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RIAA Wants Songwriter Royalty Lowered

Posted by kdawson on Mon Feb 04, 2008 11:05 PM
from the more-for-meeeeee dept.
NewYorkCountryLawyer writes "Lest there be anyone left who believes the RIAA's propaganda that its litigation campaign is intended to benefit the 'creators' of the music, Hollywood Reporter reports that the RIAA is asking the Copyright Royalty Board to lower songwriter royalties on song file downloads, from the present rate of 9 cents per song — about 13% of the wholesale price — down to 8% of wholesale. Meanwhile, the big digital music companies, such as Apple, want the royalty rate lowered even more, to something like 4% of wholesale. So any representations by any of these companies that they are concerned for the 'creators' of the music must henceforth be taken with a boxcar-load of salt."

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[+] RIAA Denies Hypocrisy in Royalties Dustup 1 comment
Hairless ape writes "The RIAA is reacting to a story pointing out the group's hypocrisy in its attempts to have songwriter royalties lowered. The issue stems from attempts to get webcasters to pay fixed royalty rates. 'In short, the contention was that the RIAA wanted to pay a percentage of its revenue to songwriters as its profits have fallen, but pushed for a fixed per-stream when it came to earning money from webcasters.' The RIAA says that's not so, and that SoundExchange offered a similar model to webcasters. Either way, the rates sought by the two groups would have bankrupted many webcasters. 'Now you know; it wasn't about hypocrisy, but one of the seven deadly sins may still have been involved.'"
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  • You're assuming... (Score:5, Funny)

    by NixieBunny (859050) on Monday February 04, @11:08PM (#22302124) Homepage
    that anyone had any doubt that the RIAA were anything but money-grubbing middlemen.
  • Why the RIAA? (Score:5, Interesting)

    by Kelz (611260) on Monday February 04, @11:12PM (#22302160)
    Why is the RIAA even able to set any sort of financial policy for its parent companies? I thought it was just a big bunch of lawyers! Should not each recording studio set compensation based on the contracts it signs with the artists?
    • Re:Why the RIAA? (Score:5, Interesting)

      by Tablizer (95088) on Monday February 04, @11:51PM (#22302526) Homepage Journal
      Why is the RIAA even able to set any sort of financial policy for its parent companies? I thought it was just a big bunch of lawyers! Should not each recording studio set compensation based on the contracts it signs with the artists?

      I heard it was too complicated to do it that way. Maybe with modern computers it may be easier. It used to be that radio-stations etc. would simply[1] keep a list of each song they played and periodically handed that list over to the RIAA, who applied a set even percentage and collected corresponding fees to be distributed. It worked well for several decades. In fact, I think that patents should follow a similar technique so that you don't get slammed with surprise royalties.

      [1] With random auditing.
         
      [ Parent ]
    • Re:Why the RIAA? (Score:5, Informative)

      by RalphBNumbers (655475) on Tuesday February 05, @12:11AM (#22302654)
      This isn't the RIAA setting any sort of internal payment policy for it's members.
      This isn't even a matter of paying the artists at all.

      This is a matter of the NMPA (an industry association of publishing companies representing composing artists), and the RIAA (an industry association of record labels representing performing artists) squabbling over which middle man ought to get a bigger cut of online sales.
      How much either of them passes on to the artists they supposedly represent is a separate issue.

      And, meanwhile, the DiMA (an industry association of online music sellers) is chiming in to suggest that they both keep their prices low to speed growth in online sales while CD sales tank.
      [ Parent ]
    • Re:Why the RIAA? (Score:5, Informative)

      by RobBebop (947356) on Tuesday February 05, @12:20AM (#22302710)

      The RIAA is a trade group, and it wouldn't surprise me if they had some kind of power/influence written into all the contracts they administer to control where royalties are paid.

      They do have some goals [wikipedia.org], which are not *all* related to litigation.

      • (this one is litigation) to protect intellectual property rights worldwide and the First Amendment rights of artists;
      • (this one is self-preservation) to perform research about the music industry;
      • (this one is lobbying the nation) to monitor and review relevant laws, regulations and policies.

      So you see, they do lots of things besides sue their customers.

      [ Parent ]
  • Wither Lars? (Score:5, Insightful)

    by GoodbyeBlueSky1 (176887) <joeXbanks@nOsPAm.hotmail.com> on Monday February 04, @11:12PM (#22302162)
    I eagerly await the insightful words of Lars Ulrich, Dr. Dre, et al to explain to me why pissing off the people who were perfectly willing to pony up good money for concerts, T-shirts and, yes, full retail priced CDs was worth it in the end.
  • Is anyone surprised? (Score:5, Interesting)

    by ISurfTooMuch (1010305) on Monday February 04, @11:16PM (#22302190)

    Lest anyone be at all surprised, remember that RIAA stands for the Recording Industry Association of America. It represents the record companies, and that's all it represents. If these companies could find some legal way to hold a gun to a songwriter's or musician's head and take their work at gunpoint, they'd do it.

