We get an update this week on the total “address unknown” mass NOIs filed with the Copyright Office for the royalty-free windfall loophole. This time we have to thank our our friends at Paperchain in Sydney for doing the work of decompressing the massive numbers of unsearchable compressed files posted on the Copyright Office website. As you can see, there’s been an increase of approximately 70% since January 2017. (For background, see my article.)
As you can see, Amazon is still far and away the leader in this latest loophole designed to stiff songwriters, followed closely by Google. However, Spotify is moving on up. Spotify does get extra points for starting late in March 2017, but they are catching up fast filing over 5,000,000 as of last month.
Pandora’s founding CEO Tim Westergren, who returned to the top job just last year, intends to step down as the streaming service’s leader in the near future. According to Recode, which cites “people familiar” with the plans, Westergren won’t go anywhere until a replacement has been found and is in place.
Amazon, Google, Pandora, Spotify and other tech companies are taking advantage of their influence in the Library of Congress to leverage a loophole in the Copyright Act to their great benefit and to songwriters great harm. Congress can stop them overnight if the Congress will act.
Pandora Media, Inc. has launched its long-awaited Pandora Premium on-demand competitor to Spotify according to reports from journalists who previewed the platform.
Pandora built Pandora Premium on top of its 2015 acquisition of RDIO’s assets in a controversial bankruptcy and is reportedly leveraging its Music Genome technology that allows Pandora to build on-demand playlists based on an artist’s name or work. Premium evidently transposes Pandora “stations” to Premium “playlists” with what sounds like largely the same functionality, including transferring “thumbs up” ratings in the historical interactive/noninteractive webcasting service. The Premium service evidently uses prior choices to recommend future music in the known-unknown dichotomy. And of course it sounds like you can download all the tracks.
What is different about Pandora’s on-demand service is that it implicates a license for songs that Pandora did not have to obtain for its webcasting service—the mechanical license for on-demand services and downloads. Pandora is evidently negotiating direct deals with major publishers and also is trying to encourage other songwriters to sign up to a “standard” mechanical license.
According to Rightscorp CEO Christopher Sabec, Pandora has filed approximately 1,193, 346 “address unknown” NOIs with the Copyright Office between April 2016 and January 28, 2017. I have been informed by other sources that representatives of Pandora have stated that the company intends to pay statutory royalties retroactively for any songwriter who comes forward and complies with the formality of registration, but I have yet to see a public statement by Pandora of this intention.
Over 2,000 songwriters have signed a petition demanding better mechanical royalties for interactive streaming from Google, Apple, Amazon, Spotify and Pandora.
The campaign has launched ahead of a court hearing in Washington today (March 8) where the Copyright Royalty Board (CRB) will determine rates for the next five years.
The tech giants are expected to argue to reduce the amount they pay, while the National Music Publisher’s Association and the Nashville Songwriters Association International will lobby for an increase.