In this commentary from Techdirt, Mike Masnick responds to the recent jury decision that Katy Perry’s song “Dark Horse” infringed Flame’s “Joyful Noise”. Short Run Sound Exchange along with Record Companies license the exclusive rights on behalf of copyright owners in a sound recording (which is separate from the copyright in the underlying musical works that BMI represents) under U.S. Phonographic Industry http://www.ifpi.org/site-content/antipiracy/piracy_watch_current.html. Read on for 12 of the most infamous copyright infringement cases in pop music history. In the following I will analyze, whether copyright laws themselves are efficient or not.  See § 53 par. Concluding remarks, VII. b.  For instance in criminal law in order to deter people from committing a crime. Furthermore it raises the transaction costs of implementing and enforcing the laws due to unsuccessful trials by state prosecutors. a. Transaction Costs This practice of course provoked heavy reactions by consumer associations which brought this to court. While music labels employ questionable methods in order to protect their copyrighted works, pirates seek for shelter in non-copyright-enforcing countries, since the internet is everywhere but laws face geographical constraints. The Notion of Copyright and its Economic Aspects With the invention of the first popular MP3 encoder in 1994 it was able for the then still rather advanced computer user to encode his or his friends’ music CDs into this digital format.  In March 2004 there have been dozens of nationwide house searches including confiscations of several PC systems of users connected through a music and movie sharing network. Besides these legal approaches to control the use of a musical work, there are several technical efforts made in order to keep control over the use of music. In this course taught by E. Michael Harrington, students will learn the basis for copyright including what is and is not covered by copyright law. Thus the two major philosophical foundations of copyright are first to provide a reward for useful labour and second to acknowledge the personality of the creator. Thank you to everyone who completed my survey “Perception and attitude of musicians toward copyright”. Since this rather generous gift of the respective intellectual property regime to the author guarantees him a reward for his efforts it is argued that he therefore has an incentive to create at all. b. Renewable Copyright Terms Then it was discussed whether the service provider infringes copyrights by granting two parties to send MP3 files over their servers. Basically this is influenced by the labour theory of John Locke. The initial copyright term was 14 years, once renewable by the author for another 14 years. The survey is now closed to new responses.  See for instance Lord Mansfield’s statement in Sayre v. Moore  102 Eng.  “To rip music” = to encode audio into MP3. 4. The message for “pirates“ is to establish servers in these non-cooperating countries in order to peacefully run their business. aa. Therefore I recall basic theories why we have copyright at all and then analyze the current copyright law regarding the music industry. See Peter Cohen in PCWorld PyMusique Author Hacks Apple's ITunes Fix http://www.pcworld.com/news/article/0,aid,120146,00.asp [last visited 4.8.2005]. Thâ¦ Since 1999, they claim, the balance was gone and Napster is responsible for around 30% decline in music sales. The author has to be fed since his creative work is useful for the community. This author’s right protects “the author in his intellectual and personal relation to his work”.  The average file-sharer has to pay around $ 4000. (part 3) September 4, 2019 â Leave a comment. The court held that a peer-to-peer service provider might be liable for copyright infringing behaviour of his users if he “promotes its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, going beyond mere distribution with knowledge of third-party action, …, regardless of the device’s lawful uses”. Namely without a copyright the initial distributor would have to invest a lot money while the others just free ride on his efforts and simply copy and sell the same CDs for an accordingly lower price, since they did not have to spend money on advertising and recording the music etc.. ideas that can be expressed in very limited ways, Why Independent Musicians Are Becoming The Future Of The Music Industry. Music publishers may provide value for composers because these companies seek to promote the use of compositions in their catalog for use in films, television, advertising, ringtones and video games in addition to sheet music and music books. 8 of the Constitution. For instance Russian prosecutors had decided not to pursue [AllofMP3.com] with legal action because Russian copyright laws only cover physical media such as CDs or DVDs and not digital files such as MP3s although it would have obviously been a copyright infringement under western laws; the Russian server offered and still offers mostly western music for discount prizes to its international customers without having valid licences. The News Herald recently posted an article about copyright infringement in the music industry. - It only takes five minutes 00-16401, U.S. Supreme Court. In the U.S. the basis of copyright is already written down in Art. By Claudia Rosenbaum. By this the media industry tries to establish a contractual clause - additionally to the existing copyright laws - to the purchase of a CD or DVD in order to claim compensation on the grounds of the breach of a contract, if a CD is copied anyway. the rights in the music and the lyrics, the sound recordings, the performance and the published editions, together with the rights underlying the merchandising, are the source of the money that flows through the music industry. Using Musical Works You can use a musical work for certain purposes such as educational use, research or study or criticism or review. In fact new technologies based on Internet changed the situation for the classic business model of the music labels dramatically. However this was not the end of file sharing activities via the internet.  