The talking machine world (Jan-Dec 1908)

50 THE TALKING MACHINE WORLD. of Prohibition Vested in the Composer," the memorial contains the following: According to the drafting of almost all the copyright regulations in force in all countries at present the legal privileges granted to originators (authors) do not consist of a right to monetary compensation for the use of their property. The law gives them the right to forbid the use of their productions, the law leaves it to the title-holders to turn this (in itself fruitless) right of prohibition t(> fheir advantage by renouncing their right of prohibition in favor of one or many persons, on agreement or license. The reason why, up to the present, copyrights have always taken the form of a right of prohibition, and not a right to payment on license royalty is to be found in the difficulty of legally fixing the value of a license. The only instance in which, as far as it is known, a right of royalty takes the place of a right of prohibition is in the case of the Italian law. This defines two periods after the death of the composer : in the first period the right of prohibition exists, in the second only a right to a payment (royalty) on license — 5 per cent, of value — is granted. If composers received an unrestricted right of prohibition, the progress of the talking machine industry — so valuable in the general interest — would not only be very much hindered, but to such an extent that it wonld actually come to a dead stop : as a result, a retrograde movement would commence. This statement is not a doubt or supposition, but an actual fact that can be proved. In itself every copyright — because it is a right of prohibition — gives an opportunity for the creation of monopolies — that is, the exclusion of competition in favor of an individual business, be it a single industry or ring of industries. This exclusion of competition acts favorably in favor of the individual business by Increasing its earning capacity, but, like all other cases of this nature, it also stops progress. As it is natural that any one who wants to outclass his competitors, by improving the quality of his products and so increasing his turn over, must burden himself with the expenditure attendant upon the creation of improvements, so also every one who has no competition to fear will save the cost of improvements and at the same time increase his profits by screwing up his prices. That the copyright of composers will lead to the monopolization of record products is indisputable. The number of record factories is small : in Germany, not including small manufacturers, there are less than ten. In one of these the well-known firm of music publishers in Milan. Ricordi's. has an interest. This firm has secured the copyrights of nearly all new Italian composers of any importance, and is in close touch with those German music publishers who control the greater part of the musical literature in Germany. Some time ago a judgment was pronounced on the basis of the present laws, acknowledging the right of composers over records. This has created the monopoly of manufacture (as regards records) that is dependent upon nicordi"s. The judgment has not resulted in that, that Ricordi's demand a royalty from other manufacturers of records, but they actually prohibit the sale of any records not made by themselves. The other manufacturers must, therefore, only use those composers that are not controlled by Ricordi's. As the latter, however, include all the best, and those most in demand, it is evident that the copyright in this case gives Ricordi's a business advantage so great that it wil! in time lead to the suppression of all other niauufacturers. The development, if the composers receive rights of prohibition, would undoubtedly be as follows : If the factory controlled by Ricordi's succeeds in buying up all copyrights, then the other factories have to resort to composers who have been dead fifty years or more, which spells ruin to their standing : or. otherwise, one < r two of Ricordi's competitors may also succeed in securing the services of a number of composers, that would result in the exclusion of all other competitors — only two or three would be left. The interests of these firms naturally point to the advantage of unification and a monopoly — the trust — is formed. The result of this exclusion of competition, namely, lack of interest, in further progress, is directly opposed to the public interest. But even the composer is not benefited by such a monopoly, for progress acts also in the interest of the composer. The maintenance of exorbitant prices brought about by a monopoly decreased demand and also the interest taken (in these matters) by the public. In addition to that a firm possessing a monopolj' would not have that interest in securing new works (compositions) and thus increasing its expenditure, as it would have in the case of free competition. Only those people are interested in bringing the newest musical productions on the market, who are induced to it through competition. In America some manufacturers are endeavoring to create monopolies and have already bought composers' copyrights (compare Phonographische Leitschrift No. 51, 1906) in advance, while an alteration of the laws regarding protection of copyright is being considered by Congress. In Hungary also copyrights have been purchased for monopoly purposes and in a lawsuit that has not yet been definitely decided, competitors' records have already been sequestered. Then follows copies of a letter from the Ricordi Co., in which the dealers are warned to refrain from selling records which are the property of that company, a communication from the Gramophone Co., in which they state that they are compelled to withdraw from the market former records which they are unable to supply, according to the decision given by the Court of Milan, the loss of which they feel keenly; also copy of letter from the Italian representative of the Columbia Phonograpn Co., in which it is stated that as a result of the decision of the Milan court in the Ricordi case they have decided