Copyright term, film labeling, and film preservation legislation : hearings before the Subcommittee on Courts and Intellectual Property of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, on H.R. 989, H.R. 1248, and H.R. 1734 ... June 1 and July 13, 1995 (1996)

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352 fn£ tHbRNY ISSUES OF INTERNAnONAL ROYALTIES ihr nuat«rs r BillboArd. F«b 2h. IVH ) When there •> even the vlightex <)ue»uon over the oxi-nenhip of ■ cmm bog. It nm otuae problem* Almost everv month at ieiti't one fre.h ls«*uit appear <n the Hifth Court h*re. wUh one jiartv claimmft that tie nfthtf to oilalog maaters hive beeninfnngvri Uno of the most bitter riinput«a ha^ nffhtf to thi CheiLK caUlofi ReiMue* -IKi-ulM ( 'hari> Recont> vbim^ rt ha.nunewluaiieridhu. i. dr\ I9UU. alletpng infnngemeni of cor> nghi on Hi recorrtings mctudmir wotIf hv Chuck Berr. . Snnny Bov WiUuimion, Muddy Waters, and Buddy Guy liKei peeled that the tnate will uke plac« nejn ApnL There o also tndemarli acUon rr g&rding the Chesa nwne and logo in France and the Benelux The increue m nich oaei does not repreaenied 8 H of uniU ind 19* of The BPI does not keep delaiU of «-hiU proportion of these lain are RA B reetauek. but s bnef survey o( tities in Lorwion duc^Mnl and rtearence Mores (Ugge^l^ Ihal 401 -SOI of budget repenotrv on aale i* t\ R& B and }miz ■ Johnjton. Muddv Lead Bellv. and John Lee Hooker In min^i inntjincea. the appropnaie nghlA arv taud Ut the nght«-hoMers. aJ thougn \3tnic\ undeTmintv a gnat deal amnuni of "gr»>'' prrxtuct m the miuiirt EstimateK of the annual lutu«> lu iht' rectirri tndu»Lr> thriMJgh ratjtlug pirBC\ vary from a consefN-Un-e SlOO mUIwn u> %SM million, and a significant prupor MCA. for exampte, says it sold some a.OOO copies m the U K of a Howim Wolf compilaUon. "The Genuine Article." which sold for more than 12 pounds ($1920) Many of Ihe disputes in the R4B budget market stem from the pioneering spmi of the U S record industr.' before major Ubels lightened their The CD boom of the '80s and '90i produced huge demand for catalog material, eapecially among older buyers The market is essentially split mto two distinct parta. Fir^L there are the highpnc«d. well-presented LitJes that conw are aimed at collectors, and retail for CO-tSO By contrast the budget market IS charactented by "cheap and cheerful packaging." and single discs reuil for U-%S and four-CD sets at about S14.50 Ace's Armstrong says that the company has some 900 tAJes, most of them selling St s wholesale pnce of 7 20 pounds tSl I 60). making ihem a fullpnce product The mow we can expect and their heirs may be losing signifi It year waa worth 90 9 million pounds 14&miUion)or 11 If of the market Jue. and 18-9% of U K trade deliver 1 at 33 5 million unii«. sccording t^ 0 British Phonographic Industry In >ubled. In 199U. the budget market comptlaiMiu aa proof of cfaam of titie. To unsuspecting inlemational openion, all appears to be in ortler TV tax kxiphote wv doMd by 1986. but not before the same lOO-plus maatery had been licensed r^verxl thousand times When CD* repopularmd the rrperinxTV many of the nghu lo manufac licenaes. although the »heer number of when ,rau consder the poaaibdit^ of it being available online ' Langford'a ei penenee with attempting to identils rrroniingM ted her i>i hHieve that iherf in no mibrtituie for getting tj -Wev, Thu. sRAB . 