File #2723: "2019_Book_OnlineMusicDistribution-HowMuc.pdf"
Text
1|Acknowledgements|7
1|Contents|9
1|Abbreviations|20
1|List of Figures|26
1|List of Tables|28
1|Chapter 1: Introduction|29
2|A. Background|29
2|B. Research Questions and Methodological Remarks|30
2|C. Terminology|32
2|D. Issues Beyond the Scope of This Study|32
2|E. How Is This Study Organized?|33
1|Part I: Online Music Distribution: Current Legal Situation|34
2|Chapter 2: Relevant Online Music Uses|35
3|A. Downloading: Permanent and Limited|35
3|B. Streaming: Interactive and Non-interactive|37
2|Chapter 3: Relevant Rights and Their Applicability to Online Music Uses|39
3|A. International Law|40
4|I. Relevant Rights of Authors in Musical Works|40
5|1. Berne Convention|40
6|a) Reproduction Right: Art. 9(1)|41
6|b) Communication Rights|43
5|2. Universal Copyright Convention|45
5|3. TRIPS|47
5|4. WCT|47
6|a) Reproduction Right|47
6|b) Communication to the Public, Including Making Available on Demand|48
6|c) Distribution and Rental Rights|49
4|II. Relevant Rights of Performers in Performances|51
5|1. Rome Convention|51
5|2. TRIPS|53
5|3. WPPT|54
4|III. Relevant Rights of Phonogram Producers in Phonograms|56
5|1. Rome Convention|56
5|2. Geneva Phonograms Convention|56
5|3. TRIPS|57
5|4. WPPT|58
3|B. European Law|58
4|I. Relevant Rights of Authors in Musical Works|58
5|1. Reproduction Right|58
6|a) Broad Reproduction Right|58
6|b) Mandatory Exemption for Temporary Reproductions|59
5|2. Communication to the Public, Making Available on Demand, Distribution and Rental: Confusing Qualification|63
4|II. Relevant Rights of Performers in Performances|66
4|III. Relevant Rights of Phonogram Producers in Phonograms|68
3|C. German Law|68
4|I. Relevant Rights of Authors in Musical Works|68
5|1. General Broad Exploitation Rights: Sec. 15 UrhG|69
5|2. Reproduction Right: Secs. 16 and 44a UrhG|69
5|3. Making Available to the Public: Sec. 19a UrhG|70
5|4. Broadcasting: Sec. 20 UrhG|71
5|5. Distribution and Rental: Sec. 17 UrhG|73
4|II. Relevant Rights of Performers in Performances|74
4|III. Relevant Rights of Phonogram Producers in Phonograms|75
3|D. U.S. Law|76
4|I. Relevant Rights of Authors in Musical Works|76
5|1. Reproduction Right: Sec. 106(1) CA|77
5|2. Public Performance Right: Sec. 106(4) CA|79
5|3. Distribution Right: Sec. 106(3) CA|81
4|II. Relevant Rights of Performers or Producers as ``Authors of a Sound Recording´´|84
4|III. Special Case: Relevant Rights of Music Publishers and Record Companies as Owners of Copyright in Musical Works or Sound R...|86
3|E. Comparative Analysis|88
4|I. Rights of Authors in Musical Works|88
5|1. International Law|88
5|2. European Law|89
5|3. German Law|90
5|4. U.S. Law|91
4|II. Rights of Performers and Phonogram Producers in Respective Subject-Matter|92
5|1. International Law|92
5|2. European Law|93
5|3. German Law|93
5|4. U.S. Law|93
2|Chapter 4: Limits to Exclusive Rights in the Internal Relationship Between Original and Derivative Rightholders|96
3|A. Provisions on the Transfer or Grant of Rights|97
3|B. Transfer or Grant of Rights to Third Parties in Practice|100
4|I. Musical Works: Publishing Agreements|102
5|1. U.S.|102
5|2. Germany|103
4|II. Sound Recordings/Performances and Phonograms: Recording Agreements and Producer Agreements|105
5|1. U.S.|105
5|2. Germany|108
4|III. Results with Regard to Rights|110
3|C. Statutory and Factual Limits to Rights in the Internal Relationship Between Original and Derivative Rightholders|111
4|I. U.S.|111
4|II. Germany|115
5|1. Right to Equitable Remuneration: Secs. 32, 79(2a) UrhG|115
6|a) Key Points of the Provision|115
6|b) Corresponding Applicability to Relations Between Performers and Record Labels|118
6|c) Practical Impact of the Provision|119
5|2. Right to Further Participation: Secs. 32a, 79(2a) UrhG|121
5|3. Further Legal Concepts|122
4|III. Comparative Analysis|123
2|Chapter 5: Limits of the Possibility to Exclude|125
3|A. International Law|127
4|I. Musical Works|127
5|1. Berne Convention|127
6|a) Compulsory Licenses for Recording: Art. 13(1) BC|127
6|b) Compulsory Licenses for Wireless Transmissions: Art. 11bis(2) BC|130
6|c) Regulations for Ephemeral Recordings: Art. 11bis(3) BC|131
6|d) Further Specific Limits?|131
