TODAY'S TOP STORY: Another interesting development in the world of performer rights today with the news that Johan Johansson - perhaps best known for his songwriting and drumming with Swedish punk band KSMB - has won in a legal battle with record label MNW over the distribution of his recordings on Spotify. The dispute is seemingly another test case on the so called making available right... [READ MORE]
TODAY'S APPROVED: Producer Yullippe released her second album 'Lys' last month, an eight track collection of dark industrial techno that creeps and crunches its way into your head. Tracks like 'Black Moon' and '4' showcase a sound that shrouds beauty behind murky production. The album, for reasons I have failed to ascertain, is credited to Yullippe In France on its cover artwork... [READ MORE]
CMU PODCAST: CMU's Andy Malt and Chris Cooke review the week in music and the music business, including what the long-running dancing baby case tells us about takedowns and fair use, Aretha Franklin’s film woes, what Nielsen's latest stats tell us about the streaming music sector, and Elton John not chatting to the Russian president. The CMU Podcast is sponsored by 7digital... [LISTEN HERE]
TOP STORIES Johan Johansson to be culled from Spotify after 'making available' test case win
LEGAL 50 Cent sues former TV consultant
LABELS & PUBLISHERS RIAA boss speaks out against compulsory licences and safe harbours
Keith Harris to leave PPL
DIGITAL & D2F SERVICES Spotify bigs up its freemium service to the ad sector
Pandora has now paid out over $1.5 billion
ARTIST NEWS Collect Records severs ties with drug 'price-gouger' Martin Shkreli
GIGS & FESTIVALS Disclosure disclose live dates
ONE LINERS CMU's One Liners: SoundCloud, La Roux, Adele, more
AND FINALLY... Naughty Boy says he's not to blame for Zayn leaving One Direction
Click JUMP to skip direct to a section of this email or ONLINE to read and share stories on the CMU website (JUMP option may not work in all email readers). For regular updates from Team CMU follow us on Twitter, Facebook or Tumblr.
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Johan Johansson to be culled from Spotify after 'making available' test case win
Another interesting development in the world of performer rights today with the news that Johan Johansson - perhaps best known for his songwriting and drumming with Swedish punk band KSMB - has won in a legal battle with record label MNW over the distribution of his recordings on Spotify.

The dispute is seemingly another test case on the so called making available right and the performer controls provided by copyright law. MNW owns the copyright in the sound recordings at the heart of this case, but Johansson argues that this doesn't mean the label has the automatic right to provide said tracks to streaming services like Spotify.

Under European law, artists are provided with certain controls over recordings on which they appear even when - and indeed especially when - they do not own the copyright in said recordings. It means that a label, as the usual copyright owner, needs to get permission from the artist to exploit a recording, whether it is copying or distributing or renting out or adapting or performing or communicating the track. These permissions will customarily be provided under a featured artist's record deal and any session musician's individual contracts.

However, in the 1990s both copyright owners and recording artists were provided with a new copyright control called 'making available', which was designed to ensure that the music industry could control the distribution of its content online. Copyright law can be rather vague on when, exactly, the making available right is exploited - as opposed, say, to the traditional 'communication right' that covers traditional broadcast and some online radio and TV services - but the record industry says that making available is in play with both downloads and on-demand streaming.

Here is the point: both labels and artists were given the making available control in the 1990s. Which has posed the question, do labels need to go to every artist whose contract pre-dated that development and ask for specific permission to exploit the making available control, or can they just assume that permission was provided by existing record contracts, which possibly had vague clauses talking about "all and any performer controls"? If the labels did need new permission from artists, that would provide an opportunity for said artists to negotiate better terms on digital income.

Most labels did not go and get that specific new permission, insisting they didn't need to. But a number of heritage artists have cried foul on this issue, with the first key dispute to get to court involving Finnish band Hurriganes earlier this year. They won legal action on the making available issue against Universal, though in that case the actual contract being disputed had been lost, meaning there were other elements at play in the judgement.

But now, according to Swedish news site ETC, Johansson has also scored a win in his case against MNW in a district court ruling. Whereas the Hurriganes case focused on iTunes, this one dealt with streaming services, and mainly Spotify. The immediate result of the ruling will likely be MNW having to remove recordings featuring Johansson from the streaming platform, though what the musician wants is for the label to negotiate new terms to exploit his making available control.

We are still to work out the specifics of this new ruling and, crucially, whether it sets a precedent in Sweden or beyond. But Johansson, who was backed by the Swedish musicians union on this, says he pursued the case for the benefit of the wider music community, so he'll be hoping his apparent win will have a much bigger impact across the record industry. We'll have to wait and see if it does.