Rather so-called pirates; since the early inventions like Eastman`s flexible film or Armstrong`s FM radio technology modern entrepreneurs introducing revolutionary technology which were likely to threaten the traditional market models were always accused of pirating copyrighted goods by the old fashioned business. The music industry has an intricately woven relationship with the movie industry. Thus for now it can be assumed that in the near future avalanches of law suits against other peer-to-peer providers will be filed and the stars of online file sharing might fall. Therefore copyright in the U.S. is mainly a commercial right and no personal right. The dilemma given above shows that there are due to legal and technical constraints as well as uncertainty many weak points in current copyright policies. Concluding Remarks, V. Towards a “no rights reserved” Since the reform of the German Copyright Act due to the EU Copyright Directive in September 2003 it is much more likely for copyright infringers not only to be liable by civil law but under criminal law. Pirates v. Business In other words I will trace the roots of copyright and see, if there are other ways to reach the same goals copyright exists for maybe even better and at lower costs for the society. This claim however was as well not approved by any courts and hence belongs to academic legal history. Alternative Compensation Model the code Conclusions This course will help clarify what rights artists have as creators as well as what the public is free to take from their work. Unlike the existing literature I will therefore consider current copyright policies in major markets which I will shortly introduce. The internet is a superior technology for the delivery of media and can inspire new business models in the music industry; iTunes is only one example of a successful digital music marketplace. Thus technical protection in the fast changing world of the internet is a rather useless and hence costly fight like the one of Don Quixote against the windmills. Should copyright holders instead join the ones they can not beat anyway? The message for copyright holders is to face the reality and give up the dream of a globally enforceable copyright. Quite comprehensible there is uncertainty among users which will in doubt rather deter them from music swapping than the other way round. Letâs imagine youâre creating a training presentation for your coworkers and you want to use music within it.In this situation, you may need to obtain a license to use the music. Possessing a MP3 music collection on the PC was simply cool on private parties and for most people practical, since their music collections now needed much less space than in tangible form and have been available via one click on the screen like a modern jukebox. In my thesis I try to give some insights into the current dilemma, discuss the most appealing proposals advanced by legal and economic scholars and, finally, provide my own suggestions without neglecting the current political circumstances. Is it every MP3 file which does not stem from the official webpage of the artist e.g. So far no real threats to the music industry, since digital copying was no mass phenomenon and CD sales have still been up. Music is created every day in all forms, whether itâs a radio jingle, a new number-one hit or a film soundtrack. Major Economic Impacts of Copyright Laws Therefore I recall basic theories why we have copyright at all and then analyze the current copyright law regarding the music industry. Journalist, Jonathan Henley, talk about how using older music and changing it is the way that music evolves. In 1999 Shawn Fanning, then a student from Boston’s Northeastern University, released Napster; the first popular peer-to-peer file sharing network. . Musicians, producers, copyright holders and others working in the music industry will find this an indispensable and easy-to-use resource for navigating all aspects of music copyright. Optimizing Copyright Enforcement 8, cl. Before the reform of the German copyright code in 2003 there have been some scholars that said even the process of encoding audio into digital format infringes copyright since it changes the consistence of the original work. [see Lawrence Lessig Free Culture Chapter 4]. It is argued, that without the copyright - the right to copy - nobody would invest in establishing a costly distribution system including the production of the CD, the necessary marketing and last but not least creating, maintaining and expanding the network of retailers (the so called ‘middlemen’) who sell the CDs to the customers. This post and the following ones will discuss the respondents’ opinions about copyright. However I will not join the discussion whether online file sharing is responsible for the decline in record sales. 