6|e) General Rules for the Limits of Exclusivity?|131
5|2. UCC|134
5|3. TRIPS and WCT: Three-Step Test (Art. 13 TRIPS and Art. 10 WCT)|134
6|a) Application of the Three-Step Tests of TRIPS and WCT|135
7|aa) Relationship Between the Three-Step Tests of TRIPS/WCT and Specific Limitations of the BC|135
7|bb) How Should the Three-Step Test Be Applied?|138
6|b) Interpretation of the Three-Step Test|138
7|aa) Excursus: Original Meaning of the Three-Step Test Under Art. 9(2) BC|139
7|bb) Contemporary Approaches to the Interpretation of the Three-Step Test and Their Evaluation|140
8|(1) First Condition|141
8|(2) Second Condition|142
8|(3) Third Condition|144
4|II. Performances and Phonograms|145
5|1. Rome Convention|145
5|2. TRIPS|146
5|3. WPPT|146
3|B. European Law|147
4|I. Musical Works|147
5|1. Relevant Provisions of the Closed Catalogs of the InfoSoc Directive|147
6|a) Private Use Limitation|148
6|b) Ephemeral Recordings Limitation|150
6|c) Grandfathering Clause for Cases of Minor Importance|151
6|d) Application of the Private Use Limitation to the Distribution Right of Authors?|151
5|2. Three-Step Test|152
4|II. Performances and Phonograms|153
5|1. InfoSoc Directive|153
5|2. Directive 2006/115/EC|153
6|a) Remuneration Right of Art. 8(2) Directive 2006/115/EC|153
6|b) Limitations to the Distribution Right|154
3|C. German Law|155
4|I. Musical Works|156
5|1. Compulsory License for the Production of Phonograms: Sec. 42a UrhG|156
6|a) Scope and Criteria for Compulsory Licensing|156
6|b) Claim of the Compulsory License|158
6|c) Exclusion of CRM|158
6|d) Applicability to OMD?|159
5|2. Private Copy Limitation: Sec. 53 UrhG|160
5|3. Ephemeral Copies Facilitating Broadcasting? Sec. 55 UrhG|161
4|II. Performances and Phonograms|162
5|1. Broadcasting Remuneration and Participation Rights: Secs. 78(2)(1) and 86 UrhG|162
6|a) Rationale|163
6|b) Scope of the Remuneration Right|164
6|c) Determination and Collection of Royalties|165
6|d) Allocation of Royalties: Indispensability of the Remuneration Right of Performers|167
5|2. Ephemeral Copies Facilitating Broadcasting? Secs. 55 and 83 UrhG|168
5|3. Private Copy Limitation: Sec. 53 and 83 UrhG|168
3|D. U.S. Law|168
4|I. Musical Works|169
5|1. Mechanical Compulsory License: Sec. 115 CA|169
6|a) General Scope and Criteria|170
6|b) Digital Phonorecord Deliveries|171
6|c) Rate Setting Procedure and Standard|173
6|d) Current Rates|174
6|e) Payment and Collection of Royalties|176
7|aa) Procedures of Sec. 115 CA|176
7|bb) Controversy Around Pass-Through Licenses|178
5|2. Ephemeral Recordings Exemption: Sec. 112(a) CA|179
5|3. Noncommercial Use by a Consumer? Sec. 1008 CA|180
4|II. Sound Recordings|181
5|1. Statutory License for Webcasting: Sec. 114 CA|181
6|a) Rationale|181
6|b) Uses Subject to Exclusivity: Interactive and Quasi-Interactive Services|182
6|c) Uses Exempted from Exclusivity Without Remuneration|185
6|d) Uses Subject to a Statutory License|185
7|aa) Criteria for Statutory Licensing|186
7|bb) Rate Setting Procedure and Standard|187
7|cc) Current Rates|188
7|dd) Payment and Collection of Royalties|189
7|ee) Allocation of Royalties|191
7|ff) Additional Legislation and Settlements|191
5|2. Ephemeral Recordings Statutory License for Webcasters: Sec. 112(e) CA|193
6|a) Exemption from Exclusivity Without Remuneration|194
6|b) Statutory License for Non-interactive Streaming Services|195
5|3. Further Provisions?|196
3|E. Comparative Analysis|196
4|I. International Law|196
4|II. European Law|198
4|III. German Law|200
5|1. Sec. 42a UrhG Compulsory License|200
5|2. Secs. 78(2)(1) and 86 UrhG Remuneration and Participation Rights|202
5|3. Secs. 55 and 53(1) UrhG Limitations|202
4|IV. U.S. Law|203
5|1. Sec. 115 CA Compulsory License|203
5|2. Secs. 114/112 CA Statutory License|205
5|3. Difference with Regard to Downloaded Copies on Users´ Devices|207
2|Chapter 6: CRM in the Field of OMD|208
3|A. International Level|209
4|I. Implications of the International Legal Framework in the Field of Copyright on CRM|209
4|II. Self-Regulation of the CMOs at the International Level|211
5|1. Relevant Umbrella Organizations|211
6|a) Performing Rights in Musical Works|211
6|b) Mechanical Rights in Musical Works|213
6|c) Rights in Performances and Phonograms|213