50 Cent sues former TV consultant
50 Cent is suing a TV consultant who, the rapper claims, acted as his agent and collected fees without permission on an aborted reality TV project with E!.

The legal action, filed in Connecticut's federal bankruptcy court, claims that Andrew Jameson and the rapper had initially worked together, but that Jameson continued to negotiate and agree terms on the TV show after their relationship had ended.

According to New York Daily News, the lawsuit says that the rapper was "appalled" to learn that Jameson had suggested that a "young white girl" should be included in the show to make it more sellable. It also accuses him of sending "an inappropriate and highly offensive text to an officer of G-Unit in connection with that suggestion".

50 Cent later told E! Entertainment that he did not want to go ahead with the project, but was told that Jameson had already agreed terms and taken a fee. The rapper refused to go ahead anyway, which, says the lawsuit, "severely damaged" his relationship with E! and its parent company NBC Universal.

The rapper wants $810,000 in damages, but Jameson's lawyer Eric George countered to NYDN: "In fact, Andrew is the one owed money - several months of unpaid salary plus a percentage of future revenues - and he's filed arbitration to collect it".

As previously reported, 50 Cent recently filed for bankruptcy protection after being ordered to pay $5 million in damages to Lastonia Leviston for the 2010 leak of a sextape featuring her and a former boyfriend. With punitive damages still to be ruled upon at that point, Leviston's lawyers successfully lobbied to stop the rapper's bankruptcy claim from halting or delaying proceedings. He was then ordered to pay a further $2 million.

RIAA boss speaks out against compulsory licences and safe harbours
When the Recording Industry Association Of America published its latest round of stats earlier this week, we noted how music industry trade groups are now concluding such reports not with "piracy is evil, fix piracy" calls to government, but instead by calling out the "value gap".

This is the new buzz term music industry execs are using when moaning about digital services that exploit the so called 'safe harbours' of copyright law - so YouTube and SoundCloud - or those that benefit from compulsory licences and/or court-set royalties, which in the US means Pandora et al.

There is a "value gap", say labels and publishers, because consumption of music is up, but income remains flat. Or because those services with the most users (the free ones) are paying way less to rights owners than those with much smaller user-bases (the paid-for ones).

Of course, as SoundCloud chief Alexander Ljung recently mused, the future of digital music is almost certainly a combination of freemium and premium, with users of the latter contributing much more cash to the business. Most labels and publishers would probably concede that is true, though they feel that the current value - to the industry - of free platforms is set, not by the market, but by those services exploiting safe harbours or compulsory licences.

And if you don't believe me, just read this op ed piece by the boss of the aforementioned RIAA, in response to a recent article on the perceived value of music. The reasons for the "value gap", says Cary Sherman, "is the flawed licensing regime in which we have to operate".

He embellishes, though without mentioning the traditional-service-to-diss Pandora, and instead focusing on other beneficiaries of America's compulsory licences, and the country's unusual copyright situation regards traditional radio. Writes the RIAA chief: "Government-set licensing has enabled services like Sirius XM to use music at below-market rates, based on a decades-old subsidy that has long outlived its purpose".

"Even worse, under current law, AM/FM radio broadcasters pay absolutely nothing for the sound recordings they use to draw listeners and generate billions of dollars in revenue. In a marketplace that values innovation, it's ironic that it's the legacy technologies enjoying government-granted economic benefits and competitive advantage".

And as if that wasn't bad enough, oh Lord, what about safe harbours? Referring to recent leaks of the new Dre album that was only meant to be available via Apple, Sherman says: "Copyright law provides a 'notice and takedown' system theoretically intended to deal with such theft. In exchange for a legal 'safe harbour' from liability, online service providers must deal with instances of theft occurring on their site or network when notified".

"Unfortunately, while the system worked when isolated incidents of infringement occurred on largely static web pages - as was the case when the law was passed in 1998 - it is largely useless in the current world where illegal links that are taken down re-appear instantaneously. The result is a never-ending game that is both costly and increasingly pointless. Compounding the harm is that some major online music distributors are taking advantage of this flawed system".

Hmm, I wonder who that could be? "Record companies are presented with a Hobson's choice: accept below-market deals or play that game of whack-a-mole. The notice and takedown system - intended as a reasonable enforcement mechanism - has instead been subverted into a discount licensing system where copyright owners and artists are paid far less than their creativity is worth".

So to conclude, in my words this time: "Compulsory licences and safe harbours are evil, fix compulsory licences and safe harbours".

