@HughPrincipal: The USMCA/CUSMA and Intellectual Property: Canada Wins

Hugh Stephens is a top IP lawyer based in Canada who makes the case for the US Congress ratifying the USMCA, an important trade agreement that will essentially replace NAFTA.

But–as Hugh notes, the legislation also includes important intellectual property (and copyright) agreements.  While Hugh’s post is subtitled “Canada Wins”, I’d suggest that if Canadian artists win, we all win.

In particular, Hugh makes the case that under USMCA, Canada is not required to adopt a version of the obscene US loophole for Big Tech in our Section 230 and also brings its copyright term into the international norm of life plus 70 across the board.   Given the recent drubbing that Big Tech lobbyists took in the Canadian Parliament, or in the Heritage Committee’s recent report, one does not get the impression that Canada will roll over on these points in the post-Cambridge Analytica world.

Hugh’s post is an excellent insight into the USMCA benefits, which I fear is about to get lost in the Washington schoolyard as we enter the election abattoir.  Here’s a teaser:

[L]et’s assume that ratification will now proceed. This is good news for Canada, since CUSMA/USMCA represents the best chance for relative trade peace with its largest trading partner. Canada fought a rear-guard action to preserve as much of the original NAFTA as possible in the face of Donald Trump’s declaration that the Agreement was “the worst trade deal ever made”. By and large, Canada succeeded and CUSMA/USMCA largely mirrors NAFTA with a couple of tweaks. However, victory is in the eye of the beholder and the new agreement, in Trump’s words, is now, “the most important trade deal we’ve ever made by far”. Among the areas where changes were made were in auto trade, where North American content requirements were raised, and intellectual property.

As I wrote at the time that CUSMA/USMCA was signed, the IP commitments that Canada made in the area of copyright were characterized by some as “concessions” but in fact they will bring significant benefit to Canada’s creative industries. Now a new paper has been published by the Macdonald-Laurier Institute on the IP provisions of the USMCA, incorporated in Chapter 20 of the Agreement. Written by lawyer Richard Owens, it is called “Who’s Afraid of the USMCA: Why the Intellectual Property provisions in the US Mexico Canada Agreement are good for Canada and its trading partners”.

 

Read the post on Hugh Stephens blog

UK MUSIC INDUSTRY UNITES TO SUPPORT THOSE IMPACTED BY THE COLLAPSE OF PLEDGEMUSIC

[Editor Charlie sez:  Nice to see industry organizations that claim to be interested in artist rights actually doing something to help.]

UK Music industry organisations including , , , and launch impact survey to aid support of artists and businesses impacted by ‘s collapse.

Read the post on M Magazine

Cookie Synchronization: Everything You Always Wanted to Know But Were Afraid to Ask

[This is a deep dive in an academic paper on some of the manipulations of your privacy data that  the Data Lords engage in routinely.]

User data is the primary input of digital advertising, fueling the free Internet as we know it. As a result, web companies invest a lot in elaborate tracking mechanisms to acquire user data that can sell to data markets and advertisers. However, with same-origin policy, and cookies as a primary identification mechanism on the web, each tracker knows the same user with a different ID. To mitigate this, Cookie Synchronization (CSync) came to the rescue, facilitating an information sharing channel between third parties that may or not have direct access to the website the user visits. In the background, with CSync, they merge user data they own, but also reconstruct a user’s browsing history, bypassing the same origin policy.

In this paper, we perform a first to our knowledge in-depth study of CSync in the wild, using a year-long weblog from 850 real mobile users. Through our study, we aim to understand the characteristics of the CSync protocol and the impact it has on web users’ privacy.

Read the post on ArxIV

@Lefebvre_Sam: Record Scratch: Upstart Oakland Vinyl Manufacturer Going Out of Business

Eagerly-anticipated West Oakland record manufacturer Second Line Vinyl is at risk of losing all of its equipment to a creditor less than two years after announcing ambitious goals to build a venue and recording studio alongside the city’s first vinyl pressing plant since the 1930s, KQED has learned.

Second Line Vinyl founder and chief executive Zane Howard confirmed that he’s struggled to attract enough investment to bring the facility into action. “We’re having to wind down,” he said. “I would say the business is in jeopardy just as it was ready to begin pressing.”