    I'm not going to insist that digital downloads are the future and that all artists should follow Radiohead's lead, but any artists who care at all about their future had damn well better examine every single alternative when figuring out how to produce and distribute their music. Things are changing, and you can be sure that the record companies are going to be looking out for their best interests. Artists had better do the same, or they're going to get screwed.

  • LAWL (Score:5, Insightful)

    by Anonymous Coward on Monday February 04, @11:16PM (#22302196)
    This is too funny they want more money in compensation for each illegaly downloaded file yet want to give less to the artists that make it...
  • Royalty or Loyalty? (Score:5, Insightful)

    by syousef (465911) on Monday February 04, @11:17PM (#22302200)
    ...because they're going about the right way of lowering the loyalty rate of artists and customers alike.
  • RIAA - The red herring? (Score:5, Interesting)

    by Kovac.anar (650162) on Monday February 04, @11:20PM (#22302238)
    Correct me if I'm wrong, but isn't the RIAA essentially a representative group formed with the intent of pushing forward goals and legal issues for the major record labels?
    If so, then they are doing an admirable job of inspiring people to direct ire and hared towards the constructed organisation rather than to the parent companies.
    It isn't often that I see people complaining about Sony or BMG (Comparatively speaking).
    It always seems to come down to that nasty RIAA.

    Well done indeed.
  • Seen same with H1B issue (Score:5, Insightful)

    by Tablizer (95088) on Monday February 04, @11:25PM (#22302290) Homepage Journal
    The H1B issue is the same way: lobbyists squirm and wiggle to bend statistics and magnify (or make up) anecdotes to sell the idea that there are not enough citizen programmers or not good enough citizen programmers and therefore the industry needs H1B's in order to prevent an economic collapse. It is all just a ploy to get cheaper labor. This is what happens when business lobbyists have more power over legislators than voters. It's that simple.
  • by flaming error (1041742) on Monday February 04, @11:29PM (#22302330) Journal

    music publisher catalogs have increased in value due to steadily rising mechanical royalty rates and alternative revenue streams made possible, but not enjoyed, by record companies.
    Those dastardly songwriters have too long been taking unfair advantage of the RIAA's clients. They take a whopping 8% of royalties just for creating the product!

    Now the record companies, who created the internet and invented downloading music and streaming audio, have seen their take of the pie stay the same, whilst freeloading music creators are actually making more.

    I shall write to Orrin Hatch about this...
  • RIAA bad, Apple... (Score:5, Funny)

    by martinX (672498) on Monday February 04, @11:35PM (#22302392)
    Now the RIAA is a bunch of money grubbing pricks, but I can't believe Apple would have anything to do with ... HEY LOOK! OMG! New AirBooks are OUT!!!
  • Going the Way of Nine Inch Nails? (Score:5, Informative)

    by webword (82711) on Monday February 04, @11:42PM (#22302454) Homepage
    Nails frontman [Trent Reznor] urges fans to steal music [yourguide.com.au]

    "Steal it. Steal away. Steal, steal and steal some more and give it to all your friends and keep on stealing," Reznor, who has been dubbed the Ralph Nader of the music industry, said.

    Steal NIN music too? He steals he says. Read that article. Interesting.
  • 8/13 = 62% (Score:5, Insightful)

    by Doc Ruby (173196) on Monday February 04, @11:50PM (#22302510) Homepage Journal
    Cutting 13% down to 8% is a 38% reduction.

    So everyone else's cut is going up, even though the songwriter's costs and work are the same. But the rest of the "value" chain to the consumer (which now is composed mostly of the consumer, recommending and trying to share the content) is drastically reduced in cost and increased in availability of inventory (which was typically paid off according to plan many years ago).
  • An Explanation of The Issues (Score:5, Insightful)

    by Crypto Gnome (651401) on Tuesday February 05, @12:07AM (#22302614) Homepage Journal

    At issue is the so-called "mechanical royalty" -- payments made for copies of sound recordings, including those made by digital means, to songwriters and publishers.
    Basically, the problem is, when you're speaking DIGITALLY, there is no difference between "copying a recording" (ie download for the purposes of saving a file) and "performing a recording" (download eg streaming, for the purposes of audio playback in the physical world).

    For This Reason, New Media Players (Apple, Yahoo, Napster, etc) argue that the "mechanical royalty for copyright" should be lowered significantly on digital downloads (specifically, to 4%).

    RIAA etc argue the fee should be dropped only slightly (specifically, only to 8%).

    RIAA are arguing to maintain profits for their (arguably, exceedingly dinosaur-like) "distribution model".

    "While record companies have been forced to drastically cut costs and employees, music publisher catalogs have increased in value due to ...... alternative revenue streams made possible, but not enjoyed, by record companies."
    ie "we see you've worked out new ways to make profits, so pay us (even more) money even though we have not contributed anything new to the equation".

    The New Media crew are arguing the way of sanity and intelligence. (ie trying to push the 'downloads are effectively performances, because there's no way to differentiate' argument)

    New-media companies want the rate to go even lower, contending that it should disappear when music is digitally streamed.

