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ThisGuidewascommissionedbyNativePublicMediaandtheNationalFederationofCommunityBroadcasters,

whohaveapprovedofitspublicationbyGarveySchubertBarer.TheGuidecontainsinformationofageneral

naturethatshouldnotberegardedaslegaladviceonparticularsituations.

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aaaaaa

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AGuidetoCopyrightLawfor

NoncommercialRadioStations

BY: JOHN CRIGLER AND MELODIE VIRTUE

January

2017

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AGuidetoCopyrightLawforNoncommercialRadioStationsJanuary2017 1

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

AboutNFCB

Asthesolenationalmembersh ipandserviceorganizationforcommunityradio,theNationalFederationofCommunity

Broadcasters(NFCB)isanationalalliance ofstations,producers,andotherscommittedtocommunityradio.NFCB

providesadvocacyonthenationallevelandempowerscommunitystationsonthelocallevel.

TheNationalFederationofCommunity

Broadcastersisagrassrootsorganizationofnoncommercial,educational,public

radiostations,distinguishedbytheircommunitysupport,control,andprogramming.Communitybroadcasting

invigoratesloca lcommunitiesandaddslocalvoicestothemediaenvironment.

TheNationalFederationofCommunityBroad c asters carriesoutitsmissionandphilosophythroughaseriesofprograms

aimed

atbenefitingitsmembersaswellasthe publicbroadcastingfielditselfbyrepresentingthemembersandthefield

tonationalpolicyandfundingorganizations,andprovidingtechnicalassistancetoimprovethequalityofcommunity

radio.

SallyKane,CEO,NFCB

AboutNPM

NativePublicMedia(NPM)isanationalNativeorganizationdedicatedtoservingIndianCount ryinourrighttoconnect

andcommunicate.

NativePublicMediaworksdirectlywiththe567AmericanIndianandAlaskaNativeVillagesinassistingwithbroadcast

licensingandprovidingmediaopportunitiesacrossallplatformsincludingradio,televisionand

theInternet.

NativePublicMediathroughitsnationalandinternationalpolicyprogramadvocatesforNativeAmericanadvancements

incommunicationsandtelecommun ications,funding,tribalconsultation,policyfellowships,infrastructuredeployment,

andservices.

NativePublicMediathroughitsstationsupportservicesprovidescoreservicestoNativestationsincludingregulatory

complianceintervention,legalservices,

digitalliteracy,youthmediacamps,networktrainingandeducation,community

engagement,resourcedevelopment,andcapacitybuilding.

AnorganizationbyandforNativeAmericans,NativePublicMediasince2004,hasgrowntheNativeradionetworkto58

stationsandincludesNativetelevisionstationsandNativemediamakersaspartofitsalliance.



NativePublicMediaworkswithlocal,nationalandinternatio nalalliesincarryingoutitsmissiontopromoteengaged,

healthy,andindependentNativecommunit iesthroughmediaaccess,control,andownership.

LorisTaylor,President&CEO,NPM



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AGuidetoCopyrightLawforNoncommercialRadioStationsJanuary2017 2

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

Whatiscopyright?

Theanswerusedtobemuchsimpler.Beforethe

adventofdigitaltechnologieswiththeircapabilityof

makingnear‐perfectcopies,beforestreamingand

podcasting,beforeYouTube,Spotify,Vimeo,Pandora,

TwitterandiTunes,beforeSoundExchange…well,you

gettheidea.Now,thestartingpointforunderstanding

currentcopyrightlawis

torealizethatitencompassesa

multitudeofdifferentrights,indifferentkindsof

creativeworks,indifferentformsofmedia.



Becausetheserightsare largelycreatedbyfederal

statute,theychange,sometimesradically,overtime.

Oneofthecomplexitiesofcopyrightlawisdeciding

whichCopyrightActapplies.Is

ittheCopyrightActof

1909,whichstillappliestomanyhistoricworks,the

statutoryreferencesinthisGuidearetotheCopyrigh t

Actof1976,17U.S.C.§101,etseq.



Copyrightscreatedby

statuterevolvearound

definitions.Tounderstandbasicprinciplesofcopyright

law,youneedtounderstandthedefinitionofterms

suchas“work,”“derivativework,”“soundrecording,”

“perform,”“reproduce,”“display”and“fairuse.”

Theseandothertermsareexplainedinthediscussion

thatfollows.Mostofthesedefinitionsarealso

featured

inthequestionsaroundwhichthisguideis

organized.

Justastherearemultiplecopyrightsinmultiplekindsof

works,therearemultipleorganizationsthatpolice

thoserightsandcollectroyaltiesonbehalfoftherights

owners.ASCAP,BMI,SESACandnowGlobalMusic

Rights(GMR)(knowncollectivelyastheperformance



rightsorganizationsorPROs)representtheownersof

musicalworks.SoundExchangecollectsroyaltie s for

streamingcopyrightedmusicanddistributesthe

royaltiestoownersofsoundrecordings(usuallythe

recordlabels)andfeaturedartists.

Differentkindsofcopyrightaresubjecttodifferent

licensingschemes.Somelicensesarecreatedbythe

Actitself.Thesearecalled“statutor y”or

“compulsory”licenses becausetheyaregrantedto

anyonewhocomplieswithcertainconditionsandpays

therelevantroyaltyfee.Anotherkindoflicenseisa

“direct”license.Thiskindoflicenseisnegotiated

directlywiththecopyrightowner.

Thelegalsourcesofcopyrightlaw

areArticle1ofthe

Constitution,variouscopyrightstatutes,regulations

establishedbytheCopyrightOfficeoftheLibraryof

Congress,judicialdecisionsanddecisionsofthe

royaltyratesforstreamingcopyrightedmusic.The

gloryandbaneofcopyrightlaw,however,isthatithas

notbeenprescribedbylawsomuchasdrivenby

reality.Copyrightlawmayholdtheleash,but thelaw

hasbeenunpredictablyjerkedanddraggedbyalarge,

rambunctiousyoungdognamedDigital.

Beforetheexplosionofdigitaltechnologies,copyright

lawwasanarcanefieldthatcouldsafelybeleft

to

experts.Newmediahaveexplodedtraditional

conceptsandlitteredthelawwithquestionsrelevant

toanyoneinvolvedinthosemedia.Whoisthe

“author”ofavideocreatedby ahostofcollaborators?

Isadatabaselaboriouslyco mpiledbyabrilliant 

computergeekan“original”workoracollection

of

factoidsnotworthyofbeingcalled“creative”?Isarap

songthatsamplesafewbarsofatraditiona l R&Btune

anewworkoranunauthorized“derivativework”?

Whereisthelinebetweenaprivateanda public

“performance,”aSpotifysongdownloadedtopartyin

your

livingroomandthesamesongbroadcastat4:00

a.m.whenevenfewerpeoplemaybelistening?What’s

thedifferencebetweenapodcastandabroadcastof

thesamework?ThisGuidewillhelpyouanswerthese

questions.

ThisGuideisnotatreatiseoncopyrightlaw.Itwill

introduce

youonlytoportionsofcopyrightlawthatare

relevanttobroadcastingandstreamingmusictoU.S.

listeners.Itbarelytouchesoncopyrightprotectionfor

photographs,artwork,literature,architecture,

softwareanddance,oroftherelationshipbetween

U.S.copyrightlawandthelawsofothercountries.

Let’sstartwithsome

basicconceptsanddefinitions.

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AGuidetoCopyrightLawforNoncommercialRadioStationsJanuary2017 3

 



WhatisaWork?

arisesautomaticallyfromthemomentoffixation.Noregistrationorotherfilingisrequired.Protected

typesofworksincludethefollowing:

(1) literaryworks;



(2) musicalworks,includinganyaccompanyingwords;



(3) dramaticworks,including

anyaccompanyingmusic;



(4) pantomimesandchoreographicworks;



(5) pictorial,graphic,andsculpturalworks;



(6) motionpicturesandotheraudiovisualworks;



(7) soundrecordings;and



(8) architecturalworks.