5|2. Licensing Initiatives in the Field of OMD|213
3|B. EU Level|215
4|I. General Regulatory Framework for the Operation of CMOs in the EU|216
5|1. Basic Features of the Approach|216
5|2. CMOs and Rightholders|217
5|3. CMOs and Users|220
5|4. CMOs Amongst Themselves|221
5|5. Further Issues|222
4|II. Special Regulation of the Online Music Licensing Through CMOs|222
5|1. Online Music Recommendation and Subsequent Development|223
5|2. Title III CRM Directive|227
3|C. German Level|230
4|I. Regulatory Framework|230
5|1. Basic Features of the Approach|230
5|2. CMOs and Rightholders|232
6|a) Obligation to Manage|232
6|b) Distribution Plan|234
5|3. CMOs and Users|235
6|a) Obligation to License|235
6|b) Obligation to Determine Rates|235
6|c) General Agreements|236
5|4. Further Issues|236
4|II. Situation with Regard to the Rights Concerned|238
5|1. Musical Works|238
6|a) Regular Case: CRM by GEMA|238
7|aa) Grant of Rights|238
7|bb) Royalty Rates|239
6|b) Special Case: Hybrid CRM/IRM by ``Dependent Management Entities´´|240
7|aa) Areas and Modalities of the Special Case|240
7|bb) Application of the CRM Regulatory Framework to DMEs|242
7|cc) Validity of Licensing Through DMEs in Light of MyVideo?|243
5|2. Performances and Phonograms|245
3|D. U.S. Level|247
4|I. Regulatory Framework|247
5|1. Basic Features of the Approach|247
5|2. CMOs and Rightholders|249
6|a) Obligation to Contract|249
6|b) Non-exclusive Grants and Alternative Direct Licensing|250
6|c) Litigation on Partial Withdrawals of Rights from CMOs|250
6|d) Distribution of Royalties|251
5|3. CMOs and Users|253
4|II. Situation with Regard to the Rights Concerned|254
5|1. Musical Works|254
6|a) Public Performance Right|254
6|b) Reproduction and Distribution Rights|256
5|2. Sound Recordings|257
6|a) CRM Within the Statutory Licensing Regimes|257
6|b) Excursus: IRM Outside of the Statutory Licensing|258
3|E. Comparative Analysis|259
4|I. International Level|259
4|II. European Level|260
4|III. German Level|261
4|IV. U.S. Level|261
2|Chapter 7: Current Regimes of Exclusivity in the OMD Field in Germany and in the U.S.|263
3|A. Summary of Regimes of Exclusivity in the OMD Field in Germany and in the U.S.|263
3|B. Are the Differences Justified? Transition to Normative Analysis|267
1|Part II: Compatibility of Current Regimes of Exclusivity with Regulatory Objectives in the Field of OMD|269
2|Chapter 8: Promoting Creation of New Musical Subject-Matter|271
3|A. Description of the Objective|271
3|B. Critical Evaluation|273
4|I. Plausibility of the Objective: Can Copyright Lead to Creation of New Musical Subject-Matter?|273
5|1. Reality Not Matching the Theory|274
6|a) General Lack of Evidence of the Incentive Effect of Copyright|274
6|b) Evidence to the Contrary: File Sharing and Music Output|275
6|c) Wild East and Wild South: Plenty of New Music Despite No Efficient Copyright|283
5|2. Explanations?|285
6|a) Power of Existing Alternative Incentives|285
7|aa) Non-monetary Motivations|285
7|bb) Markets for Complemenary Goods|287
8|(1) Structure of Creators´ Revenue|287
8|(2) Convergence of Creators´ Roles: Are Authors and Performers the Same People?|292
8|(3) Live Performance Revenue and Its Interplay with Revenue from Recorded Music|306
7|cc) Kickstarter and Co.|310
6|b) Can Overly Strong Copyright Stifle Creativity?|312
4|II. Compatibility of Existing Regulatory Models with the Objective|313
2|Chapter 9: Rewarding Rightholders|315
3|A. Description of the Objective|315
3|B. Critical Evaluation|316
4|I. Plausibility of the Objective|316
4|II. Compatibility of Existing Regulatory Models with the Objective|318
5|1. Contemporary Opinions on the Impact of Different Regimes of Exclusivity on the Reward Objective|318
5|2. Analysis of Available Knowledge|320
6|a) Musical Works|320
6|b) Sound Recordings/Performances|322
7|aa) Overall Royalty Rates Enabled by Exclusive Rights vs. Statutory Licenses|323
7|bb) Role of Limits in the Internal Relationship|325
7|cc) Role of Record Label Advances|325
7|dd) Perspective of Self-Releasing Artists|326
7|ee) Failure of Some Statutory Licenses to Regulate Royalty Splits|327
6|c) Cross-Comparison Between Musical Works and Sound Recordings/Performances|328
5|3. Refining the Knowledge Through Empirical Case Studies of Musicians´ Streaming Income|329
