite of payola. The big labels are not paying for airtime.

      What I'd like to see is an anti-trust suit against SoundExchange. We won't see one, of course, because it'd be political suicide to take on the RIAA when they own the political system.

      What I'd really like to see is a retreat from fascism (call it corporatism if you like), but that sure as hell isn't happening any time soon.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    3. Re:Well, hell by Firehed · · Score: 4, Insightful

      Yes, payola is illegal. It's also standard operating procedure, and nobody gives a damn that it happens (or nobody in a position to do anything, at least).

      And let's face it - Pandora wouldn't be nearly as successful as it has been if it could only play indie music. Say what you want about quality, but there's a tremendously larger audience for mainstream music, pretty much by definition (now technically mainstream and indie aren't mutually exclusive, but it tends to work out that way more often than not).

      --
      How are sites slashdotted when nobody reads TFAs?
    4. Re:Well, hell by QRDeNameland · · Score: 4, Funny

      Or it could mean 2.71828183 channel surround sound.

      --
      Momentarily, the need for the construction of new light will no longer exist.
    5. Re:Well, hell by achenaar · · Score: 2, Funny

      lolgarithmic :)

    6. Re:Well, hell by p0gue · · Score: 2, Funny

      mono e mono

      Unless you were referring to simulated stereo, you mean "mano a mano".

      "Mono a mono" means "monkey to monkey". Fitting if you ask me, considering we're talking about government regulators and corporate attorneys.

    7. Re:Well, hell by jedidiah · · Score: 3, Insightful

      If Pandora used their algorithms point you to indie music
      that you are likely to want to buy, they could very well
      completely sabotage the RIAA entirely.

      An indie-centric version of Pandora would be quite cool actually...

      --
      A Pirate and a Puritan look the same on a balance sheet.
  2. Pity by Stanistani · · Score: 5, Insightful

    I have been listening to Pandora, discovering new artists, and had begun to buy music again (most of my music collection is CDs bought in the Eighties). Guess I'll just go back to listening to my 'oldies' - I can't be bothered to keep fighting the music industry to accept my money.

    1. Re:Pity by sribe · · Score: 3, Interesting

      You wouldn't be alone. I stopped buying CDs in the early 90s; just had no source of inspiration for finding new music anymore. Someone recently showed my Pandora, and that was actually my first thought: find new music and start collecting again. Oh well, I'm older now, and wine is actually quite enjoyable to collect (& eventually consume) even though it's more expensive ;-)

    2. Re:Pity by Man+On+Pink+Corner · · Score: 5, Insightful

      I have been listening to Pandora, discovering new artists, and had begun to buy music again

      Please consider checking RIAA Radar when buying music that you find through Pandora. When you pay for content published on RIAA labels, you are literally paying people to fight against your interests as a music fan.

      If people would simply stop rewarding stupidity, the RIAA would melt like the penny-dreadful movie villains they are.

    3. Re:Pity by Darkness404 · · Score: 3, Insightful

      That is assuming that you are buying new music. if you buy used CDs you aren't supporting the RIAA at all, while still being "legal".

      --
      Taxation is legalized theft, no more, no less.
    4. Re:Pity by Firehed · · Score: 2, Insightful

      Most people's options suck. The majority of music I like is under an RIAA label, and that's true for almost everyone. Either I steal it (bad), pay for it and support the RIAA (definitely bad) even though I'm _slightly_ supporting the artist (definitely good), or I go without it entirely (bad).

      Unfortunately, I'm not giving up the music. So I either have to steal it (and risk getting sued) or have to support the very organization that spends all of its time working against me and itself. Which would you suggest? I've done both, and don't really care for either option. If pirating it and donating directly to the artist was an option I'd do it, but that's never the case for RIAA-signed artists.

      --
      How are sites slashdotted when nobody reads TFAs?
    5. Re:Pity by Adambomb · · Score: 2, Informative

      You present the problem that many find themselves in, but thats merely because you're working off the assumption that there isn't much non-riaa controlled music out there (there's lots, its just not as easy to browse). Granted, it's not publicized as well but there are a lot of good suggestions in this older thread.

      People often forget the option of searching for independent groups for genres they enjoy and paying the group (good) without it going anywhere near the RIAA (also good). Remember if you find yourself saying "oh it's just too much effort keeping track of who is RIAA and who isnt technically", this is a STRATEGY of the riaa not a failing of the independent artists who remain unaffiliated in any way.

