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/Q=%11Q8HOUM%80!Congress*should*authorize*a*collective*rights*society*to*license*
mechanicals* in* a* manner* similar* to* societies* in* foreign* markets,* and* prohibit* the*
business*practice*of*negotiated,*“passGthrough”*mechanical*licensing.*
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/Q=%11Q8HOUM%80$ Fifty*percent*(50%)*of*licensee*revenue*should*be*allocated*to*
mechanical*royalties,*no*matter*what*the*medium*or*method*of*transmission.*
**
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/Q=%11Q8HOUM%80! Congress* should* give* exclusive* authority* to* collective* rights*
societies* to* license* mechanical* rights,* and* negotiated* licenses* (i.e.* direct,* “passG
through”* licenses* between* record* labels* and* composers/music* publishers)* should* be*
prohibited.* In* this* scenario,* a* blanket* license* could* permit* predictable* income* and*
expenses*for*record*labels,*allowing*them*to*negotiate*license*fees*on*a*term*basis.*
**
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/Q=%11Q8HOUM%80$ Performing* rights* organizations* (excluding* SoundExchange*
and*its*equivalents*operating*under*the*1995*Act)*should*be*authorized*by*Congress*to*
license*mechanical*rights.*
!
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/Q=%11Q8HOUM%80! The* authority* of* performing* rights* organizations* should* be*
renewed*and*expanded*by*Congress.*
*
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/Q=%11Q8HOUM%8[! Performance* royalties* to* recording* artists* and* master*
recording* owners* should* continue* to* be* independent* from* music* copyright*
performance* royalties.* As* a* corollary* to* comment* #2* above,* a* simple* percentage* of*
licensee*revenue*should*be*allocated*to*performance*license*fees,*and*divided*25%*to*
performing*artists,*25%*to*master*recording*owners,*and*25%*to*composers,*and*25%*
to*publishers.*
**
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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/Q=%11Q8HOUM%80! The* consent* decree* should* be* amended* to* permit* its*
application*only*in*situations*where*the*parameters*of*the*licensed*use*are*codified*by*
law.*Licensees*with*new*business*models*where*existing*statutory*license*fees*are*not*
applicable*should*not*be*granted*a*license.*
**
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/Q=%11Q8HOUM%8[! Congress* should* extend* Federal* Copyright* protection* to* preG
1972* recordings* that* were* previously* unpublished,* or* whose* title* was* never*
transferred*from*the*creator.*
**
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/Q=%11Q8HOUM%8[! Congress* should* recommend* a* “royalty* pie”* for* all* music*
copyright* holders* (writers,* publishers,* recording* artists,* labels)* equal* to* a* straight*
percentage*of*gross*licensee*revenue,*divided*equally*amongst*the*copyright*holders.*
**
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/Q=%11Q8HOUM%8[!US*PROs*should*be*authorized*to*issue*synchr onization*licenses*
for* ephemeral* broadcast* uses*limited* to*the* US* territory* that* are* not*(i)* for* sale* to*
home* video* and* (ii)* do* not* imply* any* product* endorsement.* PROs* should* also* be*
authorized*to*issue*dramatic*performing*rights*licenses*based*on*statutory*formulas.*
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/Q=%11Q8HOUM%8[! Any*firm*that*desires*to*use*music—whether*via*a*familiar*or*
novel*technology—should*be*required*to*register*with*the*Copyright*Office*indicating*
their*intent*to*license,*even*if*the*method*of*licensing*or*distribution*is*experimental.*
To*encourage*participation,*such*firms*would*be*allowed*a*limited*term*license*(e.g.*six*
months)*for*a*nonGprecedential,*nominal*fee*(such*as*$100*per*composition*and*$100*
per*master)*in*order*to*test*the*market.*
*
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/Q=%11Q8HOUM%8[! Congress* should* mandate* that* collective* copyright* societies*
publish*databases*in*a*coordinated*effort*that*allows*licensees*to*easily*find*copyright*
proprietors*at*all*societies*in*a*single*search.*
*
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/Q=%11Q8HOUM%8[! Congress* should* recognize* that* the* performance* r ight * under*
copyright* is*in*ascendance,*and*that*further*examination*and*statutory*protections*for*
those* rights* are* necessary* to* maintain* a* viable* market* f or* songwriters,* composers,*
and*recording*artists.*
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/Q=%11Q8HOUM%8[! Congress* should* recognize* successful* new* business* models*
(such*as*YouTube)*that*are*built*on*ostensibly*licensed*copyrighted*content,*and*create*
statutes* that* assign* a* fair* and* transparent* share* of* total* revenue* to* the* copyright*
holders.*
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/Q=%11Q8HOUM%8[!Congress*should*authorize*the*PROs*to*enforce*such*standards.*
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/Q=%11Q8HOUM%8[!Congress*should*replace*(not*incorporate)*the*provisions*of*the*
DMCA*in* the*reevaluation* of*the* Copyright*Act,* and*consider* taxing*Internet* Service*
Providers*and*distributors*of*thirdGparty*content*as*a*method*of*maintaining* adequ ate*
consideration*paid*to*copyright*holders*in*the*absence*of*proper*licensing.*
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