The New Frontier A Few Words from Gary Churgin, HFA President & CEO

hfa soundcheckv n April 2010 10 2

The New Frontier A few words from Gary Churgin, HFA President & CEO

As our industry continues to evolve, opportunity abounds. And the end of 2009 brought a new focus for HFA. The proverbial “reset button” has been pushed and there is no looking back.

Looking ahead, however, to the next decade, I see several bona fide game- changers. Our response to these forces will be critical in establishing ourselves as leaders in the entertainment marketplace of tomorrow. At HFA, we are uniquely positioned to handle the multi-dimensional, ubiquitous music distribution business, which is not only increasingly complex, but due to its digital nature it is immensely voluminous.

Here are seven drivers that I believe are changing the face of our industry and presenting tremendous growth opportunities for HFA:

• Web-based distribution revenue has yet to be a real replacement for the decline in mechanical revenues.

• Online music distributors are emerging from the tech sector with no significant music industry experience. Opportunity abounds for HFA to assist these companies in navigating the rights landscape.

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1 The new frontier…

• Copyright laws are likely to change in order to accommodate the new ways that musical works are being used.

• Consumers are starting to migrate from a music ownership model to a music access model. • Mass synchronization rights management is becoming paramount as, increasingly, music is being combined with a visual experience.

• The shifting of time, place, and method of listening to music provides an opportunity for additional revenue from such services and will ultimately require accurate royalty reporting.

• The phenomenon of “Music in the Cloud” enables the distribution of a single music purchase to multiple playback options

As I’ve said before, we are encouraged by all we have accomplished in the past year and we are in full swing with new opportunities in 2010. We are continuing to diversify our service offerings by finalizing administration service agreements/deals with several unique and innovative companies such as Ultimate Guitar, a leading tablature and lyrics provider and several others.

As leaders in the field of music publishing, we fully understand the need for diversification in revenue streams and the corresponding need to not only support our client’s efforts to expand in this new frontier, but to also become a viable service provider to those companies changing the face of music. We remain resolute in our active pursuit of these new opportunities. l

2 APRIL 2010 HFA SOUNDCHECK hfa news HFA Signs Licensing Deal with Ultimate Guitar.

HFA is pleased to announce that it has entered into a “We are pleased to streamline our licensing initiatives licensing arrangement with Ultimate Guitar, the world’s through HFA,” continued Mr. Naidenov. “Their long- leading online guitar community and guitar tablature established relationships with an extensive network of music website. The deal includes rights for lyrics display, title publishers, combined with their licensing knowledge and search and tablature display with download and print infrastructure, provide an efficient method for our company capabilities. to reach out to the music publishing community.”

“This licensing arrangement with Ultimate Guitar Ultimate Guitar (www.ultimate-guitar.com) is the leading shows HFA’s commitment to providing new revenue and fastest growing online global social media site for opportunities for our publishers in innovative areas such as the guitar enthusiast community. Ultimate Guitar’s 1.5 lyrics and tablature,” said Michael Simon, Chief Strategic million members worldwide rely on the site for gear and Officer for HFA. “HFA’s bulk licensing capabilities and CD reviews, music news, guest columns, forums, guitar sophisticated distribution systems support all types of new and bass lessons in addition to the Internet’s largest library business models.” of legal guitar tabs. Ultimate Guitar’s North American headquarters is in San Francisco, CA.

Maurice Russell Named SVP of Licensing, Collections & Business Affairs for HFA

HFA is pleased to announce that Maurice Russell has been “It has been a joy working with Gary and the HFA senior promoted to Senior Vice President Licensing, Collections team over the past 8 years, and I am thrilled to take on this and Business Affairs and will report to HFA’s President new challenge,” said Russell. “We’ve made tremendous and CEO, Gary Churgin. Russell had been Vice President strides refocusing HFA’s service offerings, which provide of Licensing, Collections and Business Affairs. Russell increased value for our publishers and licensees. I look joined HFA in 2002. forward to continuing to work with the team in this new capacity to keep HFA moving into the new business “With almost a decade here at HFA, Maurice is an frontier.” expert in our company’s business processes and, more importantly, the needs of our clients,” said Churgin. “He Before joining HFA in 2002, Russell was the founder and continues to play a major role in HFA’s key business CEO of Machine Enterprises Inc., where he provided initiatives particularly our enhanced income-tracking commercial artist management and business consulting process. He will be a critical member of my executive services to creative enterprises in the media, entertainment team as the company continues to evolve, and I’m pleased and design fields. Prior to that, Russell was Vice President to promote him to this new role.” and General Manager of Razorfish Studios, Inc., where he oversaw the daily operations of this fast-growing start-up. Russell came to Razorfish Studios from Red