6|a) Approach to Conducting Empirical Case Studies|329
6|b) Data and Findings|332
5|4. Overall Picture|335
2|Chapter 10: Promoting a Level Playing Field Among Rightholders|338
3|A. Description of the Objective|338
4|I. Preliminary Remarks|339
5|1. What Is a Level Playing Field?|339
5|2. Areas That Require a Level Playing Field in the Context of OMD|341
4|II. Theoretical and Empirical Foundations of the Objective of a Level Playing Field Among Rightholders|342
5|1. Existing Theoretical Approaches|342
6|a) ``Creative Competition´´ Approach of Drexl|342
6|b) Approaches in Favor of Cultural Diversity and Product Variety|344
5|2. Recent Empirical Studies of the Music Market|345
6|a) U.S.: Research on Music Quality by Waldfogel|345
6|b) Germany: Test for Creative Destruction by Handtke|345
6|c) Implications|346
5|3. Examples of Regulation Following Comparable Goals|347
6|a) German System of Presse-Grosso in the Print Media Sector|347
6|b) Net Neutrality Rules in the U.S. and EU|349
5|4. Formulation of the Objective in the Context of OMD|351
5|5. Relation to Other Objectives|353
3|B. Critical Evaluation|355
4|I. Plausibility of the Objective|355
5|1. Arguments Against Variety Within the Product Differentiation Theory|355
5|2. Arguments Against Neutrality|357
5|3. Potential Arguments Against the One-Rate-Fits-All Approach|358
4|II. Compatibility of Existing Regulatory Models with the Objective|359
2|Chapter 11: Promoting Dissemination of Musical Subject-Matter|361
3|A. Description of the Objective|361
4|I. Dissemination as the Access Component of the Incentives-Access Paradigm|361
4|II. Dissemination as ``the Efficient Use and Management´´ in the Context of Proprietary Paradigm|363
3|B. Critical Evaluation|364
4|I. Plausibility of the Objective: Which of the Two Approaches Is Right?|364
5|1. Fundamental Correctness of the Incentive-Access Approach|364
5|2. Proprietary Paradigm´s Vision of ``Efficient Dissemination´´: Lessons from It?|366
4|II. Incorporating the Dynamic Perspective: Promoting ``Disseminative Competition´´|370
4|III. Compatibility of Existing Regulatory Models with the Objective|371
2|Chapter 12: Further Objectives|375
2|Chapter 13: Conclusion on Compatibility of Current Regimes of Exclusivity with Regulatory Objectives in the Field of OMD|378
1|Part III: Policy Recommendations and Conclusion|381
2|Chapter 14: Policy Recommendations on Regulating Exclusivity in the Field of OMD|382
3|A. Generally Preferable Regulatory Model: Improved Market-Based Statutory License|382
4|I. No Exclusivity|384
4|II. Centrally Negotiated Uniform Rates and Terms Reflecting Market Value of Rights|385
4|III. Proper Infrastructure|389
5|1. Collection and Distribution of Royalties|390
5|2. Distribution of Music to Online Music Services|391
4|IV. Regulation of Allocation of Royalties Between Original and Derivative Rightholders|392
3|B. Specific Recommendations for Copyright Reform in the Context of OMD in Germany, EU and U.S.|392
4|I. Musical Works|393
5|1. German and European Level|393
6|a) Adjusting the Sec. 42a UrhG Compulsory License?|393
6|b) System Based on Voluntary CRM|393
6|c) Solving the Problem of Partial Withdrawals|394
7|aa) MyVideo Rulings of the German Courts?|394
7|bb) Restrictive Interpretation of Art. 5(4) CRM Directive and Sec. 12(1) VGG?|395
7|cc) Particular Interpretation of Art. 16(2) CRM Directive and Secs. 34, 39 VGG or Mandatory CRM?|396
6|d) Reducing Territorial Fragmentation|397
5|2. U.S. Level|398
6|a) Improving the Sec. 115 CA Compulsory License|398
6|b) Voluntary CRM?|398
6|c) Integration of the Two Models into One|399
4|II. Sound Recordings/Performances and Phonograms|400
5|1. German Level|401
6|a) System Based on Secs. 78(2)(1)/86 UrhG Remuneration and Participation Rights|401
6|b) Expanding Statutory Licensing to Cover Interactive Uses|401
5|2. European Level|402
6|a) Permitting Member States to Adopt Statutory Licenses?|402
6|b) Expanding the Single Remuneration Right of Art. 8(2) Directive 2006/115/EC?|403
5|3. U.S. Level: Expanding and Improving the Secs. 114/112 CA Statutory License|404
3|C. Admissibility of Recommendations|406
4|I. International Law|406
4|II. Other Higher-Ranking Rules of Law|408
