CMU Digest is our weekly round-up of the most interesting music business news stories from the last seven days.
This week: Live Nation boss claims live music is âincredibly affordableâ as UK consumer rights organisation Which? says Oasis should refund fans who paid over the odds for dynamically priced tickets. Kobalt says that it will appeal a ruling that means it could end up having to pay Spotifyâs legal costs in the Eminem mechanical royalties dispute. The NO FAKES Act is introduced in the US House Of Representatives, but tech companies criticise the proposed new law. The White Stripes sue Donald Trump for using their music in a campaign ad. And the NTIA calls for a âthorough reviewâ of Martynâs Law.
ICMYI: US Copyright Office asked to review the music industry's collecting societies; BMI takes Sirius XM to the rate court; Danity Kane member accuses Sean 'Diddy' Combs of sexual assault; Dua Lipa fails to get lawsuit over âLevitatingâ talk box vocals dismissed; BBC funding discussed in House Of Lords; APM sues Johnson & Johnson over social media posts.
Live Nation boss says live music is âincredibly affordableâ
Michael Rapino was speaking at a conference in the US as the backlash over the pricing of Oasis tickets in the UK on Live Nationâs Ticketmaster platform continued to gain momentum. Without going into that specific controversy, Rapino admitted that Live Nation is still to âfigure outâ how to effectively respond to negative media coverage about the cost of tickets for shows and the use of dynamic pricing. But compared to other forms of entertainment, he argued, live music is very good value. Most tickets are under $100 and even those which are more expensive are cheap when compared to sport. In sport, selling court side seats for $7000 is âlike a badge of honourâ, while âyouâre horribleâ if you charge $800 for a front row ticket at a concert.
Back in the UK, consumer rights group Which? criticised the use of dynamic pricing for the Oasis shows, saying that the way ticket prices were communicated may have breached consumer regulations. It noted that the Competition & Markets Authority is already investigating and that, if it turns out rules were broken, fans could be due refunds and compensation. That would be a âlengthy and arduousâ process though, says Which? and therefore the band should do the right thing and issue refunds right away. Unsurprisingly, Oasis have not done that.
Kobalt to appeal indemnity ruling in Spotifyâs Eminem legal battle
Kobalt was pulled into a legal dispute between Spotify and Eminem publisher Eight Mile Style over the streaming service not properly licensing the mechanical rights in the rapperâs songs within the US. Spotify said that it had a 2016 licensing deal with Kobalt covering all the compositions that it administrated. Kobalt provided rights admin services to Eight Mile Style but, it turned out, Eminemâs songs were not covered by that deal. On that basis, Spotify said Kobalt should indemnify it against costs incurred in the Eight Mile Style lawsuit and the judge agreed.
Spotify actually got Eight Mile Styleâs lawsuit dismissed on a legal technicality, but still wants Kobalt to cover its legal costs. Not keen on paying those bills, Kobalt asked the judge to reconsider her ruling on the indemnity point, arguing that she and Spotify had misinterpreted the 2016 licensing deal. She declined to do so, but said that Kobalt can take the matter to Sixth Circuit Court Of Appeals, which it will now do. It said this week, âKobalt is confident in its position that the indemnity ruling is simply incorrectâ and looks forward to proving it on appeal.
Tech companies criticise NO FAKES Act
The US NO FAKES Act would give performers more control over the use of their voice and likeness in the context of AI and digital replicas. It would introduce a new US-wide right which would allow performers to stop the unauthorised use of their voice and likeness, and to generate new income streams by working with business partners on approved AI projects. Originally introduced into the US Senate in July, an accompanying bill was introduced into the House Of Representatives this week, a move widely welcomed by the music industry.
However, organisations representing tech companies, libraries and digital rights activists have criticised the act. Unsurprisingly, the tech companies donât like the new obligations it would put onto digital platforms, and they also cite the customary free speech issues. However, their open letter also raises concerns that performers and individuals might unknowingly transfer this new right to a business partner or platform and then lose control of their voice or likeness. The act only allows people to license this right, not assign it, and licensing deals will be limited to ten years. But the critics say those protections are not sufficient.
The White Stripes sue Donald Trump
They are the latest artists to object to Trump using their music as part of his election campaign. He used âSeven Nation Armyâ in a campaign ad at the end of August. Itâs not the first time the former President has used The White Stripesâ song without permission, he did it before in 2016. Last time they complained on social media, this time they have sued for copyright infringement. âAs a self-professed sophisticated and successful businessman with decades-long experience in the entertainment industryâ, they wrote, Trump should have known that using the track without permission âviolated [the bandâs] rights under the Copyright Actâ.
The duo follow the estate of Isaac Hayes in suing Trump. However, the two cases are different. The Hayes estate have sued over use of âHold On, Iâm Cominâ at Trump rallies. That centres on whether use of the song was covered by a licence from collecting society BMI. Trump will also claim that footage of the events online are news reporting, meaning use of the song in that footage is fair use and no permission from the Hayes estate was necessary. With The White Stripes, âSeven Nation Armyâ was synchronised into a campaign video, which is more straightforward in copyright terms, as a sync licence is required from both label and publisher.
NTIA calls for a âthorough reviewâ of Martynâs Law
Years in development, Martynâs Law puts new obligations onto venues to ensure the public are âbetter protected from terrorismâ. It was formally introduced into the UK Parliament this week. The new legislation was prompted by the 2017 terrorist attack on the Manchester Arena, and Figen Murray - the mother of Martyn Hett, who died in that incident - has been a lead campaigner pushing for the legal reforms. The Labour Party committed to prioritise making the new regulations law before this year's General Election.
The live sector supports the objectives of the law, but has raised concerns about the specifics. The Night Time Industries Association this week said âwe must ensure that the balance between heightened security and practical implementation is carefully consideredâ. Concerns have been raised about the impact of the new regulations on smaller venues. NTIA urges âall stakeholders to engage in a thorough review of the bill as it progresses through the parliamentary processâ.
ICYMI
đ¸ Concerns about the organisations that license performing rights in songs in the US - BMI, ASCAP, SESAC, GMR and AllTrack - have been raised by a committee in Congress. They want the Copyright Office to review how those organisations distribute money they receive - and why there are now five of them.
đŠââď¸ Elsewhere in collective licensing, BMI is taking Sirius XM to the rate court, having failed to agree what royalty rates the satellite broadcaster should pay for use of the collecting societyâs repertoire. The National Music Publishers Association has welcomed the move, saying it hopes the action will lessen the âdigital radio divideâ.
â Danity Kane member Dawn Richard is the latest person to sue Sean âDiddyâ Combs over allegations of sexual abuse. She also claims to have witnessed Combs abusing and assaulting his ex-girlfriend Cassie Ventura. Combsâ lawyer says Richard has âmanufactured a series of false claimsâ to secure a payday.
đ¤ Dua Lipa has failed to get one of the lawsuits filed over âLevitatingâ dismissed. Bosko Kante says he provided talk box vocals for that hit, but they also featured on remixes without his permission. Lipa tried to get the case dismissed, but a judge has rejected her arguments for dismissal.
đş How the BBC should be funded in the future was discussed in the House Of Lords last week. There has been much speculation over the years that a subscription model might eventually replace the current licence fee funding system. But BBC Chair Samir Shah told the Lords that wouldnât work.
đ Quite a few brands have now been sued for using hit records in their social media posts without getting a music licence. Now production music companies are getting in on that action. APM has sued Johnson & Johnson for using music from its libraries in social media videos without getting permission.