The @ArtistRights Watch Podcast: Episode 1: The Frozen Mechanicals Crisis with Guest @CrispinHunt

Nik Patel, David Lowery, and Chris Castle feature in this podcast where they discuss the current issues of artists’ rights in the music industry. Find the Artist Rights Watch on your favorite podcast platform here https://linktr.ee/artistrightswatchpod Please subscribe, rate and share!

On the first episode of the Artist Rights Watch, Nik Patel, David Lowery, and Chris Castle sit down with Ivors Academy Chair, Crispin Hunt to talk about the frozen mechanical royalties crisis currently playing out in the United States and how it threatens UK songwriters and indeed songwriters around the world.

Crispin gives us his invaluable analysis of how the frozen mechanicals crisis affects songwriters around the world and the highly effective #brokenrecord and #fixstreaming campaigns that Ivors Academy supports in the UK that has lead to a parliamentary inquiry and legislation introduced in the UK Parliament.

The “frozen mechanicals” crisis is rooted in a private deal between big publishers and their big label affiliates to essentially continue the freeze on the already-frozen U.S. mechanical royalty rate paid by the record companies for CDs, vinyl and permanent downloads. The private deal freezes the rate for another five years but does not even account for inflation. Increasing the royalty rate for inflation, does not actually increase songwriter buying power.

The major publishers and labels have asked the Copyright Royalty Board in the US to make their private deal the law and apply that frozen rate to everyone.

In the past, the music industry has experienced a $0.02 mechanical royalty rate that lasted for 70 years, and with the current mechanical royalty rate of $0.091 being set in 2006, advocates hope it’s not a repeat of the past.

In this Artist Rights Watch episode, we cover its numerous implications and consequences such as controlled compositions clauses, the Copyright Royalty Board, CPI and fixed increases, how the UK compares, and potential resolutions.

Below are some links for further reading on frozen mechanicals and Crispin Hunt:

Take the Artist Rights Watch Survey on Mechanical Royalties

Controlled Compositions Clauses and Frozen Mechanicals. Chris Castle

Controlled Compositions Clauses and Frozen Mechanicals

What Would @TaylorSwift13 and Eddie @cue Do? One Solution to the Frozen Mechanical Problem. Chris Castle

What Would @TaylorSwift13 and Eddie @cue Do? One solution to the frozen mechanical problem

The Trichordist posts on frozen mechanicals

https://thetrichordist.com/category/frozen-mechanicals/

The Ivors Academy Joins the No Frozen Mechanicals Campaign

https://thetrichordist.com/2021/06/07/the-ivors-academy-joins-the-no-frozen-mechanicals-campaign/

Year-End 2020 RIAA Revenue Statistics

Crispin Hunt

Below are our social links and terms of use:

Chris: http://www.christiancastle.com/chris-castle

David: https://twitter.com/davidclowery?s=20

https://www.instagram.com/davidclowery/

Nik: https://www.instagram.com/nikpatelmusic/

Website: https://artistrightswatch.com
Facebook: https://www.facebook.com/artistrightswatch
Twitter: https://twitter.com/ArtistRights?s=20

Terms of Use: https://artistrightswatchdotcom.files.wordpress.com/2021/01/arw-podcast-terms-of-use-v-1-i-1.pdf

Update: Copyright Royalty Board Calls for Public Comments on the Frozen Mechanicals Private Settlement–MusicTechPolicy

By Chris Castle

[This post first appeared on MusicTechPolicy]

If you’ve followed the frozen mechanicals debate, you’ll know that one of the asks from commenters was that the Copyright Royalty Board not restrictively parse who could and could not comment on the private party settlement that the settling parties asked the CRB to impose on the world.

In case you’re not someone who reviews the Federal Register or the CRB docket on the Friday before a national holiday long weekend, I’m pleased to let you know that the CRB has published for comment just the draft regulations that private party settlement proposed (with a couple of ministerial changes by the CRB).

Comments are due no later than July 26, 2021. Comments need to reference docket number 21-CRB-0001-PR (2023-2027) and can be submitted online through eCRB at https://app.crb.gov according to the Federal Register notice filed by the CRB–if you have registered with the CRB and been approved for an account.

Of course, if you just click on that link provided in the Federal Register notice, the link just takes you to the landing page for the electronic document system at the CRB. There’s no obvious way to know what you had to do in order to file a public comment. I’m sure this oversight is not designed to confuse you, but just another example of the rarefied air they breath at the CRB. If you are used to using Regulations.gov to comment on regulatory agencies like the CRB, you will find this process a bit more complicated and bureaucratic.

As far as I can tell, you register at this link: https://app.crb.gov/register/index and complete the required fields only. They might have told you that in the Federal Register, but you know, busy people. I emphasize the required fields because when you first look at it you may think that only lawyers can register because the CRB asks for your bar number which you probably don’t have. I don’t know why they do this unless they think that lawyers will be the most frequent users, but don’t be put off. You don’t have to be a lawyer to comment and you only have to provide the required fields and get your email address confirmed in order to start the account registration process.

Eventually your account will be activated allowing you to “File a Document”. Naturally, all the days that you have to wait for CRB to activate your account will count against the 30 day comment period and apparently all calendar days will be counted against your 30 days including the days that CRB are closed like the upcoming national holiday on July 5.