Read the post on KQED.org

The Two Years War: Google’s Polish Footprint Behind Poland’s Lawfare Against Artists over EU Copyright Directive

Poland has the distinction of being the first country to tip Google’s lawfare strategy against the Copyright Directive–sue to have the whole thing overturned by Court of Justice of the European Union, the “CJEU.”  The CJEU has, among other things, the jurisdiction to  hear an “action for annulment” filed by a EU government like NATO member Poland.

So who is in Google’s Polish footprint?  According to the Google Transparency Project, we find a few revolving door people.  Want to bet one of them knows how Poland came to file their case so soon?

Sylwia Giepmans-Stepien:  Former Junior Officer in Poland Ministry of the Economy

Google Poland 1

Marta Kokoszka: Project Manager, Polish Information and Foreign Investment Agency

Google Poland 2

Marcin Olender, Head of European Union and International Affairs Unit, Polish Ministry of Administration and Digitization

Google Poland 3

Big Door Keeps on Turning: Recent Departure from Google to (where else) Uber: Agata Waclawik-Wejman

Google 4

But it’s not just the old revolving door.  Google has made a substantial investment in Europe, but in particular at the University of Warsaw.

Google Europe

The Google Transparency Project describes Google’s investment in the University of Warsaw:

In early 2014, according to domain registration records, Google expanded its academic relationships in Europe further East, creating the Digital Economy Lab (DELab) at the University of Warsaw.

The program is described as an interdisciplinary institute funded by Google for the implementation of programs concerning the social, economic and cultural consequences of technology.

There is little public information about the extent of the partnership, or the amount of Google’s funding. However, the DELab website does offer some clues.

DELab’s director, Katarzyna Śledziewska, has a distinguished career in European policy and academic circles.  She also serves as a member of another Google-funded initiative, the Readie-Europe Research Alliance for a Digital Economy….

Stay tuned, this case may turn out to be an excellent vehicle to find out more about the extent of Google’s investments.

 

Must Read by @lizpelly and @zachariahkaylar: Oh Spotify Up Yours! A conversation with @lianaisferal

[Editor Charlie sez: The popular rage against Spotify is setting in.]

ON WEDNESDAY, MAY 29, The Baffler’s ongoing event series for the generally disaffected and pissed off, The Bad Society, continues with a concert at Murmrr Ballroom in Brooklyn featuring music from Xenia Rubinos, Public Practice, and Blood Club—along with a panel on the shitscape of the music streaming economy led by Liz Pelly and featuring David Turner and Xenia Rubinos. (You can still snag a ticket here.)

In advance of the concert, Liz Pelly and Liana Hell Lean of Blood Club and the hardcore outfit Decisions dropped by our gleefully dyspeptic radio program The Bad Society to talk with host Zach Webb about the unrepentant joy of scorning Spotify, punk rock’s obsession with Instagram, and working toward a better DIY scene on the archipelago of overpriced trash islands known as New York. While this interview has been drastically edited for length and clarity, you can listen to the whole broadcast—featuring an eclectic caboodle of tunes selected by Hell Lean from the likes of the queen of Cambodian rock, Ross Sereysothea, to the thundering punk rock of Eteraz—here.

Read the post on the Baffler

Guest Post by Hattie Webb: The day I broke into the PledgeMusic office (@hrdwebb)

hattie webb

I did something relatively gutsy and not entirely unprovoked, I broke into the offices of PledgeMusic.

On the evening of Friday 1st February 2019 I saw artists posting online that PledgeMusic was in financial trouble. A shock of adrenaline surged through me. For 20 months PledgeMusic had been stalling paying me £5.4K, the final instalment of the money I had raised on the PledgeMusic site to pay for the making and release of my first solo album ‘To The Bone’. PledgeMusic received 3.1K in commission of the total 17.3K of income of pre-orders. (The campaign commenced in December 2015.)

On Monday 4th of February, with a fire in my belly and after no response from the phone lines at PledgeMusic, I looked up their office address, took the train to central London and went for the first time to the PledgeMusic offices in Soho (a very beautiful office I might add). When I was told by reception that the office would not receive anyone, I asked where the toilets were. I then walked past the toilets, hiked up the stairs, opened the office door and plonked myself down on the communal sofa.

A PledgeMusic associate approached me and I said I would not leave until I could speak with the director.

I waited. Malcolm Dunbar was on the phone in the main boardroom, I could see him through the glass wall. There were about ten people working at their computers across the office space. The environment looked buoyant. I had a moment thinking, “maybe this crisis is not as bad as we thought?”. My hopes were short lived. Malcolm signed off on his phone call and ushered me in.