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HFA SOUNDCHECK APRIL 2010 3 hfa news HFA’s Songfile® Is Now Available for Ringtone Licensing

HFA is pleased to announce that Songfile, its online licensing service, is Maurice Russell… now available for ringtone licensing. In addition to obtaining licenses for Ant Entertainment, where he was cover versions of songs for CDs and permanent digital downloads (PDDs), the Senior Director, Business Songfile’s over 69,000 registered users can now do the same for ringtones. Development and Licensing, heading up the special products and Customers may pay via credit card or electronic check payment. Licenses licensing department. Before that, for ringtones and PDDs must be obtained in separate transactions. However, he was a Senior Director, Contract users may obtain up to 50 separate ringtone licenses in a single transaction. Administration at Polygram Records, The ringtone royalty rate is 24¢ per copy. responsible for supervising the

administration of over 250 recording, “This is an exciting new offering that our independent licensees can now license and video agreements, as enjoy,” said Maurice Russell, Senior Vice President of Licensing, Collections well as tracking options, product and Business Affairs, HFA. “Independent bands, individual artists and labels delivery and financial obligations. continue to explore new revenue streams; our ringtone licensing feature Russell holds an MBA from New creates an easy and efficient way for their fans to legally access music.” York University’s Stern School of To begin using Songfile for ringtones, visit the Harry Fox Website at Business Administration and a BA www.harryfox.com. from Columbia College, Columbia University.

Carlyle Johnson: an HFA Stalwart

In February, we at HFA bid farewell to a veteran of the company and the music industry. Carlyle Johnson, Distributions Analyst, retired after a full 26 years of service at The Harry Fox Agency. Throughout his time here, he maintained a passion and love for his work and always displayed a pleasant demeanor and positive outlook. A well-respected member of the Distributions Team, colleagues and clients alike will miss his dedication to and professionalism towards his work and his peers. It is with pride and appreciation that we wish Carlyle nothing but the very best as he begins a new chapter in his life.

Pictured from left to right: Aja Pringle, Distributions Team Lead, Carlyle Johnson, Distributions Analyst, Matt Wuolle, Senior Director of Distributions Technology and Ed Hunt, SVP of Publisher Services

4 APRIL 2010 HFA SOUNDCHECK hfa news HFA’s eSong® How to check the status of your song registration.

eSong®, HFA’s online publisher catalog management application, allows you to manage your catalog by requesting the addition or update of a song to HFA’s licensing database. Once you log into www.harryfox.com, you can find eSong in the “Catalog Management” area of the site.

After you’ve requested additions and/or updates to your catalog, as described in our September 2009 issue, you can track the status and history of these requests through the “Requests History” tab, shown above. The Request History screen displays all requests submitted by your publishing company through eSong. The list is not limited to just those submitted by a specific user. You can sort or filter the Request History Menu by any of the fields shown.

Every eSong request is automatically assigned a unique request reference number by eSong at the time the request is created. Clicking on the “Request Reference #” link will re-direct you to the detail of the song request.

You can always determine whether a submitted song request has been completely handled by HFA (either registered or rejected), or is still in progress based on the song’s “Request Status”. When a request is first submitted in eSong it is kept in “Submitted” status for the remainder of the day in which it was submitted. During this time, the publisher can make any necessary modifications to the request. After that, the request is listed as“In Progress” until it has been completely processed. Once a request has been successfully processed, the status will change to either “Song Added” if a new song has been added to the HFA licensing system, or “Song Updated” if a pre-existing HFA Song has been updated based on the request.

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HFA SOUNDCHECK APRIL 2010 5 hfa’s eSong…

A Song Request is listed as “Request Rejected” if it cannot be processed and has been rejected by HFA. Usually, this is because of duplicate songs or split conflicts. The appropriate reason code, “Duplicate” or “Conflict,” will be displayed in the Rejection Reason field in the eSong request details, pictured above.

Please note that for all requests rejected due to a conflict are accompanied by a link which is provided to the HFA Song Code reflecting the current Publisher(s) of Record in our system. Please contact Publisher Services if you wish to pursue a claim against what is currently indexed in our system. Because HFA is not in a position to arbitrate a dispute between publishers, your dispute may ultimately need to be resolved directly by you and the Publisher(s) of Record.