      --
      Ice Cream has no bones.
    6. Re:Pity by Man+On+Pink+Corner · · Score: 2, Interesting

      Which would you suggest?

      One possibility is buying "carbon offsets." For every $10 you give to an RIAA label, give another $10 to the EFF or a similar organization that stands up for consumer rights.

    7. Re:Pity by Ledgem · · Score: 2, Informative

      You raise a good issue, and I'm somewhat surprised that nobody responded to you with this solution yet: go to a used CD store. You'll get to own the physical product, you'll likely pay much less, and none of the money goes to the RIAA. I often shop at a Japanese used CD and book store called Book Off - I've purchased many CDs from their $1-3 section, and they were all in like-new condition. There is only one downside to buying in this manner, and that is your purchase doesn't directly support the artist. No money goes to them, and your purchase does not boost their sale statistics. You can try to show your support in other ways if this is vitally important to you, of course.

  3. Re:Why internet radio is hit harder by Anonymous Coward · · Score: 5, Insightful

    The reason is regular people can be broadcasters on the internet. This is not very appealing to large commercial cartels. They want to make royalties not just on the content but also the the broadcasting hardware. It ain't cheap or easy to start an XM radio or regular O-T-A radio station. The commercial interests want their cut â" so they seek to drive any one out of business who is doing internet radio.

  4. There's No Explanation For A Good Reason by mpapet · · Score: 4, Interesting

    They are just waiting for the net radio enthusiasts to postulate. Then, they label net radio advocates as "extreme and uncooperative" as the excuse for not saying or doing anything.

    It's important to remember the RIAA members control distribution. Letting net radio operate at a discount or even the same rates as broadcast is a non-starter. RIAA says, "net radio is cheaper, so give me more money. Well, actually, just give me more money..." And broadcasters are quite happy with that too.

    Best stance is to let the lack of an explanation rest as is and use the FOIA, if possible, to get at communications about the issue.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
  5. The ISPs are hitting internet radio too by Yvan256 · · Score: 4, Interesting

    The ISPs are hitting internet radio too with their monthly bandwidth quotas. Once you start to pile up usage, every bit counts:

    31 days * 24 hours * 60 minutes * 60 seconds * 128 kbps (16000 bytes) = 42854400000 bytes per month. That's nearly 40 GiB of data, only for radio.

    Even if you get real and cut it back to working hours and assume 8 hours of radio per day on weekends, that's still a whopping 13.3 GiB of data only for radio.

    1. Re:The ISPs are hitting internet radio too by nEoN+nOoDlE · · Score: 4, Insightful

      who the hell listens to internet radio for 8 hours every single day in a month?If you're considering listening while at the office, that's not bandwidth you should be concerned about so that's gone. The only people we have left using that kind of bandwidth are radio junkies who need some kind of noise playing all the time and who work from home/are unemployed. That's not a very big market, and to a person who needs to listen to that much radio, 30 GB out of 250GB per month (taking the recent Comcast announcement) isn't that much.

      --
      Don't trust a bull's horn, a doberman's tooth, a runaway horse or me.
    2. Re:The ISPs are hitting internet radio too by gknoy · · Score: 3, Insightful

      who the hell listens to internet radio for 8 hours every single day in a month?If you're considering listening while at the office, that's not bandwidth you should be concerned about so that's gone.

      YOU may not care, but the people paying for uploading those bits to you (the net radio providers) certainly care if you're consuming bits that much.

  6. Re:Why internet radio is hit harder by QRDeNameland · · Score: 5, Insightful

    No one seems to be trying to defend or explain why Internet radio is being hit so much harder than satellite or broadcast.

    That's an easy one. Cause people use the internet to steal copyrighted material.

    People can't "steal copyrighted material" from satellite and broadcast?

    I think I've got a better explanation. Broadcast and satellite are channels that require very high initial investment, thus locking out small competitors. Internet radio can be set up by anyone, and thus is harder for an industry cartel to control.

    --
    Momentarily, the need for the construction of new light will no longer exist.
  7. Remember this, too... by Ungrounded+Lightning · · Score: 5, Interesting

    It's important to remember the RIAA members control distribution. Letting net radio operate at a discount or even the same rates as broadcast is a non-starter.

    It's also important to remember that the RIAA members also own most of the radio stations. The internet is their competition for earlobes, which they could otherwise sell to advertisers.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  8. simple explanation by ObjetDart · · Score: 4, Informative

    No one seems to be trying to defend or explain why Internet radio is being hit so much harder than satellite or broadcast.

