IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige

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IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
IP and the
Music Industry
Group 3 - WIPO-UNIGE IPSS 2021
By Laura Galvão Scalon, Pamela Echeverria, Asma’ Kamila Binti Hussein Kamal,
Lobna El-Shinnawy, Anusha Mohapatra, Shraddha Pandit, Deah Kapoor,
Hurmat Koul, Edoardo Duron, Prajjwal Kushwaha, Valentina D’Adda, Izotene
Fidel-Anyanna, Jeonggu Lee, Gerard Kevin Cagatan, Maksim Cherpak, Louise
Fensby-Bocquet, Ketevan Kavrelishvili, Marcelina Slugocka, Thala Maria
Mouawad, Alberto Burzio, Nastassia Merlino
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
01.
Introduction
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
IP in the kingdom of the Music Industry
●   IP rights are necessary to reward every actor within
    the Music Industry for their creative inputs, which, at
    one point, will enter the public domain and benefit us
    all

●   Which IP tools are used within the Music Industry?
     ○ Trademark?
     ○ Patent?
     ○ Designs?
     ○ Most importantly : Copyright                           Source: Media&Society website
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
The Copyright Legal framework
●   What does Copyright protect?
     ○ The tangible expression of a creative idea
     ○ Not an idea : US Supreme Court, Baker v. Selden, 1879
     ○ The Concept of Originality.

●   Is the Copyright protection the same in every country?
      ○ Minimum standard : Berne Convention, 1886
      ○ Common Law (utilitarian approach) : lower protection
      ○ Civil Law (author approach) : higher protection

●   What Copyright can you find in a track/song?
     ○ The compositional copyright : held by songwriters,
        lyricists & composers                                    Source: WIPO website
     ○ The master recording copyright : held by the performing
        artists & label
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
Music & Copyright protection : a “Litigating Mix”

                   Many “grey areas” :

●   When determining if there is copyright protection

     ○   Originality of a song : what is the level of permitted
         inspiration from other works? Taurus (Spirit) vs
         Stairway to Heaven (Led Zeppelin) case.

●   When determining if there is an infringement

     ○   Similarities between 2 songs: can there be an
         “unconscious” copying? My Sweet Lord (George
         Harrison) vs. He’s so fine (Chiffons) case.
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
02.
Case Studies 1:
  Social Media
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
SOCIAL MEDIA

Social media and the internet in general,
rely on the free flow of information, the
rapid and lossless reproduction of content,
and the global reach of every interaction.

Yet Copyright Law, in a stark contrast,
restrains the reproduction and distribution
of content along territorial lines.

In order to appreciate the importance of
these issues, and to consider how the law in
this area might shape the use of social
networks in the near future, it is necessary
to understand the copyright framework
within which social media must operate.
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
MUSIC LICENSING BASICS
        Music License = permission to use a song or sound recording
        Though not an unlimited license, it is mandatory for all streaming services to secure this
        license to operate in their territories.

Music Licenses can be issued by:             Licenses can be paid by:
 ❖ Songwriters themselves                    Up-front fees and/or Royalties
 ❖ Record Labels, Producers
 ❖ Music Publishers                               With Royalties the copyright owner receives
 ❖ Performing Rights Organizations                monetary compensation in exchange for
 ❖ Agents/Agencies        on   behalf   of        licenses.
     copyright holders                            Usually expressed as a percentage (%) of
                                                  total sales
License Types                                     Royalties for Music are earned income from
  ❖ Mechanical License                            various sources like : sale of CDs, Ringtones,
  ❖ Performing Rights Licenses                    Streaming, Public performances; Radio,
  ❖ Synchronization License                       Placements of music in Film, TV, Video
  ❖ Print Licenses                                Games
  ❖ Foreign Licenses
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
Fair use doctrine
    Fair use permits limited use of copyrighted material without having to first acquire permission
    from the copyright holder.

   Fair Use Doctrine, sec.107 USCA                              Can    videos     be    considered
   The factors in determining fair use:                         parodies?

