Wednesday, December 16, 2009

A report published last week in the Toronto Star by Professor Michael Geist of Canada’s University of Ottawa claims a copyright case under the Class Proceedings Act of 1992 may see the country’s largest players in the music industry facing upwards of C$6 billion in penalties.

The case is being led by the family and estate of the late jazz musician Chet Baker; moving to take legal action against four major labels in the country, and their parent companies. The dispute centres around unpaid royalties and licensing fees for use of Baker’s music, and hundreds of thousands of other works. The suit was initially filed in August last year, but amended and reissued on October 6, two months later. At that point both the Canadian Musical Reproduction Rights Agency (CMRRA) and Society for Reproduction Rights of Authors (SODRAC) were also named defendants.

January this year SODRAC and CMRRA switch sides, joining Baker et al. as plaintiffs against Sony BMG Music, EMI Music Canada, Universal Music Canada and Warner Music Canada. David A. Basskin, President and CEO of CMRRA, with a professional law background, stated in a sworn affidavit that his organisation made numerous attempts over the last 20 years to reduce what is known as the “pending list”, a list of works not correctly licensed for reproduction; a list of copyright infringements in the eyes of the Baker legal team.

The theoretical principle of the list is to allow timely commercial release while rights and apportionment of monies due are resolved. Basskin complains that it is “economically infeasible to implement the systems that would be needed to resolve the issues internally”. And, “[…] for their part, the record labels have generally been unwilling to take the steps that, in the view of CMRRA, would help to resolve the problem.”

The Baker action demands that the four named major labels pay for and submit to an independent audit of their books, “including the contents of the ‘Pending Lists'”. Seeking an assessment of gains made by the record companies in “failure or refusal to compensate the class members for their musical works”, additional demands are for either damages and profits per the law applicable in a class action, or statutory damages per the Copyright Act for copyright infringement.

This forms the basis for Professor Geist’s six billion dollar calculation along with Basskin’s sworn testimony that the pending lists cover over 300,000 items; with each item counted as an infringement, the minimum statutory damages per case are CA$500, the maximum $20,000.

Basskin’s affidavit on behalf of CMRRA goes into detail on the history leading up to the current situation and class action lawsuit; a previous compulsory license scheme, with poor recordkeeping requirements, and which, had a decline in real terms to one of the lowest fees in the world, was eventually abolished and the mechanical license system introduced. The CMRRA went on to become a significant representative of music publishers and copyright holders, and the pending list an instrument to deal with situations where mechanical rights were as-yet not completely negotiated. Basskin’s affidavit claiming the list grew and circumstances worsened as time progressed.

The Mechanical Licensing Agreement (MLA) between the “majors'” industry body, an attached exhibit to the affidavit, is set to expire December 31, 2012; this is between CMRRA and the Canadian Recording Industry Association (CRIA). With the original MLA expiring at end September 1990, CMRRA negotiated more detailed terms and a “code of conduct”. Subsequent agreements were drawn up in 1998, 2004, 2006, and 2008.

Basskin asserts that the named record company defendants are the “major” labels in Canada and states they “are also responsible for creating, maintaining and administering the so-called “Pending Lists” that are the subject of the current litigation”; that, specific to publishing, divisions of the four represent the “‘major’ music publishers active in Canada”. Yet the number of music publishers they represent has decreased over time due to consolidation and defection from the CRIA.

Geist summarizes the record company strategy as “exploit now, pay later if at all”. This despite the CMRRA and SODRAC being required to give lists of all collections they represented to record labels, and for record labels to supply copies of material being released to permit assessment of content that either group may represent interested parties for. Where actual Mechanical License Agreements are in place, Basskin implies their terms are particularly broad and preclude any party exercising their legal right to decline to license.

Specific to the current Mechanical Licensing Agreement (MLA) between the CMRRA and the CRIA; a “label is required to provide an updated cumulative Pending List to CMRRA with each quarterly payment of royalties under the MLA.” The CMRRA is required to review the list and collect where appropriate royalties and interest due. Basskin describes his first encounter with pending lists, having never heard of them before 1989, thus:

Alain Lauzon, General Manager of Canada’s Society for Reproduction Rights of Authors, Composers and Publishers (SODRAC) submitted his followup affidavit January 28, 2009 to be attached to the case and identify the society as a plaintiff. As such, he up-front states “I have knowledge of the matters set out herein.” Lauzon, a qualified Chartered Accountant with an IT specialisation, joined SODRAC in 2002 with “over 20 years of business experience.” He is responsible for “negotiation and administration of industry-wide agreements for the licensing of music reproduction and distribution”; licensing of radio and online music services use is within his remit.

