As part of its ongoing music licensing study, the US Copyright Office is seeking additional comments on whether and how existing music licensing methods serve the music marketplace, including new and emerging digital distribution platforms.
On July 22, 2014, the US Copyright Office issued a request for additional comments concerning its ongoing study evaluating the effectiveness of current methods for licensing musical works and sound recordings (79 Fed. Reg. 42833 (July 23, 2013)). Specifically, the Copyright Office is seeking additional comments on whether and how existing music licensing methods serve the music marketplace, including new and emerging digital distribution platforms.
Possible withdrawal of major publishers from the performance rights organizations (PROs) and its impact.
The Section 115 statutory license for the reproduction and distribution of musical works and whether it should be eliminated or significantly modified to reflect the realities of the digital marketplace and how this might be accomplished.
The Section 112 and 114 statutory licenses for the digital performance of sound recordings.
The lack of standardized and reliable data related to the identity and ownership of musical works and sound recordings as an obstacle to more efficient music licensing.
Details concerning the original notice, public comments and the transcript of the roundtable proceedings are available on the Copyright Office website.
The Copyright Office now seeks additional views on pertinent issues that it should consider in evaluating the music licensing landscape, and specifically on the following topics:
Data and transparency, including:
the possible methods for ensuring development and dissemination of comprehensive and authoritative public data related to the identity and ownership of musical works and sound recordings;
the most widely adopted identifiers used with musical works, sound recordings, songwriters, composers and artists, how and by whom they are issued and managed, issued and managed, and how the government can incentivize more universal availability and adoption; and
the possible methods for enhancing transparency in the reporting of use, payment and distribution data by licensees, record labels, music publishers and collective entities, including disclosure of non-use based forms of compensation.
Musical works, including:
the logistics and consequences of potential publisher withdrawals from ASCAP or BMI, including how the withdrawals would be governed by PROs;
ways in which the current PRO distribution methodologies could or should be improved;
marketplace developments that have led to record-high revenues and distributions for PROs while songwriters report significant declines in income, and implications this may have for the music licensing system; and
if the Section 115 license were eliminated, how the transition would work.
Sound recordings, and specifically, ways in which Section 112 and 114 (or other) Copyright Royalty Board ratesetting proceedings could be streamlined or otherwise improved procedurally.
International music licensing models the Copyright Office should look to as it continues to review the US system.
Comments are due on August 22, 2014 and must be submitted electronically through the Copyright Office's website.
Update: On August 1, 2014, the Copyright Office extended the comment due date to September 12, 2014 (79 FR 44871-01).