❖ The purpose and character of the use, including          ❖    Sabine Jacque: “a parody is
  whether such use is of a commercial nature or is              something distinct from a mere re-
  for nonprofit educational purposes;                           working or altered copy. A parody
❖ The nature of the copyrighted work;                           communicates a new distinctive
❖ The amount and substantiality of the portion used             message from the earlier work it
  in relation to the copyrighted work as a whole; and           reproduces, and typically results in
❖ The effect of the use upon the potential market for           the creation of a new expression
  or value of the copyrighted work.                             which may be eligible for copyright
❖ Transformative use such as parodies                           protection.”
IP and the Music Industry - Group 3 - WIPO-UNIGE IPSS 2021 - moodle@unige
Common Law                                        Civil Law
     Countries                                        Countries
●   Social Contract End                     ●   Creators Entitlement/ Creators Right
●   Moral rights or the economic rights     ●   Subject of Protection- Authors Right,
    are freely alienable (contract must         economic interest, reputation.
    specify      the     said    rights):   ●   Moral Right- proprietary right of creator
    Eg:Attribution, Integrity.              ●   Human Rights- Authors Personality and
●   Object of Protection                        Creation
●   List categories of Works protected      ●   Aware of it or could have been with due
●   Tangible Medium of expression               care
    before Copyright is attached
●   Distinction between ownership of
    copyright vs exclusive right over
    copyright.
●   Right of First Publication
Madonna
                                                        Erik Satie vs
           vs VMG
                                                       Janet Jackson
          Salsoul LL.
The US Court of Appeals for the Ninth         It found that the instrumental melody
Circuit ruled that the Madonna’s song         played on the celesta was the same as the
Vogue did not infringe plaintiff’s            one in the first motive of the Gymnopédie
copyrights      to    the    Love    Break    no. 1 Moreover, the same key was used
composition since the copying was             and the first four notes of Satie’s melody
trivial. This case is particularly            were to be found in the chorus. Since the
interesting since the Court created a         characteristics elements of Gymnopédie
circuit split by disagreeing with the Sixth   no. 1 had been reused, the Court ruled
Circuit’s ruling in Bridgeport Music, Inc.    that there was a copyright infringement.
v. Dimension Films and concluding that
there is a “de minimis” exception that
applies to infringements of copyrighted
sound recordings.
American and French Regimes

At a basic level, the French criterion for copyright infringement has traditionally been
the same as in the US: for an unauthorized use of a copyrighted work to be
actionable, the use has to be significant enough to constitute infringement. This
means that a copyright infringement requires a copying but also that the average
audience recognises the appropriation. This principle reflects the legal maxim, “de
minimis non curat lex” (“the law does not concern itself with trifles”).
Categories of Social
 Media Applications

   Content       Content Creation
Streaming App         App
                       Tik Tok,
  Spotify, You
                     Facebook,
  Tube, Apple
                      YouTube,
   Music etc
                     Instagram
Content
                                            Streaming Apps
Soon after the advent of digital music, there was a huge concern regarding unlicensed
streaming, unauthorised access & stream ripping entities. As music piracy & IP
Infringement began to cost the industry billions of dollars, there came into existence
regulations in the form of mechanical licenses. As per the 1996 WIPO Internet Treaty
(or Copyright Treaty) digital music services have been granted rights to operate and
extend their offerings to customers beyond their national territories and expand
globally.
Spotify
World's largest music streaming service providers, with
over 356 million monthly active users, of March 2021.

Major deals with Sony, Universal, EMI, and Merlin. The
service operates under complete Digital Rights
Management (DRM). Spotify offers digital copyrighted
restricted recorded music and podcasts, including more than
90 million songs, from record labels and media companies.

Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays
royalties based on the number of artist streams as a proportion of total songs streamed.
It distributes approximately 70% of its total revenue to rights holders (often record labels ), who then
pay artists based on individual agreements
Spotify pays artists between $0.006 and $0.0084 per song stream
Copyright Infringement by Spotify
In 2018, Spotify had allegedly infringed upon thousands of songs produced by Wixen Music Publishing.
Spotify was sued for streaming more than 20 percent of songs from their library that carries over 30
million songs, without holding a license or paying a royalty to the publisher.
It was around the same time that the streaming giant was accused by Bob Gaudio and Bluewater Music
Services Corporation of failure to adhere to IP guidelines and evading the payment of mechanical
licenses for music being streamed on Spotify.
Content Creation
                                                      Apps
The social media site does not own the work that has been posted on their site; the
copyright is still kept by the owner. By agreeing to post works on the site, you sign an
agreement that gives the site a license to use the work for a variety of purposes, such
as: displaying it, adapting it, or copying it. In these cases, the license is given without
payment.
Facebook
The Facebook Terms of Service state that you (the
Facebook user) own the intellectual property rights
(including copyright or trademark) over the content
you create and share on Facebook and other Facebook
products. You can share your content with anyone else,
any time you want. In return, Facebook says, you must
agree to give them a license to use the content.

