Radio Stations Agree to Play 30 Percent Independent Artists; New Labels Abound
by Inside Connection
Viacom Inc., the parent company of MTV, is suing Google and its Internet video-sharing site YouTube for more than $1 billion over unauthorized use of its programming. Viacom contends that almost 160,000 unauthorized clips of its programming have been uploaded onto YouTube's site and viewed more than one and a half billion times.
"YouTube's strategy has been to avoid taking proactive steps to curtail the infringement on its site," said a statement issued by Viacom. "Their business model, which is based on building traffic and selling advertising off of unlicensed content, is clearly illegal and is in obvious conflict with copyright laws."
Viacom said its decision to sue Google followed "a great deal of unproductive negotiation" with the company.
One result of the fallout from the recent payola lawsuits filed against the major record labels has been negotiations between radio and independent labels. The American Association of Independent Music has forged a voluntary agreement with major radio chains CBS, Citadel, Clear Channel and Entercom for them to air 8,400 half-hour blocks of airtime dedicated to independent music.
The agreement rises out of a series of meetings held with the FCC, and the radio groups agreed to reflect the independent labels' 30 percent share of the market. Details will be forthcoming as each radio group identifies the way in which to best serve their respective markets.
The radio groups and Independent representatives reached agreement on a set of "Radio Rules of Engagement." These include: 1) Radio should establish, and appropriately publicize, clear and nondiscriminatory procedures for music submissions and access to radio station music programmers; 2) Radio should not be allowed to sell or barter access to its music programmers; 3) Radio should not form relationships with any music companies, independent promotion companies, or other parties which provide for exclusive access to radio station music programmers; 4) Radio should not exclude independent promotion companies from gaining access to music programmers except for independent promotion companies which are compensated based upon playlist additions or increased spins; 5) Radio shall not ask for or expect, either directly or indirectly, any quid pro quo to play music, including but not limited to any promotional considerations, local concert appearances, or exclusive relationships with recording artists; 6) Radio shall not act in a coercive manner, make or imply threats to withhold or reduce airplay or make or imply promises to commence or increase airplay, in connection with the solicitation of any promotional consideration; 7) All cash and non-cash consideration made by labels, artists, or their agents shall be confirmed in writing and shall be subject to internal tracking controls; and 8) Contest prize recipients must be identified publicly, and confirmed as not employees of the radio station or members of their immediate families or households.
Starbucks and the Concord Music Group have formed a new label, Hear Music, which will sign established and emerging artists directly for distribution inside and outside the coffee chain. Under the collaborative venture, Starbucks will take primary responsibility for A&R, while Concord will lead marketing, promotion and distribution of Hear Music artists outside the cafes.
The new arrangement will start off with a bang. Paul McCartney will be the first artist signed, splitting from Capitol Records after a 43-year relationship. The 64-year-old musician has recorded for Capitol since the Beatles' first album in 1964.
McCartney also plans to take his entire back catalog of Wings and solo work with him. The catalog includes classics like Band On The Run and his most recent hit album, Chaos And Creation In The Backyard, which was nominated for four Grammy Awards, including Album of the Year, in 2006.
The Universal Music Group's Interscope Geffen A&M group has acquired New York-based Octone Records. The label is home to Maroon 5, and will be rebranded A&M/Octone. Octone was formed in 2000 by J Records/RCA Music Group vice president James Diener, and its releases were distributed by Sony BMG. The new label's first release will be the follow-up to Maroon 5's debut album, Songs About Jane, which has sold 4.3 million units in the United States.
Counting Crows lead singer Adam Duritz has also launched a new record label, Tyrannosaurus Records (T-Recs). "My vision for T-Recs is an intimate boutique label," said Duritz in a statement. "We handle everything in-house and we're taking on a very limited number of artists so that each band gets personal attention." The day-to-day operations of T-Recs will be run out of their New York offices by former Counting Crows manager Nicole Pierce. The label will be distributed by Megaforce Records via Sony/RED.
Duritz started the label after visits to myspace, where he found his first two signings, Notar and Blacktop Mourning. This is actually Duritz's second label. In 2000, E Pluribus Unum, another label he started, was sold to Geffen Records.
Several famous musicians are suing a local business owner for copyright infringement for allowing cover bands to play their songs without permission.
Van Halen, Jimmy Page, Robert Plant, John Paul Jones and Patricia Bonham are all named as plaintiffs in a lawsuit alleging that Vail business owner Steven Kovacik allowed public performances of their songs at his club, 8150<.
The plaintiffs alleged 10 counts of copyright infringement because the defendants allowed bands to play 10 copyrighted songs on Jan. 15 and 16 at 8150. The plaintiffs are suing for as little as $750 per song and as much as $30,000 per song, plus attorneys' fees, according to court documents.
Anthony Juarez, an event coordinator who represents the local band initfortim<, who opened for female cover band Lez Zeppelin at 8150 on Jan. 15, said he was surprised by the lawsuit. "Bands cover famous songs all the time," Juarez said.
The lawsuit contends that the defendants allowed public performances of songs such as "Heartbreaker," "Whole Lotta Love," "Rock and Roll," "Black Dog," "Hot for Teacher" and "You Shook Me All Night." The defendants failed to obtain a license agreement from the American Society of Composers, Authors and Publishers<, according to the lawsuit.
Interestingly, Led Zeppelin II included songs which were strikingly similar to Willie Dixon<'s work, although Dixon was not credited. Chess Records brought a lawsuit against Led Zeppelin for copyright infringement, and won an out-of-court settlement. Years later, Dixon himself filed suit against Led Zeppelin over "Whole Lotta Love," and a generous out-of-court settlement was reached. Later pressings of Led Zeppelin II credit Dixon.
According to inside sources, this year's Rock and Roll Hall of Fame inductees should have included the Dave Clark Five rather than Grandmaster Flash<, because the 1960s British group received six more votes than the rapper. However, Rolling Stone publisher Jann Wenner, who took over as chairman of the Rock Hall Foundation after the death of Ahmet Ertegun<, ignored the final voting and chose Grandmaster Flash over the DC5 for this year's ceremony because he felt he couldn't go another year without a rap act. "We begged Jann to allow all six acts to be inducted," said the source, "but he insisted that he couldn't because there wouldn't be enough time. He wanted to have Aretha Franklin come and perform in memory of Ahmet Ertegun instead."