to stop the sale of the Ricordi records and take them back before the conclusion of the case, and that they will not accept responsibility for further sales by. their customers. The following argument is made showing "The Necessity of Similar Copyright Regulations in the Different Civilized Countries": The "sales-territory" of the records produced in Germany is not Germany (the interior) alone; the greater I)art of the manufacturers are sent out of the country through the efforts of capable merchants belonging to our industry. The connections of German record (disci manufacturers practically encircle the globe, and the ''sales-territory" of the industry included every civilized country. The laws of the different countries are. however, unusually dissimilar, even in those countries wliich. by inteinatiiiual agreement, have accepted the relative definitions of the Berue convention. Other me chanical musical instruments have suffered great loss, owing to the advance of the talking machine, and the mechanical musical instrument trade is dominated by the phonograph and gramophone. The laws of the different countries accept the standpoint that the Berne convention is not applicable to records, and the subsequent definite decisions in different countries have created quite unaccountable and different circumstances. In France it has been decided that records containing instrumental performances correspond to the definitions of the Berne convention. For vocal performances by record a right of license or a right of prohibition has been fixed. In Austria-Hungary the circumstances are also undecided. Whereas, the .\ustrian cturts free records from the claims of composers, it has been decided in Hungary that composers have a right of prohibition. The same has happened in Italy. In other countries the whole question is still unsettled and there is a great insecurity as to rights, which interferes with trade in a high degree. The field of activity (selling possibilities) of German manufactures is greatly restricted by this. It must be considered that the opening of a foreign trade is not by any means as simple as with other goods. The person who wants to deliver discs or rolls to a certain country must fit up a whole expedition, which must journey to the country in question to make records by the well-known artists of the country, on the spot. Not considering the enormous cost which such an expedition with attendant mechanical working arrangements and plant necessitates. ' Foreign artists have made it a custom to take full advantage of this favorable opportunity offered by the high honoraria for unusual enrichment, and, even if, in the uninterrupted course of business, the capital used has been profitably invested, every legal uncertainty as regards copyrights can any day cause the loss of this capital. The capital invested in foreign records can be reckoned in millions. The expeditions of the German record industry have been in all countries to secure the necessary ground work for an extended export trade. This proves the vital interest of the record industry in an equal international definition of this matter. The fourth topic, "Legal Provision to Prevent Monopolistic Tendencies in Patent Laws, and Plan for Analogous Restriction of Composers' Copyrights as Regards Records," states: In a law regarding the rights of authors as to their works, as affecting talking machines and other mechanical musical instruments, the following regulation should be adopted : "The author's right has this effect, that the author is exclusively entitled to grant permission for the use of his works for reproduction by talking machines, mechanical musical instruments, etc. This permission may not be refused on offer of suitable compensation and suff iciein security. ( The law might lay down certain general definitions according to which the question of sufficient compensation could be judged.) Agreements concluded in contravention of these regulations are void." Each one of the subjects included in the list which we have indicated has been ably handled by experts, and on the whole the memorial may be considered a remarkable document, embodying great argumentative force. Just what result the conference will have upon international copyrights is, to a certain extent, problematical, in so far as it affects the interests directly in this country. It is believed, however, that the nations which have participated in this conference will effect the adoption of copyright laws for the record industry which have been agreed upou at this conference. The fact that the United States has sent Mr. Solberg as its representative shows its interest in this international meeting, and it may be that Congress will be guided somewhat in its future action as affecting copyright by the action taken at Berlin. W. V. YOUMANS A NEW YORK VISITOR. AV. V. Youmans, with C. B. Haynes & Co.. the prominent talking machine jobbers of Richmond, Va., was in New York last week while on his vacation and called upon various members of the trade. Mr. Youmans stated that prospects for a good fall trade are very bright through the South. Since \V. J. Bryan was nominated for the presidency, jobbers' repeat orders for the Bryan records have been received by the National Phonograph Co. almost as fast as when they were first announced. One jobber has ordered five times, eleven have ordered four times, nineteen have in their third order, and forty-seven have ordered twice. Those who have ordered only once, almost without exception, are jobbers who put in very heavy orders at the start. Looking for Bu^ineM Are you one of the trade hunters ? Then we can help you very materially. We are exclusive talking machine jobbers and manufac turers of specialties and if you desire anything in the talking machine line, you can rest assured that we can meet your wants and have the goods to you in the shortest possible time. Our energies are concentrated upon jobbing and manufacturing and the steady development of our business shows that we know the game. Just try us. Hie Boston Cycle and Sundry Q. 48 Hanover Street Boston, Mass.