    The explanation is pretty simple. If you follow the history of the battle over internet radio royalties, you'll quickly see that it is all about stream ripping. The music industry is convinced that millions of people are "stealing" music by recording streaming radio with free tools like streamripper.

    They initially attempted to get congress to pass legislation to force all internet broadcasters to use DRM in their streams. When this went nowhere, that's when they began the royalty assault. The plan is to simply force internet radio broadcasters out of business with exhorbitant royalties. Looks like it's working, too, with the demise of Pandora.

    --
    I read Usenet for the articles.
    1. Re:simple explanation by Red+Flayer · · Score: 3, Insightful

      The explanation is pretty simple. If you follow the history of the battle over internet radio royalties, you'll quickly see that it is all about stream ripping. The music industry is convinced that millions of people are "stealing" music by recording streaming radio with free tools like streamripper.

      It's not just about stream-ripping. It's also about controlling the market. Internet radio destroys the ability of the major labels to determine what music gets played, which means that they lose the marketing oligopoly they currently hold.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    2. Re:simple explanation by Red+Flayer · · Score: 2, Insightful

      I just don't believe that internet radio is really that powerful, that it really actually completely undermines the "market oligopoly" (as you put it) in some way that traditional radio (which includes thousands of small, independent, and public stations which already play whatever they want whenever they want with no input whatsoever from "the industry") can't do.

      Well, first, I believe it's an effort to nip internet radio before it competes o a massive scale. The competition is there, and making inroads...

      Second, who do you think really controls terrestrial radio? Not to get all tinfoil-hattish, but the consolidation of terrestrial radio stations has really reduced the variety of radio that's available. The RIAA companies want homogenized radio, which maximizes their profits. Clear Channel et al deliver that. Advertisers want huge conglomerate radio station networks. Clear Channel et al deliver that.

      As for the small, independent, and public stations that play whatever they want... what kind of market share do you think they have? I live in a major metro area... I have very few choices. And none that really cater to my tastes.

      Seriously, the power of the major labels derives from one thing only -- their ability to market their artists. Any threat to this ability could potentially kill their marketing power, and thus their business.

      There's a reason that current law forces internet radio stations to pay SoundExchange even for indie artists -- it's to kill off the the playtime of those indie artists.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    3. Re:simple explanation by phulegart · · Score: 3, Interesting

      I believe it is trying to destroy all of internet Radio. As has been pointed out, as late as 2005, Sony BMG was fined millions for payola to radio stations, "encouraging" them to play what THEY wanted played. http://www.globalethics.org/newsline/2005/08/01/sony-bmg-fined-for-payola-to-the-tune-of-10-million/

      Pandora offers the individual listener the potential of having music served to them that their algorithm determines should be a good match. Pandora listeners have the option of tweaking that selection with an "I like" or an "I don't like" vote. However, a Pandora listener can just as easily populate their playlist with only specific songs that THEY want to listen to.

      Traditional radio/satellite radio offers all listeners the same songs. The only choices are to change the station and hope for the best, or turn the radio off. You have to accept what you are handed. Radio stations create rotations... Pop, Heavy, Medium, Light...etc. Songs in the POPular rotation get played the most often, over and over, until they get relegated to the Heavy rotation. Songs in the heavy rotation get played more often than those in medium rotation, and those in medium... well you get the picture. What I think should be in Heavy rotation does not necessarily match what you think should be in heavy rotation. But here's a little insight for you, from my 4 years as an FM DJ. The songs in the different rotations, get their rotation designation from the music director of the station, based on what HE thinks the rotation should be. He bases his decision on things like Bilboard top 100, requests, and even his or her personal preference. Which brings us back to Traditional radio/Satellite radio is a controlled medium, where someone is deciding what is popular and what is not, and passing that info down to you.

      What is the connection to the music Industry trying to destroy all of internet radio? Are you familiar with the popular media player called VLC? http://www.videolan.org/ and give it a try. Did you know that it keeps a list of internet radio stations that you can pick and choose from? If you downloaded it (or already have it), start it up. From the top menu, hit view, and open the playlist. From the Playlist, hit Manage, and look at Services Directory. We are only interested in Shoutcast Radio Listings. There are currently 397 internet radio stations in that list. The number will vary as some are very amateur, and some are essential commercial. All are considered internet radio. The Music industry cannot exert a controlling influence over all of them to make them play what they would wish. When all you need is add a plugin to your Winamp player to turn your music collection into a Shoutcast Radio station, how can the music industry exert control over you? What they can do, is track you down by your IP address (just like a movie thief), contact you through your ISP, and have you fined for not paying for the music you play... until you make the choice THEY want, which is you see that it costs you more than you get out of having your own radio station.

