October 31, 2014 Vol 1 | Issue 7 In This Issue On the Hill & In the Know 1 SoundExchange Fights for Fair Market Rates 2 Flying High at the Dove Awards 3 Recording Artist Matt Goss on His Appreciation for U.S. Veterans 4 The Spookiest Songs Around 4 Meet Cymbals Eat Guitars 6 Events 7 On the Hill & In the Know California Court Rulings In Favor of Pre-72 Artists While October was quiet on Capitol Hill, important developments impacting pre-1972 recording artists were happening on the other side of the country. On September 22, a California federal district court ruled that pre-1972 recordings are protected under California state law, and that Sirius XM must pay to play these recordings. More recently, on October 14, a California state court also ruled against Sirius XM on the same issue. While the California state court ruling applies only to the issue of how a jury will be instructed in the case as it goes forward, the judge in the case has effectively ruled that California law allow includes a performance right for pre- 1972 recordings. These rulings are big victories for SoundExchange’s Project72 campaign and our efforts to ensure that all recording artists are compensated fairly, irrespective of age or the year they recorded. But they do not alleviate the need to address the issue more broadly by passing federal legislation in the form of the RESPECT Act (H.R.4772). In fact, it may make this need 1 www.soundexchange.com even greater. The RESPECT Act would require digital radio services to pay for all the music they play, regardless of the year it was recorded. The California rulings deal only with California state law and thus apply only to activity in the state of California. Even if courts in other states decide cases similarly, the outcome remains the patchwork of state laws artists have to deal with today, not to mention some states without any law on the issue. The RESPECT Act would provide a clear, federal standard, requiring that artists — pre- and post- 1972 — be fairly compensated when their recordings are played on digital radio. In addition to the uncertainty presented when there are varying state laws, lawsuits in other states are expected, which would lead to a rise in litigation costs surrounding this issue. Artists should not have to go to court to be paid for their work. Passing the RESPECT Act would settle the issue and make it possible for Sirius XM to obtain clear permission for the use of pre-1972 recordings through the statutory license SoundExchange administers. And it would do this at the federal level—applying the law uniformly across the country instead of state-by-state. Not only are there multiple states involved, Sirius XM is just one of many digital services playing, but not paying for pre-1972 recordings. Even if Sirius XM begins to pay for all pre-1972 recordings it plays, this still leaves artists uncompensated when their works are played by other digital radio services like Pandora. Further (and perhaps more unfortunately), Sirius XM has stated that it plans to appeal the ruling. With the courts thus far standing firmly on the side of fair pay, SoundExchange’s campaign, Project72, is more important than ever. We encourage everyone to reach out to your Congressional representatives and explain how the passage of the RESPECT Act will lower court costs, prevent uncertainty in the music marketplace, and, most importantly, ensure that all recording artists are fairly compensated when their recordings are played on digital services. A link to contact Congress can be found at www.project-72.org. Together we can bring an end to this massive injustice. Join the fight! SoundExchange Fights for Fair Market Rates As many of you are likely aware, webcasting rates are set for five year terms and the current term is set to expire at the end of 2015. With that expiration looming, SoundExchange submitted initial testimony and a rate proposal to the Copyright Royalty Board (CRB) for what SoundExchange believes are fair market rates for the upcoming 2016-2020 term. Webcasters and various other parties also submitted testimony and rate proposals. The details of this filing can be confusing so here is a quick look at what SoundExchange is proposing: u SoundExchange is fighting for higher rates — The current rate for commercial webcasters is $0.0023 per stream. From 2016-2020, SoundExchange is proposing the rates go from $0.0025 per stream in 2016 to $0.0029 in 2020. This proposal is based on hard evidence and market trends that the SoundExchange team has spent months gathering. 