Tag Archive | NOI

So You Received A Notice From Music Reports Or Harry Fox Agency?

Earlier this week a number of artist managers in a Facebook group posted photos of letters that their clients received from Music Reports Inc. on behalf of Amazon. They asked what the notices meant and if they were legit.

I am sharing my post, which was shared to a number of other music industry groups:

In the last couple of days, several of you have posted about receiving a notice from Music Reports Inc. and questioned whether or not you should act on the letter.

Let me clarify what you’re receiving, why you’re receiving them, and what you should do about it.

The short answer: Unless your client is signed to a major music publisher or major indie (e.g. Kobalt) OPT IN TO ALL DIRECT LICENSES!

Who is sending these notices?

Music licensing clearing houses such as Music Reports Inc. and the Harry Fox Agency (via it’s service Rumblefish) are hired by digital music services (including the big ones like Amazon, Apple, and Spotify; as well as hundreds of small startups like what musically was but is now TikTok) to help the digital service to secure proper licenses (compulsory or direct) to use music in their service, to calculate royalties, and to make payments and remit statements to the proper copyright owners.

What are you receiving?

What you are receiving are opportunities to opt-in to a predetermined (generally nonnegotiable) direct license, alongside every other non-major / non-major-indie publisher in the world, to license your copyrights to a digital platform within the United States (sometimes the deal is worldwide, which can be problematic, but I don’t want complicate this post). There are also Section 115 NOIs, which goes out for every track released on a DSP for the US mechanical license for the underlying composition (this process is being disrupted by the Mechanical License Collective beginning Jan 1, 2021).

Why are you receiving the notice?

You’re receiving the notice because the agent has your information as the copyright owner (or authorized agent of the copyright owner) for copyrights (generally compositions) that have been matched to sound recordings that the digital service either already has or has access to. THIS IS A GOOD THING. This means that the digital service, via their agent’s (MRI, HFA, etc) database of song ownership information, knows who to pay once the copyright begins to earn royalties (or in the case of a one-time payment, they know who to pay from the pro rata advance pool). The flip side is if they do not have your ownership info, the copyright would not be properly licensed and the creators would not be paid — the royalties earned against their copyright would go into the so-called “black box” or the content will be blocked from the service altogether (e.g. notice that your music isn’t on or monetized on Facebook, Instagram, and Oculus?). Also, if the agent does not have your info for certain uses covered by Section 115 of the US Copyright Act, the notice is currently being remitted to the US Copyright Office.

How do you respond?

Review the license and decide if you want to opt-in or not. For most copyright owners, opting in is really your only shot at being licensed by the service. Up-and-coming artists are not going to be able to do a separate direct license with the service as the service has zero incentive to administer a separate agreement with you. They will do a deal with the major publishers and major-indie publishers and a unicorn artist here or there.

How to make sure that your contact information is readily available to these agents to ensure that they can contact you with licensing opportunities and have your payee info for royalties?

You can hire a pub admin (they’ll earn a 15% to 25% commission on all royalties collected) or you can do it yourself and keep 100% of your royalties in North America via TuneRegistry. See this article as an example of DIY.

Royalty Claim Unleashes Another 22 Million Section 115 NOIs

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Royalty Claim Initiative‘s mission is clear:

“To aid in creating transparency in the global music licensing ecosystem.”

We do this by conducting research into the global music licensing ecosystem to understand where and why royalties go uncollected. The Royalty Claim Platform is a FREE online search engine empowering music creators and rights-holders with access to the data about unclaimed royalties and music licenses.

After a rocky launch weekend, we are happy to announce that we’ve just made over 22 Million more Section 115 NOI records searchable. Copyright owners (or their agents) can create a free account, search for free, and initiate claims for free.

Harry Fox Agency, Music Reports Inc, MediaNet and Loudr are among the licensee agents that will receive claim notifications via Royalty Claim for Section 115 NOIs filed on behalf of digital service providers such as SpotifyGoogle Play MusicMicrosoft Groove Music, PandoraiHeartMedia and Amazon Music.

Join today and search for free at www.royaltyclaim.com

If You’ve Never Received Mechanical Royalties From Google Play Music, This Might Be Why

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Is Google Willfully Refusing To Use Its Own Assets To Identify Copyright Owners?

In recent weeks Google and YouTube has come under fire by high-profile music industry professionals in regards to Lyor Cohen’s statements on the royalties it pays to artists. This piece is NOT about that.

At Royalty Claim, we periodically randomly select and investigate records that our researchers and data scientists ingest. Random investigations — sometimes against pre-determined hypotheses and sometimes just to follow down the rabbit hole — has helped us uncover nuances in the music licensing ecosystem that manifest into trends that suggest major systemic issues.

Earlier this month we reported that Google has filed nearly 7 Million Section 115 NOIs on the US Copyright Office for musical works in which it claims to be unable to identify the copyright owner. Then, Lyor Cohen boasted about YouTube’s royalty payouts and its growing ability to match music to videos (Google it, it’s everywhere). And then we remembered that this is only possible due to YouTube Content ID, which is arguably the largest database of copyright information with music codes, audio samples, etc.

So, if the largest submitter of “copyright owner unknown” NOIs is also the owner of the largest private database of copyright owner information, it makes no sense that Google cannot seem to identify copyright owners to pay mechanical royalties for the use of the copyright owner’s songs on Google Play Music.

So, we investigated this.

Royalty Claim’s Full Presentation At The Music Industry Research Association Conference

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Royalty Claim attended the Music Industry Research Association‘s first inaugural MIRA Conference at the UCLA Luskin Conference Center this week. Royalty Claim’s Founder and Chief Researcher, Dae Bogan, MIA, had the honor of presenting a preview of our in-progress The State of Unclaimed Royalties and Music Licenses in the United States report before an audience of economists, sociologists, and researchers from universities and institutions from around the world, as well as music industry executives representing firms such as Nielsen, Pandora, Universal Music Group, and Warner Music Entertainment.

For the first time, updated statistics regarding the filing of “address unknown” Section 115 NOIs on the US Copyright Office during the first half of 2017 was revealed. Insights included an overview of the organizations that have utilized the procedure, including Amazon, Google, Spotify, iHeart Communications, and Microsoft. However, those large music users were expected. Interesting inclusions to the list were The Recording Academy and the Christian music service, TheOverflow and interesting omissions from the list are platforms that boast millions of tracks — Apple and Tidal — but may not be reaching every independent rightsowner that may have compositions available on those platforms.

A slide from the “[Preview] The State of Unclaimed Royalties and Music Licenses in the United States” presentation at MIRA Conference.

A slide from the “[Preview] The State of Unclaimed Royalties and Music Licenses in the United States” presentation at MIRA Conference.

The presentation also discussed the nature and causes of so-called “Black Box royalties”. A black box is an escrow fund in which music royalties are held due to an organization’s inability to attribute the royalties earned to the appropriate payee. Examples were given, including unattributed advances from DSPs to music companies, the US’s limitations on sound recording rights, and other issues.

A slide from the “[Preview] The State of Unclaimed Royalties and Music Licenses in the United States” presentation at MIRA Conference.

 

The presentation concluded with a video demo of the Royalty Claim Platform, which received positive reviews from conference attendees. The full presentation is  here.

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