This is probably one of the most relevent things you will ever read about the very subject of this thread, about the future of digital music as the Copyright Office sees it, about compulsary licensing, just everything about digital services. And it is hot off the presses (March 11th as a matter of fact). This is NOT just about compulsary licensing, so don't let the title fool you. Straight from the Copyright Office:

http://www.copyright.gov/docs/section115_registers_testimony.html

If the service is streaming/on demand, it appears to me that A) each time a song is played, a mech license fee of the statutory rate or a negotiated rate (stat rate is 8.5 cents now I believe) is due the copyright owner, PLUS B) because it could be considered a public performance, a PRO fee would be due each time the song is played. I didn't have time to look up the amount, but it would probably be whatever the internet radio negotiated settlement amount is (which is much less than the airwaves amount).

To me, it looks like if the service is considered streaming/on demand, at least 8.5 cents + the PRO fee would be due publishers/PRO's each time a song is played, unless they all negotated a lesser rate.

Now, if the service delivers a one-time *SINGLE SONG* DPD (such as ITUNES and all the end-distributor sites CDBABY uses - although some or all of those services make you buy the entire CD, your not allowed to buy just single tracks), then then only the mech fee (8.5 cents or a lower negotiated rate) would be due one time and one-time only, and the end user could play the song an unlimited amount of times. Although the PRO's have argued about this, a true DPD on a closed stream is not publically performed, therefore no PRO fee is due. At least that is mine and some other people's opinion, on that one.

For an entire CD download as a one-time DPD, the mech fees would be 8.5 cents x the number of tracks. Unless of course negotated rates make it lower.

Interesting stuff.


[This message has been edited by Liszt Laughing (edited 03-15-2004).]

Boo...my name is Doug