SOCAN

Why Rights Organizations Want to Make Music Together

Music rights collection societies can’t seem to get enough of each other these days. Last week’s news that France’s SACEM, the UKs PRS, and ASCAP in the U.S. will collaborate in a project to build a prototype blockchain-based metadata linking system was only the most high-profile example of a trend that can trace its origins back at least to SESAC’s acquisition of the Harry Fox Agency in 2015.

Overshadowed by the SACEM/PRS/ASCAP announcement was confirmation last week that Canada’s main performing rights organization SOCAN is in advanced talks with SODRAC, which licenses reproduction rights in Canada about merging the two organizations. In Europe, meanwhile, the cross-border PRO consortium Armonia Online is now up to nine member societies and is eyeing expansion beyond the Continent, Armonia officials told RightsTech.com,  including to North America.

Not all such moves have the same immediate causes or motivations. SOCAN, for instance, has already swallowed MediaNet (formerly MusicNet) and Audiam as it strives to build an end-to-end rights-management platform with reach beyond the Canadian market and a merger with SODRAC, which in addition to representing Canadian songwriters and publishers is the exclusive representative in Canada for music works from 100 other countries, would be of a piece with that broader strategy.

Armonia Online’s growth has been driven by an EU directive to improve transparency and governance of collection societies and facilitate cross-border licensing.

The SACEM/PRS/ASCAP announcement would seem to be at least partly defensive: If blockchain-based metadata management is coming to the music business anyway, better that it be designed to the benefit and specifications of the PROs than risk having to conform their processes to a system designed by and for others.

To one degree or another, however, all reflect the impact of two underlying and related dynamics. One is the increasing complexity of the market for music rights, as both the number of use-cases for music explodes, creating a demand for more efficient and integrated licensing solutions.

The other factor behind the growing urge to merge among collective licensing organizations is the rapid spread of new rights management technology. The growing availability of DIY publishing tools and independent publishing and rights management platforms (think Kobalt) means that, over time, collective licensing organizations will need to manage ever more payouts and account to ever more clients than they have been accustomed to.

That will require much greater granularity of data and greater transparency into the tracking of uses and payment of royalties — something blockchain proponents tout for the technology. But it also puts a high premium on scale. The need to track more uses, and make more and smaller payments to more and smaller rights owners, will generate pressure to drive down the collection societies’ own costs, through greater scale, shared infrastructure around cost-centers like metadata management, and adoption of technology.

Rather than disintermediating collective rights management organizations, in other words, improved rights management technology could, paradoxically, create an incentive for them to get bigger.

Photo: Jens Thekkeveettil (CCO)

dotBlockchain Music: Data Before Database

The dotBlockchain Music Project (dotBC), an ambitious effort to create an open-source data framework for sound recordings and musical compositions, received a major boost last week with the announcement that four industry partners have signed on to support the initiative: Canadian performing rights organization SOCAN and its rights administration subsidiary MediaNet; publishing royalty administrator Songtrust; independent music distributor CD Baby; and digital rights service FUGA.

The new partners, the first for dotBlockchain, will bring a catalog of more than 65 million recordings into the dotBC ecosystem, and will add another 500,000 new recordings a month, according to the announcement.

According to dotBlockchain co-founder Benji Rogers, the four partners were recruited in part because they represent most of the critical links in the music value chain: PRO, distribution, rights administration, and technology platform. dotBlockchain is also working with music publishers and leading digital service providers on joining the initiative, according to Rogers, but those partners are not yet ready to go public with their participation.

The of the dotBlockchain Project is to create a technical framework for permanently binding data on authorship and ownership of musical compositions to individual sound recordings. That package of sound file and ownership information could then serve as the foundation for others in the music value chain to layer on additional metadata related to their involvement in or uses of the work, such as the date of the recording and the identities of the musicians involved, and the date of and artists involved in any subsequent recordings of the same work.

If all goes according to plan, the system would provide an unbroken chain of data from any use of a work, such as streaming a recording of it, back to the original authors and rights owners, and to anyone due money for use (see the video below for a visual representation of how it’s meant to work).

Getting a real-world catalog of publishing information to work with was key to the next phase in the development of the dotBC ecosystem, Rogers told RightsTech.com.

“The most important when you’re trying to bootstrap something like this is you have to have a base level to start from. We needed actual sound recordings to work with,” Rogers to RightsTech.com.

SOCAN and CD Baby will provide the data on those recordings.

“We can now say, this is where the sound recordings are, and here is the publishing information,” Rogers said. “And now, a DSP can have all of that information for every stream.”