    Every time you hear something new from the RIAA it boils down to "someone needs to shovel more money into our bank accounts, without any additional effort or contribution on our part. Our business model dictates an infinitely increasing profit margin, for infinitely decreasing effort, ad-infinitum."

    And the same can be said of those ISPs who intend to violate the concept of "net-neutrality". ("someone's making money , and the bits cross our network. Ignore the fact we already billed someone for those bits, I want to directly bill BOTH the producer AND the consumer of those bits, even though they have NOTHING WHATSOEVER to do with me").

    That's not a business-model, that's a fantasy.
    • Aren't they supposed to be on the artists' side?

      The Recording Industry Association of America (RIAA) is the trade group that represents the U.S. recording industry.

      Reducing costs is good for the Industry.
      [ Parent ]
    • by syzler (748241) on Monday February 04, @11:25PM (#22302292)
      Aren't they supposed to be on the artists' side?

      Yes, just not the artist you thought. They are really on the side of the con artists (I.E. the corp backers).
      [ Parent ]
    • by urcreepyneighbor (1171755) on Monday February 04, @11:36PM (#22302398)

      Stupid pigopolists.
      Eh. That's too close for "capitalist" for my liking. What you've got is a cartel that's trying to keep itself alive. True Capitalism - I'm talking Ayn Rand style Capitalism - would laugh at this pathetic copy.

      Aren't they supposed to be on the artists' side?
      The RIAA? No.... It's the Recording Industry Association of America. Keyword is "Industry".

      Trust me: the industry can find a thousand people to write crap like this [azlyrics.com]:

      Oh baby, baby
      Oh baby, baby
      Oh baby, baby
      How was I supposed to know
      That something wasn't right here
      Oh baby baby

      This blatant money-grab is just one more nail in their coffin.
      Yes, but you didn't kill the bastard before putting him in the coffin! Duh! He's banging and screaming and pissing & shitting himself senseless - because he knows, unless someone rescues him, he'll die soon. ;)

      More artists will find ways to sell directly to the public,
      Well, the ways already exist.... It's easy for a new artist to go this route, but for an established band with contracts and whatnot... notsomuch.

      For the record, one of my all time fav artists does this. Ayria [ayria.com]. She's cute, too!

      or form their own collectives with their own interests at heart.
      ooh, goodie! How long until they become just as bad - or worse - than the RIAA? Seriously, this tendency of people to group themselves.. is boring... and annoying.

      Of course, that's how the RIAA started,
      Wait, hold on! You KNOW that has happened in the past and you want to repeat it?!

      What?! Should we try Communism ONE MORE TIME because THIS TIME we'll "do it right"? Ha. Come on. ;)

      but it is well past its usefulness and needs to be replaced.
      Eh. The RIAA will continue to exist, in some form, for a long time. The fangs need to be removed, tho.
      [ Parent ]
      • by 99BottlesOfBeerInMyF (813746) on Tuesday February 05, @12:48AM (#22302938)

        What?! Should we try Communism ONE MORE TIME because THIS TIME we'll "do it right"? Ha. Come on. ;)

        You should be careful about such comments. One would think you were talking about "communism" the economic model since you are comparing it to capitalism, instead of "communism" the political ideology. This is important because "communism" the political ideology generally tries to apply extreme "socialism" as economic policy and has basically nothing to do with "communism" the economic model aside from the political parties that misleadingly stole the name. This is also important because "communism" the economic model is alive and well for those who apply it to small communist cell sizes. The most common example of this would be the family unit, which comprises a communist cell by buying and selling goods and services collectively (although these cell sizes are shrinking in the US). Other applications of communism that have stood the test of time are monasteries, co-op housing, co-op stores, credit unions, municipalities, etc.

        Most Americans seem to have some messed up ideas about communism and socialism, both as political ideologies and as economic models. For example, public schools are an example of socialism, although those schools seem to have failed to educate their students as to that fact. Most people with an even cursory education in economics, however, will tell you that communism, socialism, and capitalism are all present in every economy in the world and what usually leads to disaster is when an economy becomes extremist and failing to balance these aspects. Extreme capitalism is just as unstable and disastrous as extreme socialism or extreme communism... that is the lesson we all should have learned from history.

        [ Parent ]
    • They are constantly beathing that drum, claiming to be looking out for the "artists, songwriters, [and] musicians" [riaa.org] but that's just propaganda. If they admitted they were just looking out for record company executives, it wouldn't go over as well. Here they have shown their true colors.
      [ Parent ]
    • Re:What if the royalty was negative? (Score:5, Informative)

      by timmarhy (659436) on Monday February 04, @11:49PM (#22302502)
      "Imagine if musicians had to pay out of pocket for every song that was distributed"

      ROFL, oh but THEY DO!!!! the traditional RIAA contract has the artist paying for all the costs out of their royalties. essentially companys RIAA represent take an artist onboard and fund the album, making the artist pay it all out of their royalties at an inflated price as well as taking their cut of the profits, so if an artist is very lucky they might walk away not owing them money... studio's are a pit of snakes, make no mistake.

      [ Parent ]