Hey Vevo - where's our royalties?

Independent US music publisher Matt Pincus has highlighted the fact that whilst online video platform Vevo (owned by Universal, Sony and the Abu Dhabi Media Group) earned $150-million dollars in revenue in 2011 and supplies roughly 40% of the content streamed on YouTube, it has not paid over a single dime to independent music publishers or their songwriter clients in the USA saying that that they “have not received any money from Vevo. Ever. That's right. Vevo: $150 Million. Independent publishers and songwriters: Zero.” In a very interesting piece in The Wrap, Pincus puts the blame very squarely at the doors of Universal and Sony saying that whilst Vevo does pay over royalties to record labels they don’t pay music publishers because “the major record companies have warranted that they have the right to license songs to Vevo on behalf of publishers, backing up that claim with an indemnity” and then rely on “controlled composition” clauses in their recording contracts with artistes to avoid paying anything to use the songs. Pincus explains it all here and it is worth a read, ending up with the opinion that “Are record companies to blame for relying on shoddy language to withhold royalties, or is it Vevo's responsibility to insure that the songwriters that helped it pull in $150 million this year share in their success? Whatever the case, this issue of fairness must be addressed.”

And more on Vevo here http://www.businessweek.com/technology/content/dec2009/tc20091211_309336.htm

When the rabbis dance ...

While this weblog normally avoids religious issues, this one is too good to 'pass over'. Two of Israel's most prominent rabbis, HaRav Yosef Sholom Eliyashiv and HaRav Ovadiya Yosef, have ruled that wedding hall owners in that country's religious communities must pay copyright royalties as required by law. Those who fail to do so, say the rabbis, are transgressing the laws of 'gezel' (this word, often translated as 'theft', is a substantially wider concept).

Despite copyright laws, hall owners in the orthodox sector have refused to pay ACUM –- the local collecting society for musicians and other copyright holders -– claiming there is no ruling under Jewish law which requires them to pay to play music at events such as weddings.

While HaRav Eliyashiv and HaRav Yosef agree as to the end to be achieved, they disagree with regard to the reasoning by which their conclusion is reached. According to HaRav Eliyashiv,

"Since the hall owner receives a licence to open the facility he is obligated to adhere to all legal requirements, and if the law requires [paying royalties], he has to meet that obligation. If not his licence is not a licence".

HaRav Yosef responded to the question from a different angle, applying the principle of Dina d’malchuta dina (the statute law of a secular state becomes part of Jewish law if it does not contradict any of the latter's fundamental principles).