Lyp Sync Live (2018)
When users upload Facebook videos containing music, they are informed if the included song is
allowed through the licensing deals acquired by the social network. If not, the video will be muted,
unless the uploader submits a dispute.
The label that holds the copyright may then approve the usage of the song in the video through the
Rights Manager tool of Facebook.
Facebook & Instagram

●   There are no limits on things like music in Stories, or traditional
    musical performances (e.g. filming a live artist or band performing)
●   Shorter clips of music are recommended
●   The greater the number of full-length recorded tracks in a video, the
    more likely it may be limited (e.g. a stream may be interrupted, parts
    of your video could be muted, or it could be removed entirely)
●   There should always be a visual component to your video; recorded
    audio should not be the primary purpose of the video
●   Advises users to use it´s copyright free music
In 2010, it was reported that nearly a third of
the videos with advertisements were uploaded
                                                                      YouTube
without permission of the copyright holders.
YouTube gives an option for copyright holders
to locate and remove their videos or to have
them continue running for revenue

●   Lenz v. Universal Music Corp
●   Misinterpretation of the DMCA
●   Fair Use Exception: copyright holders must consider fair use in good faith before issuing a
    takedown notice for content posted on the Internet
TikTok was most downloaded apps in 2020, with global
downloads of 850 million downloads.
Tiktok hit 500 million global monthly active users in mid-                         Tiktok
2018, and it's estimated to have grown to 1.1 billion users.

                                           David Israelite, the president and CEO of the National Music
Tiktok's impact on viral songs             Publishers’ Association:

 ❖ Lil Nas X’s - “Old Town                 "a large part of [the publishing] industry does not have
   Road” now holds the record              agreements in place, meaning numerous works continue to be
   as    the     longest-reigning          used unlawfully as the platform’s popularity grows
   Billboard Hot 100 No. 1 in
                                           exponentially.”
   the chart’s history.
                                           TikTok Terms & Conditions
 ❖ Megan     Thee      Stallion’s
   Savage, went viral TikTok               "We do not allow any content that infringes copyright. The
   dance that became the                   use of copyrighted content of others without proper
   "Savage Challenge."                     authorization or legally valid reason may lead to a violation of
                                           TikTok's policies. Any user content that infringes another
                                           person’s copyright may be removed."
Tiktok and copyright
            infringement
                                                Over 104.5 million videos were removed from the
                                                platform in the first six months of 2020. TikTok
   Examples of Fair use in TikTok:
                                                also received 1,800 legal requests and 10,625
                                                copyright takedown notices.
❖ “Renegade” dance created by a 14-year old
  girl. The dance exploded and everyone from    Top five countries with the most removals:
  music     mega-star   Lizzo  to   Kourtney    o India – 37,682,924
  Kardashian posted videos of themselves
                                                o United States – 9,822,996
  doing the dance, albeit without crediting
                                                o Pakistan – 6,454,384
  Harmon as the creator;
                                                o Brazil – 5,525,783
                                                o United Kingdom – 2,949,620
❖ Some of the videos uploaded to TikTok might
  be considered a parody – for example, when
  a user creates a funny lip-syncing video
  using a sound clip from a reality TV show,
  to create a new scene.
Tiktok's recent
license agreements

         ICE
        Sony
   Universal music
       Believe
     UK NMPA
Copyright
  Infringement
Detection Systems

   Fingerprinting analyses the unique features
   of an audio or video asset and compares
   these against ‘reference’ fingerprints stored
   in a database. One of the key characteristic
   of fingerprinting is that it does not modify
   the content. Similar to a human fingerprint
   that uniquely identifies a human being, a
   digital fingerprint uniquely identifies a piece
   of video/audio content.
Applications of Digital fingerprinting