Rogers hopes that ground-up approach will allow dotBlockchain to success where other efforts to create a comprehensive library of ownership data have failed, such as the now-abandoned Global Repertoire Database initiative.

“Every other proposal for how to do this has been database-first. We felt this had to be publishing-first and then you build out from there,” Rogers said.

Rather than building and hosting its own database, in fact,  dotBC will use the public blockchain to register information, eliminating questions about ownership of the data and who would have access to it.

“This will give publishers much better visibility into how their works and being used and will put them on much more equal footing with other rights holders.”

With last week’s announcement the dotBlockchain Project officially entered Phase 2 of its three-part development plan, according to Rogers. Phase 1 included open-sourcing its code base and creating “wrapper” codes for binding ownership information to sound files. Phase 2, which Rogers described as a sort of “sandbox” phase, will let interested parties model real-world examples of what a finished dotBC file would look like and to test the robustness of the data chain. It’s scheduled to run through the third quarter of this year.

“I think by the late summer there will be a fair number of real dotBCs in the world,” Rogers said.

Phase 3, currently scheduled to begin by the end of the year, would involve implementing the system in the wild.

 

YouTube strikes deal with Canadian mechanical rights agency CMRRA 

The deal marks the first major agreement for reproduction rights between YouTube and CMRRA in the territory – and comes less than a month after Canadian society SOCAN announced it was moving into mechanical rights with the purchase of Audiam.

CMRRA called the deal “a major step forward for Canada” – and an agreement which “completely changes the landscape for rights administration in this country”.

Source: YouTube strikes deal with Canadian mechanical rights agency CMRRA – Music Business Worldwide

Canadian Music Rights Company Acquires Royalty Collection Startup 

Audiam, a company that collects missing streaming royalties for songwriters such as Bob Dylan, James Taylor and Metallica, has been acquired by a Canadian performing rights group.

The Society of Composers, Authors and Music Publishers of Canada, whose clients include star acts from R&B’s the Weeknd to rock band Nickelback, bought Audiam as part of its effort to more efficiently identify its clients’ compositions when they are played on digital services such as Spotify AB, Apple Inc.’s Apple Music, Pandora Media Inc. and Alphabet Inc.’s YouTube—and to pay them for all such instances.

Source: Canadian Music Rights Company Acquires Royalty Collection Startup – WSJ

Canadian Performance Rights Org SOCAN Collects $307.8 Million 

The Society of Composers, Authors and Music Publishers of Canada (SOCAN) has topped $300 million (CAD) in total revenues from its membership for the first time since forming in 1990 after a merger between two PROs, CAPAC and PROCAN.

The performance rights organization collected CAD $307.8 million ($240.04 USD) in domestic and international royalties for the fiscal year ending Dec. 31, 2015, from the performance of music from more than 135,000 songwriters, composers and music publisher members. (A preliminary financial report released in January put the figure at $310 million).

Source: Canadian Performance Rights Org SOCAN Collects $307.8 Million | Billboard

Medianet, SOCAN, YouTube And The Kobalt Effect 

Sinscreen-shot-2016-03-22-at-16-56-17ce the demise of the long-running-but-never-launched Global Repertoire Database (GRD) there has been a lot of debate over what comes next for digital rights reporting. The songwriter class action suits in the US against Spotify are the natural outcome of more than one and a half decades of failing to deal with the forsaken mess that is compositional rights in the digital era.

The music industry needs a solution and now just like busses that never come, two arrive at once: Google’s Open Source Validation Tool for DDEX Standard (doesn’t sound too sexy I know, but bear with me on this one) and Canadian PRO (Performing Rights Organization) SOCAN has acquired Medianet essentially as a digital rights reporting play. So just what is going on in the world of digital rights reporting?

Source: Medianet, SOCAN, YouTube And The Kobalt Effect | Music Industry Blog

Canada’s SOCAN acquires B2B digital platform MediaNet 

CanadaSOCAN_logo’s rights society SOCAN has made a major technology investment with the purchase of Seattle-based B2B digital platform and data management company MediaNet. Terms of the acquisition were not disclosed.

Privately-held MediaNet — originally founded as MusicNet in 1999 by EMI, AOL, BMG and RealNetworks — operates a database of over 4.1 million rights holders and their respective works and has developed music and metadata delivery technologies that work with streaming services, download providers, media search, and other media discovery tools. With a catalogue of 51 million sound recordings, MediaNet has powered digital music services worldwide such as Beats Music, Pulselocker, CÜR Music, Songza, Target, and Univision.

Source: Canada’s SOCAN acquires B2B digital platform MediaNet | Music Week

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