      The music industry not only wants their dollar. They want the old days back where they decided what was hot and what was not, and they want to get back to those days of serving up their choices in music to the public.

      --
      "I love deadlines. I love the whooshing sound they make as they fly by." -D. Adams
  9. Another industry gets offshored by computersareevil · · Score: 3, Insightful

    Won't this just mean that there won't be any U.S. Internet radio stations? They'll either fold up or move off-shore. They won't be able to conduct any "business" in the U.S., but short of the Great Firewall of Comrizon/Vericast, the MAFIAA won't be able to stop U.S. users from streaming.

  10. Re:Why internet radio is hit harder by Shakrai · · Score: 2

    They want to make royalties not just on the content but also the the broadcasting hardware

    What's to stop me from using my choice of broadcasting hardware if I was in the terrestrial radio business?

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  11. Re:Why internet radio is hit harder by Chatterton · · Score: 4, Insightful

    Except the cost of such material, and the authorization to use some part of the radio spectrum? Hum, nothing.

  12. Re:Why internet radio is hit harder by computersareevil · · Score: 5, Informative

    1. An FCC license.
    2. Commercial broadcast hardware.

    Have you priced either? Very effective at excluding undesirables...

  13. Re:Why internet radio is hit harder by Reality+Master+201 · · Score: 4, Interesting

    It was sarcasm.

    It's just as possible. For some reason, though, the internet is the one that scares content providers. Maybe it's the democratic nature of the web, as you point out, but I suspect a lot of it's just illogical fear.

  14. Re:Why internet radio is hit harder by QRDeNameland · · Score: 4, Insightful

    They want to make royalties not just on the content but also the the broadcasting hardware

    What's to stop me from using my choice of broadcasting hardware if I was in the terrestrial radio business?

    In the USA, that would be the FCC, which operates its Office of Engineering and Technology (OET) "tasked with overseeing equipment authorization for all devices using the electromagnetic energy from 9 kHz to 300 GHz. OET maintains an electronic database of all Certified equipment which can be easily accessed by the public."

    --
    Momentarily, the need for the construction of new light will no longer exist.
  15. Re:Why internet radio is hit harder by spun · · Score: 3, Insightful

    Oh, I think the fear is very logical, for the reasons that have been pointed out. Gotta maintain that barrier-to-entry to keep the markets under firm control. Otherwise, you know, we might have a free market, and the only people who want that are the very ones being excluded.

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  16. Radio... meh by achenaar · · Score: 2, Interesting

    Am I the only spod in the universe that for ages has thought that radio sucks ass anyhow?
    Seriously, the only thing I've chosen to listen to on the radio was the Mark and Lard show on Radio 1 when I was about 14.
    Picture this proposal:
    "How about you flip on your radio and we'll play you music that you may or may not like, followed by advertisements, bullshit interviews, more advertisements, and more music that you may or may not like. How's that?"
    Compared to:
    "Fire up your MP3 player/ocremix.org/shoutcast/last.fm/google with "index of" "parent directory" thingiwannalistento.mp3/whatever else and you can hear whatever YOU WANT TO HEAR ad free, bullshit free etc."
    The very definition of a no brainer.
    I understand that the last one of my suggestions in the second proposal is effectively illegal since no money ends up in the relavent shitface's pocket, but still, how hard is that question to answer?
    Jesus, even before the internet I didn't listen to radio music because I had no control over it.
    Why should I?

  17. Re:Why internet radio is hit harder by QRDeNameland · · Score: 5, Interesting

    It was sarcasm.

    It's just as possible. For some reason, though, the internet is the one that scares content providers. Maybe it's the democratic nature of the web, as you point out, but I suspect a lot of it's just illogical fear.

    Maybe, but one argument against mere "illogical fear" can be seen if you read Lawrence Lessig's Free Culture, where he describes his experience in trying to pass the Public Domain Enhancement Act.

