Conclusion

If the foregoing discussion makes one thing clear that is the need to simplify the music licensing process. The current music licensing structure is not helping artists, labels, music services or the public. A new system that would ensure a fair return to artists, easy access to services and respect consumer rights is essential to bring the licensing regime into the digital age.

A good first step might be one stop shopping,– i.e. services should be able to license all rights belonging to the same copyright owner from the same place. For example, songwriters are represented by the PROs to license their performance rights and by the Harry Fox Agency to license their reproduction and distribution rights. This fragmentation results in the PROs and Harry Fox demanding a license for the same activity, like interactive streaming, because ambiguities in the law lead them to believe that more than one type of right is implicated. One stop shopping would allow one fee for one type of service and the entity issuing the license would be able to set the appropriate price without worrying about allocating it to specific rights implicated.

Any change to the law that brings about one-stop shopping needs to be mindful of the anti-competitive effects of a single entity representing the interests of all copyright holders. This result can be avoided by requiring that there be more than one licensing entity each providing licenses reasonable and non-discriminatory terms. The current PROs, ASCAP, BMI and SESAC and the Harry Fox Agency could all evolve into these entities.

Licensing reform also calls for platform parity, i.e. the same licensing structure should apply for the same kind of service. For example, rates for music transmission by satellite radio and Internet radio should be set based on the same standards. Over-the-air radio should be required to pay a performance license just like internet and satellite radio.

And last, but certainly not the least, music licensing reform should not be used as a pretext to curtail the rights of the listening public. Such restrictions are not necessary to secure the rights of the artist nor do they bring music licensing into the digital age.