[Section102oftheCopyrightAct.]



Whatrightsdoescopyrightlawconfer?

Theownerofacopyrighthastheexclusiverighttodoandtoauthorizeanyofthefollowing:



(1) toreproducethecopyrightedworkincopiesorphonorecords;



(2) topreparederivativeworksbaseduponthecopyrightedwork;



(3) todistributecopiesorphonorecordsofthecopyrightedworkto

thepublicbysaleorother

transferofownership,orbyrental,lease,orlending;



(4) inthecaseofliterary,musical,dramatic,andchoreographicworks,pantomimes,and

motionpicturesandotheraudiovisualworks,toperformthecopyrightedworkpublicly; 

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AGuidetoCopyrightLawforNoncommercialRadioStationsJanuary2017 4

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

(5) inthecaseofliterary,musical,dramatic,andchoreographicworks,pantomimes,and

pictorial,graphic,orsculpturalworks,includingtheindividualimagesofamo tionpictureor

otheraudiovisualwork,todisplaythecopyrightedworkpublicly;and



(6) inthecaseofsoundrecordings,toperformthecopyrightedworkpublicly

bymeansofa

digitalaudiotransmission.



Notethatsomecopyrightsadheretoallworksandsomeonlytoparticular kindsofworks.Alsonote

thatnotallrightshavethesameeffectivedate.Forexample,asdiscussedlater,underfederallawthe

righttoperformsoundrecordingsappliesonlyto

soundrecordingscreatedonorafterFebruary15,

1972.



Anyonewhoviolatesanyoftheseexclusiverightsisan“infringerofcopyright,”butanoddityofthe

courts.



[Section106ofthe

What’sthedifferencebetweenamusicalworkanda

soundrecording?

Musicconsistsofatleasttwoseparatecopyrightedworks.Oneisthemusicalcomposition,knownas

themusicalwork.Thecopyrightinthemusicalwork,consistingofthelyricsandthearrangementof

musicalnotes,isusuallyownedbythecomposerorsongwriter.Thecopyrightscanbesharedbythe

lyricist

andbandmemberswhoarrangedthemusic,buttypicallythoserightsareassignedtomusic

publishers.Thesecondtypeofworkisasoundrecording,aparticularrecordingofmusicalwork.The

Copyrightsinthemusicalworkconfer

therighttoreproduce,distribute,andpubliclyperformthework.

Copyrightsinthesoundrecordingsconfertherighttoreproduceanddistributethework,buttheright

topubliclyperformtheworkislimitedtodigitaltransmissions.Thus,fornow,alicensefeeisrequired

tostreamasoundrecording,but

nottobroadcastit.Unlessrightsarecoveredbyastatutorylicense,

theymustbe"cleared"–i.e.,licensesorpermissionstousethemusicmustbeobtained–beforemusic

canbeusedontheInternet.Asdiscussedlater,podcastsrequirespecificlicensesforreproductionand

distributionrights.

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AGuidetoCopyrightLawforNoncommercialRadioStationsJanuary2017 5

 



What’sa“workmadeforhire”?

Aworkmadeforhireisawork:

(1) preparedbyanemployeewithinthescopeofhisorheremployment;or

(2) specificallyorderedorcommissioned,whichthepartiesagree,inwriting,isaworkmadefor

hire.

Stationsthatwishtocommissionandowncopyrightedmusicalworks,suchas

originalcompositionsor

thememusic,maydosowiththosewhoarenotemployees,butawrittenagreementshouldclearly

indicatethattheresultingworkwillbeaworkforhire.

Whatisapublicperformance?

Toperformordisplayawork“publically”means–

(1) toperformordisplayitataplaceopentothepublicorataplacewhereasubstantial

numberofpersonsoutsideofanormalcircleofafamilyanditssocialacquaintancesis

gathered;or

(2) totransmitor

otherwisecommunicateaperformanceordisplayofthework…tothepublic,

bymeansofanydeviceorprocess,whetherthemembersofthepubliccapableofreceiving

theperformanceordisplayreceiveitinthesameplaceorinseparateplacesandatthe

sametimeorat

differenttimes.

[Section101oftheCopyrightAct]

Regardlessofthenumberofactuallisteners,abroadcastordigitalstreamwillbedeemedtobea

“public”performancebecauseitisinherently“capable”ofbeingreceivedbymembersofthepublic.

Whatisa“publicperformance”ofadigitalsound

recording?

whichanyportionofasoundrecordingispubliclype rformedtoaListener”butexcludes:

(1) asoundrecordingthatisnotcopyrighted(e.g.,becauseofitsage,itisinthepublicdomain);

(2) a

soundrecordingforwhichthelicenseehasadirectlicensefromthecopyrightowner;and

(3) anincidentalperformancethatboth:

(a) makesnomorethanincidentaluseofthemusic(e.g.,“briefmusicaltransitions

inoroutofcommercialsorprogramsegments,briefperformancesduringnews,

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talkorsportsprogramming,briefbackgroundperformancesduringdiskjockey

announcements,briefperformancesduringcommercialsofsixtysecondsorless

induration,orbriefperformancesduringsportingorotherpublicevents”),and

(b) “otherthanambientmusicthatisbackgroundatapublicevent,doesnot

containanentiresoundrecording

anddoesnotfeatureaparticularsound

recordingofmorethanthirtyseconds”(e.g.,themesong).

Whatisthedurationofcopyright?

Thedurationofacopyrightdependsonwhentheworkwascreated,underwhichcopyrightact,and

(sometimes)onwhenorwhetheritwaspublished.ForaworkcreatedonorafterJanuary1,1978,

yearsaftertheauthor’s

death.Whentheworkis“aworkforhire,”thecopyrightexistsforatermof95yearsfromits

publicationor120yearsfromitscreation,whicheveroccursfirst.Underfederalcopyrightlaw,anywork

createdpriorto1923isinthepublicdomain,but

statelawsmayprotecttheworkforlongeriffederal

Ausefulchartfordeterminingwhenfederalcopyrightexpirescanbefoundat

http://copyright.cornell.edu/resources/publicdomain.cfm.

Determiningwhichworksareinthepublicdomaincanbeacomplextask,particularlyforworkscreated

before1978.Forexample,onestatecourtheldthatalthoughpre‐1972soundrecordingswerenot

protectedbyfederallaw,theywereprotectedinperpetuityunderstatelaw.

Worksmaybedonatedtothe

publicdomainbeforetheexpirationofthecopyrightormaybelicensed

underprivatelicensingschemes.Forinstance,someworksarelicensedunderCreativeCommons

licenses,inwhichauthorsselectthetermsofhowtheirworksmaybeused,suchasfornoncommer cial

useonly.Seehttps://creativecommons.org/.Othersimilarsources

formusiccanbefoundat

freemusicarchive.org,ccmixter.org,andjamendo.com.

Whatisfairuse?

Fairuseisadefensetoaclaimofcopyrightinfringement.Itpermitsreproductionofportionsof

copyrightedwork,withoutthecopyrightowner'sconsent,forpurposessuchascriticism,comment,

newsreporting,teaching(includingmultiplecopiesforclassroomuse),scholarship,orresearch.

Fourstatutoryfactorsguidecourts'applicationofthedoctrine.

Specifically,courtslookto:

(1)thepurposeandcharacteroftheuse,includingwhethersuchuseisofacommercialnature

orisfornonprofiteducationalpurposes;

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(2)thenatureofthecopy rightedwork;

(3)theamountandsubstantialityoftheportionusedinrelationtothecopyri ghtedworkasa

whole;and

(4)theeffectoftheuseuponthepotentialmarketfo rorvalueofthecopyrightedwork.

