Integrated Copyright Group (ICG): Copyright Administration and Music Licensing

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BREAKING NEWS

CRB Leaves Mechanical Rate Unchanged

Sarah Skates, Music Row Magazine – 10/03/2008

The Copyright Royalty Board announced yesterday (10/2) new mechanical rate terms for physical products (such as CDs), permanent downloads (such as iTunes) and ringtones. Songwriters and music publishers will be paid a rate of 9.1 cents for digital downloads. The CRB judges also ruled that the rate for physical products will remain at 9.1 cents. Each will be subject to an overtime rate. The CRB judges also established for the first time a rate of 24 cents for each ringtone subject to the Section 115 mechanical license. Furthermore, music publishers will have the right to seek a 1.5 percent late fee, calculated monthly.

David Israelite, President and CEO of the National Music Publishers’ Association – which represented songwriters and music publishers before the Board – hailed the decision as a positive development for all songwriters and music publishers. He said, “These events will bring clarity and order to an environment that for the past decade has been hampered by litigation and uncertainty on all sides.”

The announcement is the culmination of a trial that began in January, and marks the first time the Board has established mechanical royalty rates for songs distributed digitally.

The Board also adopted the terms of an historic industry settlement on rates for two other types of services – interactive streaming (such as some Napster services) and limited downloads (such as Rhapsody To Go). Details of that agreement between NMPA, the Nashville Songwriters Association International (NSAI), the Songwriters Guild of America (SGA). the Recording Industry Association of America (RIAA) and the Digital Media Association (DIMA) were announced last week.

The music publishers and songwriters were represented in the trial by the NMPA, along with NSAI and SGA.

Steve Bogard, NSAI President, said, “The United States, the source of so much of the world’s great popular music must lead the way in compensating creators for their work and making it possible for our publishing partners to continue to invest in the nurturing and development of great young songwriting talent. NSAI believes that in the long run this decision is in the very best interests of consumers, digital media content providers, and the entire music industry.”

Music Industry and Online Services Agree On Royalty Rate

The recording industry, music publishers and online music services have reached a landmark royalty agreement for streaming and limited downloads of music.

The agreement cites a mechanical royalty rate of 10.5% of revenues, minus amounts owed for performance royalties for songs, for digital service providers that offer interactive streaming and limited downloads such as subscription and ad-supported services.

The RIAA, the Digital Media Association, the NMPA, the NSAI, and the Songwriters Guild of America have all agreed to the new rate. Although the deal doesn't address rates for physical product, permanent music downloads or ringtones, those issues are as well expected to be ruled on by Oct. 2 by the U.S. Copyright Royalty Board.

On June 19^th, ICG copyright administration client Loretta Lynn stole the show as she and several other legendary songsmiths were inducted into the Songwriters Hall of Fame at its 39^th annual banquet held in New York City. After the crowd had been treated to over two hours of exceptional performances from one musical legend after another, fellow country artist Lee Ann Womack stepped to the center of the stage and offered an introduction that extolled Lynn as a groundbreaking artist who fearlessly spotlighted feminine realities in such songs as “Don’t Come Home A-Drinkin’ (With Lovin’ On Your Mind)” and “The Pill.” Womack went on to accentuate the influence Lynn continues to have on music today, sighting her 2004 collaboration with the White Stripes’ Jack White on the critically hailed Van Lear Rose album. When Lynn took the stage, launching into a version of the autobiographical “Coal Miners Daughter” that sounded almost indistinguishable (if not even more emotion-filled) to the 1970s hit, the audience reacted with claps and cheers and cries for more. The crowd was responding so fervently that the good-natured Lynn launched into an impromptu performance of “Don’t Come Home A-Drinkin’.” Other Hall of Fame inductees were Desmond Child, Albert Hammond, Alan Menken, and John Sebastian. Paul Anka, Anne Murray, John Rzeznik and Milt Okun were honored.

(L) to (R): Richard Perna, CEO/EverGreen – Connie Bradley, Senior VP/ASCAP

Steve Diamond, Teri Diamond – Chip Hardy, VP A&R Nashville/EverGreen – John Barker President/ICG

Emmy Award winning and Grammy® nominated songwriter Steve Diamond has become the newest member of the ICG/EverGreen family. "ICG/EverGreen feels like the perfect place for me," said Diamond, whose long list of celebrated hits includes Faith Hill's Let Me Let Go, and I Can Love You Like That, cut by John Michael Montgomery and All-4-One. "They really understand the value of songs and are passionate about the writers they believe in."

Diamond's career has successfully spanned many genres with cuts by artists such as Brooks & Dunn, Joe Cocker, Miley Cyrus (Hannah Montana), Backstreet Boys, Britney Spears, Reba McEntire, Nick Lachey and Vince Gill.

-- Welcome Steve.

Pictured: Tim Allen, surrounded by many of the products he has licensed ICG songs in.

U Can Brush This

Tim Allen, Director of Licensing, has the cleanest teeth at ICG! Allen has licensed the use of the MC Hammer hit “U Can’t Touch This” (published by ICG client Bust It Publishing) in Hasbro’s new Tooth Tunes toothbrushes. These innovative electronic toothbrushes feature two minutes of music, the minimum time recommended by dentists to brush for good dental health. Sound waves stream through the bristles and travel through the jawbone to the inner ear, letting these toothbrushes give new meaning to having a song stuck in your head!

www.hasbro.com/toothtunes

Grand Theft Auto Gets the “Top Billin’”

Grand Theft Auto IV, the newest release in the popular video game series by Take-Two Interactive Software, Inc., features the song “Top Billin’,” written by Kirk Robinson and co-published by Hot Butter Milk Music, Inc., a client of Integrated Copyright Group/EverGreen.

According to Yahoo! News, the highly anticipated title sold about 3.6 million units on its April 29^th release day, bringing in around $310 million. It continued to take in more than $500 million its first week in stores, selling more than 6 million units worldwide.

“Top Billin’” is one of 214 songs featured on the in-game soundtrack. The music plays a pivotal role in creating and defining the game’s urban atmosphere. Songs are featured when the game’s main character is driving in a car, and in a new development, players can actually find out the name of the song they are listening to while playing the game. The Grand Theft Auto series, more than any other game series, helps people discover new music and shine a spotlight back on popular songs from the past.

Pictured (L-R): Brumley Publishing’s Dave Durocher and Bob Brumley, Salley, and ICG’s John Barker.

Brumley Publishing Celebrates No. 1

ICG client Brumley Publishing recently held a party in honor of singer/songwriter/musician Jerry Salley to help celebrate the No. 1 success of his gospel song, “Broken Ones,” recorded by the Talley Trio. All who attended (including staffers from ICG, Brumley Publishing, and SESAC) were treated to a terrific performance by Salley.

Legislative News

U.S. Copyright Office: Online Registration

ICG is aggressively moving forward with online beta testing with the U.S. Copyright Office. As the Copyright Office modernizes its operations by moving from paper to a web-based processing environment, ICG is one of the early administrators to jump onboard and increase efficiency. This change is not only more efficient in time, but in cost as well, as the on-line registration is cheaper than the current paper registration. The new system named “electronic Copyright Office (eCO) e-service” will be a huge benefit for ICG, and the time savings in our registration process will be a noticeable difference to our clients. Quite frankly, with the Copyright Office moving in a “paper-free” direction, we would be doing a disservice to our clients if we didn’t join early on to reap these benefits. As the industry changes, ICG will continue to adapt and improve the administrative efforts for our clients.