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Ridiculous: Verizon Pays ASCAP $5M Interim License Fee For … Ringtones

The American Society of Composers, Authors, and Publishers (ASCAP) recently made the ridiculous assertion that cellphone ringtones are to be considered “public performances” of music under the Copyright Act and thus require a license. As Ars Technica eloquently pointed out, the claim is ridiculous because after all one doesn’t need a public performance license to drive around town in a convertible with the radio on.

Even the Electronic Frontier Foundation (EFF) sided with the defendants in the case (AT&T and Verizon Wireless), called the organization’s claims downright ‘outlandish’ and urged a federal court to reject the “bogus” copyright claims.

Imagine my surprise to find out that Verizon has now agreed to pay the ASCAP an interim license fee of more than $4.99 million for songs the phone service provider uses in ringtones for its customers. Meanwhile, the two sides will continue to debate how much the group should receive for the tunes.

For the record: carriers already pay royalties to song owners for the right to sell snippets to their customers in the form of ringtones. The ASCAP, however, told a federal court that each time a phone rings in public, the phone user is violating copyright law and thus carriers must pay additional royalties or face legal liability for contributing to what the group claims is cell phone users’ copyright infringement.

ASCAP has made it clear that it has no intentions to effectively start charging mobile phone users for playing ringtones, just mobile phone service providers for making it possible for them to do so. But as the EFF says in its rebuttal, consumers could find themselves targeted by other copyright owners for “public performances” if the ASCAP should prevail, not to mention the stifling of innovation in the field and the fact that it could ultimately increase the cost for the average mobile consumer.

All this brouhaha brings back fond memories of the time the ASCAP went after Girl Scouts for singing around a campfire. I wonder if they ultimately complied to the copyright claims and coughed up a couple of millions for the right to sing “Row, Row, Row” at summer camp nights, too.

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Music Industry Wants Royalties From iTunes 30 Second Samples

Dear music industry: go fuck yourself.

Music royalty groups ASCAP and BMI are harassing online music stores such as iTunes to pay performance fees not only for the songs that they sell, but for the short clips that they use as previews. You know, the things that entice people to pay for music. They want to be paid for advertisements for their product.

Just how backwards is this industry? How many years can they continue to just not get it in such an extreme way? You would have thought that maybe it would have taken a few years for them to figure out the internet, but we're way beyond that. This entire industry seems to be run by people who don't just not understand the internet, but are aggressive about not understanding the internet. They have their old way of doing business and the old way the world works, and they'll be damned if any new fangled thing like a complete upheaval in the way people acquire and listen to music is going to change that.

It'd almost be funny if the people who were really being harmed by these jackasses weren't the artists. Bands aren't the ones pushing for something that will only end with their best form of advertising being pulled from the iTunes Music Store (because make no mistake, that's what will happen before Apple pays for fucking song clips). It's these royalties idiots, the same people who almost killed off Pandora.

So here's the bottom line, guys: you're doing it wrong. And you've been doing it wrong for a while. You need to figure out a new way of doing business, and that doesn't mean just shifting fees around and charging where you clearly shouldn't be charging. Earn your paychecks, because unlike the bands you purport to be representing, you're still getting them. [CNET via Electronista]