Read Sherman's full article here.


Keith Harris to leave PPL
Popular music industry figure Keith Harris is departing the UK record industry's collecting society PPL, where he has been Director Of Performer Affairs since 2006, though he will continue to consult for the rights organisation.

Harris joined PPL after its merger with PAMRA and AURA, separate societies that previously handled the performer equitable remuneration bit of sound recording performing rights. As a result of that merger, the UK now had one organisation to collect and distribute performing right royalties on behalf of labels, featured artists and session musicians. That being something of an innovation, one of Harris's jobs was to convince performers this was a good idea. And nearly ten years on, that particular task is done.

"It has been a good and exciting nine years", Harris said, confirming his departure from the Director Of Performer Affairs role. "But I feel that the job that I was originally brought in to do has come to a positive end, with performers now totally integrated into PPL".

PPL Chair Fran Nevrkla, who was the body's CEO at the time of Harris's appointment, and who will also step down from his current role at the organisation at the end of the year, added: "I was delighted when nine years ago, Keith let me persuade him to join PPL in a new role of Director Of Performer Affairs. As far as I was concerned, he was the only ideal candidate for the job and his contribution over the years has been enormous. Keith is a remarkable individual, a real team player and a true gentleman. He is a pleasure to work with and I thank him for all his sterling work and for his friendship".

So that's nice isn't it? But do we have time for one more quote? Okay, current PPL CEO Peter Leathem, but be quick: "Keith has been a very good friend and colleague and has played a key role in turning PPL from a collective management organisation that worked for record companies into one that also works for performers. I am delighted that Keith believes that his original role has now run its course in light of what has been achieved for performers at PPL, but am also delighted that Keith will continue to work for PPL as a consultant".

Bit long that, to be honest Pete. But hey, we'll forgive you. Harris already has other projects beyond PPL, of course, including chairing MusicTank and repping Stevie Wonder.

Spotify bigs up its freemium service to the ad sector
With freemium streaming services still under pressure from the music industry, as artists, labels, songwriters and publishers continue to criticise the royalties they pay out compared to premium subscription set-ups, one possible solution - other than seeking to shut all the free platforms down - is to try and maximise the ad revenues such music channels bring in: labels and publishers, after all, ultimately have a revenue share arrangement with most streaming companies.

When Spotify first launched, the labels were busy chattering about the potential for the music industry to grab a decent slice of the advertising dollar, which may well be why they agreed to licence the service's since controversial freemium level in the first place.

For it's part, in the early days Spotify used to speak about its freemium and premium offers as being complementary services; sure, they'd try to upsell premium via freemium, but the latter would also be a standalone revenue generating business. In more recent years, however, with most ads on Spotify Free seeming to be from either the service itself or one of the company's label partners, the freemium channel has been much more spun as a marketing tool, a necessary evil to sell more £10 a month subscriptions.

But couldn't the internet's freebie music services be paying more money into labels and publishers just by selling more advertising? Or maybe the same amount of ads but at a higher rate? That, of course, requires there to be more demand from the advertising world, which is likely the motivation behind a new study commissioned by Spotify called 'The New Audio'. It explores how the streaming service's freemium audience compares to that of traditional radio, in terms of demographics and engagement.

The Europe-focused study by market research types TNS involved over 20,000 consumers in ten countries in May and June this year. One key metric provided is 'incremental reach', looking at the consumers brands can reach via Spotify that would not be reached via traditional radio. In the UK, that 'incremental reach' is 14% in relation to Heart and Capital, and 15% in relation to Kiss. And among those trendy 15-34 year olds, overall incremental reach is a cool 21%. Good times.

Possibly to boost the research's credibility, the report does show that the reach and impact of Spotify freemium does vary from country to country - it is less impressive in Germany, for example - though in many markets the TNS stats provide bragging points for the streaming firm. And although the report itself isn't this explicit, the whole exercise seems to be Spotify saying to brands "see your radio advertising budget, you should chuck some of that our way".

Or, in the more diplomatic words of the company's Director of Sales UK David Cooper: "This TNS study aims to help media buyers understand the quantity and quality of the Spotify audience, and the extent to which Spotify can complement and extend a broadcast media buy. By identifying when and where Spotify reaches an audience that does not engage with radio, we hope to improve both media buyers' understanding of the audio market, and to grow the audio market as a whole".

Fans of charts can download the report from Spotify's site for brands here.


Pandora has now paid out over $1.5 billion
So, Pandora, the streaming service everyone loves to hate - apart from the 80 million people who use it - has now paid out $1.5 billion to the music industry. "So stop all your fucking moaning music types", the streaming company didn't say. Though I'm sure it wanted to.