2|Chapter 15: Conclusion|411
1|Bibliography|414
1|Contents|9
1|Abbreviations|20
1|List of Figures|26
1|List of Tables|28
1|Chapter 1: Introduction|29
2|A. Background|29
2|B. Research Questions and Methodological Remarks|30
2|C. Terminology|32
2|D. Issues Beyond the Scope of This Study|32
2|E. How Is This Study Organized?|33
1|Part I: Online Music Distribution: Current Legal Situation|34
2|Chapter 2: Relevant Online Music Uses|35
3|A. Downloading: Permanent and Limited|35
3|B. Streaming: Interactive and Non-interactive|37
2|Chapter 3: Relevant Rights and Their Applicability to Online Music Uses|39
3|A. International Law|40
4|I. Relevant Rights of Authors in Musical Works|40
5|1. Berne Convention|40
6|a) Reproduction Right: Art. 9(1)|41
6|b) Communication Rights|43
5|2. Universal Copyright Convention|45
5|3. TRIPS|47
5|4. WCT|47
6|a) Reproduction Right|47
6|b) Communication to the Public, Including Making Available on Demand|48
6|c) Distribution and Rental Rights|49
4|II. Relevant Rights of Performers in Performances|51
5|1. Rome Convention|51
5|2. TRIPS|53
5|3. WPPT|54
4|III. Relevant Rights of Phonogram Producers in Phonograms|56
5|1. Rome Convention|56
5|2. Geneva Phonograms Convention|56
5|3. TRIPS|57
5|4. WPPT|58
3|B. European Law|58
4|I. Relevant Rights of Authors in Musical Works|58
5|1. Reproduction Right|58
6|a) Broad Reproduction Right|58
6|b) Mandatory Exemption for Temporary Reproductions|59
5|2. Communication to the Public, Making Available on Demand, Distribution and Rental: Confusing Qualification|63
4|II. Relevant Rights of Performers in Performances|66
4|III. Relevant Rights of Phonogram Producers in Phonograms|68
3|C. German Law|68
4|I. Relevant Rights of Authors in Musical Works|68
5|1. General Broad Exploitation Rights: Sec. 15 UrhG|69
5|2. Reproduction Right: Secs. 16 and 44a UrhG|69
5|3. Making Available to the Public: Sec. 19a UrhG|70
5|4. Broadcasting: Sec. 20 UrhG|71
5|5. Distribution and Rental: Sec. 17 UrhG|73
4|II. Relevant Rights of Performers in Performances|74
4|III. Relevant Rights of Phonogram Producers in Phonograms|75
3|D. U.S. Law|76
4|I. Relevant Rights of Authors in Musical Works|76
5|1. Reproduction Right: Sec. 106(1) CA|77
5|2. Public Performance Right: Sec. 106(4) CA|79
5|3. Distribution Right: Sec. 106(3) CA|81
4|II. Relevant Rights of Performers or Producers as ``Authors of a Sound Recording´´|84
4|III. Special Case: Relevant Rights of Music Publishers and Record Companies as Owners of Copyright in Musical Works or Sound R...|86
3|E. Comparative Analysis|88
4|I. Rights of Authors in Musical Works|88
5|1. International Law|88
5|2. European Law|89
5|3. German Law|90
5|4. U.S. Law|91
4|II. Rights of Performers and Phonogram Producers in Respective Subject-Matter|92
5|1. International Law|92
5|2. European Law|93
5|3. German Law|93
5|4. U.S. Law|93
2|Chapter 4: Limits to Exclusive Rights in the Internal Relationship Between Original and Derivative Rightholders|96
3|A. Provisions on the Transfer or Grant of Rights|97
3|B. Transfer or Grant of Rights to Third Parties in Practice|100
4|I. Musical Works: Publishing Agreements|102
5|1. U.S.|102
5|2. Germany|103
4|II. Sound Recordings/Performances and Phonograms: Recording Agreements and Producer Agreements|105
5|1. U.S.|105
5|2. Germany|108
4|III. Results with Regard to Rights|110
3|C. Statutory and Factual Limits to Rights in the Internal Relationship Between Original and Derivative Rightholders|111
4|I. U.S.|111
4|II. Germany|115
5|1. Right to Equitable Remuneration: Secs. 32, 79(2a) UrhG|115
6|a) Key Points of the Provision|115
6|b) Corresponding Applicability to Relations Between Performers and Record Labels|118
6|c) Practical Impact of the Provision|119
5|2. Right to Further Participation: Secs. 32a, 79(2a) UrhG|121
5|3. Further Legal Concepts|122
4|III. Comparative Analysis|123
2|Chapter 5: Limits of the Possibility to Exclude|125
3|A. International Law|127
4|I. Musical Works|127
5|1. Berne Convention|127
6|a) Compulsory Licenses for Recording: Art. 13(1) BC|127
6|b) Compulsory Licenses for Wireless Transmissions: Art. 11bis(2) BC|130
6|c) Regulations for Ephemeral Recordings: Art. 11bis(3) BC|131
6|d) Further Specific Limits?|131
6|e) General Rules for the Limits of Exclusivity?|131