    The act proposed one small change to current copyright law: that after 50 years, a copyright holder would have to pay $1.00 for each ten years of it's existing copyright protection to maintain copyright protection, otherwise the work goes into the public domain. This would allow old commercially nonviable works to go into public domain after a reasonable period, yet imposes only the most trivial burden on maintaining protect for the tiny minority of works that are still commercially valuable after that period. However, the industry fought the bill tooth-and-nail and defeated it, for stated reasons you can see at the Wikipedia link which sound pretty disingenuous to me.

    I tend to favor Lessig's argument, as summarized by WP:

    "Proponents, however, have suggested that the real threat this poses to copyright holders is that a huge wave of previously unseen, unused, and forgotten works would spill into the public domain, free for anyone to tamper with. The PDEA would not compromise currently used copyrighted works like Mickey Mouse. Content that is being used, or even content whose owner is aware they 'own' it can be protected for a minimal fee. They suggest there is no reason to oppose it other than the fear of competition from the influx of new content."

    And *that* is what I think they really fear about internet radio, not that people will steal their content, but rather *compete* with it.

    --
    Momentarily, the need for the construction of new light will no longer exist.
  18. Sometimes it's not bias by Weaselmancer · · Score: 2, Insightful

    Sometimes something truly sucks, and there is no way to put it in a positive light.

    The recording industry grinding independent internet radio stations to paste being one good example.

    --
    Weaselmancer
    rediculous.
  19. Because it wouldn't fix anything by Weaselmancer · · Score: 4, Informative

    Thanks to Soundexchange.

    You have to pay royalties to the RIAA for any music you broadcast. Even if the artists you are playing are not RIAA members. They can, however, become RIAA members and get their precollected royalties, of course.

    And no, I'm not bullshitting you. It's actually law. Here's the original Slashdot thread about it.

    --
    Weaselmancer
    rediculous.
  20. Sound Exchange by tobiah · · Score: 5, Informative

    If you go to the SoundExchange website, they have a list of thousands of musicians for whom they collected revenue but have not contacted them for payment. Their right to those funds expires after a certain period of time, and SoundExchange would keep 50% in any case.
    In most case musicians would prefer to have their music broadcast as widely as possible. It is possible to opt out of representation by SoundExchange, but then the guidelines are written so that they have to waive ALL rights to revenue from that track. They can also make exceptions for particular webcast sites, which is made quite difficult and challenged aggressively.
    One exception is polka music, a group representing American polka music negotiated a broad agreement with SoundExchange that polka stations don't have to pay any revenues.

    --
    "The ability to delude yourself may be an important survival tool" - Jane Wagner -
  21. Explore Creative Commons music instead by Morgaine · · Score: 3, Insightful

    Although Pandora is often seen as the little guy fighting the big bad music industry, Pandora just repackages the output of that industry, so it's feeding the monster and helping to ensure that the money-grabbing evil continues. If we want the monster to die, we need to stop feeding it. Pandora doesn't want the monster to die, it merely wants it to eat less.

    So it's make-your-mind-up time, if you want to influence the evolution of music.

    If you really want a sea change to occur, try listening to Creative Commons music instead of commercial output. The immense repositories at Jamendo (11,955 albums) and at Archive.org (53,088 concerts, 310,685 recordings) should be enough to keep you busy for the rest of your life, but there's lots more out there.

    It's hard work, because there is nobody around to tell you what you must like, as the industry has been doing to us through radio and TV all these years. The diversity and sheer scale of Commons music is astounding, and exploring its uncharted vastness isn't quick nor easy, but ultimately your voyage will be very rewarding. Mine has been.

    But you have to take that first step yourself, nobody can help you, short of handing you a few links.

    The future really is in your hands. If everyone were to stop buying label output today, the Big 4 and the RIAA would disappear as soon as their coffers dry up, and the small labels would adapt perfectly happily because they're agile. You *can* drop your favourite chart bands if you try --- the discomfort doesn't last long, because there is no shortage of very high quality replacements. The Commons is vast, and the creativity amazing.

    The future really is in your hands.

    --
    "The question of whether machines can think is no more interesting than [] whether submarines can swim" - Dijkstra
  22. I don't think that's correct by Weaselmancer · · Score: 2, Informative

    From the initial story:

    Even if you do own the copyright to your own recording of your own song, SoundExchange will collect Internet radio royalties for your song even if you don't want them to do so.

    If you could please provide a citation where a contract overrides Soundexchange's legalized extortion? If it exists I'd like to see it.

    --
    Weaselmancer
    rediculous.