Last.fm this week launched a new artist royalty programme which aims to pay unsigned and independent artists each time their music is played on the previously reported last.fm online jukebox whatnot - presumably along similar lines to the deals in place with the major record companies regarding the inclusion of their music on the online service.
However, Merlin, that body that represents the global digital rights of hundreds of independent labels, says it has concerns about the new programme for independent artists, saying that some of the licence terms being offered are "ambiguous" and "open to legal interpretation". In particular they seem concerned that signing up to the new programme may mean labels give up the right to demand compensation for any music previous distributed via last.fm without a licence. Or something like that.
In a bulletin to affiliated labels, Merlin said yesterday: "The programme announced today does not appear to offer any compensation for any past illegal use of repertoire. It is unclear to us whether or not the terms and conditions of the programme are intended to prevent master owners pursuing such compensation". It seems talks between last.fm and Merlin on the matter have not reached any conclusion.
A spokesman for last.fm told Billboard yesterday: "While we are disappointed that Merlin is talking publicly about our discussions, we respect them and their members, and will continue to work hard to close a deal with them".
Of course a dispute between last.fm and Merlin is interesting given both sides have a reputation as being or representing credible independents in the music space - a reputation last.fm has hung onto despite being bought by media conglom CBS.