If the song is displayed on-screen as “duplicate”, HFA believes the song is already registered in our database. You can use the “Search HFA Database” function in eSong to confirm. If you believe this determination is an error, or you have any other questions about eSong or managing your song catalog please contact HFA Publisher Services at 212-834-0100 or email [email protected]. l

6 APRIL 2010 HFA SOUNDCHECK Licensee Corner: Online Licensing Reports Part 3 – Scheduling and Emailing a Copy of a Report

In our January issue, we covered customizing available Online Licensing Reports. Another feature of these reports is the ability to schedule a report to run on a regular basis and then to have a copy sent to your inbox. For example, if you need to see your updated license information each Monday morning, the Licensee Download of License Transaction Details [Request and License Status Report by Month] report can be set to run each Sunday evening so that it’s ready for you first thing Monday.

To schedule a report, make sure you have created a Report View in your My Folders tab (for instructions, see the previous article). Under Actions, click on the Schedule button.

Now, you are able to decide the frequency of the report as well as electing a specific day and time you would like the report to run. If you would like to stop the schedule from running during a certain time period (for example over a long holiday where you will be out of the office) click on theDisable the schedule button. This window also gives you the option to set default values if you have not already done so.

If you would like to email yourself a copy of the report, check Send a link to the report by email under the Delivery options, but leave Save the report checked (this must be done in order to send the report). Click on the Edit the email options link to enter in any email addresses that you would like to receive the report. In the email, you will receive a link to the report for each format that you specified in your default values.(Tip: if your pop-up blocker is turned on, you will want to disable this function for the report to come up. If you still have difficulty viewing the report after clicking on the link, hold down the Ctrl button on your keyboard until a window appears asking you to save the report to your computer.)

If you do not want to schedule the report to run regularly, but would like a copy emailed to you, you can do so from the My Folders tab. Click on the Run with options button under Actions, then click the advanced options link. Under Time and mode, click Run in the background. The same delivery options listed above will appear. Repeat those steps and you will have a copy of the report sent to your inbox once it has finished running. l

HFA SOUNDCHECK APRIL 2010 7 events hfaon the road

On March 18, at SXSW in Austin, TX, Ed Hunt, SVP of Publisher Services The NARM 2010 Convention & Distributions moderated the industry panel “Music Publishing: Making Chicago, IL - May 15 - 17 Money in Your Sleep”. Below, Mr. Hunt and the panelists. HFA’s Fred Beteille, Sr. Director of Strategic Technology has been invited to be a panelist at the annual event. He will speak on the panel “The Music and Mobile Apps Development Process” on May 17. Also on the panel will be Eric Snowden of Atlantic Records and Larry Goldberg of Tunewiki, among others. Fred will also present at the event’s Product Presentations, highlighting HFA’s Administration Services. The 3-day event will feature various panel discussions, industry meetings and will feature marketing opportunities for attendees. For more information, visit http://www.narm.com/events/ 2010-convention/

From Left to Right: Eric Beall (Shapiro Bernstein Music Publishing), Dan Ekback (Platinum Other upcoming events: Pen Publishing, LLC), Ed Hunt, SVP of Publisher Services & Distributions (HFA), Michael Eames (PEN Music Group Inc.) Musexpo West Hollywood, CA. . April 25 – 28 Billboard Latin Music Conference & Awards San Juan, PR ...... April 26 – 29 The AIMP “NY Pitch Session” – Part 2 New York, NY ...... April 28 Streaming Music East Conference & Awards New York, NY ...... May 11 – 12

8 APRIL 2010 HFA SOUNDCHECK HFA affiliate publishers, send us your news! Send new signings, employee announcements, life notes (births, weddings, obituaries) to [email protected]. wordon the street

News

peermusic, has announced that 13 songs from its catalogue will be featured in the motion picture The Runaways in theaters now. The film sees Joan Jett (Kristen Stewart) and Cherie Currie (Dakota Fanning) become the heart and soul of the now legendary group, The Runaways. peermusic is the original publisher of The Runaways and the current owner of all its original music copyrights. Below are just some of the PEERMUSIC Licensed Songs in the Film: 1) “I Wanna Be Where The Boys Are” (Kim Fowley / Roni Lee) 2) “Cherry Bomb” (Kim Fowley / Joan Jett) 3) “California Paradise” (Kim Fowley / Joan Jett / Cari Lee Mitchell / Sandy West) 4) “Queens Of Noise” (Billy Bizeau) 5) “Hollywood” (Kim Fowley / Joan Jett / Jackie Fox)

Also, peermusic has entered into a worldwide joint-venture publishing deal with T6H (Sixth House), the Latin-entertainment management firm spearheaded by Richard Bull and Guillermo Rosas. The agreement highlights the joint signing of T6H artist Anahi, formerly of Latin group, RBD. Based in Los Angeles, The Sixth House (T6H) is a full service entertainment company, specializing in artist management, concert promotion, talent booking and, now, music publishing. The agreement also allows for one-off signings and artist development deals.

ole has announced the acquisition of the approximately 4000-song music publishing catalog of Blacktop Music Group, Inc., founded in 2001 by Clint Black. The company has been home to some of Nashville’s finest and most prolific hit songwriters.