Of course, having just past its tenth birthday, Pandora has been going much longer than most other streaming services, and with younger Spotify recently boasting it had now paid double that sum over to the music community, some might see this latest brag from the US-based personalised radio service as just further proof it's getting too favourable a deal on royalties because of the compulsory licence it gets to use in its home and primary market.

But CEO Brian McAndrews was having none of that. He told reporters of the $1.5 billion milestone: "I am proud of our enormous royalty contributions, and our progress on building on a broader vision for the future of music. We are very passionate about our mission to help artists find their audience and help listeners find their music - music they love, that moves them, that they personally connect with - and we are achieving significant momentum".

Pessimists might find hope in the fact that $500 million of those royalties came in during the last year. Though probably not. They are pessimists after all.

  Approved: Yullippe
Producer Yullippe released her second album 'Lys' last month, an eight track collection of dark industrial techno that creeps and crunches its way into your head. Tracks like 'Black Moon' and '4' showcase a sound that shrouds beauty behind murky production.

The album, for reasons I have failed to ascertain, is credited to Yullippe In France on its cover artwork. Maybe it's part of a series of thematic musical travelogues. I have just learned that there is a river in France called Lys, once popular with early 20th Century artists but now polluted by increased industrial activity. Which seems appropriate.

Listen to the full album on Bandcamp here, or check out title track 'Lys' on SoundCloud here.
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Collect Records severs ties with drug 'price-gouger' Martin Shkreli
Punk and hardcore record company Collect Records has ended its relationship with key backer Martin Shkreli, after several bands threatened to leave the label's roster due to the association. It emerged that Shkreli was funding the company after the hedge fund manager made headlines over a report that he had bought the rights to Daraprim, a medication used in AIDS and cancer treatment, and increased the price by 5000%.

The label was founded by Thursday frontman Geoff Rickley in 2009, and seemingly accepted an offer of investment from Shkreli last year. The two men first met when Shkreli bought a guitar from Rickley and explained that he was a big fan of his band.

"He sort of asked me if I was able to scale up and 'do it right', and would I be interested in growing the label", Rickley told Noisey of their initial meeting. "My thoughts were that if I could do it my way, at my pace, and with bands that I believed in, I would definitely be interested. This was the start of our relationship, and he chose to be a silent partner in Collect going forward. He has never asked to see the bottom line and there has never been any check and balance with him. His only goal was to further my vision".

"There were no red flags at that time", he added. "I genuinely enjoyed his company, and I was just excited for the opportunity to work with him and to have someone who believed in my vision for the future".

After the news of Shkreli's 'price gouging' broke, Dominic Palermo, the frontman of one of the label's bands, Nothing, wrote on Facebook: "I was approached by Geoff Rickley about a year ago now, about how he was starting a label. He said he really believed in Nothing and the music we were creating".

He went on: "We were told of a backer who was an old Thursday fan that wanted to give back to the music and arts, but literally didn't even know his name until last night. After Geoff told me his plans I really believed in him. He's a great guy and he, like me, had no idea what kind of monster was funding the label and soon to be album. And like he has helped me with my problems in the past few months, I plan on helping him in anyway I can as well, through this all".

He added: "I'm not sure what the next step is here for us, as we're contractually attached to this person, but I had to share my revulsion with you all as the future is not quite foreseeable". A further update yesterday expressed continued uncertainty about Nothing's future with the label.

Hether Fortune of Wax Idols, another Collect band, said that they were "horrified" to learn that Shrekli "essentially donates money to the label", adding: "I personally 100% am NOT FUCKING OK with this guy and his business tactics ... [but] I love Collect Records. Geoff Rickly is an incredible person who I've known and admired since I was thirteen years old. I stand behind him and know that he would never willingly put himself OR me into a situation like this had he been aware of what was really going on. We are going to handle this".

Another label mate, Creepoid, were more certain about how to proceed, saying: "As long as Shkreli is involved with Collect Records, directly or indirectly, we cannot be". A sentiment that Sick Feeling agreed with, telling Fader: "One thing is clear; as long as he has a part in the label, we, Sick Feeling, cannot. Our experience with Geoff, Norm, and Shaun has been nothing but positive, however, we cannot continue to work with Collect as long as Martin Shkreli has any part in it".

Seemingly faced with a choice between its financial backer and its bands, Collect ultimately decided to part company with the former, with Rickly saying in a statement to Pitchfork yesterday: "Today, Collect Records - with the support and encouragement of all of our artists - have agreed to fully sever our relationship with Martin Shkreli, effective immediately".