Becausefairuseisan"equitableruleof

reason,"courtshavediscretiontohonorafairusedefense

basedonthefactsofaparticularcase.

[Section107oftheCopyrightAct.]

TheCopyrightOfficehasdevelopedafairuseindexofcasesthatissearchablebycourtandcategoryof

useathttp://www.copyright.gov/fair‐use/fair‐index.html.Thecases

showhowcourtsapplythefour

fair‐usecriteriatoparticularfacts.

Whatlicensesdoesastationneedtobroadcastmusical

worksandsoundrecordings?

PublicperformancelicensingofmusicalworksintheU.S.historicallyhasbeenhandledbythreemajor

performingrightsorganizations(PROs)‐ASCAP(AmericanSocietyofComposers,Authorsand

Publishers),BMI(BroadcastMusicIncorporated),andSESAC(SocietyofEuropeanStageAuthorsand

Composers).AsofJanuary2017,however,anewPROlaunched–

GMR(GlobalMusicRights)–whichis

tryingtoextracthigherroyaltiesforhighprofileartistssuchasAdele,theBeatles,theEagles,Pharrell

Williams,KatyPerry,Usherandotherpopularartists.ThePROscollectroyaltiesfromradiostations,

restaurants,concertvenues,andothersthatpubliclyperformmusicanddistribute

theroyaltiestothe

ownersofthemusicalwork,typicallythesongwriters/composersandthemusicpublisherswhomanage

rightsontheirbehalf.AbroadcaststationmustbuylicensesfromthesePROs.Alicenseallowsthe

stationtobroadcastmusicwithinthatorganization’srepertoire.GotothespecificPRO’swebsiteor

contact

thePROtoobtainalistofcompositionsinitsrepertoire.

AlthoughcommercialstationsoftennegotiateroyaltyratesdirectlywiththePROs,theratesforNCE

stationsareusuallysetbytheCopyrightRoyaltyBoardinaratemakingproceedingeveryfiveyears.The

ratesarethenpublishedintheCode

ofFederalRegulations,37C.F.R.Section381etseq.

http://www.ecfr.gov/cgi‐bin/text‐

idx?SID=7a6fc9be5a0e2f5a12a01425653fb95d&mc=true&node=pt37.1.381&rgn=div5#se37.1.381_16

CAUTION:SomeartistshavenotsignedwithorhavewithdrawnfromoneofthePROs.Other

organizationsaretryingtocompetewiththemajorPROsbydevelopingtheirownrepertoire.So,besure

thatanymusicyourstationairsislicensedbytheappropriatePRO.

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Whatlicensesdoesastationneedtostreammusical

worksandsoundrecordings?

Tostreammusic,astationorpureplaywebcasterneedspublicperformancelicensesfromASCAP,BMI,

andSESACandmustbecoveredbyaroyaltyagreementwithSoundExchangeormustpay

SoundExchangeroyaltyratessetbytheCRB.Royaltiesforstreamingrightstoperformsoundrecordings

areinadditiontothe

royaltiesowedtoperformmusicalworksovertheair.

Radiostationshavehistoricallybeenexemptfromlicensefeesforbroadcastingsoundrecordings,onthe

theorythatifradiodidnotplaythesongs,noonewouldbuytherecords.Thisexemptiondoesnot

applytodigitaltransmissions,i.e.musicstreamed

ontheInternet.

Basedonthefactthatdigitaltechnologyallowsflawlesscopying,soundrecordingcopyrightowners

securedtherightto“perform”soundrecordingbydigitalaudiotransmissionsintheDigitalPerformance

RightinSoundRecordingsActof1995.Theexemptionforover‐the‐airperformanceofsound

recordingswaspreserved,

butwasnotextendedtothesimultaneoustransmissionofsoundrecordings

viatheInternet.

The1995Actcreatednewrightsforsoundrecordings,butnotamechanismforcollectionofroyalties.It

waslefttotheDigitalMillenniumCopyrightActof1998(the“DMCA”)tocreateastatutorylicensefor

performancesofsoundrecordingsovertheInternet.Eligibilityforthestatutorylicenserequires

adherencetoanumberofprogrammingandtechnicalrestrictions,compliancewithrecordkeepingand

reportingrequirementsandpaymentofroyalties,allofwhicharediscussedbelow.

Ifastationisnoteligibleforthestatutorylicense,orifit

wantstoprovideaninteractivedigitalmusic

service,itmustobtaindirectlicensesfromcopyrightownersofthesoundrecording.Identifying

individualcopyrightownerscanbedifficult.Multiple bandmembersmayholdinterestsinaparticular

song;someownersmayhaveassignedtheirrightstothirdparties;somemayhave

died;andsomemay

simplybeimpossibletolocate.Regardlessofthesedifficulties,allrightsmustbeclearedtobesurethe

useisnon‐infringing.

AnentitycalledSoundExchangeischargedwithcollectingsoundrecording royaltiesanddistributing

themtocopyrightownersandartists.Nowanindependentorganization,SoundExchangewas

initiallya

creationoftheRecordingIndustryAssociationofAm erica(“RIAA”),whichrepresentsrecordcompanies.

SoundExchangehandlesonlyroyaltiesforstreaming.Itdoesnotadministerroyaltiesforbroadcasting,

podcasting,RSSfeeds,orinteractivestreaming.

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Whatisthesoundrecordingperformancecomplement?

Thestatutorylicenseforsoundrecordingscomeswithcertainrestrictions.Onerestrictionisthe“sound

recordingperformancecomplement”oneachchannelstreamed.Whatisthat?

Duringathreehourperiodonemay:

 Playnomorethanthreesongsfromaparticularalbum;

 Playnomorethantwosongsconsecutively

fromaparticularalbum;

 Playnomorethanfoursongsbyaparticularartist;

 Playnomorethanfoursongsfromaboxedset;and

 Playnomorethanthreesongsconsecutivelyfromaboxedset.

If,inadditiontostreamingtheover‐the‐airbroadcastprograms,

thestationwantstostream“side”

channels,thoseadditionalchannelsmustalsocomplywiththesoundrecordingperformance

complement.Thesoundrecordingperformancecomplementalsoappliestoarchivedandlooped

programs,discussedbelow.

Whatotherrestrictionsapplytothestatutorylicensefor

soundrecordings?

Thestatutorylicenseforsoundrecordingscontainslimitationsonadvancenotice.Advanceprogram

schedulingorpriorannouncementofsongtitlesmaynotbetransmittedbytext,videooraudio,

althoughitispermissibletoannouncethenameofasongimmediatelybeforeitisperformedorto

announcethataparticular

artistwillbefeaturedatanunspecifiedfuturetime.Oneortwoartists,ora

particulargenreofmusic,maybeidentifiedtoillustratethetypeofmusiconaparticularchannel,buta

priorannouncementthatasoundrecordingwillbeplayedataparticulartimeisprohibitedbecause

suchanannouncementfacilitatescopyingofthatrecording.

Thesong,artistandalbummustbeidentified.Duringtheperformanceofasoundrecording,onemust

identify,intextualdata,thesoundrecording,thealbumandthefeaturedartist,ifreceiversarecapable

ofdisplayingtheinformation.

Transmissionofcopyrightmanagementinformation

isrequired.Iftechnicallyfeasible,digital

transmissionsmustbeaccompaniedbyinformationencodedinthesoundrecordingthatidentifies the

titleofthesong,thefeaturedartistandany otherrelatedinformation.

Asoundrecordingmaynotbeperform edinawaythatfalselysuggestsaconnectionbetweenthe

ownerorrecordingartistandaparticularproductorservice.

