I’m knee-deep in a project on behalf of The Hector Fund. In theory, it’s pretty basic stuff. Create a website built on WordPress, teach the end user how to post, do some marketing and promotion for the site, and bask in our collective glories. This is something I’ve done for countless clients over the years. But this time around, the struggle is much bigger. This time around, the project features music by established, professional, major label artists. And having that music on the website (for listening, not downloading…) is proving to be rather confounding.
Here’s the rub: no one knows what to do, no one dares risk giving a definitive opinion, and everyone thinks that the major labels are out to get us. No, really. That’s what’s going on here. Gotta love the music industry!
The goal of the developing website was to create a place for promotion and discovery of new music from the unique perspective of the site’s auteur. There would be a weekly thematic “interactive audio transmission” (see, I’m learning the legal-ese…) offering the listener the opportunity to listen and elect to purchase (through a reputable merchant like iTunes) the music. Seems pretty simple, right?
But wait, there’s more …
One phone call to SoundExchange told me that we needed a Webcaster’s license: 4 page form + $500 annually. Prior to launch, I called ’em back to confirm. Not as easy as it seems …
A Webcaster’s license only covers a non-interactive online audio transmission. Specifically that’s an Internet radio station. The listener does nothing but listen — no choices, no control, ergo non-interactive. I need to call the PROs (ASCAP, BMI, SESAC) because now, as an interactive broadcaster, I need to deal with more than the traditional statutory license which covers a non-interactive webcast. OK, fine…
I call ASCAP, BMI, and SESAC. Each one has a license for interactive broadcasts. Some more forms, a bit more math, and more money. Because we’re just starting and have no real audience yet, we meet their minimum fees for use of each license. So here’s the new tally:
SoundExchange: $500 and 4 pages
ASCAP: $340 and 5 pages
BMI: $320 and 8 pages
SESAC: $388 and 6 pages
Grand total (so far): $1548.00 and 23 pages to fill out
But wait, something’s not quite right. The ASCAP, BMI, and SESAC licenses cover use of the songs, but not use of the actual recordings. So, if I wanted to record “Stairway to Heaven” and broadcast it, I’ve just paid $1548.00 for the privilege to do so. Unfortunately, I think most folks would rather hear Led Zeppelin’s rendition. What to do now?
The lawyer seems to think that we need to approach each label on a case by case basis for permission to use the intended recordings. Doesn’t that seem just a tad ridiculous? Remember, we’ve already taken the extra step of licensing the song which an Internet radio station doesn’t actually have to do. More fun to be had though, check this out …
In the United States, we’ve got a serious copyright law. The goal is to provide rights holders with the peace-of-mind that their work won’t be ripped off for someone else’s gain. And the major labels got very (very…) concerned that the Internet would take away their god-given rights to make money. Fair enough, labels do make money selling music, and fair compensation for product is … fair.
So now along with talking to SoundExchange, ASCAP, BMI, and SESAC, I get to call the U.S. Copyright Office. They first recommend calling SoundExchange, then directed me to a form: “Notice of Use of Sound Recordings Under Statutory License” which includes the option to make an “ephemeral recording” for the purpose of creating a “Eligible nonsubscription transmission service.” That, in the legal sense, is precisely what I seek to do.
No one I’ve spoken with knows what to make of this. But it’s only one page, and a $25 filing fee, so hey, why not add that one too!
Details as they unfold …