So the punchline there is that if you are planning on filing a comment or think that you might be interested, register for an account right away and do not leave your ability to be heard to the tender mercies of the government’s technical support staff.

It is also worth noting that the CRB clearly states that once adopted by the CRB, the private party settlement will apply to everyone:

If the Judges adopt rates and terms reached pursuant to a negotiated settlement, those rates and terms are binding on all copyright owners of musical works and those using the musical works in the activities described in the proposed regulations.

So they are telling you very clearly that the private party settlement and frozen mechanicals will be the law of the land if the CRB says so. Even though the CRB is all powerful when it comes to your rates, it is important to comment so that there is a full record for appeals.

It is one thing for the CRB to adopt a private party settlement that applies to every songwriter in the world when they reasonably believe that the settlement represents the consensus view.

It’s quite another thing for them to adopt that settlement when they have clear evidence that it does not. And unlike other government regulatory agencies, the way this game is played is that the CRB doesn’t have to have a consultation with anybody, they don’t hold round tables, they don’t do any inquiry. The only people they really have to listen to are the people who can afford to get in front of them which is a very, very expensive process.

These people are referred to by the CRB as the “Participants” and focus on this sentence in the Federal Register notice:

The Judges may decline to adopt the agreement as a basis for statutory terms and rates for participants not party to the agreement if any participant objects and the Judges conclude that the agreement does not provide a reasonable basis for setting statutory terms or rates.

The emphasis on “participants” is in the original–meaning the Judges of the CRB want to make sure you understand that an objection by a mere member of the public is not enough for them to reject a private party settlement under their rules. So any participant in the proceeding who objected in the proceeding should probably also object in the comments just to be sure that they don’t get game-ified.

So what to comment on? Most obviously the frozen rates and that’s a common sense thing given all the reporting on the vinyl boom that entirely undercuts the idea that physical is unimportant (of course Big Tech would like everyone to believe that vinyl is unimportant so they have a carotid crushing stranglehold on songwriters).

But you may also want to ask the CRB to require that the settlement document and the side deal referenced in the proposed settlement also be disclosed so that everyone knows what the consideration is for freezing the rates.

Plus as many commenters astutely raise, how can you approximate a free market rate using a “willing buyer/willing seller” standard when the willing buyer and willing seller are essentially the same entity? This is particularly true when songwriters have publishing deals and have essentially given up their “willing seller” status. Like so many other sloppy drafting glitches in Title I of the Music Modernization Act, this one should have been obvious from the beginning. And maybe it was.

Public comments are a way to get actual market conditions in front of the CRB because there was absolutely none submitted as part of this proposed private party settlement.

More to come on this, but the clock is ticking for any commenters. And if this entire CRB process seems overly complex and bureaucratic compared to even the Copyright Office rulemakings, it does raise the obvious and separate question about why it’s done this way in the first place and why there isn’t an independent advocate for independents.

Please take our Songwriter and Composer Mechanical Royalty Income Questionnaire!

Here’s the latest Artist Rights Watch questionnaire! It’s anonymous, quick and informative. As always we will publish the anonymized results so that everyone can benefit from the knowledge you help to create.

This questionnaire is a few questions about the sources of songwriter or composer income and your best guess about how your song income will grow.

Please take the survey on Survey Monkey by clicking on this link.

Thanks!

New York Times: A Global Tipping Point for Reigning in Tech Has Arrived

China fined the internet giant Alibaba a record $2.8 billion this month for anticompetitive practices, ordered an overhaul of its sister financial company and warned other technology firms to obey Beijing’s rules.

Now the European Commission plans to unveil far-reaching regulations to limit technologies powered by artificial intelligence.

And in the United States, President Biden has stacked his administration with trustbusters who have taken aim at Amazon, Facebook and Google.

Around the world, governments are moving simultaneously to limit the power of tech companies with an urgency and breadth that no single industry had experienced before. 

Read the post on the New York Times

@Rahulshrivstv & @kamaljitsandhu: India bans [Another] 47 Chinese apps; over 250 more under [government review] for user privacy violation

[Editor Charlie sez:  The TikTok meltdown continues…]

India has banned 47 apps of Chinese origin in the country, nearly a month after banning 59 Chinese applications. Sources have told India Today TV that the 47 banned Chinese apps were operating as clones of the earlier banned apps. The list of the 47 Chinese applications banned by the Ministry of Electronics and Information Technology will be released soon.

The Ministry of Electronics and Information Technology has banned 47 apps which were variants and cloned copies of the 59 Chinese apps that were banned in June. These 47 banned app clones include Tiktok Lite, Helo Lite, SHAREit Lite, BIGO LIVE Lite, and VFY Lite, news agency ANI reported.

India has also prepared a list of over 250 Chinese apps, including apps linked to Alibaba, that it will examine for any user privacy or national security violations, government sources told India Today TV. The list also includes Tencent-backed gaming app PUBG….

Today’s decision follows after a high-profile ban of 59 Chinese apps including TikTok, as border tensions continued in Ladakh after a violent, fatal face-off between the Indian and Chinese armies. The government said these apps were engaged in activities that were prejudicial to the sovereignty, integrity and defence of India.

Read the post on India Today