The Legal Landscape of Live Streaming Presented by: The Alliance of Performing Arts Conferences (APAC) April 21, 2020 1 Outline 1. Key Legal Considerations when Live Streaming 2. Live Streaming Solutions 3. Monetization 4. Suggested Best Practices 5. Use Cases/Common Questions 6. Key Takeaways 7. Resources & Acknowledgements 2 Introduction This document is intended as a general introduction and guide to the legal issues related to live streaming and is not intended as a definitive outline of all legal issues related to live streaming. While the principles covered here apply to most jurisdictions worldwide, it is written from the perspective of the laws of the United States. This guide is intended solely for general information purposes only and is not intended as a substitute for legal advice. Prepared By Ali Sachedina, Esq Matthew Covey, Esq Jessi Olsen VP, General Counsel & Business Affairs Founding Partner Director of Growth (JioSaavn) (Tamizdat/Covey Law) (Big Room) 3 Key Legal Considerations when Live Streaming Key Legal Consideration when Live Streaming #1 Music Clearances Key Insights ● A venue’s live performance license with ASCAP/BMI/SESAC does not 1. Music Clearances - Two (2) Sets of Rights to be Considered: cover live streaming (on or off premises). Separate public performance for live streaming license is required. a. The Composition (“Publishing”) - Two (2) publishing licenses: ● A live stream does not require a mechanical license until it is archived i. Public Performance - the right to publicly perform the and rebroadcast and/or if the stream is recorded and sold/distributed as underlying musical composition. Secured license from a stand alone recording. PRO (“Performing Rights Society” - ASCAP/BMI/SESAC) ● Sound Recording license generally not required for live stream unless ii. Mechanical Right - the right to reproduce the underlying the performance includes pre-recorded music (eg: live stream of dance musical composition. Secured directly from publisher performance to recorded music). (UMPG, Kobalt) or through administrator (i.e. Harry Fox, Music Reports). ● EXCEPTIONS - Sound Recording License needed where: ○ Continuous non-interactive stream (i.e. internet radio) - requires a b. The Sound Recording (“Masters”) Soundexchange License ○ Rebroadcast of Live Stream - Major labels argue that on demand i. Refers to the right in specific recording (vs the rights to streaming of live performances violates their exclusivity clause with the underlying composition in “publishing”). Artists + Violates re-record restrictions. ii. Rights Owner - A record label or an independent (i.ie. DIY) ○ DJ Sets - sound recording (+ publishing) license required. Why? artist who has not assigned their right to their Masters. Need to clear the public performance of the pre-recorded sound recordings found on vinyl/digital audio files that are being used by the DJ and broadcast during DJ Set. 5 Key Legal Consideration when Live Streaming #2 Performer/Artist/Image Clearances Key Insights 2. Performer/Artist Clearances ● Artist/Performer approval needed before any live stream. ● Approvals also needed of dancers, orchestra other performers ● Clearance = A contractual arrangement with the Artist/ appearing in live stream. The live agreement with Artist may require Performer (and label if necessary) seeking approval to Artist to secure the approval of other performers. livestream the performer’s likeness and performance. ● Securing approvals very important if: ● Live Stream clause can be part the existing live engagement ○ You are going to stream pre-recorded/archived live performances. agreement or may be entered into separately. ○ Stream and exploit the live stream for sale. ● It is a contractual arrangement that may involve the payment of ● Err on the side of caution particularly with major label artists and consideration (fee, revenue share, royalty). artists with substantial following/draw. ● If Artist is not signed, secure approval directly from Artist or ● Ease the Barriers to Entry by working with unsigned artists Manager. performing original works. ● If Artist is signed to a label, secure approval from Artist and the label. 