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Royalties

Analysis: Does the Copyright Royalty Board Exist?

Authored by David Oxenford on June 3, 2008 - 6:37am.

The appeals of last year's Copyright Royalty Board decision on the royalties paid for the use of sound recordings by Internet radio stations continue on, and one recent filing raises interesting questions of whether or not the CRB was properly appointed. Last week, the Department of Justice, which represents the CRB in defending its decision in the Court of Appeals, filed its brief in opposition to the briefs of the webcasters, which we summarized here. The DOJ brief essentially argued that the webcasters' briefs were insufficient to satisfy the requirement for a successful appeal - that the CRB decision was arbitrary and capricious or otherwise contrary to law.

tags: Law | Internet Radio | Royalties | SoundExchange | Copyrights | Copyright Royalty Board | Internet Radio Equality Act |

RoyaltyShare Adds Sanctuary, Madacy to Processing Service for Labels

Authored by Mark Hefflinger on January 22, 2007 - 1:52pm.

Cannes, France - RoyaltyShare, a provider of digital royalty processing services, on Monday introduced its Label Advantage Service, which it says is optimized for calculating and processing royalties for digital and physical sales. The company added that Sanctuary Records and Madacy Entertainment have signed on to use the Web-based service.

tags: Licensing | Music | Royalties | RoyaltyShare | Sanctuary Records |

SoundExchange Seeks to Audit More Records from Live365

Authored by Mark Hefflinger on November 2, 2006 - 3:10pm.
[UPDATE: A clarification note was added on November 20, 2006]
Washington - The U.S. Copyright Office announced that it has received a notice of intent from SoundExchange, the recording industry entity set up to collect and distribute royalties for digital music, to audit the 2005 statements of Live365, an Internet radio broadcaster.
tags: Licensing | Law | Radio | Audio | Music | Internet Radio | Copyright | Royalties | SoundExchange | Live365 |

Napster, MusicNet Settle on Digital Royalty Rates for U.K. Songwriters

Authored by Mark Hefflinger on October 10, 2006 - 4:52pm.
London - Digital music service providers Napster and MusicNet have reached a settlement on royalties to be paid to U.K. songwriters and music publishers for delivering their music online and to mobile phones. The MCPS-PRS Alliance, which represents U.K. songwriters, said the three-year deal is similar to an accord it reached last week with the British Phonographic Industry and digital music retailers including iTunes and T-Mobile, which gives songwriters 8% of gross revenue minus value-added taxes. MusicNet and Napster said the deal will result in the withdrawal of their references on the matter to the U.K. Copyright Tribunal.
tags: Mobile | Mobile Music | Law | Music | UK | Commerce | Napster | MusicNet | Royalties | Digital Rights |

Harry Fox Agency Licenses LyricFind to Post Song Lyrics Online

Authored by Mark Hefflinger on October 5, 2006 - 3:20pm.
New York - The Harry Fox Agency (HFA), a U.S. music rights licensing organization, announced that it has signed a lyrics licensing agreement with LyricFind, a website that publishes song lyrics. Financial terms of the deal were not disclosed. Under the terms, music publishers can participate on an opt-in basis and will be able to add, review and edit lyrics on LyricFind's database. HFA said the service will be offered to publishers on a commission-free basis, waiving its usual 6.75% cut of royalties.
tags: Licensing | Law | Online Publishing | Music | Harry Fox Agency | Royalties | Lyrics | HFA | LyricFind |

British Music Industry, Digital Music Retailers Set Royalty Rates

Authored by Mark Hefflinger on September 29, 2006 - 2:33pm.
London - The British music industry announced this week that it has reached an agreement with Apple and mobile carriers including O2, Orange, T-Mobile and Vodafone, on royalties to be paid to artists for music distributed online and to cell phones in the U.K. The deal between the British Phonographic Industry, which represents major record labels, MCPS-PRS Alliance -- which represents songwriters, composers and music publishers -- and the digital music distributors also partially settles outstanding litigation between the parties.
tags: Law | Music | UK | Commerce | Retail | BPI | Royalties | MCPS-PRS |

N.Y. Times: Walkman Inventor Finally Gets Credit, Royalties from Sony

Authored by Mark Hefflinger on December 20, 2005 - 6:58am.
New York - The New York Times recently reported on Andreas Pavel, a Brazilian who has finally won his claim to be the inventor of the Walkman. Pavel patented his idea for a portable tape player with headphones in several countries during the late 70's, and shopped his idea to electronics firms including Grundig, Philips and Yamaha, before Sony came out with its Walkman in 1979. Pavel eventually sued Sony, but lawsuits and negotiations dragged out for 25 years before he reached a reported eight-figure settlement with the company, which now also pays Pavel royalties on several Walkman models.
tags: Deals | Sony | Walkman | Credit | N.Y. Times | Royalties |

