3.9 New Technology Challenges to Copyright

Streaming has revolutionized how we consume music, but it's also created a mess of copyright issues. From complex licensing to fair compensation, the music industry is grappling with how to protect creators' rights in the digital age.

TV and music face different streaming challenges. While TV battles unauthorized distribution, music struggles with fair royalties. Both industries are adapting their business models to stay afloat in the streaming era's choppy waters.

Copyright Challenges in the Streaming Era

Impact of streaming on music copyright

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• Streaming has become the dominant music consumption model
  • Consumers access music through on-demand streaming services rather than purchasing physical copies (CDs) or digital downloads (iTunes)
  • Popular streaming platforms include Spotify, Apple Music, and YouTube Music
• Streaming has disrupted traditional music industry revenue models
  • Revenue from physical album sales and digital downloads has declined significantly
  • Streaming services generate revenue through subscription fees and advertising
  • Artists and rightsholders receive royalties based on the number of streams their music receives
• Copyright challenges arise from the complex licensing landscape in streaming
  • Streaming services must obtain licenses for the musical composition and the sound recording
  • Licenses are required from multiple rightsholders, including songwriters, music publishers, and record labels
  • The licensing process can be complicated and costly, leading to disputes over royalty rates and payments
• Peer-to-peer networks have contributed to copyright infringement concerns in the music industry

Digital music royalty regulations

• The Music Modernization Act (MMA) was signed into law in the United States in 2018
  • The MMA aimed to modernize copyright law and improve the licensing process for digital music services
  • It established the Mechanical Licensing Collective (MLC) to administer blanket mechanical licenses and distribute royalties to songwriters and music publishers
  • The MLC maintains a publicly accessible database of musical works information to facilitate accurate royalty payments
• The Copyright Royalty Board (CRB) sets statutory royalty rates for digital music services in the United States
  • The CRB determines the rates that streaming services must pay for the use of musical compositions
  • In 2018, the CRB increased the royalty rates for songwriters and music publishers, phased in over a five-year period
  • The higher rates aimed to provide fair compensation to creators in the streaming era
• The European Union introduced the Directive on Copyright in the Digital Single Market in 2019
  • The directive aimed to modernize copyright law and address the "value gap" between the revenues generated by online platforms and the compensation received by creators
  • It requires online content-sharing service providers to obtain licenses from rightsholders or face liability for copyright infringement
  • The directive also introduced new provisions for the fair remuneration of authors and performers in the digital environment

Copyright challenges: TV vs music streaming

• TV broadcasters face challenges in protecting their content from unauthorized streaming and distribution
  • Online streaming platforms (Netflix) and illegal streaming sites enable users to access TV content without permission
  • Broadcasters must invest in technological measures (digital rights management) and legal enforcement to combat piracy and protect their intellectual property
  • The proliferation of user-generated content platforms, such as YouTube, complicates the identification and removal of infringing TV content
  • Geo-blocking is used to restrict access to content based on geographical location
• Music rightsholders face challenges in ensuring fair compensation and accurate royalty payments in the streaming environment
  • The complex licensing landscape involves multiple rightsholders and requires obtaining licenses for both the musical composition and the sound recording
  • The large volume of music streamed on digital platforms makes it difficult to track and attribute royalties accurately
  • Disputes arise over the fairness of royalty rates and the transparency of the royalty distribution process
• Both TV broadcasters and music rightsholders face challenges in adapting their business models to the streaming era
  • Traditional revenue streams, such as advertising and physical sales, have been disrupted by streaming
  • Rightsholders must negotiate licensing deals with streaming platforms to generate revenue from their content
  • The global nature of streaming platforms requires navigating different copyright laws and regulations across jurisdictions

Emerging Technologies and Copyright

• Digital piracy remains a significant challenge for copyright holders in the streaming era
• Content identification systems help platforms detect and manage copyrighted material
• Blockchain technology is being explored for more transparent and efficient royalty tracking
• Artificial intelligence is impacting content creation and distribution, raising new copyright questions
• Fair use doctrine continues to be debated in the context of digital content sharing and remixing