Revised Music Copyright Act Alters Digital Music Royalties and Copyright Advantages
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The music industry is bracing for changes following the implementation of a new copyright law, which aims to get more money to rights holders who have long been underpaid. The key innovation is the establishment of a federal digital replica right, as outlined in the NO FAKES Act.
This landmark legislation introduces a hybrid model that combines trademark and copyright concepts to regulate virtual representations of artists and celebrities. Under the NO FAKES Act, living individuals can license their digital likeness for up to ten years, while their estates or heirs can assign these rights after death, with protections lasting up to 70 years post-mortem or while the digital replica is actively exploited.
This change could significantly increase payments to rights holders, as it enables licensing opportunities for the use of artists' digital likenesses in various contexts, such as virtual concerts, AI-generated impersonations, and digital merchandising. These opportunities were previously hard to monetize under a patchwork of state laws.
The new legislation also includes a centralized licensing system and a centralized database, designed to improve the matching of recordings to rights holders. A centralized federal right with clear licensing and enforcement mechanisms could expand revenue streams for rights holders beyond traditional royalties from sound recordings and compositions.
UCLA Music Industry Professor Don Franzen discussed the impact of the new music copyright law on the industry. According to Professor Franzen, some changes in the legislation are important and huge. However, the specific strategies Spotify might be using in response to the new law were not detailed in the conversation with Professor Franzen.
The new legislation will also establish a collective that will hold unclaimed royalties for at least three years while trying to identify who to pay them to. It remains to be seen how the collective will address issues related to the identification of rights holders.
It's important to note that the new legislation does not change the issue of low pay rates for streaming. The article discussing the new music copyright law was published in Pacific Standard, reflecting an industry response to technological advances like AI-generated content and digital avatars that can replicate a musician's voice or image.
The federal right of publicity for digital replicas will be registered with the U.S. Copyright Office, facilitating formal licensing. This development comes amid rising investor interest in music catalogs and artist estates, including the commercial use of names, images, and digital replicas.
In conclusion, the central innovation of the new music copyright law is the establishment of a federal digital replica right, which could increase payments to rights holders by monetizing virtual likeness exploitation under a framework that extends protection after death. The legislation aims to bring more money to the rights holders who should have been paid all along, and it remains to be seen how the industry will adapt to these changes.
- The establishment of a federal digital replica right could open up new business avenues for the music industry, such as licensing opportunities in entertainment, like virtual concerts or AI-generated music.
- With the rising investor interest in music catalogs and artist estates, the new legislation could potentially foster opportunities for finance in the music business, especially in the commercial use of names, images, and digital replicas.