2. In this piece, Debbie Egel wades into the muddy waters of copyright infringement in the music industry, explaining how it works and how you can â¦ 4.) Then I will shed some light on the basic foundations of copyright, its economic impacts and of course its inefficiencies according the music business. 1. Assume the common hard disks nowadays come in sizes of 80 GB, one could save up to 27306 songs or 1950 albums on it. It was argued that the technique of cutting one MP3 file in fragments and partially saving these fragments on the respective servers is an illegal change of the original work and thus infringes copyright. An example of this is the “Blurred Lines” case, in which Pharrell and Robin Thicke were accused of copying Marvin Gaye’s “Got to Give it Up”. I, sect. The Registry and the Logo 3. Predictably, lawsuits have followed, as have copycat services, but Napster believes it is protected against copyright infringement by an act that was pushed through by the music industry â¦ 3. Independent musicians are actually the fastest-growing segment of the global recorded music business. Basic foundations In the music industry, there are a lot of grey areas as to what belongs to who, and how much control artists have over their own work. Most of the claims were approved by the courts or ended in settlements. However the development of computer speed and capacity made it more and more feasible for the average computer user to rip his or her own audio music. Jacquelineâs outstanding skill set as a lawyer or her extensive background in the music industry that proved most valuable for this project, but either way she has produced a report that is fair, rational, and forward -thinking, a fitting framework for a field as culturally beloved and economically important as music is to the United States.  MGM Studios Inc. et al v. Grokster Ltd., No. Please watch! He claims it is a way for younger generations to connect with the music of the past. Finally more and more people connected to these peer-to-peer communities and shared more and more music online. Copyright has little – if any – impact on the incentives for creating music The notion of Copyright is a comparatively rather young one. . It was created to significantly reduce the size of space needed for a digital file representing audio while ensuring the quality of the song to the listener. The music industry of course makes these new technologies responsible for their decline in sales while others argue that the new technologies moreover offer great opportunities for the industry to expand their markets. So itâs good to know where you stand before agreeing to things that may put you in a position youâre not comfortable with later on. dd. The decision and award of damages was widely criticized.  Even Apple’s iTunes was hacked twice although it claimed to have the most secure copy protection available. a. These possible legal consequences are of course much more severe than under former copyright law since they allow imprisonment as well. In the following I will try to explain this disturbing news. However, it is important to askâ¦ All recordings of music are protected by copyright for at least 70 years from the date they are created.In Australia, copyright in a recording continues for 70 years after the year of first commercial release, even if this is some years after the year in which the recording was made.  80 GB = 81920 MB : 3 MB = 27306 songs = 1950 albums with an average of 14 songs each. to promote the progress of science and useful arts, by securing for limited time to authors and inventors the exclusive right to their respective writings and discoveries". 1/10/2020 ... it will restrict copyright protection of pre-1978 works to sheet music â¦ Musicologist and Berklee professor E. Michael Harrington called the decision “just crazy.” The verdict was upheld on appeal. After abolishing the royal printing monopoly, the so called Stationer’s Company, in 1694, the way was cleared for this first copyright law. After a bit of a break, Iâm back to continue reporting on the results of my survey, âPerception and attitude of musicians toward copyrightâ. Copyright protection in the media and especially in the music industry is a widely discussed topic since several years.  BBC of 8.3.2005 'Legal okay' for Russian MP3 site. Changing the Scope of Copyright Laws However in the following it will be shown, if we actually need copyright in order to set the incentives given above. In case the reader has not realized so far: there is a “terrorist war” on the file-sharers going on right now, as Jack Valenti martially stated. 1. Hence this questionable legal practice of music labels is likely to be not successful in the long run. In other words I will trace the roots of copyright and see, if there are other ways to reach the same goals copyright exists for maybe even better and at lower costs for the society. From my own experience with German copyright law I can say that most cases of music down- or uploading are difficult to subsume under the code even for specialists. This did in the first place not apply to peer-to-peer networks that are in opposite to Napster decentralized.  