RollerCoaster Tycoon" Developer Sues Atari Over Unpaid Royalties

Authored by Mark Hefflinger on November 10, 2005 - 8:12am.
New York - Video game publisher Atari has been sued by the developer of the "RollerCoaster Tycoon" video game franchise, who claims he is owed $5.2 million in unpaid royalties. Scottish developer Chris Sawyer is asking that Atari be compelled to open its books for an audit, as was promised in his contract, to examine whether he was underpaid for his work. Atari asked the U.K.'s High Court for a venue change to New York, where its U.S. headquarters are based, but a judge ruled the case will be heard in London. "If Chris proves his claim that Atari Interactive has failed to account properly and substantially underpaid, it could have major ramifications for the industry as well as the company," said Guy Herbert, an attorney with Marjacq Micro who is representing Sawyer. "Publishers need to invest at the sunk cost stage. If developers cannot be sure of getting fair royalties, they have to get as much as they can at the sunk cost stage, and they become the grasping contractors that publishers often believe them to be."
tags: Games | Atari | Royalties | RollerCoaster Tycoon |

Apple Seeks 10% Royalty on iPod Electronic Accessories

Authored by Mark Hefflinger on October 18, 2005 - 11:24am.
San Francisco - Accessories makers for Apple's iPod are now required to pay Apple royalties for the right to sell their car stereo adapters, portable speakers or other electrical-powered add-ons for the music player, CNET News.com reported on Tuesday. "Yes, the electrical connection has specifications around that and licensing around that, and the way you get that assistance and information and licensing is through the 'Made for iPod' program," Apple senior vice president Phil Schiller told News.com. A source familiar with the "Made for iPod" licensing scheme told News.com that Apple is now seeking a mandatory royalty, on the order of 10% of a device's wholesale price. In return for the sizable cut of their revenues on iPod accessories, Apple told manufacturers it will ensure future iPods continue to support their products through a universal docking connection.
tags: Licensing | Law | Tech | Music | iPod | Apple | CE | Autos | Patents | Accessories | Royalties |

Microsoft to Seek Royalties from Xbox 360 Accessories Manufacturers

Authored by Mark Hefflinger on August 11, 2005 - 10:08am.
Redmond, Wash. -- Microsoft plans to seek royalties from third-party makers of game controllers, steering wheels and other accessories for its forthcoming Xbox 360 video game console, according to published reports. The reports cite a contract between Microsoft and accessories maker Mad Catz Interactive, which shows Microsoft will get a cut of the revenue from each Xbox 360 accessory sold by Mad Catz. Microsoft plans to ensure that only royalty-bearing accessories work with the Xbox 360, by implementing new security software that enables only approved products to function with the game console, scheduled for release in the fall.
tags: Microsoft | Xbox 360 | Royalties |

Mobile Operators Say Anti-Piracy Software Royalties Still Too High

Authored by Mark Hefflinger on May 4, 2005 - 10:20am.
London -- A global trade association of mobile network operators said on Wednesday that lowered licensing fees for cell phone anti-piracy software are still too expensive. MPEG LA, which represents companies like Sony and Philips that hold patents on cell phone digital rights management, cut its proposed tariffs on the technology by one-third after complaints from the GSM Association. The mobile networks argued that the initial $1 per phone surcharge on anti-piracy software would cost more than the projected annual revenue from sales of all downloaded content protected by the software. In a statement, the GSM Association called on alternate providers of digital rights management technology to put forward competing schemes for evaluation. "It's clear that the revised proposal remains unreasonable and unworkable -- but we are confident that MPEG LA will continue to respond to market feedback," said Rob Conway, CEO of the GSM Association.
tags: Mobile | Software | Anti-Piracy | Royalties |

Record Labels Reach Deal to Pay Artists $50 Million in Unpaid Royalties

Authored by Mark Hefflinger on May 4, 2004 - 3:22am.
New York -- New York state Attorney General Eliot Spitzer announced on Tuesday that the state has reached an agreement with the major record labels and music publishers that will result in the distribution of $50 million in unpaid royalties to thousands of musicians. The payout comes after a two-year investigation into the accounting practices of the labels, which found that many artists and writers were not being paid royalties because record companies had failed to maintain contact with the performers and had stopped making required payments. In addition to more obscure artists, some of the checks will be going to top-sellers like David Bowie, Sean Combs, Dolly Parton and Dave Matthews. "As a result of this agreement, new procedures will be adopted to ensure that the artists and their descendants will receive the compensation to which they are entitled," said Spitzer. The labels said they will now list names of artists owed unpaid royalties online, as well as work with industry groups and unions to locate artists.
tags: Deals | Artists | Royalties | Record Labels |

Olsen Twins Sue Game Maker Acclaim Over Unpaid Royalties

Authored by Mark Hefflinger on April 27, 2004 - 3:02am.
Glen Cove, N.Y. -- Child actors turned entertainment and clothing moguls Mary-Kate and Ashley Olsen have filed suit against video game developer Acclaim Entertainment, alleging the company has not paid out hundreds of thousands of dollars in royalties from a series of games featuring the twins. CelebrityJustice.com posted the complaint, in which the Olsens say Acclaim did not remit nearly $178,000 that was due April 1. The lawsuit, filed in Los Angeles Superior Court on April 15, seeks damages and interest and also alleges that Acclaim has not made a strong enough effort to market the titles.
tags: Games | Law | Olsen Twins | Royalties |