5|2. UCC|134
5|3. TRIPS and WCT: Three-Step Test (Art. 13 TRIPS and Art. 10 WCT)|134
6|a) Application of the Three-Step Tests of TRIPS and WCT|135
7|aa) Relationship Between the Three-Step Tests of TRIPS/WCT and Specific Limitations of the BC|135
7|bb) How Should the Three-Step Test Be Applied?|138
6|b) Interpretation of the Three-Step Test|138
7|aa) Excursus: Original Meaning of the Three-Step Test Under Art. 9(2) BC|139
7|bb) Contemporary Approaches to the Interpretation of the Three-Step Test and Their Evaluation|140
8|(1) First Condition|141
8|(2) Second Condition|142
8|(3) Third Condition|144
4|II. Performances and Phonograms|145
5|1. Rome Convention|145
5|2. TRIPS|146
5|3. WPPT|146
3|B. European Law|147
4|I. Musical Works|147
5|1. Relevant Provisions of the Closed Catalogs of the InfoSoc Directive|147
6|a) Private Use Limitation|148
6|b) Ephemeral Recordings Limitation|150
6|c) Grandfathering Clause for Cases of Minor Importance|151
6|d) Application of the Private Use Limitation to the Distribution Right of Authors?|151
5|2. Three-Step Test|152
4|II. Performances and Phonograms|153
5|1. InfoSoc Directive|153
5|2. Directive 2006/115/EC|153
6|a) Remuneration Right of Art. 8(2) Directive 2006/115/EC|153
6|b) Limitations to the Distribution Right|154
3|C. German Law|155
4|I. Musical Works|156
5|1. Compulsory License for the Production of Phonograms: Sec. 42a UrhG|156
6|a) Scope and Criteria for Compulsory Licensing|156
6|b) Claim of the Compulsory License|158
6|c) Exclusion of CRM|158
6|d) Applicability to OMD?|159
5|2. Private Copy Limitation: Sec. 53 UrhG|160
5|3. Ephemeral Copies Facilitating Broadcasting? Sec. 55 UrhG|161
4|II. Performances and Phonograms|162
5|1. Broadcasting Remuneration and Participation Rights: Secs. 78(2)(1) and 86 UrhG|162
6|a) Rationale|163
6|b) Scope of the Remuneration Right|164
6|c) Determination and Collection of Royalties|165
6|d) Allocation of Royalties: Indispensability of the Remuneration Right of Performers|167
5|2. Ephemeral Copies Facilitating Broadcasting? Secs. 55 and 83 UrhG|168
5|3. Private Copy Limitation: Sec. 53 and 83 UrhG|168
3|D. U.S. Law|168
4|I. Musical Works|169
5|1. Mechanical Compulsory License: Sec. 115 CA|169
6|a) General Scope and Criteria|170
6|b) Digital Phonorecord Deliveries|171
6|c) Rate Setting Procedure and Standard|173
6|d) Current Rates|174
6|e) Payment and Collection of Royalties|176
7|aa) Procedures of Sec. 115 CA|176
7|bb) Controversy Around Pass-Through Licenses|178
5|2. Ephemeral Recordings Exemption: Sec. 112(a) CA|179
5|3. Noncommercial Use by a Consumer? Sec. 1008 CA|180
4|II. Sound Recordings|181
5|1. Statutory License for Webcasting: Sec. 114 CA|181
6|a) Rationale|181
6|b) Uses Subject to Exclusivity: Interactive and Quasi-Interactive Services|182
6|c) Uses Exempted from Exclusivity Without Remuneration|185
6|d) Uses Subject to a Statutory License|185
7|aa) Criteria for Statutory Licensing|186
7|bb) Rate Setting Procedure and Standard|187
7|cc) Current Rates|188
7|dd) Payment and Collection of Royalties|189
7|ee) Allocation of Royalties|191
7|ff) Additional Legislation and Settlements|191
5|2. Ephemeral Recordings Statutory License for Webcasters: Sec. 112(e) CA|193
6|a) Exemption from Exclusivity Without Remuneration|194
6|b) Statutory License for Non-interactive Streaming Services|195
5|3. Further Provisions?|196
3|E. Comparative Analysis|196
4|I. International Law|196
4|II. European Law|198
4|III. German Law|200
5|1. Sec. 42a UrhG Compulsory License|200
5|2. Secs. 78(2)(1) and 86 UrhG Remuneration and Participation Rights|202
5|3. Secs. 55 and 53(1) UrhG Limitations|202
4|IV. U.S. Law|203
5|1. Sec. 115 CA Compulsory License|203
5|2. Secs. 114/112 CA Statutory License|205
5|3. Difference with Regard to Downloaded Copies on Users´ Devices|207
2|Chapter 6: CRM in the Field of OMD|208
3|A. International Level|209
4|I. Implications of the International Legal Framework in the Field of Copyright on CRM|209
4|II. Self-Regulation of the CMOs at the International Level|211
5|1. Relevant Umbrella Organizations|211
6|a) Performing Rights in Musical Works|211
6|b) Mechanical Rights in Musical Works|213
6|c) Rights in Performances and Phonograms|213
5|2. Licensing Initiatives in the Field of OMD|213