'fi06. ( .t first Bight I pu-ai^ material and whai la legitimate. henc¥ the expreasiofi "gray " There la a huge market in licenses for comptla lions, in whMrh the unsuapeetiag as well as the unscrupukMs can end up buying something tea than the genuine oitKle Master suppliers provide licenses for veraions of aongi that they daim •dbyoaeormon I Tlie DAT that b •ound-ahkea to round out the number of Bongs to produce a package thai can be sold on the open marliet Dtitributorv nth cnnfidence Ken Nagai, A4 R dw*«or of TokvoMued -(lecuiltv Ubel JIMCO Keconl>. i hich rvi>:<ue> manv jaxz. R& B. ami ock titie» frum uutMile Japwi, wvc find ime" I ha^e 10 go through five or six vopie. and it oin utke up lo nro yearK Vith oW master renmting. sometimes e nghl* Says Andreaa Heyn. staff Lawyer at "Great importance is attached to sut ing the precise titles to be sold as well as sn exclusion snd indemnification dauae We frequently turn down cffera becauae the legal sduaUon appears unclear or only nonexrluuve ngtila are bemg offered — ths makes i The International FedertUon of Phonogram and Videogrmm Producers ilFPI) prevwualy mdicaudthat it had a commiiment to atiaeking catalog piracy However, since the beginning of that the different <. tampered original, pitch changed Oft' ID the material ^The arUnti' were able ti. irieniifv i reconlingy tmmediaiek . .«ui-h a.* par aMt-time worae after the Reagan admtmstniion created s tax kiophole for "cultural investments' in the early 'SOb This defi nition could include the acqutsitjon of a sound recording maato-. urespective of whether it was actually turned into a manufactured prtiduct Becauae of the tax advamagea, many artma sold their master rights lo shelter companaa and were able to realise significant sums Many of these companies changed hands rapidly, with each sale representing a 10% tax break. The paperwnr^ created si tbe time of sale is now used to dupe foreign companiea that WUh lo enter the budget market While the DAT the Ixcnaee receives may correlate to the tndi liatsig on the paper ofnoai in that area. MargD LangfortL who previously undertook catalog ptrary worV at IFPl. is now s partner with the London law firm Green David Cornray A Co "No one apfaeoated the value of this repertoire until CDs came along [ don't think it's going to gel any less popular m the future, so it needs protecting This IS eapecuilly important .hentheTrwle-Rebteillit (V Uke^effert ih.>«.-ai ipvnghi HxwH^rr. mnik I the (KihlH •kmain. U-lim Like expert gnlfer njUCOOHMi An added problem is that somf recordings ore efTectivety m the public domain in some parts of Europe Germany, for example. <mly started protecting non-German recordings after 1972. and mtematnnal recordings before that date are technically m the public domain and free of performera copyrights if sold there their way mto other European Union stales snd to most parts of the world where there ■ a market for them SequeTs Fiaher saya that is Ihe mam factor affecting hia company's busineas "It's reallv annoying when you pay for a licero* and put out a record, and someone else has got it for free " In Japan, master rights protection does not apply ui iwund recordings issued before 191)8. and many small companies release lo» priced CDs of Imainly non-Japane»ei maienal reronled before Ihal year and only have lo pay songwTiting incomes The dawTMib-i> thai TUI)'<ik«>.ii»< aaoni cituen» ..I miinli^r Mai.-, ji.^ recourw if <;ATT m^'mU-r .l-lr> .b n..l iNu^ hfguaatam that i-n^iin-^ }>r. «*hi'n:' |arar\ rrmain* a (inJilrm. xal ivmain iinimnn-ted until well mli< tin In thv kmg term. Mtv <tn\\ fval "lii. Hun t,t catakjg pinicv aiKivateil Ik tn >Mler» i> lur the m^jiv UU-U l^i itHcwl their iiwn calalug^ l>v h4\ing a lutl-liiii.antj-piracv iifTmal aht> can wirk »iiii libr*n«n» and eMCum'e> in the cam|M n> to apprehend pirate* At preaeni hoM-ever. the funding for IFPl ■ cau log piracy prngram appesnt to huM Piracy not»ithatandin(. some iMtuf~ uy obaerven say rt is eatiy lo cnticiuearly record labeb for behavior '.hai aeema reprehenaible by todayV aUndarrti Yet ihene people ««fe not wort ing in twdaya orrlered environment. where the long-term survival of the mduairy w taken for granted. They