6 Key Legal Consideration when Live Streaming #3 Legal Performance/Contentconsideration in the streaming Moderation of music Key Insights 3. Performance/Content Moderation ● Trademark: Avoid using branding/logos without license. Never show brand in a bad light. Notes: ● Defamation - no disparaging remarks on the live stream about ○ Incidental Use is permitted. (eg: Drummer is wearing a Yankees anyone (public or private), particularly those that cannot be hat). proven as true. ○ Repeat third party infringement notices against your stream will lead to ban from the platform. (3 strikes) ● Trademark - all use of third party logos, trademarks, branding ○ If you (venue) or platform has secured a license from the in the live stream requires a license or should be avoided. Risks trademark/brand/logo owner. (eg: in Brand Sponsored live stream of infringement claims and takedowns should be mitigated. advise the performer(s) accordingly and secure approval ● Content Restrictions (selected - non exhaustive) ● Content Restrictions: ○ Global Audience - What may be protected as “free speech” (eg: ○ Profane/Offensive Speech burning the flag) in the US is punishable by up to one (1) year in ○ Illegal Activity on the Stream - no drinking or smoking prison in India under the Prevention of Insults to National Honour Act ○ Political Speech (Amended) of 1971 . ○ Cultural Sensitivities - eg: portrayal of religious imagery ○ Mitigate and moderate - Most platforms used will have strict content moderation. Do not risk repeat “strikes”. ○ Terms and Conditions - Any live streaming platform Terms of Use will have detailed list of restrictions. Read them. 7 Live Streaming Solutions Live Streaming Solutions A Selection of Available Live Streaming Solutions. (See “Resources” Slide for Further Information) YouTube Facebook Live Instagram - Live Twitch ● Licensed for Live Streaming and ● Licensed for Live Streaming and ● Licensed for Live Streaming and ● Licensed for Live Streaming and On-Demand Playback . On-Demand Playback . On-Demand Playback On-Demand Playback ● Automatic archive of Live Streams. ● Unclear licensing payment and ● Unclear licensing payment and ● Leading platform. Intended for reporting mechanism with labels reporting mechanism with labels gaming. Large # of engaged users. ● Easy set up. Easy to promote to and publishers and publishers More complicated setup. subscribers and fans. ● Low barrier to entry, simple setup. ● A feature within Instagram Stories ● Monetization via ads and tipping ● Post stream analytics available. after you reach # of subscribers. ● Connect directly to FB ● Live stream is only available for 24 ● Interact with fans in real time with fans/followers. Interact in real time hours - then publish video on your ● Affiliate and Partnership programs comments. in comments. Stories. provide monetization and other tools. ● Monetize with Ads. Easy to set up ● Easy to promote, add sponsors. ● Easy to notify and communicate to but Revenue is low. fans/followers.. ● 24 hour exclusivity for streams. Use ● Limited monetization with ads. multi stream tool. ● Easy to set up donations. Anticipated rollout of in-stream ads. ● Monetize through donations, tipping, Ads. ● Robust analytics tool, social media ● Anticipated rollout of monetization integrations, customization. tool to allow viewers to pay streamers through “Stars” (currently only available for Gamers) 9 Live Streaming Solutions A Selection of Available Live Streaming Solutions. (See “Resources” Slide for Further Information) Livestream (Vimeo) Big Room Stage It Wowza | Vimeo | Maestro Mixcloud Live ● Licensed for Live ● Streams to the Big Room ● Allows artists to monetize ● Provides all backend ● Launched on April 20, 2020 Streaming. On-Demand app. streams, includes chat and architecture for customized Playback behind paywall. analytics. live streaming ● Licenses with many key ● Allows you to stream labels and publishers to ● Intended for customized “from” one of the Big Room ● More advanced setup, ● Provides customizable allow DJ’s to live stream livestreams venues or on your own works well for ‘festival’ tools for capturing, sets. page, archives style streams. converting streaming, ● Ideal for experienced user performance, monetization storing, monetizing ● Currently no archiving and or venue looking for coming soon! ● 500,000 + subscribers streams. re-broadcast of live customized options. streams available. ● Provides automated ● Fans purchase tickets and ● Requires technical setup. ● Requires subscription to multi-camera production tip performers throughout ● Must have Mixcloud PRO use all tools. software that streams to all the show using “TipJar”. ● Does not provide for any Membership to sign up. major platforms. music clearances or ($15/month - first 3 months ● All Genres. Used by licenses. free) ● For venues and performers. Tommy Morello, Bonnie Raitt, Jason Mraz. ● Still in Beta ● No Archiving. ● Licensed for Live Streaming Only. 10 Monetization Monetizing Live Streaming The following are methods for monetizing live streaming content. In Platform YouTube/Twitch/FB/StageIt/Big Room - all have tipping features(eg. Twitch has: “Bits” that user’s can buy and 01 tip the performers of a live performance/Stageit has a “Tip Jar” feature) “Tipping” ◆ All revenue generated subject to % share by the platform. YouTube/Twitch etc have premium subscription models for