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Onemustdisablecopyingbyatransmissionrecipientifthetechnologyusedcanbedisabled, andmay

notinduceorencouragecopyingbytransmissionrecipients.

Onemustaccommodatetechnicalprotectionmeasureswidely‐usedbysoundrecordingcopyright

ownerstoidentifyorprotectcopyrightedworksifthosemeasuresdonotimposesubstantial

burdenson

thetransmittingentity.

Thetransmittingentitymustcooperatewithcopyrightownerstopreventrecipientsfromautomatically

scanningtransmissionsinordertoselectparticularrecordings,if suchcooperationwillnotentail

substantialcostsorburdens.

Thestatutorylicenseislimitedtotransmissionsoflawfulsoundrecordings.Transmissionsofbootlegs

orunauthorized,pre‐releasedrecordingsarenotcoveredbythestatutorylicense.

Thetransmittingentityca nnotallowautomaticswitchingofchannels.Digitaltransmissionsmaynot

automaticallyandintentio nallycauseadevicereceivingthetransmissiontoswitchfromoneprogram

channeltoanother.

Thestatutorylicensedoesnotcoverinteractiveserviceswhich

allowtheconsumertoselectthesongs.

ArewaiversoftheDMCArestrictionspossible?

Yes.Itispossibletoobtainawaiveroftheconditionstothestatutorylicense,suchasthesound

recordingperformancecomplement.Somestationshavebeensuccessfulingettingrecordcompanies

towaivesomeoftheDMCAprogrammingrestrictions.

TheNationalAssociationofBroadcasters(NAB)negotiatedpartialwaiversfromSonyMusic



Entertainment(“Sony”)andWarnerMusic,Inc.(“Warner”).TheSonywaiver,whichexpiresDecember

31,2020,requiresthatbroadcastersopt‐intotheagreement.Itappliestobothcommercialandnon‐

commercialbroadcasters.Stationswishingtoopt‐intotheSonywaivercandosoat

<http://www.mmsend61.com/link.cfm?r=a3By1qsTMCpNTLER3iAmGg~~&pe=‐

oklTg871FUxg_iQD9rlQSfMBq1eaKWApSAyHVYUtTjzgnzFrjUIIAdJaUZ5wJj8U7NR5VuCAv9sBGwYiO014Q~~>.

TheWarneragreement,whichexpiresSeptember30,2019,doesnotrequirethatabroadcasteropt‐in,

butappliesonlytocommercialstations.

EachWaiverisslightlydifferent,but,herearekeyprovisions:

 Despitetherestrictionsinthe“soundrecordingperformancecomplement,”theWaiver

Agreementsallowbroadcasterstotransmitconsecutivelyup

toone‐halfofanentirealbumof

soundrecordingsandpermitthetransmissionofcertainclassicalmusicalworksintheirentirety,

regardlessofduration.

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 TheWaiversallowpriorauralannouncements,butnotpriorpublicationofawritten orvisual

advanceprogramschedulethatidentifiestheparticularartistsorsoundrecordingsthatwillbe

featuredatspecifiedfuturetimes.Classicalmusicbroadcasters,however,canpublishascheduleof

classicalmusicprogramminginaccordancewiththeir

standardsandpracticesasofSeptember30,

1998.

 TheSonywaiverallowsbroadcasterstoannounceinwrittenorvisualform,thataprogram

featuringaparticularartistorartistswillbeairedataspecifiedfuturetimeif(a)thestationairs

arecurringprogramthatfeaturesthemusic

ofthatartist(s)andtheprogramwasontheairas

ofAugust1,2016,or(b)thestationairsatributeordocumentaryforspecialoccasions,suchas

thedeathofanartistortohonoracommemorativemilestoneinmusichistoryorcareerofan

artist.

 Tothe

extentthatmusic‐intensivestationsusethird‐partyprogrammingoverwhichthe

broadcasterdoesnothavetherightorabilitytocontrolmusicselection,orprogrammin gnot

performedusingadigitalmusicfilesystem,theWaiverswaivetherequirementthattextualdata

mustidentifytheartist,songtitle,andalbum

whilethesongisstreamed.

 Sonyrequiresthatstationswhichopt‐intoitsWaiverAgreementandthathavemorethan

80,000musicATHpermonthprovidea“buynow”linktopurchaseadownloadofasound

recordingthroughaSony‐authorizedstore,suchasiTunesorAmazon.



TheWaiversliftthe6‐monthlimitationonretainingephemeralcopiesofrecordings(suchassongs

fromaCDcopiedontoastation’sharddrivemusicsystem).

AlthoughtheWaiversdonotapplytoallwebcastersortoallthemajorlabels,somewebcastershave

obtainedwaiversdirectlyfromlabels.

Contactthelabelsdirectlytoaskforthosewaiversinwriting.

Whatarearchivedandloopedprograms?

Anarchivedprogramisonepostedonawebsiteforlistenerstohearrepeatedly,ondemand,inthe

sameorder.Itmaynotbelessthanfivehoursinduration.Sucharchivedprogramsmayresideonthe

websitefornomorethanatotaloftwoweeksandmustotherwisemeet

thetermsofthestatutory

licensedescribedabove.Merelychangingoneortwosongsdoesnotmaketheprogramadifferent

program,norcanprogramsbetakenoffforashortperiodoftimeandthenmadeavailableagain.

Thelimitationsonarchivedprogramsdonotapplytorecordedevents

orbroadcasttransmissionsthat

makenomorethananincidental useofsoundrecordings,solongasthetransmissionsdonotcontain

anentiresoundrecordingorfeatureperformancesofaparticularsoundrecording.

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Loopedorcontinuousprogramsarethosethatareperformedcontinuouslysothattheprogram

automaticallystartsoverwhenitisfinished.Theymaynotbelessthanthreehoursinduration.Again,

merelychangingoneortwosongsdoesnotcreateanewprogram.

Theabilitytorepeatotherprogramsis

alsolimited.Programsthatareretransmittedatpublicly‐

announcedtimesin advancecanberepeatedonlyif:

 Therepeatsofaprogramarelimitedtothreetimesinatwo‐weekperiodforprogramsunder

onehourinduration.

 Therepeatsarelimitedtofourtimesina

two‐weekperiodforprogramsoveronehour.

Whataretheroyaltyratesforstreaming?

CRBRates.UnderratesadoptedbytheCopyrightRoyaltyBoard(“CRB”)for2015‐2020,music

streamers(“StatutoryLicensees”)mustpayaminimumannualfeeof$500perchannel.TheCRB

statutorylicenserateseffectivethrough2020are:

 $0.0017perperformancefornonsubscriptionservices

 $0.0022perperformanceforsubscriptionservices



Royaltyratesarerecoupedfromthatminimumannualfeeforcommercialwebcasters.Noncommercial

webcasters’paymentofaminimumannualfee of$500perchannel,however,coversupto159,140

AggregateTuningHours(“ATH”)(definedbelow)perchannel,permonth.That averagesoutto218

onlinelistenersperhoureachmonth.

PerformancesoverthatATHthresholdmustbepaidatthe

commercial“perperformance”rateslistedabove.

TheratesareadjustedeachyearbasedonchangesinthecostoflivingdeterminedbytheConsumer

PriceIndex.

NoncommercialEducationalStationsCoveredbyCPBAgreement.CPBandSoundExchangereachedan

agreementwherebyCPB

paysalumpsumtocoverspecifiednoncommercialstationsandothernon‐

profitentities(“CoveredEntities”)thatdistributenoncommercialprograms.Thecurrentagreement

coverstheperiod2016‐2020.Tobecovered,anon‐profitentitymustbeanoncommercialterrestrial

radiostationthatreceivesfundingfromtheCPB;anaffiliate

ofNPR,AmericanPublicMedia,Public 

RadioInternationalorPublicRadioExchange;oramemberoftheNationalFederationofCommunity

Broadcasters.

