Christopher Doval, Esq. Don Anque, J.D. Maesea McCalpin B.A.

Historically copyright law…  Responds to changes in  technology  Equitable compensation  Law Outpaced By Technology  Reform/Challenges  Divergent business interests Today…

Changing Technology  Revolutionized consumption of media  FM growing obsolete  Subscription Broadcast  Internet Radio Advent of…

Copyright Act of 1976  Two copyrights per song  Composition VS Recording  Four exclusive rights

 Right to exclude public performances via digital audio transmission. Tiers based on: Mode of broadcast Mode of broadcast Business model Business model  Implemented tier system for royalty payments for royalty payments

Subscription Broadcast Interactive Service  Exempt  Compulsory Licensing Scheme  Direct Negotiations

Digital Millennium Copyright Act of 1998 Added fourth tier  801b → Willing buyer willing seller  Allowed pre=existing companies to maintain original royalty rate Changed royalty rates  Webcasters

From the Law to the Law Suits…

A Bit of Controversy: The Inno  XM Radio + MP3 Player  One touch recording and purchase through napster purchase through napster  Marketed and designed to record up to 50 hours to record up to 50 hours of satellite radio of satellite radio

RIAA v XM RIAA claims: XM calls AHRA to its defense  Inno: Subscription transmission or interactive service?  Inno violates right to distribution? Cost of Settlements?

What does RIAA v XM mean for Copyright? Device has functions of Legislative barriers to device violate spirit of copyright Current law cannot encompass device’s functions  Two business models  Two technologies

The Inno and the DMCA Inno law suit demonstrates inadequacies of DMCA  Unable to accommodate new business models  Unable to anticipate innovation  Inability to overcome divergent interests  Disparities in royalty rates

“The Next Great Copyright Act” Register of Copyrights Maria Pallante calls for reform  Readability and Clarity  Full public performance right for sound recordings  Review of DMCA  Incidental Copies  Enforcement Strategies  Licensing and royalty disparities  Exceptions and Limitations  International Norms

Licensing and the Section 115 Reform Act Addressing the disparity in royalty obligations  IRFA Would have changed online radio services to 801b standard  Sec. 115 Reform Act Would have created a single royalty rate for use by digital audio recordings  801b versus Willing buyer willing seller Time to revisit these Acts?

Private Licensing Reform Potential solution for more effective licensing models? Lack of oversight Potential for abuse  Downsides?  Circumvents the statutory license  Allow companies to deal directly with copyright holders Ex. Apple/Warner Collaboration

Other VoicesOther Voices David O Carson  Argues inequity of current royalty rates under DMCA John Villasenor  Advocates review of DPRA & DMCA  Calls for full public performance right for recordings

Legislative action for overarching reform is overdue.