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Historical Perspective of Music Distribution and Copyright Law:How Internet Radio is the Next

Overview of Copyrights in Sound Recordings a. Performing Rights Organizations; the PRO’s b. Record Companies Introduction to Internet Radio and Digital Copyright Law a. Internet Radio and the Technology that Drives it b. Digital Copyright Law i. The Digital Performance Right in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998 ii. Subsequent Changes and Current Royalty Rates The Current Business Outlook for Webcasters Conclusion a. Shape Royalty Rates to Better Fulfill the Goals of the DPRSRA b. . | o A Historical Perspective of Music Distribution and Copyright Law How Internet Radio is the Next Frontier Adam Deutsch 6 14 2010 1 Page TABLE OF CONTENTS I. Introduction 3 II. Overview of Copyrights in Sound Recordings 5 a. Performing Rights Organizations the pro s 10 b. Record Companies 13 III. Introduction to Internet Radio and Digital Copyright Law 16 a. Internet Radio and the Technology that Drives it 16 b. Digital Copyright Law 22 i. The Digital Performance Right in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998 23 ii. Subsequent Changes and Current Royalty Rates 30 IV. The Current Business Outlook for Webcasters 35 V. Conclusion 45 a. Shape Royalty Rates to Better Fulfill the Goals of the DPRSRA 46 b. Acknowledge the Fiction of a Willing Buyer Willing Seller Standard 47 c. Address Payola as a Past and Future Concern 48 d. The Major Labels 50 e. A Final Word 51 2 Page I. Introduction United States Copyright law as it relates to music is complex and confusing because embodies influences that date back as far as Ancient Greece.1 The Copyright Code provides owners of musical compositions and sound recordings with a sophisticated web of rights that can be lucrative when utilized effectively. This bundle of rights that accompanies original works of music has evolved over time in reaction to new technologies of media distribution and publication. Technological advances ranging from the printing press to the player piano to the compact-disk have changed the ways in which music is disseminated and consumed. Since 1790 the United States Congress has used positive law to reward copyright owners by expanding the exclusive rights vested in copyrights in ways that have increased the bargaining power of copyright owners each time new technologies affecting distribution of intellectual property are developed. The trend of expanding copyright law has intensified in recent years. Between 1975 and 2000 the Copyright code grew at an annual rate of