EligiblepublicstationsmustelecttoparticipatebyregisteringthroughCPB'sw ebsiteat

http://www.cpb.org/stations/musicrights/.Registeredstationsdonothavetopayaminimumannual

feetoSoundExchange,butdoneedtoprovidedataregardingperformancesofmusic(i.e.,songtitle,

featuredartist,albumtitle,marketing label,playfrequency,andstarttimeanddurationfortransmitted

soundrecordings)sothatCPBcanprovidesystem‐widereportsofusetoSoundExchange.Ifastationis

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notaCoveredEntity,itmustabidebytheCRBratesandtermsapplicabletononcommercialwebcasters

orelectanalternativedealforwhichitiseligible.

AccreditedEducationalInstitutions.Noncommercialradiostations thatarenotCPB‐fundedbutthat

areoperatedbyaccreditededucationalinstitutionsandstaffedbyenrolledstudents

mayelectto

participateintheCollegeBroadcastersdeal.A$500minimumannualfeecovers159,140ATHper

monthandispaidtoSoundExchangedirectly.IfthatmonthlyATHisexceededinagivenmonth,the

additionalperformancesarepaidonaperperformancebasisatthecommercialwebcasterrates

listed

above.Iftheeducational institutionisunabletocalculateactualtotalperformanceshowever,itcan

calculateroyaltiesusingATHfiguresandassumethat12songsperhoursareplayedifitisnotsubjectto

fullcensusreportingdescribedintheRecordkeepingSectionbelow.

PROStreamingFees.Inadditionto

payingroyaltiestostreamsoundrecordings,webcasters mustobtain

non‐interactiveInternetlicensesfromASCAP(http://www.ascap.com/weblicense/‐minimumannual

feewas$288),BMI(http://www.bmi.com/licensing/webcaster/‐minimumannualfeein2015was

$351),andSESAC(http://www.sesac.com/Licensing/internet.aspx‐minimumfeeis$301persixmonths

perwebpagein2016).Thesefeescovertheon‐lineperformanceofmusicalworksinthePRO

repertories.InformationaboutlicensingfromGMRisavailableathttp://globalmusicrights.com/.

Whatisan“AggregateTuningHour”?

“AggregateTuningHours”(“ATH”)arethetotalhours ofprogrammingtheStatutoryLicenseetransmits

toall“Listeners.”A“Listener”isdefinedasaplayer,receivingdeviceorotherpointcapableofreceiving

thedigitalsoundrecording.AListeneristhusadevice,notaperson.Forexample,ifthestation

streamed

foronehourto10simultaneousListeners,theATHwouldbe10.AStatutoryLicenseemay

deductfromtheATHthetimeduringwhichittransmittedasong forwhichitobtainsadirectlicense

fromthecopyrightowner.

Whatinformationmustastationreport?

UndertheCRBrules,foreachsoundrecordingstreamed,thefollowingrecordsmustbekeptandsent

periodicallytoSoundExchange:

(1) NameofService(e.g.,XYZBroadcasting,Inc.).

(2) TransmissionCategory(e.g.,“Eligiblenonsubscriptiontransmissionofbroadcastsimulcast

programmingnotreasonablyclassifiedasnews,talk,sportsorbusinessprogramming”defined

intheruleascategorycode“B”).

(3) FeaturedArtist(thefullnameoftheind ividualorband).

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(4) SoundRecordingTitle(thesongtitle).

(5) SoundRecordingIdentification–either:

(a) AlbumTitleandMarketingLabel(ifaparticularsoundrecordinghasbeenreleasedfor

promotionalpurposesbeforethealbumtitleisavailable,theinformationmustbekept

onlyifitisavailablebeforeoratthetimeoftheperformance,butmustbesuppliedifit

isavailableforsubsequentperformances),or

(b) InternationalStandardRecordingCode(ISRC)(imbeddedinpromotionaland

commerciallyreleasedsoundrecordingswhichcanbereadbysoftware).

(6) ActualTotalPerformances(thenumberoftimesasoundrecordingis“performed”–i.e.,each

timeasoundrecordingisaccessedbyacomputingdevicerepresentsaseparateperformance

ofthesoundrecording).

Ifawebcasterqualifiesasaminimumfeewebcaster(definedbelow),insteadofreportingbasedon

actualtotalperformances,itmay,instead,reportAggregateTuningHours,Channel(forbroadcasters,

callsignorFCCfacilityIDnumber)orProgramName,andPlayFrequency(thetotaltimesasound

recordingis“played”duringthereportingperiod–i.e.,offeredortransmittedbytheservice,regardless

ofthenumberoflisteners).

A“minimumfeewebcaster”isawebcasterthatdoesnotowestreamingroyaltiesinexcessofthe

minimumannualfeeforthestatutorylicenseandthatis(1)owned

andoperatedbyanAMorFM

stationlicensedbytheFCCor(2)operatedbyaneducationalinstitutionprimaril y staffedbystudents.

Fornoncommercialwebcasters,the$500minimumannualfeecovers159,140ATH(approximately218

listenersperhour).

StationscoveredbytheCPBroyaltyagreementmustsupplythedatalisted

belowtoNPRDigital

Services,whichsubmitsaggregatedmusicusageinformationtoSoundExchangeonbehalfofallCovered

Entities:

Foreachsongplayedoneachstream,stationscoveredbytheCPBlicenseprovidethefollowingdata:

(1) Songtitle.

(2) Featuredartist/group/orchestra.

(3) Albumtitle.

(4) Marketinglabel.

(5) Start

dateandtimeofsongplay.

(6) Enddateandtimeofplayordurationofsong.

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Whatisatrack?

SoundExchangeconsiderseachtrack,onaCDforinstance,tobeonesong.Forexample,eachtrackor

movementonaclassicalalbummustbereportedseparately.

Whoisafeaturedartist?

Thefeaturedartististheperformingartist,suchastheband,anindividual, ororchestra,as

distinguishedfromthesongwriterorcomposer.Forexample,itwouldnotbeappropriatetoidentify

Mozart,thecomposer,asthefeaturedartist.

HowoftendowebcastersneedtosubmitReportsofUse

toSoundExchange?

WebcastersmustsubmittoSoundExchangeReportsofUsethatidentifythefeaturedartist,thesong

title,albumtitle,marketinglabel,andnumberofperformances(i.e.,numberoflistenerspersong,for

minimumfeewebcasterstheATH,orforCoveredEntitiesundertheCPBdealthestartandendtimes

and

serverlogs).ReportsofUsemustbesubmittedtoSoundExchangeeachmonthwithin45daysafter

theendofthereportingmonth.WebcastersmustfilemonthlyReportsofUseonafull“census”basis–

i.e.,everysongstreamed.Minimumfeewebcasters,however,andCoveredEntitiesundertheCPB

Agreement,

canfilequarterlybasedonatwo‐weeksurveyperquarter.Thetwoweekscanbe

consecutiveortwoseparate7‐dayperiodswithinthequarter.The7‐dayconsecutiveperiodmaystart

onanydayoftheweek.

TheprecisefileformatformostreportsotherthanforCoveredEntities

undertheCPBdealissetforthin

Excelspreadsheet,athttp://soundexchange.com/service‐provider/reporting‐requirem ents/,that

statutorylicenseescancompleteandconverttoaproperlyformattedfile.

UndertheCollegeBroadcastersAgreement,anoncommercialeducationalwebcasterthatdidnot

exceed159,140ATHperchannelformorethanamonthintheprioryearmustprepareReportsofUse

thatcovertwo7‐dayperiodsperquarter,filed

annuallybyJanuary31eachyear.Ifthenoncommercial

educationalwebcasterisunabletocalculateactualtotalperformances orATH,itmayreportchannel

andplayfrequency.Ifitexceeded159,140ATHformorethanamonthintheprioryear,the

noncommercialeducationalwebcastermustfilefullcensusReports

ofUseeachquarter.Duringthe

first,yearthechannelreportsonafullcensusbasis,itwillhavea1yeargraceperiodtoincludeATHor

totalperformancesinitsReportofUse.