He added: "For my part, I've always strived to make Collect a place that was so liberal, encouraging, and artist-friendly that no one would ever walk away from us willingly, though to do so at any time would be very easy. To that end, I hope that our bands continue to believe in our guidance and passion. Any of them that have had an incurable crisis of confidence will be allowed to leave with nothing but the kind of encouragement that we've built our label on".

Exactly what all this means for bands on the label and their future releases - now there is no backing from a wealthy patron - is unclear. But for the moment the label will focus on its next release, the debut album from No Devotion, Rickly's own band with the former members of Lostprophets, which comes out tomorrow.

Disclosure disclose live dates
Disclosure have announced some UK tour dates, which I'm sure is news you will be interested in. I know how much you like Disclosure. That's why I decided to tell you about them. The tour dates, I mean. Obviously you already know who Disclosure are, on account of you being such a big fan.

I'm sure you'll also be aware that they have a new album called 'Caracal' coming out on Friday. Not least because I have mentioned it more than once previously. But have you heard their mini-mix of tracks from that record? Oh, you have? Man, you really are a fan. I was trying to trick you there, but you really showed me. I'll just link to the mini-mix here anyway.

Meanwhile, tickets for these tour dates are going to go on general sale 2 Oct. But there's a pre-sale that starts on 30 Sep through Dice that you'll probably want to get in on, given what a big fan you are.

These are the dates, by the way. Lazy bastards are only doing four, and two are in the same place:

26 Nov: Glasgow, SSE Hydro
28 Nov: Manchester Central
1 Dec: London, Alexandra Palace
2 Dec: London, Alexandra Palace

SoundCloud, La Roux, Adele, more

Other notable announcements and developments today...

• Some of those pesky sources have told Digital Music News that the reason we haven't heard any more about Universal 'doing the deal' with SoundCloud is because of PRS suing the digital firm. I think they might need a safer harbour.

• Which artist is appearing on 'Fuck Spotify' this week? Why, it's that lovely La Roux. Tweets the singer and former fan of the streaming service: "Thanks for the £100 for this more month and I might be able to afford your premium service. Lucky me!" Yeah, lucky you. Next week on 'Fuck Spotify', some 'geezer' with an inferiority complex.

• Adele's next album is coming out on 20 Nov, says everyone. Well, mainly Hits Daily Double. And, according to The Sun, she'll get her own one-hour show on the BBC to promote it, so she doesn't have to sully herself with the chat show circuit. And you said the licence fee wasn't worth it!

• Shigeto's put a new track out. It's called 'Do My Thing' and is taken from new EP 'Intermission'. That's out on 30 Oct. Via Ghostly International, if you must know. Anyway, here's 'Do My Thing'.

• Brainfeeder will release DJ Paypal's debut album, 'Sold Out', on 13 Nov. From it, this is 'Awakening'.

• La Luz have a made a video for their track 'You Disappear'. They've got an album called 'Weirdo Shrine' out now on Hardly Art, and a UK tour due to begin on 16 Oct.

Naughty Boy says he's not to blame for Zayn leaving One Direction
Producer Naughty Boy has said he was falsely accused of being to blame for Zayn Malik leaving One Direction earlier this year. He's not that naughty.

Speaking to Lorraine Kelly on her ITV show, via Digital Spy, he said: "I got caught up in a bit of a circus ... when Zayn left the band. I got accused of [being] the reason why he left, because he wanted to work with me. But do you know what it is, One Direction is like an economy, it's not a band".

I'm not sure if he's saying that Malik left for artistic reasons, or because of disagreements over 1D's GDP projections. Maybe both.

Anyway, it doesn't matter now, because Malik and the guy who chooses to be known as Naughty Boy have fallen out and gone their separate ways. Malik to RCA and Naughty Boy to Beyonce.

Speaking about moving on to record a single with Beyonce, he said: "It became a bit of a circus [with Malik] and in hindsight it's like I went back to primary school. With Beyonce and this song I feel like I'm doing my masters. The whole year has been a journey and to end it on this note is the best way I can actually explain [that] what I do best is make music and hopefully inspire people".

Hey Naughty Boy, it's not even the end of the year yet, there's still time to record an album with Niall Horan.

ANDY MALT | Editor
Andy heads up the team, overseeing the CMU bulletin and website, coordinating features and interviews, reporting on artist and business stories, and contributing to the CMU Approved column.
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Sam oversees the commercial side of the CMU media, leading on sales and sponsorship, plus helps manage and deliver the CMU Insights training courses and consultancy services.
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