I said because no one will reply to me, I have had to come to them. I demanded they transfer payment or I would not leave the premises.

After 20 months of having faith in their explanations, after my many phone calls and zillions of emails sent since my campaign completed in June 2017, I needed to see action.

One might ask why I had not seen the red flags sooner. I’m a little ashamed to admit, it was mainly because of the calibre of the other artists that chose to work with PledgeMusic, artists I admired immensely. These artists had chosen this new creative home, leaving their previous old music business model abodes, to great success. How current it is in todays climate, that credibility can be so blinding it shrouds the real truth. I was gullible as to what the real reasons were for these extensive delays.

These are some of the many explanations I had previously received:

“at the moment finance are going through some procedural changes and they’ve got a slight backlog in payments”…”we’ve been experiencing delays due to PayPal terminating us using them as our payment provider” …”a backlog exists, and the process is manual because it’s been forced that way by the hand we’ve been dealt” …“we now work with a far inferior back up payment provider” …”it’s where we’re at and we’re doing our very best to catch up” …”the knock on effect has been more impactful than we ever imagined it would be” …”I’m very very sorry to hear you’ve still not received this payment. I did request it back when we last spoke and am trying to find out why that wasn’t paid” … “I understand this is in no way helpful to you right now, but it’s where we’re at and we’re doing our very best to catch up.” …”I’m planning another payment this week against the balance owed and we’ll get the full balance up to date in early Jan 2019.”

The list goes on.

I said, I feel like an idiot for believing it all. Not once were the real reasons mentioned.

I spoke with Malcolm for over an hour and part way through, Paul Barton joined. They said that there was no way they can pay me until new potential partners come on board as New York has stopped all accounting.

I asked to speak with New York.

Malcolm called the new financial director Jim on his mobile phone in New York (who had apparently been with Pledge for a month) and passed on the phone to me. I asked for an explanation as to why we all haven’t been paid. Jim suggested that I get a lawyer to write to PledgeMusic to ‘stake my claim’. I said, I may have been previously naive, but spending another few hundred pounds to pay a lawyer to send a letter to sit at the bottom of an ever increasing pile was not something I intended to do.

I said I have actually been an ally and champion of PledgeMusic because of what they previously stood for. Their mission statement being that “PledgeMusic is dedicated to bringing innovative artists and passionate fans closer together than anywhere else…by giving artists a platform.” I know many extraordinary artists who haven’t had support from labels, who have taken the bull by the horns and with their bare hands, created, funded and released incredible albums with the support and platform of PledgeMusic.

I told them that eventually I had to get a loan for the amount of money owed to me by PledgeMusic to pay my team, print my cds, merch and to post them all out. I said that I only hope that this can be brought to a righteous place. That we all receive our rightful payments, raised with blood sweat and tears (truly) and to restore the belief that bands and fans had in them. That the level of transparency in their communications, particularly now in a challenging time, will shape how each of them individually and as a team are seen in this industry and in the world. How important is your word and code of honourability in life? To me, it is everything.

Paul said that the reason they have stopped answering my messages is that they had run out of things to say. I said there’s always something to say, even if it is to take responsibility for their current position and reiterate their intentions. I also said that when the public statement was sent out to press on Friday, how much it would have meant to all who had signed up with them, to have received an email illuminating us about the situation, versus us randomly reading about it online. I think we deserved that level of consideration. Surely there was one person in that office that could have been allocated that essential task? Or were the artists still a thing very low on the list of importance when it came to their music business model? This certainly didn’t fit their mission statement.

Malcolm and Paul said that it has been horrendous for them too, they looked deeply disheartened that so many artists are going through this and said that they personally have received a lot of abuse. I am sorry for this, no one should have to put up with abuse, but I truly believe that with more transparency, it could have been avoided.

They told me about their plans to have new investors and pay everyone by April. I asked directly…at this point, why would anyone have faith in their company name even if they do get bailed out? They said it would be the same platform with a complete rebrand. Plus that the artist’s money would never actually go to the PledgeMusic bank account, only the commission.

