Performance Rights Organizations Accused Of 'Retitling' Songs To Collect Royalties Without Paying Artists
from the sad-state-of-affairs dept
In various discussions about the music industry, we're often told that the so-called Performance Rights Organizations (PROs) are "looking out for artists' interests." In practice, that's not always the case. In the US, for example, we've talked about how PROs have harmed up and coming musicians by jacking up prices so high that many venues that used to be the starting place for new musicians no longer allow any music. Similarly, there are plenty of stories showing how they often collect money that should go to smaller artists, but deliver it to big name artists instead, because it's too difficult to track how much they should be paying smaller artists.A press release from an organization called Music Licensing Directory -- which may be biased, so take this with a grain of salt -- is highlighting that 40% of the PROs it tracks engage in "retitling" tracks for the purpose of licensing. Basically, the accusation is that the PROs change the title, so that they still collect the royalties, but since the songs can't be easily connected back to the original artist, that artist doesn't get paid.
“We have analyzed over 1500 music licensing companies globally, allowing for an accurate assessment of the market place and providing valued insight for artists and the industry.” said Winston Giles, CEO & Founder of The Music Licensing Directory.
The new report highlights that whilst the Music Licensing Industry continues to grow as a multi-billion dollar segment of the global music industry, there remains some unhealthy practices, most notably the prolific practice of retitling. Retitling is where a music licensing company re-registers a song under a different title with a performing rights organization (PRO), allowing for the royalties to be separately tracked when that song is licensed for a specific third party use. This allows the music licensing company to control and earn a significant share of the royalties collected.
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Patent evergreening
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Noted. Assuming 80%.
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Re:
(from the linked article:
“There are suggestions from within the industry from companies like Tunesat, who claim that up to 80% of songs are not reported properly."
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My process - which scientific publications refer to as "Making stuff up" - is much more efficient and nearly* as accurate.
(By the way, is there such a thing as an "Accidentally Insightful" award?)
* For some generous interpretations of "near"
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It is worth noting that the directory is a paid-for service that seems to be providing access to numerous PRO databases, so they could have an ulterior motive for making it seem that people need to be checking that their information is correct. The "full report" linked also seems to be an infographic giving its own site and Wikipedia as 2 of 4 sources, which is suspicious.
However, we're really back to the same position. If true, it's a scandal, it's fraud and it should be dealt with to the limits of the law - especially by those showboaters who jump on the "but piracy!" train every time it comes up. If untrue, it shouldn't take the usual defends too long to work out why it's so easily believed (hint: many previous incidents of similar behaviour).
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Response to: PaulT on Apr 23rd, 2013 @ 5:41am
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Re: Response to: PaulT on Apr 23rd, 2013 @ 5:41am
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Wrong culprit
The PRO's are not at fault here (for once!). It's the Music Licensing Companies. They change the song titles to avoid having to pay the songwriter fees, or to collect the publisher fees themselves. So you can't really blame the PRO's for not being able to track usage of songs in this particular case.
Can't believe I'm defending the PRO's here! haha!
Cheers
Andy
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Re: Wrong culprit
Can you PROVE the title change was done by the Music Licensing Companies, NOT the Performance Rights Organizations, Andy?
Eagerly awaiting a reply...
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If you want proof, why not ask the Music Licensing Directory, the party making the claim, instead of blaming Techdirt?
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Sounds like a bunch of shit to me, but that tends to be the trend for people who regularly attack this site but lack the cojones to even create a fake name to log in with. What are YOU hiding?
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Legal Ponzi Scheme
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So who the hell is "Music Licensing Directory"?
Meanwhile, you pirates think nothing of ripping music and entire $100M dollar movies onto sites where it's guaranteed that the artists won't get paid.
Take a loopy tour of Techdirt.com! You always end up same place!
http://techdirt.com/
Where arrogance meets ignorance to conspire what they'll do with someone else's 100 million dollar movie.
04:01:17[f- 2-8]
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Re: So who the hell is "Music Licensing Directory"?
It is shown time and time again that with Hollywood accounting those that are stealing are those actually accusing the pirates. Pirates share they do not steal anything and you need to accept this or be ignored in many conversations.
If anything the copyright maximalists are the ones stealing from the artists and those that have invested in their creations by means of the famous Hollywood accounting. They are just using piracy as a means to accuse others of their misdeeds to move the conversation away from their theft and greed.
And if you do not understand what Hollywood accounting is there is enough info on Google for you to investigate, but one very clear example is the fact that some of the biggest grossing movies of all time are still said to not be creating and never have created a penny in profit. Now you explain to me how a movie like the first star wars movie has not made a profit over it's lifetime, and has not paid a penny out in royalties.
Come on i am waiting for your knowledgeable excuses as to why a movie that is one of the all time top grossing movies is still declared as non profitable to those that seek their royalties from any profit.
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Re: So who the hell is "Music Licensing Directory"?
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Re: So who the hell is "Music Licensing Directory"?
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Royalties
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Have been expounding on the clear observation that RIAA and MPAA have business models almost indistinguishable from organized crime. Can add Performance Rights Organizations (PRO) and Music Licensing Companies (MLC) to that list? Not a surprise since they possibly aspire to be like their big daddy **AA's.
This is great stuff! Where there is money we will find corruption. Follow the trail! (and toss the stupid rational that its just a mistake or that we just misunderstand)
What we need are more victims willing to prosecute. Keep gathering evidence. Donate to the EFF to remedy expected expenses. Its likely that only through subpoenas and warrants will sufficient data for prosecution to occur as these types seem like habitual lairs.
Reactionary,
Andy. Would there be any connection between the MLO and PRO's? Collusion might bring up RICO charges which are much stronger (even if the RICO law itself is weird) in terms of penalties and possible prison terms for the involved.
Anonymouse. In Hollywood accounting one takes money from one pile and allocates it to some expense not necessarily involved with the original production. (its all in the contract fine print) The First Star Wars movie is a good example where the production of the second movie ate up the proceeds from the first (along with some large capital investments in the LucusFilm empire notably computer graphics and special effects.)
Of course this partial explanation does not make it any easier on the actors and others stiffed of proceeds from a very profitable film.
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Response to: Anonymous Coward on Apr 24th, 2013 @ 2:12am
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