Lauzon makes it clear that Baker’s estate, other rightsholders enjoined to the case, SODRAC, and CMRRA, have reached an agreed settlement; they wish to move forward with a class proceeding against the four main members of the CRIA. He requests that the court recognise this in relation to the initially accepted case from August 2008.

The preamble of the affidavit continues to express strong agreement with that of David Basskin from CMRRA. Lauzon concurs regarding growing use of “pending lists” and that “[…] record labels have generally been unwilling to take the steps that would help to resolve the Pending List problem.”

With his background as an authority, Lauzon states with confidence that SODRAC represents “approximately 10 to 15% of all musical works that are reproduced on sound recordings sold in Canada.” For Quebec the figure is more than 50%.

Lauzon agrees that the four named record company defendants are the “major” labels in Canada, and that smaller independent labels will usually work with them or an independent distribution company; and Basskin’s statement that “[t]he responsibility to obtain mechanical licenses for recordings manufactured and/or released in Canada falls with the Canadian labels by law, by industry custom, and by contractual agreement.”

Wikinews attempted to contact people at the four named defendant CRIA-member record labels. The recipient of an email that Wikinews sent to Warner Brothers Canada forwarded our initial correspondence to Hogarth PR; the other three majors failed to respond in a timely fashion. Don Hogarth responded to Wikinewsie Brian McNeil, and, without addressing any of the submitted questions, recommended a blog entry by Barry Sookman as, what he claimed is, a more accurate representation of the facts of the case.

Sookman is a lobbyist at the Canadian Parliament who works in the employ of the the Canadian Recording Industry Association (CRIA). Hogarth gave no indication or disclosure of this; his direction to the blog is to a posting with numerous factual inaccuracies, misdirecting statements, or possibly even lies; if not lies, Sookman is undoubtedly not careful or “very qualified” in the way he speaks on the issue.

Sookman’s blog post opens with a blast at Professor Geist: “his attacks use exaggeration, misleading information and half truths to achieve his obvious ends”. Sookman attempts to dismiss any newsworthiness in Geist’s article;

As the extracted [see right] stamp, date, and signature, shows, the court accepted amendments to the case and its submission, as Professor Geist asserts, on October 6. The previously mentioned submissions by the heads of CMRRA and SODRAC were indeed actions within the past year; that of SODRAC’s Alain Louzon being January 28 this year.

Sookman continues his attack on Professor Geist, omitting that the reverse appears the case; analysis of his blog’s sitemap reveals he wrote a 44-page attack on Professor Geist in February 2008, accusing him of manipulating the media and using influence on Facebook to oppose copyright reform favourable to the CRIA. In the more current post he states:

This characterisation of the pending list only matches court records in that it “has been around for decades”. CMRRA’s Basskin, a lawyer and industry insider, goes into great detail on the major labels resisting twenty years of collective societies fighting, and failing, to negotiate a situation where the labels take adequate measures to mechanically license works and pay due fees, royalties, and accrued interest.

What Sookman clearly overlooks is that, without factoring in any interest amounts, the dollar value of the pending list is increasing, as shown with the following two tables for mid-2008.

As is clear, there is an increase of C$1,101,987.83 in a three-month period. Should this rate of increase in the value of the pending list continue and Sony’s unvalued pending list be factored in, the CRIA’s four major labels will have an outstanding debt of at least C$73 million by end-2012 when the association’s Mechanical Licensing Agreement runs out.

Thursday, October 13, 2005

On Wednesday, Apple introduced an iPod capable of displaying video, as well as a new video section to the iTunes music store. Apple CEO Steve Jobs believes that this may have a large impact on the film industry, in a similar fashion to that of the impact on the music industry when the iPod first was released.

The new iPod comes in a 30GB edition and a 60GB edition for US$299 and US$399, respectively. On the 30GB iPod, 75 hours of video at a resolution of 320×240 can be stored, and on the 60GB iPod, 150 hours can be stored. Despite these features, people claim that the screen may be too small for people to enjoy. However, iPod owners will be able to purchase an optional S-Video cable for playing video from their iPod on a television.

To help complement the new video section, Apple and ABC have agreed to a deal in which episodes of television programs such as Lost and Desperate Housewives will be available the day after airing for $1.99 per episode. Other plans for the video section involve the animation company Pixar, which was founded by current Apple CEO Steve Jobs. There are also plans to distribute content from Disney, Pixar’s distributor and owner of ABC. In addition, music videos will also be available at the on-line music store for $1.99 each.