For a good overview on the philosophical background see Peter S. Menell Intellectual Property: General Theories Levine’s Working Paper Archive 2003. If you are a musician, the copyright of a composition must be separate from the recording, therefore you must copyright both. So called Digital Rights Management approaches try to secure files by copy-protection tools or watermarks. This enables the holder of the copyright to exploit his creation by charging prices through a licensing system. The advent of broadband access and increasing computer power aggravated this development in the eyes of the music industry. Various interests had to be considered. It says "the Congress shall have power . Rep. 139a: “We must take care to guard against (…) that men of ability, who have employed their time for the service of the community, may not be deprived of their just merits, and the reward of their ingenuity and labour;”,  § 101 U.S. “Gone too far”: Is the music industry its own worst enemy?  Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society. Beyond the contradicting claims of the two parties involved there are actually legal and technical constraints of copyright and its enforcement. A copy of the original survey instrument can be found here. Unlike the industry would like to, copyright holders simply can not determine every single possible use of their works. Not only fort he sake of the development of our societies they wisely decided to do not so. A published edition of a musical score is protected by a separate copyright, as are new arrangements, even if the copyright in the underlying musical work has expired. II. However when it comes to the many times more raised question of downloading the answers are not able to clarify the current mess. A blog about copyright in the music industry. These videos are aimed towards students, but they are useful for anyone trying to get their head around copyright as it applies to musical works in the United States. i. From the comments section of Masnick’s article, it looks like Techdirt readers agree with his assessment that the recording industry is shooting itself in the foot in trying to expand what copyright can or should cover. Creative Commons or let the artist decide For users on the other hand the situation is not much clearer. This protection ensures composers, recording artists, producers and other creatives are sufficiently recognised and recompensed for their work. After a bit of a break, I’m back to continue reporting on the results of my survey, âPerception and attitude of musicians toward copyrightâ. . This service actually enabled its users to share their digital MP3 music files and thus made music freely available online for those who joined the community. So far still a rather non public thus private activity which cost a lot time for the so called “rippers”. the licence Dozens of forums in the internet try to shed light on the often raised question whether up- or downloading of MP3 files is legal or not. Adjustments of Current Copyright Laws However these technical attempts become rather soon out-of-date since they are quickly hacked or circumvented by specialized groups. After the expiration of either the first or the renewed term the work fell into the public domain for everybody’s use.  See for instance Raymond Shih Ray Ku – The creative Destruction of Copyright: Napster and the New Economics of Digital Technology, 2001 or Akerlof et al. The Copyright Term Extension Act: An Economic Analysis, May 2002. level of familiarity of respondents with the Music Modernization Act of 2018. The obvious reason would be that this is all due to piracy. Most of them conclude that uploading is illegal. In 1995 and 1996, global music sales were close to 40 billion dollars annually. ii. 1698. How should international governments and music industries react to widespread copyright infringement? However until now state prosecutors and enforcement authorities did not make use of these laws since they are still not sure in what cases they apply. Music copyright law is important for every singer and musician who want to know how to copyright a song. 5 Legal Cases That Could Change the Music Industry In 2020. On the other side the MPAA as well as the RIAA supported by some musicians such as the band Metallica filed one suit after another and turned their legal guns on users and lately owners of websites providing peer-to-peer services. b. What is meant by obviously ? I rather will show that the new technologies being introduced offer great chances for new ways of producing and distribution of music, no matter the impact it has on the old and out-dated business models by selling CDs. Over the next few posts will summarize some of the interesting findings and what they might mean for promoting awareness of copyright amongst people in the music industry. Thus the main reason for copyrights in the U.S. is granting the artist an exclusive right to exploit his or her work in order to set financial incentives to create more respective artistic work. Changing the length of copyright The goal of my research and of this blog is to help make it accessible. Consequently the almost logical argument by the RIAA was that these file sharing activities heavily infringe copyrights and threatens the music industry as well as the recording artists, since neither of them gets compensated by these pirates. Offered by Berklee College of Music. While Pharrell and Thicke admitted to trying to replicate the groove and feel of the original song (and of Marvin Gaye and 1970s R&B in general), they denied copying any specific elements. 1. copyright & music â the basics copyright is fundamental to earning i ncome in the music industry. Music Copyright Infringement Is Beginning To Make Sense Again In general this exchange between friends falls under fair use. In copyright law however uncertainty in the scope of fair use is simply no longer fair to the user. 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