MPEG Video Patent Holders Sue DVD Maker Apex Digital for Royalties

Authored by Mark Hefflinger on February 3, 2004 - 1:53am.
Denver, Colo. -- MPEG LA, the licensing body made up of patent holders on DVD video technology, announced that they have sued DVD player manufacturer Apex Digital for breach of contract, alleging the company is not reporting accurate sales figures and therefore not paying adequate royalties for MPEG technology. In its suit, MPEG LA -- whose members include Philips, Sony, Scientific-Atlanta and Thomson -- says that the company's submitted sales figures are not consistent with public reports of the same data, and that Apex has failed to provide an auditor with documents needed to independently determine its compliance with the contract. "We are disappointed that this lawsuit has become necessary as a result of Apex Digital's continued refusal to meet its contractual obligations, but Apex Digital must be held accountable not only to the marketplace but also to the vast majority of its competitors and others throughout the world who are meeting theirs," said MPEG LA chief executive Baryn S. Futa.
tags: Video | DVD | MPEG | Royalties | Apex Digital |

MPAA Sues Bankrupt Cable TV Firm Adelphia Over Unpaid Royalties

Authored by Mark Hefflinger on December 15, 2003 - 5:08am.
Los Angeles -- The Motion Picture Association of America (MPAA) has sued bankrupt cable TV operator Adelphia and its directors for copyright infringement, claiming the company broadcast content owned by its member companies without having paid royalties associated with retransmission laid out in the Copyright Act. Saddled with over $7 billion in debt, Denver-based Adelphia declared bankruptcy in June 2002. The MPAA's suit alleges that Adelphia has not paid its requisite statutory license fees dating back to August 2002. "We would have loved to have not sued, but when payments aren't being made and, without dispute, were due to be made, our members felt they had no other choice but to use the courts," MPAA spokesman Rich Taylor told Reuters. The MPAA said it is also suing the officers and directors of Adelphia because they had the ability to control Adelphia's decision to infringe and received direct financial benefit from the infringement, and therefore are directly liable for copyright infringement.
tags: Cable TV | MPAA | Adelphia | Royalties |

Bill Would Create "Copyright Judge" to Arbitrate Web Music Royalties

Authored by Mark Hefflinger on March 27, 2003 - 4:00am.
Washington -- A bill has been introduced into Congress that aims to streamline the convoluted process of determining the royalties webcasters should pay artists and record labels for the rights to stream their music over the Internet. Rep. Lamar Smith (R-Texas) says the Copyright Royalty and Distribution Reform Act "will streamline the process and help reduce its unpredictability and inconsistency." The bill would effectively eliminate the oft-criticized CARP (Copyright Arbitration Royalty Panel) proceedings that previously served as the arbitration entity between webcasters and the music industry, as well as take the U.S. Copyright Office out of its role as the final decision maker in the process. Instead, responsibilities for hearing arguments on royalties would be handed over to a new "Copyright Judge," who would have a minimum 10 years of experience as a copyright lawyer. The Copyright Judge would be granted the power to decide both the law and royalty rates. A hearing on the bill scheduled for Thursday was postponed indefinitely.
tags: Music | Bill | Royalties | Copyright Judge |

Satellite Radio Firms XM, Sirius Reach Accord With Industry on Royalties

Authored by Mark Hefflinger on March 20, 2003 - 4:42am.
Washington -- The nation's two commercial satellite radio operators -- XM and Sirius -- jointly announced on Thursday that they have reached an agreement with SoundExchange, the record industry's digital audio royalty collection arm, on rates and terms for sound recordings used in satellite broadcasts. Terms of the agreement, which lasts through 2006, were not disclosed. "The royalties paid under this agreement will be an important new revenue stream for the 3,000 labels and thousands of artists we represent. The agreement once again compensates artists and copyright owners for public performances of their creative works," said SoundExchange executive director John L. Simson. http://biz.yahoo.com/prnews/030319/nyw129_1.html
tags: Satellite Radio | Sirius | XM | Royalties |

Music Choice, Record Industry Groups Reach Settlement on Music Royalties

Authored by Mark Hefflinger on January 31, 2003 - 4:20am.
Horsham, Penn. -- Music Choice, a provider of digital music programming to cable and satellite TV operators, announced on Friday that it has reached a joint settlement with key music industry groups for royalty rates and terms through 2007, averting the need for a federal arbitration proceeding. Parties to the settlement, which will apply to the period between Jan. 1, 2002 and Dec. 31, 2007, included the Recording Industry Association of America (RIAA), American Federation of Television and Radio Artists (AFTRA), and American Federation of Musicians (AFM). Terms of the settlement will also apply to fellow music subscription services DMX Music and Muzak. The U.S. Copyright Office must now officially ratify the terms of the agreement before SoundExchange, a recording industry entity, may begin collecting royalties and distributing them to artists, record companies and other copyright holders
tags: Music Choice | Musics | Royalties | Record Industry |