But it wasn’t enough for me without an explanation. I asked them how long the financial crisis has been going on at PledgeMusic? They said over a year. I asked them why they have prime real estate in the center of Covent Garden London as their offices (next to the very elegant private members club, ‘The Hospital Club’), particularly throughout the time they’ve been in financial trouble and whilst they are avoiding paying artists? I said this is not a good use of the money! I asked if there were some offices in Croydon or Staines, out in the suburbs they could have moved to? I didn’t mean to be condescending. We as artists had not been part of the conversation with how our money was spent. They both agreed and said those decisions came from New York.

They also said that the whole finance team had been fired due to disastrous and disorganised accounting.

Shockingly, they said that many of the PledgeMusic employees had been asked to max out their personal credit cards to help the cash flow.

They said that they had been financially sunk by the USA division of the company. Wrecked by the rebranding costs and an outrageous ambitiousness to compete with Spotify. Who really knows where the money went, but the money was gone.

I asked why someone hadn’t flagged this up sooner and reigned in spending money on fluff? Was this a trailblazing music industry model or just the same scenario swaddled up in community soaked language?

For someone like me who has also been through the sometimes deeply disheartening sausage factory of being signed to a major label, someone who has been financially and emotionally rogered by both major artist management and my own personal management, I’m sorry to say, I believed it. (I say all of this knowing I have been very lucky with the chances I have been given too, believe me.)

I laid it out that if they don’t reply to emails and now that their phone line is down, how can I trust their word that they will communicate with us moving forward? I have had the wool pulled for too long. What will happen if I walk out of this office, will I ever hear back from them again? They gave me both of their private mobile phone numbers.

When I left that day, I noticed their plastic ‘PledgeMusic heart-logo placard’ on the side table in their office. As I stepped outside onto the Soho street, there was a dark shadow where it had once been positioned on the outside main wall. It was an odd feeling, as if they didn’t want it to be known they were still there in residence.

(Side note: that night, I went to see Steve Ferrone play at the 606 with Hamish Stuart, it seriously kicked butt and was a welcome and joyful distraction.)

(Second side note: In December 2018 I did receive 1.5K of the amount owed, perhaps after my increasingly pressurising emails.)

Mostly, after the initial shock, at this point I feel sad to think of all the music, of the artists and their lives that have been detrimentally affected by PledgeMusic’s actions or lack there of. I know business is not a straight line, but for many, this situation is hugely more difficult than the shabby hand I have been served. Because my release was back in 2017, I was able to honour every one of the 524 orders of my album and merchandise that friends and followers had purchased, pre-investing in my album, before this shutdown.

Not everyone has had the chance for their work to see the light of day because PledgeMusic has a claim on it. There are also many people who have made purchases directly with PledgeMusic and haven’t received any merch. Most have had no response from PledgeMusic about the return of their money.

I am eternally grateful for those that invested and travelled with me on the journey of creating and releasing my record and for the extraordinary team of sound engineers, artists and collaborators I worked with. I had the time of my life making it.

I do feel heavy hearted that many artists with so much to contribute to this crazy world, have had a previously effective grass roots route destroyed. The connective tissue between creating and having the support to send that out into the world is an essential part of being an artist, there is a circular nature to it. The ability and freedom to fund and create has been savagely shredded by big business greed and a continuing lack of respect for the very artists that make it possible for the business side to exist. Not a new music business model as advertised.

Since all of this has happened, a community has been forming of artists affected in the fallout. For this I am also grateful.

At the heart of the matter, the passion at the core of creativity shall never be diminished! We are immensely blessed to have the freedom to express our truth in whatever form we feel, that is ever powerful.

As my friend Francesco Mastromatteo said “We work with something we can not see and we can never possess. Sound is simply always free and has an endless value”.

On Friday, I read that the sale had fallen through and that bankruptcy was inevitable for PledgeMusic. I read ‘the sale of which would be used to pay artists’. I immediately texted Paul and Malcolm to find out how these so called ‘remaining assets’ will be divided. Is it not the righteous decision at this final stage, to communicate directly with the artists with what will happen moving forward?

I have not heard back since.

[We’re honored that Hattie gave us permission to post her account of her personal experience with PledgeMusic.  You can find Hattie at HattieWebbMusic.com and her Twitter is @hrdwebb. Reading Hattie’s account is enough to make you stand up and salute as she banishes the ennui of learned helplessness to the dustbin of history.  I recall a Leonard Cohen lyric from “Everybody Knows” that could apply to the music business as a whole, more so with each passing day:

“Everybody knows that that boat is leaking, everybody knows that the captain lied….”]