The video iPod was announced along with a new model of its iMac G5, which features a remote control that allows the iMac to act as a home media center as well as a normal personal computer. To control media center capabilities, the new iMac is sold with a program called Front Row. Some customers have complained however that this iMac is missing functionality out-of-the-box that allows a user to watch TV on it.

The new iMac also has an Apple iSight digital camera built-in as well as a thinner design than its predecessor.

Friday, August 10, 2007

Eight Hungarian migrant workers sacked from a Domino’s Pizza franchise in Derby, England are said to have taken home virtually no pay for months because of illegal deductions.

The claim is refuted by the company who said in a statement “We have begun a thorough investigation during which we have scrutinised the franchisee’s employment practices. This took place with his full co-operation. The franchisee concerned is confident that he possesses the evidence required to refute these allegations. To the extent that we have been informed of all allegations and have reviewed all available evidence, we also believe this to be the case.”

The sacked workers are being supported in their claim by the workers union Unite. The union say the “there appeared to be a deliberate strategy of keeping the workers in debt to the company through a series of crippling deductions. The deductions included payments to cover the contract purchase of a car from their employer, insurance for the vehicle provided through their employer, and exorbitant rent for substandard accommodation, again provided through their employer. In addition, some workers had to pay fees of up to £180 for an “introduction” to the company. One worker earned just £5 in four months because of the constant and hefty deductions out of his wage packet. When the workers protested they were sacked.”

[edit]

Monday, June 18, 2007

A press room across the street of the White House was evacuated after a bomb sniffing dog had a reaction to a van it was searching. The van was believed to be a transport vehicle for Israeli Prime Minster Ehud Olmert, but some reports also say that it is not known to whom the van belongs.

The evacuated space is where the press gathers before they enter the Press Briefing Room in the West Wing of the White House. It is around the corner from Blair House.

“Police were called, they are on the scene currently attempting to clear the vehicle. The vehicle is part of the delegation that is staying at the Blair House,” said Darrin Blackford, a spokesman for the Secret Service.

Police searched the van using a robot and blocked off streets around the area to vehicle traffic, but at 4:30 p.m. (eastern time), authorities gave the “all-clear” for personnel to be allowed back into the building.

The “suspicious” van was parked in front of Lafayette Park. Other areas near the White House were also evacuated including Pennsylvania Avenue, on which the White House is located, and the Jackson Square Press Center, because “of an abundance of caution.”

Olmert is currently a guest in the Blair House which is located across the street from the White House. Olmert is expected to meet with United States President George W. Bush to discuss the Palestinian government and other issues. It is not known if Olmert was inside the house at the time of the incident.

It is not known why the dog reacted to the van, but nothing was found inside it after the Secret Service searched it.

Thursday, February 13, 2014

Tuesday, July 29, 2008

As gas prices have risen in the United States, the regional transport authority for southeastern Pennsylvania, SEPTA, has seen a sharp increase in ridership, which has caused overcrowding on the trains.

“As fuel prices have continued to rise, SEPTA ridership has steadily increased and is the highest in 18 years,” said SEPTA General Manager Joseph Casey. Monthly ridership was 22 percent higher last month than a year ago.

“They have crushed loads on their rail lines, already where people are standing, and there’s not enough seats,” said Rich Bickel, the director of the Delaware Valley Regional Planning Commission.

“At peak times some railcars are standing room only and commuter parking lots are nearly full. All Regional Rail lines are running near full capacity and the train station parking lots are at about 90 percent capacity or more,” SEPTA spokesperson Felipe Suarez said.

While SEPTA awaits new Silverliner V trains from Hyundai Rotem, which begin arriving in 2009, it had hoped to lease eight rail cars from New Jersey Transit, at an agreed-upon rate of US$10,000 per month. However, due to problems with insurance and liability indemnification, the deal fell through, according to Casey.

SEPTA has entered a new agreement to purchase the eight rail cars from NJ Transit. The transit authority will pay US$670,000 for the cars and assorted supplies plus one additional inoperative car which will be used for spare parts. The rail cars will be operated using a SEPTA provided locomotive as they are not self-propelled.

The cars are being disposed of by NJ Transit because it has switched from single-floor cars to double-decker cars.

SEPTA is expecting to raise US$3.1 million by selling rail that has been out of service since 1981 at auction.