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TheCollegeBroadcastersdealprovidesanexemptionfrompreparingReportsofUseifthewebcaster

qualifiesfortheexemptionandpaysanadditional$100annualfee(calleda“ProxyFee”).Remember

thatthisdealappliesonlytoaneducationalinstitutionthatoperatesastreamingservicestaffed

primarilybystudents.Underthis

deal,anoncommercialeducationalwebcastercanpaythe$100Proxy

FeeandavoidfilingReportsofUseifithasnomorethan80,000ATHperchannelpermonth.TheATH

limitrepresentsanaverageof109listenersperhour.

Theelectiontobeexemptfromreportingmustbemade

eachyearbyJanuary31.Withtheelection,a

smallnoncommercialeducationalwebcastermustprovideSoundExchangewithATHnumbers,music

genre,andotherinformationSoundExchangeneedsforcreatingaproxyfordistributingroyalties.

IfanexemptwebcasterunexpectedlyexceedstheATHlimitinayear,itmaystillqualifyif

ittakessteps

reasonablycalculatedtoensurethatitwillnotexceedtheapplicableATHlimitduringthefollowing

year.

AresoundrecordingscreatedpriortoFebruary1972

coveredbythestreaminglicenseadministeredby

SoundExchange?

No.Thepublicperformancerightindigitalsoundrecordingsand therelatedstatutorylicensearebased

onfederalcopyrightlaw,whichdoes notcoversoundrecordingsmadepriortoFebruary15,1972.

Courtdecisionshavesplitontheissueofwhethersuchsoundrecordingsareprotectedunderstate

commonlaw.A

recentdecisionbyafederalappellatecourtillustrateshowtrickycopyrightdistinctions 

canbe.Theappellatecourtreversedalowercourtwhichhadprotectedpre‐1972analogrecordings

underNewYorkStatelaw.Thehighercourtconcludedthatdigitalremasteringofoldanalogrecordings

createdafterthe1976CopyrightAct

wentintoeffectcreatednew“derivative”worksthatweresubject

tothefederalCopyrightActthatpreemptedstatelaw.Theownersofthepre‐1972copyrightslostthe

infringementclaimtheyinitiallywon.Othershavebeenmoresuccessful.Aclas s actionsuitbrought

againstSiriusXMbyTheTurtlesandother

artistsresultedinasettlementagreementthatcouldpaythe

claimantsupto$100million,dependingontheoutcomeofotherlawsuits broughtunderstatelaw.

RecordingLiveMusic

TheCopyrightActrequiresthatperformersconsenttotherecordingoftheirliveperformancesandto

thedistributionortransmissionofthatrecording.Stationsthatrecordlivein‐studioperformancemust

getconsentsorreleasesfromallperformersinvolvedintheperformance.

[Section1101oftheCopyrightAct]

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Whatdoesastationneedtodotostreamsound

recordings?

Inadditiontocomplyingwiththerestrictionsbuiltintothestatutorylicenseandpayingroyalties,a

webcastermustfileaNoticeofUsewiththeCopyrightOfficeinWashington,DC.Theformisavailable

athttp://www.copyright.gov/forms/form112‐114nou.pdf.Thefilingfeeis$40atthetimeofthis

writing.Forcurrentfeeschedule,gotohttp://www.copyright.gov/licensing/fees.html.

Alternatively,ifastationiseligible,itmustregisterwithCPBsothatitcanbeincludedinthelistof

CoveredEntitiesCPBprovidestoSoundExchange.

StationsthatqualifyunderthedealnegotiatedbyCollegeBroadcasters,Inc.,mustbenoncommercial

educationalwebcasters(“NEW”)ownedbyeducationalinstitutionsandrunby

students.Such

webcastersmustelecttheNEWlicensebyJanuary31

eachcalendaryear.

Doesthestatutorymusiclicensecoveroperasand

musicals?

No.Thestatutorylicensecoversonlynon‐dramaticmusicalworks.Itdoesnotcoverpublic

performancesofdramatico‐musicalworks,suchasanoperaormusical.Theseperformancerightsare

sometimesreferredtoas"grandrights."Musicalworkswrittentotellastoryfallintothiscategory.

LicenseswiththePROs

andstatutorylicensewithSoundExchangecoverasinglesongfromanoperaor

musical,butnottheperformanceoftheentireoperaormusical.

Toperformanentireoperaormusical,eitherover‐the‐airorontheInternet,astationmustobtaina

directlicenseforthe"dramatic"performance

rights.Althoughanoperaasamusicalworkmaybeinthe

publicdomain,thesoundrecordingoftheworkmaynotbe.Astationmustobtainadirectlicenseto

usesoundrecordingsoftheworkifthesoundrecordingisplayedinsequenceinitsentirety.

Whatlicensesdoesastationneedtousemusicina

podcast?

Therearenoblanketorstatutorylicensesforuseofmusicinapodcast.Asaresult,eachcopyrightin

eachpieceofmusicmustbedirectlylicensedfromtheownerofthecopyrightorlicensedindirectly

throughanagreementwithorganizationssuchasCreativeCommons.Thedownloadofapodcast

does

notrequireapublicperformanceright,butdoesrequireamechanicallicensetoreproduceand

distributethemusicalworkanda masteruselicensetoreproduceanddistributethesoundrecording.

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Podcastsmaycontainaudio,video,images,text,PDF,orothertypesoffiles.Althoughthereismuch

debateaboutpodcastcopyrightissues,oneshouldassumethatapodcastisareproductionand

distributionofacopyrightedwork.Beforepostingabroadcastprogramforpodcast,havepermissionto

useallcopyrightedmaterials

includedintheprogram.Apodcastprogramthatusescopyrighted 

materialsuchassongsandvideowillneedoneormorelicensesinordertoreproduceanddistributethe

work.Programhostsandcelebrityguestsmayalsohave“publicity”rights(discussedbelow)thatneed

tobesecured.

What’sthedifferencebetweenareproductionrightand

performanceright?

Whenasongisincludedinapodcast,thatsongis“reproduced”whenthepodcastismadeavailablefor

download.Reproductionrightsinthemusicalworkandthesoundrecordingmustbeindividually

securedforthepodcast.

Fortherighttoreproduceamusicalwork,apodcastermustsecureamechanical

license.The

mechanicallicenseiscom pulsory.Thatis,thecopyrightownermustgrantthelicensebaseduponrates

setbytheCopyrightRoyaltyBoard.Asprescribedbyregulation(37C.F.R.§385.3),themaximum

statutoryrateforamechanicallicenseis9.1centspermusical workor1.75centsper

minuteofplaying

timeorfractionthereof,whicheverisgreater,althoughitmaybepossibletonegotiatealowerrate

directlyfromthecopyrightowner.Thepodcastercanobtainamechanicallicense throughtheHarryFox

Agency(HFA).Seehttp://www.harryfox.com/.

Publicbroadcastingentitiescanreproduceanddistributemusicalworksattheratespublishedin37

C.F.R.Section381.7,althoughlicensesatlowerratescanbeseparatelynegotiated.Theinformation

requiredtobeincludedincuesheetswhichmustbefiledwiththeCopyrightRoyaltyBoardaresetforth

specificallyinthat

rule.Fortheruleandrates,goto:https://www.gpo.gov/fdsys/pkg/CFR‐2013‐title37‐

vol1/pdf/CFR‐2013‐title37‐vol1‐sec381‐7.pdf.