                                                   50%                                  80%
             Shazam                             WIPO Proof
Shazam works by analyzing the             WIPO PROOF is a new digital              Videos     uploaded   to
captured sound and seeking a              business service that provides a         YouTube are compared
match based on an acoustic                date- and time-stamped digital           against audio and video
fingerprint in a database of millions     fingerprint of any file, proving its     files   registered  with
of songs. If it finds a match, it sends   existence at a specific point in time.   Content ID by content
information such as the artist, song      This new service complements             owners, looking for any
title, and album back to the user.        WIPO's       existing     intellectual   matches.
                                          property (IP) systems.
Youtube’s Content ID
Take-down request
    A take-down request is a procedure for asking an Internet Service Provider (ISP) or search engine to
    remove or disable access to illegal content.

-   Notice and Takedown
     -     USA – Digital Millennium Copyright Act 1998
     -     EU- Electronic Commerce Directive adopted in
           2000
-   Notice & Notice
     -     set out in Canada’s Copyright Act
-   Notice & Staydown
     -     Proposals for notice and stay down rules have
           been made in the US by procopyright lobbysts
     -     Constitute Article 17 of the EU’s Directive on
           Copyright in the Digital Single Market
Case Studies 2:
03.   Sampling
      Music Sampling
      protected by copyright
What is music sampling?

Music sampling is the reuse of a portion (or
sample) of a sound recording in another
recording.
An artist who samples
              without legal permission
             from the copyright holder
                 infringes on both

   Sound recording                          Composition
                                    the composition is a musical work,
    the sound recording is the
                                          with or without lyrics,
recording of a performance of the
                                          that has been created
     underlying composition
                                        by a songwriter/composer
Why the artist is required to obtain
permission from the copyright holder?

Derivative work
Music sampling from an original song can be considered a derivative work.
Case 1: GRAND UPRIGHT MUSIC LTD v. WARNER BROTHERS RECORDS, INC.
                              (1991)

               “thou shalt not steal”

              Gilbert O’Sullivan          Biz Markie
                Alone Again (Naturally)    Alone Again
Case 2: VINCENT PETERS v. KANYE WEST, ET AL. (2012)

Complaining Work                              Defending Work
Vincent Peters (“Vince P.”)                   Kanye West
“Stronger”                                    “Stronger”

 Reference to the famous phrase “That which
   doesn’t kill me only makes me stronger”

                                  Tercet rhyme scheme (three
                                  consecutive rhyming lines)

          Song’s reference to Kate Moss
Conclusion

The role of and challenges in the operation of Intellectual Property Rights in
                    the Music Industry are indefeasible.

      What Copyright is at it’s acme is the perfect balance between:
      1) The ethical and creative rights of the author of the original work.
      2) The rights to reproduce, innovate and redevelop any existing artistic work.

               Case Studies 1 :                      Case Studies 2 :
                Social Media                           Samplings
                                                      Sampling is one of the ways in
                Artificial Intelligence (AI) helps    which     upcoming    artists   can
                copyright licensing across the        innovate the existing works.
                social media foras.                   Courts invariably decide the case
                But again, that doesn't make AI       on two broad considerations:
                infallible.    And      it    may     1) Plaintiff's Ownership of and
                sometimes        wrongly      flag    Registration of the copyright, in
                materials over social media as        the existing work.
                'infringing'.                         2) The principle of 'de minimis non
                                                      curat lex'.
Thanks!
              Do you have any questions?

By Laura Galvão Scalon, Pamela Echeverria, Asma’ Kamila Binti Hussein Kamal,
Lobna El-Shinnawy, Anusha Mohapatra, Shraddha Pandit, Deah Kapoor, Hurmat
  Koul, Edoardo Duron, Prajjwal Kushwaha, Valentina D’Adda, Izotene Fidel-
Anyanna, Jeonggu Lee, Gerard Kevin Cagatan, Maksim Cherpak, Louise Fensby-
  Bocquet, Ketevan Kavrelishvili, Marcelina Slugocka, Thala Maria Mouawad,
                     Alberto Burzio, Nastassia Merlino

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