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Class Action filed against SiriusXM for playing Pre-1972 Recordings

C

Casey

A class action lawsuit has been filed by The Turtles against SiriusXM for playing music dating pre-1972. According to The Turtles, SiriusXM is not covered to play songs from pre-1972 by the royalties they pay SoundExchange. This will be a case to watch. Should SiriusXM lose, not only would they have to pay out what could soar well above $100 million, but an injunction will prevent them from playing the music in the future. Every single internet webcaster without direct licenses would also be in the same boat as SiriusXM including AM/FM stations that have an internet simulcast and on the hook for possible lawsuits.

This no doubt has to deal with the crushing defeat Grooveshark received earlier that said they were not protected by copyright law for streaming pre-1972 tracks.

http://www.hollywoodreporter.com/thr-esq/turtles-lead-whopping-100-million-598746
 
This seems a bit on the ridiculous side. Record labels and recording artists seek airplay for the promotional value (free advertising). People, if they like your songs sometimes go out and BUY them and that's how you make your money. I wonder if the Turtles will disappear from the playlists? If I were in charge I'd yank them in a heartbeat...see ya!
 
The other possible interpretation is ruling that all recordings before 1972 are totally EXEMPT from any royalties at all.

One expert, a copyright and digital attorney Angus MacDonald said just last week that the recent ruling by the Copyright Royalty Board could make all pre-1972 recordings exempt:

http://kurthanson.com/news/webcasting-iv-royalty-mess-part-2-2

I would expect that the CRB will be called to testify at any trial, since they're the ones who set the royalty rates, and they addressed this exact issue in their most recent determination, dated December 2012:

http://www.loc.gov/crb/comments/2012-12/Public_Initial_Determination.pdf

One would think SOMEONE asked SOMEONE at one point how to handle pre-1972 recordings. This problem didn't just appear. Part of it is the fault of the Copyright Office, which was directed by Congress in 2009 to look into this situation. Part of it is Congress that allowed this loophole to exist. But this is going to be a very complicated lawsuit. For broadcasters, this is yet another reason why it should continue to be exempt from royalties for the use of recordings. It shows just how dangerous it is to play this game.
 
The irony here is that the recordings made before 1972 didn't have the technology available afterwards. And we all know that advertisers no longer want that demographic. So by traditional radio methodologies, we all know the music from that period should be worth a lot less than current music. In fact, these musicians should be thrilled they're getting any airplay at all, because OTA stopped playing this music a long time ago. Instead, they sue the only platform that provides airplay. And they wonder why the music business is in trouble.
 
I agree that suing the one platform that still plays the music is ridiculous.

If the pre-1972 music is not exempt, that could theoretically cause all music before that time to be yanked. Guess the Turtles could go back to touring to make their money.

I think the pre-1972 exemption should be put in place for the benefit of all concerned.

My sister is 34 and has never heard of the Turtles. I barely remember them myself.
 
Alan McCall said:
I agree that suing the one platform that still plays the music is ridiculous.

If the pre-1972 music is not exempt, that could theoretically cause all music before that time to be yanked. Guess the Turtles could go back to touring to make their money.
Click to expand...

They actually still tour. So do the Monkees, even though Davy Jones is dead. Lots of 60s acts tour for money. But what a windfall if they can get $100 million from a handful of 45 year old songs.

Tom Taylor reported today that Sirius HAD been paying SoundExchange for pre-1972 songs, but stopped a year ago, perhaps when the CRB told them the DMCA didn't apply to pre-1972.
 
Turns out the issue here was that Pandora decided to screen which music it was paying for rather than sending a blanket payment to the CRB. As part of that screening, they decided not to pay performance rights for any pre-1972 material. Did not make the Turtles feel "Happy Together." Hence the lawsuit.

Most radio stations that are streaming pay a blanket performance fee, which is divided among the various rights holders based on air play. Whether or not the particular song or songs were recorded before or after 1972. So this suit should have no effect on stations that are streaming.
 
Pandora isn't mentioned in the suit.

However if you read the CRB decision, linked above, they suggested to split out pre-1972 recordings because they're not covered under the DMCA. The status of those recordings has been an issue with the Copyright office for four years. But AFAIK, there hasn't been an actual decision about what to do with those recordings.
 
The couple of guys that still constitute The Turtles, Flo and Eddie are just trying to make a buck. They haven't had a hit in 43 yrs but I guess they care a lot more about the bucks than they do the music.
 
FRR said:
I guess they care a lot more about the bucks than they do the music.
Click to expand...

That could be said of both sides, because Sirius is making money from their music. And when you only have one source of income, you become a whole lot more defensive about it.
 
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