Lawyers: Online Music Sales Muddle Royalties

Leading music experts said at the American Bar Association’s annual meeting that the current system for distributing royalties to musicians in the United States is seriously hampering the introduction of new, innovative music distribution models, PC Magazine‘s Chloe Albanesius writes.

Cary Sherman, chairman and CEO of the Recording Industry Association of America (RIAA), said that the industry is experimenting with new licensing models, but many of the most innovative models are being done internationally, such as how ISPs abroad are bundling unlimited music downloads in with Internet service, the report said.

The problem is especially vexing in certain corners of the industry, such as the ongoing battle between Pandora and SoundExchange over Internet radio royalty rates, and the recent lawsuit between ASCAP and Web music portals AOL, Yahoo, and RealNetworks, the report said.

In the end, it’s a confusing landscape most of all for the musicians themselves. “It’s harder and easier to be a musician these days,” said Mark Fischer, a principal with Fish & Richardson, according to the article. “It’s easier to get your hands on affordable equipment to create music, but it’s harder to find an audience for it.”

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