Fortherighttoreproducethesoundrecording,apodcastermustsecureamasteruselicensedirectly

fromtherecordcompany.Thelinernotesforcommercially‐releasedCDsusuallylistthenameofthe

relevantrecordcompany.Therecordlabelcanchargewhatitwantsandisnotrequiredtogrant

a

license.

Howarevideorightsdifferentfromaudiorights?

Toreproduceanaudiovisualwork,apodcastermustobtainadigitaltransmissionlicense.Toperforman

audiovisualwork,apodcastermustobtainanexhibitionlicense.Typically,theownerofthemotion

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picturecopyrightcanlicensebothrightstoget her.Theownerofthecopyrightintheaudiovisual work

canchargewhatitwantsandisnotrequiredtograntalicense.

Therighttoreproduceamusicalworkcontainedinamotionpicturerequiresa synchronizationlicense.

Apodcasterwillneedtodetermine

whetherthesynchronizationrightobtainedbytheproducerofthe

videoauthorizesthedigitaltransmissionofthework.Ifnot,thepodcastermustalsoobtaina

videogramreproductionlicensedirectlyfromthemusicpublisheroritslicensedagent,suchastheHarry

FoxAgency.Thislicenseisnotcomp ulsorybut

isbasedonvoluntarynegotiationsbetweentheparties. 

Becausetheintegrationofsoundandimagemakemoviesandotheraudiovisualworksunifiedworks,

theproducerofavideomustobtainamasteruselicensefromtherecordcompanytoreproducethe

soundrecordingaspartofthevideo.Apodcastermust

determineifthemasteruseagreementthe

videoproducerobtainedcoversthedigitaltransmissionoftherecording.Otherwise,thepodcasterwill

needaseparatelicensefromthesoundrecordingcopyrightowner.

What’sadisplayright?

Anypodcastcontainingartwork,film,aslide,aTVimage,astillpictureorphotographwillneedan

electronicprintreproductionlicense.Ifawebsitecontainsa"thumbnail"photographofarecordalbum

cover,artwork,amovieposter,oraprintfromanaudiovisualwork,displayrightsneedtobecleared.



What’sarightofpublicity?

Rightsofpublicityarenotfederalcopyrightinterests,although theyareoftencloselyentwinedwith

thoseinterests.Moststatesgrantindividuals(andsometimestheirestates)therighttocontrolthe

commercialuseoftheirname,image,likeness,orsomeotheridentifyingaspectofidentity,generally

knownastherightofpublicity

orpersonality.Thescopeanddurationoftherightsvaryconsiderably

fromstatetostate.Asaresult,aprogramhostorothertalent,whosevoiceorlikenessareonthe

podcast,mayhavetherighttolicensehisorhervoiceorimageonapodcast.

Thebestcourse

ofactionforthebroadcaststationistohaveawrittenagreementwhichspecifiesthat

anon‐airprogramisa"workmadeforhire."Thecontractcanprovidethestationtherighttousethe

programinperpetuityinallmedia.Withoutawrittencontract,itmaybedifficultto

clearmaterialsthat

includethevoiceorlikenessofformeremployees.Inthecaseofarchivedmaterials,thestationmay

needtoobtainthepermissionoftheformerprogramhostbeforeincludingthematerialinapodcast.

Note,too,thatadditionalfeesmayneedtobe paidtomembersof

tradeunions,suchasSAG‐AFTRA

(http://www.sagaftra.org/),foruseofon‐airmaterialsthatarere‐purposedforon‐linetransmissions

suchaspodcasts.

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IsastationallowedtomakecopiesofitsCDsorvinyl

albumstoputonitsharddrivesoDJscanprogramthe

stationfromacomputer?

ConvertingamusiclibraryfromCDsorvinyltoacomputermusicvaultinvolvesreproductionofboththe

soundrecordingandthemusiccomposition.Therearenorulingsonthequestionwhethersuchan

unlicensedreproductionviolatescopyrightlaw.

TheCopyrightActallowsnoncommercialbroadcasterstomakecopiesofmusicalcompositions

and

soundrecordingsinlimitedsituations.Section114(a)oftheCopyrightActprovidesanexemptionfora

soundrecordingincludedineducationalradioprogramsdistributedbyNCEstations.Thisexemption

givespublicbroadcasterstherighttomakecopiesofprogramsthatincorporatesoundrecordings,

providedthatcopiesoftheprograms

arenotcommerciallydistributedtothepublic.Note,however,

thatthisrightappliestopr ograms, notindividualworksorsoundrecordings.

Otherexceptionsforreproductionofamusicalworkarenarrowerinscope.Ifthepublicperformanceof

amusicalworkislicensedpursuanttothestatutorylicenseoradirect

license,Section118(c)(2)ofthe

licensedworkssolelyforthepurposeofallowingotherNCEbroadcaststationstobroadcastthe

programs.Copiesofthoseprogramsmustthenbedestroyedwithin7days.Thisprovisionalsoapplies

tothe

copyinganddistributionofprograms.Thus,itdoesnotexplicitlycovercopyingindividualworks

onvinylorCDstoamusicalvault.

Section112(a)(1)oftheCopyrightActallowsabroadcasterthathasalicensetoperformcopyrighted

musicalworkstomakeonecopyofprogramsthatincludeacopyrightedwork,

providedthatthecopyis

usedonlyforthebroadcaster’sownpurposeswithinitsserviceareaandthatitisdestroyedwithin6

monthsofthedateoffirsttransmissionunlessitispreservedsolelyforarchivalpurposes.Other

elementstoconsider:

 Tobelicensedtopubliclyperformmeans

thestationhasitsASCAP,BMIandSESAClicensesin

placeforthemusicalworks.

 A“transmissionprogram”is“abodyofmaterialthat,asanaggregate,hasbeenproducedfor 

thesolepurposeoftransmissiontothepublicinsequenceandasaunit.” Thus,thecopying

needsto

beinthecontextofaprogram,notacopyofanindividualalbumorCD.

 Thelimitisonecopyofthetransmissionprogram,whichmustbedestroyedafter6months.

Althoughnotimelimitappliesiftheprogramiskeptforarchivalpurposes,thatprogramcould

not

betransmittedagainafterthe6monthsexpired.The6monthsrunsfromthedateoffirst

transmissionoftheprogram.

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 Thecopymadepursuanttothissectioncouldnotbeusedbyaffiliates.Theexemption applies

onlytotheoriginaltransmittingorganization.

 TheSonyandWarnerwaiversliftthe6monthlimitontheuseofaservercopyduringtheterm

thattheWaiverAgreementsareineffect.



Conversionofamusiclibrarytoamusicvaultforconvenienceofprogrammingaradiostationisnotone

ofthefairusepurposescitedinSection107oftheCopyrightAct(listedabove),althoughanargument

canbemadethatsuchconversionwouldbeafairuseifit

wereundertakentopreservedeteriorating

recordingsthatwouldbeaccessedforfutureresearchorcomment.Thenon‐profitnatureofa

noncommercialstationdoesnotnecessarilymakeallcopyingnoncommercial.Copyinginordertoavoid

buyingcommerciallyavailabledigitalsubstitutesmaydirectlyaffectthecommercialmarketforthe

work.

CanDJsusemusicfromYouTube,Pandora,Spotifyor

otherdigitalservices?

UsingYouTubecontentisnodifferentfromcopyinganythingelsefromtheweb.Thestation’s

ASCAP/BMI/SESAClicensesandthestatutorylicensecoverover‐the‐airperformanceofmusicalworks,

butdonotcoverreproductionofthoseworksorthecreationofbootlegorderivativeworks.Acopyofa

soundrecording

playedonsomeone'sYouTubevideoisaderivativework,andunlesswhoeveruploaded

theYouTubevideofirstobtainedasynchronizationli cense tousethemusicwiththevideo,the

derivativeworkisunauthorized.

