Royalty Rate: What's fair for songwriters?

The RIAA, labels, and Digital Media Association (DiMA) are back at it again -- trying to dictate who gets what in the wonderful world of the music industry. This time they're taking on songwriters.

The Copyright Royalty Board is meeting to determine which, if any, royalties need to be adjusted. The RIAA and DiMA are insisting songwriter royalties need to be at least cut in half. The reasoning? Because the music business can't be "saddled with additional, excessive costs". Coming from a label, that's actually pretty damn funny, or maybe the hookers and blow get filed under "operating expenses".

The excessive cost? 9 cents a song.

The labels' argument is that the rest of the business has taken such a hit that songwriting and publishing should cut their rates as well. That's sort of like saying that because your local grocery store couldn't figure out how to adjust to a changing economy, food suppliers shouldn't charge them as much.

Songwriters have one form of income, and that is the royalty. Record companies have plenty of revenue streams, whether they admit to it or not.

The DiMA takes it one step further and questions whether songwriters and publishers deserve any royalties period. They claim that since streamed music isn't permanent and doesn't leave a physical copy of the song, royalties shouldn't apply. Uh, ever heard of the radio?

And just like kids used to tape songs off the radio, there are plenty of ways to capture streamed music and convert to a "permanent" copy.

Read some more of the story at The Hollywood Reporter: Sides Chosen in Royalty Tussle, and another good analysis at Wired: What Better Music? Don't Stiff The Songwriters

Record Industry vs. The People sounds off as well.

Music News Link Blast

Lots going on in the music world the past couple of days and little more I can contribute beyond throwing some links out there:

• My Fair Copyright for Canada Principles (Michael Geist) - Canadian Copyright activist spells out what he would like to see in Canada's new copyright laws. Excellent read.
• No iPod tax for Canada (George) - blogger with a good breakdown as to why the iPod tax being scrapped (good thing) had lead to a bit of a limbo for copying music (very very bad thing).
• Reformed Copyright Laws Shouldn't Suppress Creativity (Vancouver Sun) - Great great great column on the American DMCA is holding up technology by restricting use of devices, and how close Canada is to joining the US on that slippery slope.
• Canadian Copyright (The Talking Shop) - an excellent breakdown as to why the Songwriter's Association of Canada's copyright plan isn't the answer either.
• EMI Cutting Jobs and Artists (Charley Rogulewski) - some of the specific numbers in EMI's cutbacks, and a link to EMI's current roster so you can try to guess which act will drop next! (Bonus points for guessing who initiates the split -- the musical act or EMI)
• Rolling Stones Plan Universal Music Release, Potentially More (Digital Music News) - not exactly breaking news on its own, but tacked onto the list of top artists leaving EMI, it certainly adds to the speculation.
• HMV Recovery Boosted by Xmas (Press Association) - Great news! I imagine this doesn't include their North American stores, but HMV has done some amazing work with their UK retail locations. Glad to see it's paying off.
• Music World Braces for a Low-Wattage Grammy Night (New York Times) - The Grammys haven't been relevant for years, but the industry could have used a big Grammy night boost.
• Recording Industry Should Brace For More Bad News (Cnet.com) - Another excellent read on the state of the music biz, specifically looking at the various top-notch artists bolting from the major labels. Also gives a good explanation of what the "360 deal" is.
• Music Industry Press Release, RIP (Globe and Mail) - Columnist take some easy shots at the music biz (fish... barrel), but does make a great point: With all the new ways of marketing online, why is Virgin sending press releases about new releases?
• RIAA Makes Third Sweep at UT (Knoxville News Sentinel) - Meanwhile, it's business as usual for the RIAA.

EMI to leave the IFPI?

Variety reports that EMI has filed a letter to leave the International Federation of the Photography Industry, better known as the IFPI, even better known as a thinly-veiled spin-off of the RIAA.

From the Variety article:

Following the guidelines of the Intl. Federation of the Phonographic Industry, EMI sent a letter the last week of December to IFPI leadership stating that the company would file to leave the org if the structure and aims of the IFPI are not aligned with the interests of EMI.

A source close to the negotiations said all four major labels are in talks with IFPI about altering its course.

The article goes on to say the big 4 labels are possibly going to push some sort of consolidation of the IFPI and RIAA, which actually makes a lot of sense. Why on earth would the oh-so-cash-strapped labels continue to fund two organizations doing the essentially the same thing (and neither particularly effectively)?

Some seem to think this shows EMI is dissatisfied with the actions of the IFPI. Nah, I think we'll see the RIAA continue as always. It's all about money. Again.

RIAA: "Unfairly maligned"?

There's been a lot of chatter in the blog sphere about the RIAA and the concept of ripping. I've stayed away because I didn't feel the need to add to the choir. Suffice it to say, much as I despise the RIAA and their tactics and completely misguided approach to a changing industry.... they never said ripping was illegal.

CNET sums it up very well, in a simple and direct article documenting who said what and when: Washington Post sticks by RIAA story despite evidence it goofed.

Ripping and then adding to a shared folder... that's a whole different story. I'm a little scared to find out what the RIAA considers a shared folder.

It doesn't end

I realize this is probably old news to most, but check out this email conversation between a blogger and a member of the IFPI (International Federation of the Phonograph Industry -- which by the way, is not once spelled out on their "official" site -- WTF?).

By the way, the IFPI web site also neglects to mention the story circulating that EMI is thinking of cutting their funding of the RIAA.