Music Licensing

Digital technology has dramatically changed, methods of recording, distributing, performing, selling and listening to music and blurred lines between the different rights that constituted copyright. It has spurred new entrants into the market. These services are demanding rights licensing on a scale never seen before. However, the law and the institutions that have developed around music licensing are not equipped to deal with these new services. Legislative changes in response to the changing marketplace have so far been piecemeal. As a result, the music-licensing scene is a fragmented and confused one. Services like Internet Radio and Satellite radio have to pay different rates to provide the same kind of service. Download services like iTunes, or Rhapsody complain about the inability to license rights on a scale they need to be competitive. Services that resemble neither traditional radio nor traditional storefronts are pressured to pay two licenses for the same activity. In light of these facts, the law governing music licensing needs to be amended comprehensively. As Congress addresses the challenges posed by digital technology, it should also re-examine the role played by a traditional industry - radio in the current music market.

Music licensing reform needs to primarily address two types of licenses – the performance license and the mechanical license. This section will deal with problems surrounding these licenses, and suggested reforms.