Adifferentquestionariseswhenthecontentisaliveperformanceofanartistatamusical

venue.Inthis

situation,astationisperformingarecordingofaliveperformance,possiblytransmittedonsomeone'si‐

Phone.Thepersonshootingthevideomayownthecopyrighttothesoundrecording,butthatperson

probablydidnotobtainamechanicallicensefromtheownerofthemusicalworkor

receivepermission

fromalltheperformerstorecordtheliveperformanceinthefirstplace.

PlayingadigitaldownloadwouldbecoveredbyASCAP/BMI/SESACiftheworkwasincludedintheir

repertories,butwhatifaDJplugshisiPadtotheboardandbroadcastsdirectlyfromhisonlinemusic

services,suchasPandora?Again,ASCAP/BMI/SESACandstatutory licensescoverbroadcastand

streamingofnon‐dramaticmusicalworksandsoundrecordings,butthesituationismurkierwhenone

reviewstheTermsofServiceforPandora,orotheronlinemusicservices.Thosetermsofservicelimit

usagetopersonalnon‐broadcastuse.

Thus,aDJusinghisPandorasubscriptiontobroadcasthis

“channel”isprobablyviolatingPandora’stermsofservice.Infact,SpotifyandPandoracannotauthorize

broadcastusebecausetheseservicesdonothaveauthoritytolicenseotherbusinessestoperform

works“publicly.”

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Anotherpossibleriskofliabilityisthirdpartyinterferencewithcontract(i.e.,theTermsofServicefor

musicchannels).AstationcouldbecomeliableifitinducedabreachofthetermsofserviceforPandora

orRdioorwhateverthemusicservicehappenstobe.Copyrightownersarethird

partybeneficiariesof

thosecontracts.Bottomline:don’tactivelysolicitvolunteersoremployeestoplugintheirmusicservice

channelsorenablethatactivityunlesstheyhaveconsentfromtheserviceorthetermsofservicefor

thosemusicservicespermitbroadcastuse.

Shouldthestationallowaprogramhosttoposttheshow

onhisorherownwebsite?

No.Thestation’slicensesfromthePROsandthestatutorylicenseadministeredbySoundExchangedo

notcovertheperformanceoftheprogrambyanyoneotherthanthelicenseeofthestation.Hostsneed

toobtaintheirownlicensestotransmitanycopyrightedcontentonanyserverotherthanthestation’s.

They

arenotcoveredbythestation’slicenses.

Canastationpostanyphotographitpullsfromthe

Internet?

No.Anyonepostingphotographsorre‐tweetingthemmusthavealicensefromthephotographerand

possiblyapublicityrightsconsentfromthepersonphotographed.Someprofessionalphotographers

havemadeacottageindustryoutofdetectingunlicensedcopiesandsuing,orthreateningtosue,those

displayingtheirwork.Thefirststep

isusuallya“ceaseanddesist”letterinwhichanattorneyforthe

anattorneybeforerespondingtoaphotographer’s“ceaseanddesist”letter.

IfaphotographisobtainedfromaCreativeCommonssite,besureto

followthetermsonwhichthat

photographwasposted.Forinstance,ifattributionisrequired,donotstripthephotographer’sname.

LicensesforstockphotoscanbeobtainedfromsourcessuchGettyImagesorAgence‐FrancePress.

Canastationreadaliterarywork,suchasachildren’s

book,ontheair?

Thereisanocompulsorylicenseforliteraryworks.Adirectlicensefromtheownerofthecopyrightis

required.Quotationsorshortexcerptsfromliteraryworksaregenerallypermissibleunderthefairuse

doctrine,butanunlicensedrecitationofwholeworks,eveniftheyareshort,runstheriskof

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infringement.Unfortunately,thereisnoclearinghouseforperformanceofliteraryworks,asthereisfor

musicalworks,sostationsmustclearrightsdirectlywiththecopyrightowner.

Whatarethepenaltiesforinfringement?

Becauseclearingtherightsfromvariouscopyrightsownersistime‐consumingandnotalwayssuccessful,

itistemptingtousecopyrightedmaterialwithoutfirstsecuringthenecessarypermissions.Inweighing

therisksofdoingso,considerthepotentialcostsofcopyrightinfringement.Thecopyrightownermay

enjointheuseofsuch

materialsand,ineffect,shutdowntheuse.Inaddition,itmayrecoveractual

damages,profitsmadebytheinfringer,orstatutorydamages,plusattorneyfeesandcosts.Forwillful

infringement,statutorydamagescanrunashighas$150,000perinfringement.Wheretheinfringer

provesithadnoreasonto

believeitsactsinfringedoncopyrights,thecourthasthediscretiontoreduce

damagesto$200perinfringement.Forapublicbroadcastingentity,thecourtcanalsoreducedamages

ifthecourtfindsthatthepublicbroadcastingentityhadnoreasontobelievethatitsactsconstituteda

violation.Forexample,

withpodcasting,eachtimeapodcastisdownloadedmayinfringemultiple

copyrights–thereproductionrightsheldbythesoundrecordingandthemusicalworkcopyright

owners,respectively,theaudiovisualrightsheldbythemotionpicturecopyrightownerandtheowner

ofthedisplayrights.Likewise,operating withoutthenecessary

PROlicensecouldadd$200foreach

songfromitsrepertoiretimeseverylistener.Evenminimalstatutorydamagesof$200canquickly

mountup.

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

AbouttheAuthors



JohnCrigler

Washington,D.C.

[email protected]

202.298.2521



JohnCriglerrepresentsclientsinallaspectsofpublicbroadcasting.His

clientsincludepu blicradioandTVstations,programproducers,nonprofit

internetdistributionplatforms,webcasters,satcasters,communitygroups,

tribalNationsandtradeassociations.Johnprovidesrepresentationbefore

theFederalCommunicationsCommission,theCopyrightOfficeand

forPublicBroadcasting,the

NationalTelecommunicationsandInformationAdministrationandstate

andfederalcourts.Hewritesandspeakswidelyonpublicbroadcasting

topicsandisafrequentpanelistatconferencesonnoncommercial

broadcastingandtheinternet.



MelodieA.Virtue

Washington,D.C.

[email protected]

202.298.2527



MelodieVirtuerepresentsbroadcastandonlinecommercialand

noncommercialeducationalradioandtelevisioncompaniesbeforethe

FederalCommunicationsCommissioninWashington,D.C.,aswellasother

federalagencies.HerexperienceincludesproceedingsbeforetheFCC

dealingwithlicensing,spectrumauctions,programcontent,forfeitures,

andadministrativehearingsaswellasdrafting

commentsonproposed

rulesthatimpactherclients'businesses.

Inadditiontoservingtheirregulatorycomplianceneeds,shenegotiates

anddraftscontractsonbehalfofelectronicmediaclientsonvariousfacets

oftheirbusiness,suchasassetsalesandstocktransferagreements,tower

leases,localmarketingagreements,programmingagreements,and

employment

agreements.Shealsoadvisesclientsregardingcopyright,

musiclicensing,servicemarks,onlinedigitalstreamingandpodcasting,

termsofuse,privacypolicies,andwebsitelegalities.



AboutGarveySchubertBarer

Since1966,GarveySchubertBarerhasworkedwithclientsinvirtuallyallin dustrysectors,including

communicationsandmedia,hospitality,technology,tradeandtransportation,healthcare,

maritime/admiralty,realestate,entertainment,andmanufacturing.Thefirmprovidescost‐effective,

practicalsolutionstoabroadrangeofbusinesses,includingpubliclyandprivatelyheldcompa nies,

investmentfirms,

financialinstitutions,not‐for‐profitorganizationsandindividuals.

Moreinformationisavailableatwww.gsblaw.com.

