1. Music Licensing and Compliance Reporting Sep 24-27 2015 GRC 2015 presented by

2. Topics If your station broadcasts or streams music you need licenses. Licensing and the reporting that goes with it are complex and confusing topics, this presentation aims to demystify them in plain English – in the context of noncommercial radio. Topics include: Copyright & royalties: musical work, sound recording Licensing agencies: ASCAP, BMI, SESAC and SoundExchange Licensing options and reporting requirements DMCA compliance Webcasting vs. Webcast-archive vs. Podcasting Q&A

3. Musical Copyrights and Royalties Musical composition Composition and lyrics Rights held by song writers, composers, publishers Administered by PROs (ASCAP, BMI, SESAC) Sound recording What’s on a CD or LP Rights held by recording artists and labels Administered by SoundExchange

4. Musical compositionSound recording Broadcast PROs : In the USA, AM/FM radio pays no royalties to sound recording copyright owners Webcast PROs : Public performance & royalty agencies PROs = Performance Rights Organizations ASCAP and BMI each offer blanket licenses for both webcast and broadcast SESAC requires separates webcast and broadcast licenses

5. 1988 composition by Nick Cave “The Mercy Seat” 2000 recording by Johnny Cash If the Cash recording of “The Mercy Seat” is played, royalties are due: Broadcast radio o Nick Cave for the composition (musical work) Webcast radio o Nick Cave for the composition (musical work) o Johnny Cash for the recording (sound recording)

6. Licenses and Fees http://spinitron.com/doc/special-topics/webcast-reports/options-compared/ http://spinitron.com/doc/special-topics/webcast-reports/options-compared/ NC Webcaster (WSA)NC Educational (CBI)Public Radio (CPB) Elect By Jan 31each calendar yearEvery 5 years Audience size covered by minimum fee 159,140 ATH per month = 218 average number of simultaneous listeners CPB covers all royalties NPR data processing fees: Annual: Zero for NPR members $250 for NPR stream clients $275 for NFCB members $500 for everyone else Quarterly: $500 for incorrectly formatted reports Annual minimum fee $500 Excess fee (2015) $0.00083 /performance = $7.27 /listener/month $0.0025 /performance = $21.90 /listener/month Proxy fee (reporting waiver) $100/year if average audience ≤ 5 listeners (annual ATH ≤ 44,000) $100/year if average audience ≤ 75 listeners (monthly ATH ≤ 55,000) Not applicable Eligibility Any NoncommercialNoncommercial educational Non CPB grantee CPB eligible, NFCB member, NPR, APM, PRI, PRX affiliate

7. Recordkeeping and reporting NC Webcaster (WSA)NC Educational (CBI)Public Radio (CPB) Song data to record (playlist logs) Song Title Artist Name Album Name Label Name Number of times a song was played Song Title Artist Name Album Name Label Name Exact start + end time (or duration) of each song Reporting frequency Two weeks each quarter, submitted to SX quarterly Two weeks each quarter, submitted to SX annually Two weeks each quarter, submitted to NPR/DS quarterly Reports to submit Playlist logs Play frequency ATH for reporting period Monthly SOA Playlist logs Play frequency Playlist logs with exact song time-stamps Stream logs with IP addresses and connect/disconnect times Update program schedule Specify reporting period or ISRC

8. Audience size Aggregate Tuning Hours (ATH) Listener hours added up over some period of time From your streaming service provider Calculate from your webcast server log Estimate Actual Total Performances (ATP) How many listeners listened to each song Calculate from webcast server log and playlist logs

9. Listener Hour 30 60 35 45 25 30 + 60 + 35 + 25 + 45 = 195 → 3.25 listener hour

10. Daft Punk – Get Lucky ATP – Actual Total Performances ATP fairer than ATH for distribution of royalties 5 4 3 2 1 1 2 3 4 5 1 2 3 4 5 6 Ty Segall – Feel Jenny Lewis – Late Bloomer 3:20:14 3:26:243:26:423:30:57 3:31:123:36:25 [6:10] [4:15] [5:13]

11. DMCA compliance - webcasting Performance complement In a 3 hour period the webcaster may transmit no more than: 4 tracks by the same featured artist (or from a compilation album) and no more than 3 of those tracks may be transmitted consecutively. 3 tracks from the same album and no more than 2 of those tracks may be transmitted consecutively. No prior announcements Song identification Programming restrictions Archived programs Continuously looped programs Rebroadcast of programs

12. Streaming vs. Podcast Webcast Non-interacive Non-subscription Streaming media Archived program At least 5 hours duration Available for maximum 2 weeks Streaming media Podcast Not covered by statutory licence Must negotiate with rights holders Download/reproduction

13. Information sources Webcast Reporting - Spinitron http://spinitron.com/doc/special-topics/webcast-reports/ Statutory Licensing - SX http://www.soundexchange.com/service-provider/licensing-101/ Noncommercial Webcaster Licensing - SX http://www.soundexchange.com/service-provider/non-commercial-webcaster/ Music Licensing for Noncommercial Radio - Prometheus Radio http://www.prometheusradio.org/musiclicensing Music in Digital Media - Broadcast Law Blog http://www.dwt.com/advisories/The_Basics_of_Music_Licensing_in_Digital_Media_2011_Update_02_22_2011/ Slides http://www.dwt.com/files/Uploads/Documents/Presentations/02-11_Oxenford_Texas.pdf Streaming Copyright Basics - GSB Law http://www.gsblaw.com/pdfs/Reference_Memo_Streaming_Copyright_Basics_0311.pdf Rates and Terms for Noncommercial Broadcasting ASCAP, BMI, SESAC - FR http://www.loc.gov/crb/fedreg/2012/77fr71104.pdf How the Money Flows - FMC http://futureofmusic.org/article/article/music-and-how-money-flows Podcasting Legal Guide - Music - CC https://wiki.creativecommons.org/wiki/Podcasting_Legal_Guide#Using_Music

14. Tom Worster, Eva Papp spinitron.com eva@spinitron.com 617 233 3115 Questions?