3|B. EU Level|215
4|I. General Regulatory Framework for the Operation of CMOs in the EU|216
5|1. Basic Features of the Approach|216
5|2. CMOs and Rightholders|217
5|3. CMOs and Users|220
5|4. CMOs Amongst Themselves|221
5|5. Further Issues|222
4|II. Special Regulation of the Online Music Licensing Through CMOs|222
5|1. Online Music Recommendation and Subsequent Development|223
5|2. Title III CRM Directive|227
3|C. German Level|230
4|I. Regulatory Framework|230
5|1. Basic Features of the Approach|230
5|2. CMOs and Rightholders|232
6|a) Obligation to Manage|232
6|b) Distribution Plan|234
5|3. CMOs and Users|235
6|a) Obligation to License|235
6|b) Obligation to Determine Rates|235
6|c) General Agreements|236
5|4. Further Issues|236
4|II. Situation with Regard to the Rights Concerned|238
5|1. Musical Works|238
6|a) Regular Case: CRM by GEMA|238
7|aa) Grant of Rights|238
7|bb) Royalty Rates|239
6|b) Special Case: Hybrid CRM/IRM by ``Dependent Management Entities´´|240
7|aa) Areas and Modalities of the Special Case|240
7|bb) Application of the CRM Regulatory Framework to DMEs|242
7|cc) Validity of Licensing Through DMEs in Light of MyVideo?|243
5|2. Performances and Phonograms|245
3|D. U.S. Level|247
4|I. Regulatory Framework|247
5|1. Basic Features of the Approach|247
5|2. CMOs and Rightholders|249
6|a) Obligation to Contract|249
6|b) Non-exclusive Grants and Alternative Direct Licensing|250
6|c) Litigation on Partial Withdrawals of Rights from CMOs|250
6|d) Distribution of Royalties|251
5|3. CMOs and Users|253
4|II. Situation with Regard to the Rights Concerned|254
5|1. Musical Works|254
6|a) Public Performance Right|254
6|b) Reproduction and Distribution Rights|256
5|2. Sound Recordings|257
6|a) CRM Within the Statutory Licensing Regimes|257
6|b) Excursus: IRM Outside of the Statutory Licensing|258
3|E. Comparative Analysis|259
4|I. International Level|259
4|II. European Level|260
4|III. German Level|261
4|IV. U.S. Level|261
2|Chapter 7: Current Regimes of Exclusivity in the OMD Field in Germany and in the U.S.|263
3|A. Summary of Regimes of Exclusivity in the OMD Field in Germany and in the U.S.|263
3|B. Are the Differences Justified? Transition to Normative Analysis|267
1|Part II: Compatibility of Current Regimes of Exclusivity with Regulatory Objectives in the Field of OMD|269
2|Chapter 8: Promoting Creation of New Musical Subject-Matter|271
3|A. Description of the Objective|271
3|B. Critical Evaluation|273
4|I. Plausibility of the Objective: Can Copyright Lead to Creation of New Musical Subject-Matter?|273
5|1. Reality Not Matching the Theory|274
6|a) General Lack of Evidence of the Incentive Effect of Copyright|274
6|b) Evidence to the Contrary: File Sharing and Music Output|275
6|c) Wild East and Wild South: Plenty of New Music Despite No Efficient Copyright|283
5|2. Explanations?|285
6|a) Power of Existing Alternative Incentives|285
7|aa) Non-monetary Motivations|285
7|bb) Markets for Complemenary Goods|287
8|(1) Structure of Creators´ Revenue|287
8|(2) Convergence of Creators´ Roles: Are Authors and Performers the Same People?|292
8|(3) Live Performance Revenue and Its Interplay with Revenue from Recorded Music|306
7|cc) Kickstarter and Co.|310
6|b) Can Overly Strong Copyright Stifle Creativity?|312
4|II. Compatibility of Existing Regulatory Models with the Objective|313
2|Chapter 9: Rewarding Rightholders|315
3|A. Description of the Objective|315
3|B. Critical Evaluation|316
4|I. Plausibility of the Objective|316
4|II. Compatibility of Existing Regulatory Models with the Objective|318
5|1. Contemporary Opinions on the Impact of Different Regimes of Exclusivity on the Reward Objective|318
5|2. Analysis of Available Knowledge|320
6|a) Musical Works|320
6|b) Sound Recordings/Performances|322
7|aa) Overall Royalty Rates Enabled by Exclusive Rights vs. Statutory Licenses|323
7|bb) Role of Limits in the Internal Relationship|325
7|cc) Role of Record Label Advances|325
7|dd) Perspective of Self-Releasing Artists|326
7|ee) Failure of Some Statutory Licenses to Regulate Royalty Splits|327
6|c) Cross-Comparison Between Musical Works and Sound Recordings/Performances|328
5|3. Refining the Knowledge Through Empirical Case Studies of Musicians´ Streaming Income|329