wenworking tn a very high-nak buainerv that could fold St any moment For Ih artiau. luo. It was often more iem()ting to live for the day ami forgo royahien in favor of a lump-sum payment As Ace's Amstrong says. ~lf you MtxikI yuu rather have ' C«»h when the man ofTereil it In yt>u or the promu* ••! imgtOK DC SUve MrClurr w TiA^ik and Waljyatig S/Mhr ,» Humbury WORK GROUP'S MN8 AT 'NEXT LEVEL Honltnu^fToni fjofft W) dR4B of booliegs and rerecordings This paperwork can also be used as the baou for auppoaedly legtumaie titie documenu that accompany the DAT sheltera, the new compan«s were able to grant licenses to exploit a certain number of tracks m a certain onler for a given temtor^. Thousands of auch nonexclusive bcenoes were granted, of ten uaing the same tracks for the aaine territory, but in a different onler. The licenses issued by the shelter companies expressly forbade altering the running order and also prevented the from the compdatioo In reality, these restrictions are frei)uently ignored, snd many licensing companiea use documents from these t. -I've I 'o tiaUy be serviced lo R& B n followed by d Work plans to service fi remixes to sppropriste stations AyerafT sdmits that gaming RAB airplay will be the label's biggest challenge, but IS confident the group will ftndshome Mainstream RAB programraera aren't automatically dismiaaing "I've Got A LitUe Something For You' because of lU U K approach to RAB Say« WQUE New Orleans PD Gerod Stevens. Their profile doean't necessarily have lo meet your sound. If listeners like them, well play it* WEDR Miami PD James Thomas says MN8 will not be automaucally counted out just becauae it is U.K based *'ll won't beany more difflcult for them than kical amsts. if the song B there However. reUilera m black communities say the group may have a ddBcult road. Chicago independent retailer George Daniels, owner of George's Music Room, ates poor record sales of popular R4B>>p act All-4-0r« at ha More aa an example of M hUT) challenge alwsd. "i thought Uwtr song '1 Swear' t Badd." he says 'Both groups did had rough going here Well pull tn s pop-soundnig set every once in s while, but (MN8] going the rema route IS the best way for them to do well with my ittitrj Morae. buyer/ Lanaing, Mich -booed. l&«u>re Where Hoiae Reconls has s broader perapective and says domestic Ri B fans don't expect U.K acU lo sound like US faaKdMta. Says Morse. "lUK I bands have more polyrhythm and overall continental flavor, although Lhia kind of group will probably appeal more lo younger poaedlomen Despite the challenge. Dee Tails re mains optimistic MN8 will appeal to US. record buyers He deacnhe^ the group's music as "the funk emanaLng out of Uy Rust to lUununaie the blind "Origuially. we stacked our harmorues sayv 'But once we got in and the label warned a softer RA8 sound. *v dxtnt overlay a whole kit of paru ~ To The Next Level.' releaaed on Isi r Reconla m England, debutnl al No 13 on the UK albums chart tln' week ending May 20 The fina MngltTve Gut A LitUe Something For \ 141.' peakedon the U.K. singtea chart al No 2 MN8 developed considerable U K awareness as opening act for Janet Jackson dunng the European leg of her concert tour m April. The group haa a kA of energy and moves really well on stage.' says AyerofT. who anticipalea a large female following in the \AiSyear-old demographK Becauae the group is so Rucceuful outaide the US.. MN8 haa been conUnuoualy lounng and will not have unw for promotiunal datck Although Work IS releasing -I'viGut A Utile Something For You" aa it/firbt U S single, aubsequent single> won't necesaanly fultow the U.K. aflec In addition to remising the firai It than the foreign venion. but n noi overiy sexy "We're also gong with an album cm er that offers record buyera a harder auaoMo AM*. 10 itn