2 www.soundexchange.com | October 31, 2014 u This is the first and initial step in a process that will last for the next 15 months— While all the participating parties have submitted their various proposals and comments, the process is just beginning. The in-person hearings and testimony won’t happen until April/May 2015, and the ruling won’t be handed down until December 2015. u The fight will be heated but… — SoundExchange is confident in what it proposed. Ten fact witnesses and four experts will speak on SoundExchange’s behalf during the in-person hearings in April/May 2015. The evidence laid out in the written proposal is based on market research. There will be many updates on this as it moves further in the process and SoundByte will bring you the latest. In the meantime, rest assured that SoundExchange is doing everything possible to fight for fair pay for all artists and rights owners. Flying High at the Dove Awards Earlier this month, SoundExchange President and CEO Michael Huppe took the stage at the Dove Awards Pre-Show to introduce the audience gathered to the importance of SoundExchange. Michael spoke specifically on the importance of recognizing SoundExchange as a brand that works directly for all artists and record labels regardless of genre or when the music was created. To hear what Michael had to say, take a look here (the SoundExchange portion begins around 30:29). Check out some of the photos from the event below. Remember that when you see the SoundExchange logo, it represents the organization that is working for you. SoundExchange President and CEO Michael Huppe speaks at (L-R) Steve McPherson of Hillsong Music Publishing, SoundExchange the Dove Awards pre-show President and CEO Michael Huppe, and Jonathon Douglass of Hillsong United 3 www.soundexchange.com | October 31, 2014 Recording Artist Matt Goss on His Appreciation for U.S. Veterans The Spookiest Songs Around This time of year, it’s not unusual to see ghosts, zombies, clowns, gravestones and spider webs dotting yards around the country. Don’t worry — you aren’t actually living in an alternate universe where American Horror Story is real. It’s Halloween and that means SoundExchange is releasing its list of the Top 10 “Spookiest Streamed Tracks” on digital radio. Check out the list on the next page and see if any of your favorites made the cut. 4 www.soundexchange.com | October 31, 2014 5 www.soundexchange.com | October 31, 2014 Meet Cymbals Eat Guitars Joseph D’Agostino (guitar and vocals), Brian Hamilton (keyboards), Matthew Whipple (bass guitar) and Andrew Dole (drums) have been playing together as the “critical darling” Cymbals Eat Guitars since 2007. But one doesn’t just become a critical success overnight. The New Jersey band, which got their unique name from a Lou Reed quote, released their debut album Why There Are Mountains in 2009 to great success. Since then, they’ve continued to build on their first release with 2011’s Lenses Alien and 2014’s LOSE. The 2011 album was the band’s first on the Seattle-based independent record label Barusk Records. Up next for the band includes a tour with Bob Mould and Brand New and a possible European tour in January. Of SoundExchange, the group says, “[The organization is] extremely important. It is paramount that artists be paid for their work.” Check out the exclusive Q&A with the band below. 5 Questions with Cymbals Eat Guitars Does the band have any musical inspirations? No, we’re in this entirely for the money ;) What is the band’s biggest struggle in the music industry? Paying our rent while we’re on tour. What is the band’s best/favorite fan encounter? Every time we go to the UK we get to see our #1 best fan, Leah Pritchard. She loves us like Rush fans love Rush. What is the band’s favorite place in the world to play a live show? The Turner Ballroom in Milwaukee, Wis. is fresh in our minds because we just played there with Bob Mould but it is possibly the greatest venue we’ve ever played. Incredible hospitality. If the band was stuck on a desert island and could only have three things, what would they be? Food, water and shelter. 6 www.soundexchange.com | October 31, 2014 Events The 93rd Annual ACP/CMA National College Media Convention Philadelphia, Pa. October 29 – November 2, 2014 Billboard and The Hollywood Reporter Film & TV Music Conference Los Angeles, Calif. November 5-6, 2014 Member Discount Code: SX14 grants SoundExchange members a discounted registration of $425 $525 pre-registration rate (ends 9/22) $575 last chance rate (ends 11/4) $625 on-site rate The 16th San Francisco Music Tech – SFMT XVI San Francisco, Calif. November 11, 2014 Billboard Touring Conference & Awards New York, N.Y. November 19-20, 2014 Member Discount Code: SX14 grants SoundExchange members a discounted registration of $450 XIV Latin GRAMMYS® Las Vegas, Nev.