Also happening at ole, under a new deal with Random House Children’s Entertainment, the publishing company will co-own all compositions in the new series The Cat in the Hat Knows a Lot About That starring Dr. Seuss’ famous character, The Cat in the Hat. Developed as a co-production by Canada’s Portfolio Entertainment and the U.K.’s Collingwood O’Hare Entertainment, the new series is set to premiere in Fall 2010 and will air on PBS KIDS and will star the voice of Martin Short.

ole has also announced the catalogue acquisition and worldwide co-publishing deal with songwriter Chris Wallin. Wallin’s catalog includes hit singles by Toby Keith’s, Kenny Chesney and Montgomery Gentry, bringing more than 100 additional songs to ole. An active advocate for songwriter’s rights, Wallin has helped revise legislature concerning intellectual property rights. More…

HFA SOUNDCHECK APRIL 2010 9 word…

Bug Music Publishing has signed a deal with Gamecues Corporation, provider of a new online music licensing platform for game publishers and developers. Under the terms of the deal, Bug will participate on Gamecues’ Level-2 Licensing process for premium content providers. The Level-2 service allows for direct negotiating access to game developers and publishers worldwide. Via Gamecues’ interface, a transparent dashboard of toolsets helps manage large music libraries, calculate real- time financial data, catalog activity, and keyword-based administrative tools assist in creative marketing all while using the service. Currently, Level-2 is being used by game developers and publishers in 106 countries worldwide.

Also at Bug Music Publishing: a new co-publishing deal has been signed with acclaimed country songwriter Gordie Sampson. The agreement will encompass his future songwriting efforts. Previously, Bug had handled Sampson through his co-publishing agreement with Windswept. He was a driving force behind the multi- Grammy award-winning “Jesus Take The Wheel”.

Arthouse Entertainment has signed a worldwide co-publishing agreement with one of the most in-demand songwriting producers in music, Mike Elizondo. Arthouse Entertainment will represent Elizondo’s current and future works. Elizondo, nominated for Producer of the Year at the 2008 Grammy Awards, is responsible for some of the biggest hits of the last decade including songs by Justin Timberlake, Eminem, Dr. Dre, Mary J. Blige, Kelly Clarkson, Gwen Stefani, 50 Cent, Nelly Furtado and Kris Allen.

Also happening at Arthouse Entertainment: producer and songwriter, Mitch Allan has re-signed a worldwide co-publishing agreement with the publishing company. Under the terms of the deal, Arthouse Entertainment will represent a majority of Allan’s catalog and future songs. Allan, a founding member of SR-71, has produced and written with some of the biggest acts in the industry, including Daughtry, Tokio Hotel, Jonas Brothers, Hannah Montana and Faith Hill.

Spirit Catalogue Holdings (“SCH”), in conjunction with Spirit Music Group (“SMG”) announced the acquisition of Threesome Music, the song catalog of acclaimed songwriters, Alan and Marilyn Bergman. Through the agreement, Spirit will acquire rights to more than 300 songs recorded by such classic artists as Frank Sinatra, Ray Charles and Sarah Vaughan. The deal also includes rights to title songs from such major motion pictures as Tootsie (“It Might Be You”) and A Star Is Born (“I Believe In Love”). Additionally, Spirit and the Bergmans have signed an “Word on the Street” is taken from press exclusive, long term worldwide publishing administration agreement covering new release material. and future works. l

10 APRIL 2010 HFA SOUNDCHECK “On the Road Again?” Make Sure Your Mail’s Not Marked “Return to Sender”

On the move? Make sure HFA has your current contact information. You can obtain change of address information on our website at www.harryfox.com or by contacting HFA Publisher Services at 212-834-0100.

The HFA website also has a list of publishers for whom we may be holding royalties due to the lack of a valid mailing address - see the “Help Us Find Publishers” link.

If you have any comments regarding HFA Soundcheck, please contact the Editor at 212-922-3297 or email [email protected].

Established in 1927 by the National Music Publishers’ Association, HFA represents over 44,000 music publishers for their licensing needs in the United States, issuing licenses and collecting and distributing the associated royalties. In addition to being the premier mechanical licensing agent in the U.S., which includes CDs, ringtones, digital downloads, interactive streams, limited downloads and more, HFA is dedicated to finding new ways for its affiliates publishers to recognize value for their catalogs, including lyrics and tablature. Further, HFA provides collection and monitoring services to its publisher clients for music distributed and sold in over 95 territories around the world. For more information about HFA, or to become an affiliate publisher or a licensee, see www.harryfox.com.

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