Money you don’t own
I wonder sometimes about what seems to be a trend toward legitimizing borderline larceny. Credit card companies and banks are allowed to take more and more leeway and charge more and more fees without offering extended (or even reducing current) services to their customers. Paycheck advance stores and title loan offices seem more and more to be quasi-legal loan sharking. And don’t get me started on the legalized grand theft auto of private tow companies – personally, I feel enforcement of trespassing laws and collection of fines should be a duty of well-paid law enforcement, and not the territory of privately-owned for-profit companies.
It appears in every industry and every aspect of life. It even occurs in the music you listen to, particularly if you dig internet radio.
The game is rigged and the RIAA has rigged it in their favor. The strategy of playing only non-RIAA songs won’t work though because the RIAA has secured the right to collect royalties on all songs regardless of who controls the copyright. RIAA operates under the assumption that they will collect the royalties for the “sound recording copyright” and that the artists who own their own copyright will go to SoundExchange to collect at a later date.
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So how it works is that SoundExchange collects money through compulsory royalties from Webcasters and holds onto the money. If a label or artist wants their share of the money, they must become a member of SoundExchange and pay a fee to collect their royalties (http://soundexchange.com/faq.html#b6). But, and this is a big “but,” you only get royalties if you own the sound recording copyright. If you are signed to a major label, chances are you don’t. Even if you do own the copyright to your own recording of your own song, SoundExchange will collect Internet radio royalties for your song even if you don’t want them to do so. [ed. emphasis mine]
So. SoundExchange – which is in the pocket of the RIAA – collects funds for people it does not represent, regardless of whether or not they want those funds collected, then holds onto those funds unless those people pay for them. In fact, if you remember last year’s massive list of artists who had not collected their royalties yet, SoundExchange has a very sweet deal. If you don’t collect the royalties by the end of the year, you don’t get those royalties ever – they pocket whatever they don’t disburse. Every year.
I recently used a service recently to put all of my music on the digital net services. In that time, my songs have been streamed from those stores 61 times, and purchased 13 times. The amount of money I saw from it definitely isn’t going to break the bank. But it is mine – and it’s my music that earned it. And SoundExchange shouldn’t be able to appoint itself the lord and master of when and where my royalties are paid without my giving them that power in the first place.
Somewhere, something’s gotta give.
Monday, April 30th, 2007