[CLUE-Talk] An example of how the DMCA took your rights

Grant Johnson grant at amadensor.com
Thu Sep 27 15:11:16 MDT 2001


Having worked with this industry, including co-producing a CD containing 
cover songs, I think I can tell you why this is.  The artist gets a 
royalty from each song.  On recorded media, it is a per minute charge, 
with the cap set at less than a dime per unit sold.  The kicker is that 
very similar royalties would get paid for anything broadcast, if not 
more.  This means that if there are several customized streams, the 
artist actually may make MORE from customized streaming than from 
selling CD's.  I would have to look at those (BMI/ASCAP) particular fees 
to know for sure the amounts.  However, it seems that no matter how much 
they claim to protect the artists, groups like the RIAA only really care 
about the record companies profits.  A CD (including cover) costs less 
than $2 to produce, even in quantities as little as 1000.  The record 
companies sell them wholesale to stores for $10-$12.  The only 
justification for this is covering the expenses of all of those that 
flopped.  A typical CD will take 200 hours of recording and 150 hours of 
production time, in addition to writing and rehersal time outside the 
studio.  Remember that studio time is $60 per hour.

If you want a REAL sustainable business model, try the exact thing they 
fear, electronic distribution by track on demand.  You remove the 
duplication costs (they are bad when you make 100,000 of something that 
sells less than 1,000) remove the fluff they currently put between the 
hit tracks, and most frightening of all, give control back to the 
consumers.  Sounds like open source.  Remove fluff and duplication costs 
while returning control to the consumers.  It's crazy enough, it just 
might work.

Jeffery Cann wrote:

>Greetings.
>
>The following article discusses two lawsuits that would allow music consumers (you and I) to program / personalize music broadcast over the internwet.
>
>Thanks to the DMCA, this is actually illegal.  I hope the RIAA will lose both of these lawsuits, but this seems unlikely.
>
>How did this happen?  Our beloved Representatives sold consumer freedom and choice down the river with the passage of the DMCA, which in part:
>
>"Under Section 114 of the 1998 Digital Millennium Copyright Act, Webcasters can play copyrighted music over the Internet as long as they pay standard royalties and meet certain criteria -- including ensuring that broadcasts are not interactive."
>
>Notice that the DMCA makes it illegal to play copyrighted music over the internet - EVEN IF YOU PAY ROYALITIES - unless you INSURE THAT BROADCASTS ARE NOT INTERACTIVE.
>
>http://biz.yahoo.com/law/010927/65896-6.html
>
>What can you do to?  Write your representatives and disclose your opinion!
>
>Jeff
>





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