6|a) Approach to Conducting Empirical Case Studies|329
6|b) Data and Findings|332
5|4. Overall Picture|335
2|Chapter 10: Promoting a Level Playing Field Among Rightholders|338
3|A. Description of the Objective|338
4|I. Preliminary Remarks|339
5|1. What Is a Level Playing Field?|339
5|2. Areas That Require a Level Playing Field in the Context of OMD|341
4|II. Theoretical and Empirical Foundations of the Objective of a Level Playing Field Among Rightholders|342
5|1. Existing Theoretical Approaches|342
6|a) ``Creative Competition´´ Approach of Drexl|342
6|b) Approaches in Favor of Cultural Diversity and Product Variety|344
5|2. Recent Empirical Studies of the Music Market|345
6|a) U.S.: Research on Music Quality by Waldfogel|345
6|b) Germany: Test for Creative Destruction by Handtke|345
6|c) Implications|346
5|3. Examples of Regulation Following Comparable Goals|347
6|a) German System of Presse-Grosso in the Print Media Sector|347
6|b) Net Neutrality Rules in the U.S. and EU|349
5|4. Formulation of the Objective in the Context of OMD|351
5|5. Relation to Other Objectives|353
3|B. Critical Evaluation|355
4|I. Plausibility of the Objective|355
5|1. Arguments Against Variety Within the Product Differentiation Theory|355
5|2. Arguments Against Neutrality|357
5|3. Potential Arguments Against the One-Rate-Fits-All Approach|358
4|II. Compatibility of Existing Regulatory Models with the Objective|359
2|Chapter 11: Promoting Dissemination of Musical Subject-Matter|361
3|A. Description of the Objective|361
4|I. Dissemination as the Access Component of the Incentives-Access Paradigm|361
4|II. Dissemination as ``the Efficient Use and Management´´ in the Context of Proprietary Paradigm|363
3|B. Critical Evaluation|364
4|I. Plausibility of the Objective: Which of the Two Approaches Is Right?|364
5|1. Fundamental Correctness of the Incentive-Access Approach|364
5|2. Proprietary Paradigm´s Vision of ``Efficient Dissemination´´: Lessons from It?|366
4|II. Incorporating the Dynamic Perspective: Promoting ``Disseminative Competition´´|370
4|III. Compatibility of Existing Regulatory Models with the Objective|371
2|Chapter 12: Further Objectives|375
2|Chapter 13: Conclusion on Compatibility of Current Regimes of Exclusivity with Regulatory Objectives in the Field of OMD|378
1|Part III: Policy Recommendations and Conclusion|381
2|Chapter 14: Policy Recommendations on Regulating Exclusivity in the Field of OMD|382
3|A. Generally Preferable Regulatory Model: Improved Market-Based Statutory License|382
4|I. No Exclusivity|384
4|II. Centrally Negotiated Uniform Rates and Terms Reflecting Market Value of Rights|385
4|III. Proper Infrastructure|389
5|1. Collection and Distribution of Royalties|390
5|2. Distribution of Music to Online Music Services|391
4|IV. Regulation of Allocation of Royalties Between Original and Derivative Rightholders|392
3|B. Specific Recommendations for Copyright Reform in the Context of OMD in Germany, EU and U.S.|392
4|I. Musical Works|393
5|1. German and European Level|393
6|a) Adjusting the Sec. 42a UrhG Compulsory License?|393
6|b) System Based on Voluntary CRM|393
6|c) Solving the Problem of Partial Withdrawals|394
7|aa) MyVideo Rulings of the German Courts?|394
7|bb) Restrictive Interpretation of Art. 5(4) CRM Directive and Sec. 12(1) VGG?|395
7|cc) Particular Interpretation of Art. 16(2) CRM Directive and Secs. 34, 39 VGG or Mandatory CRM?|396
6|d) Reducing Territorial Fragmentation|397
5|2. U.S. Level|398
6|a) Improving the Sec. 115 CA Compulsory License|398
6|b) Voluntary CRM?|398
6|c) Integration of the Two Models into One|399
4|II. Sound Recordings/Performances and Phonograms|400
5|1. German Level|401
6|a) System Based on Secs. 78(2)(1)/86 UrhG Remuneration and Participation Rights|401
6|b) Expanding Statutory Licensing to Cover Interactive Uses|401
5|2. European Level|402
6|a) Permitting Member States to Adopt Statutory Licenses?|402
6|b) Expanding the Single Remuneration Right of Art. 8(2) Directive 2006/115/EC?|403
5|3. U.S. Level: Expanding and Improving the Secs. 114/112 CA Statutory License|404
3|C. Admissibility of Recommendations|406
4|I. International Law|406
4|II. Other Higher-Ranking Rules of Law|408
2|Chapter 15: Conclusion|411
1|Bibliography|414