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Business News [10-29-2008]

Walmart Launches Enhanced MP3 Downloads Store with New Pricing and Improved Features

Walmart has re-launched its new and improved MP3 Music Downloads store, with MP3 tracks starting at just 74-cents, to give customers greater value and an even bigger selection in digital music. Walmart has exclusively sold MP3s through its online store since February 2008 and now offers more than 3 million MP3 tracks with content from all major labels. The enhanced MP3 online store is supported by multiple elements in Walmart stores, including a free MP3 download with every CD purchased in stores or online (www.walmart.com/music). Walmart customers, both online and in stores, now have more ways to enjoy the best values in digital music.

"Music is an important part of our customers' lives and our new MP3 store provides a platform to further enhance our music offering and grow with our customers' evolving needs," said Tom Welch, Walmart's music buyer. "As customers consume music through multiple formats such as MP3s, CDs, DVDs, and video games, Walmart is uniquely positioned to offer them a deep catalog of music in the format of their choice complemented by an expanded assortment of merchandise at great values."

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Video News [10-29-2008]

Online Video Streaming Going Mainstream

Over the past six months, the popularity of online video services has grown significantly with women and older consumers, helping close the age and gender gap within the burgeoning online video audience in the U.S. Recent data sourced from Ipsos MediaCT's MOTION study illustrate the widespread appeal online video services have with the majority of today's Internet users, and how streaming video in particular has helped build an audience with women and those aged 35 and older.

Since late 2007, the percentage of female Internet users ages 12 and older that have streamed a video online in the past 30 days has grown from 45% to 54% – an all-time high for this demographic and nearly equal to the percentage of men (58%) whom have recently streamed video content online. Moreover, the percentage of adults aged 35-54 that have recently streamed video online has also shot up since December 2007, rising from 49% to 60% in that time span.

Indeed, video streaming is no longer simply an online behavior enjoyed exclusively by the stereotypical early adopter segment – young males. Rather, the growth in the online video audience is now being driven by other demographic segments. Adam Wright, Director at Ipsos MediaCT, explains: "It appears the prevalence of streaming video online among younger males may be approaching a ceiling today, whereas the other demographic groups are driving the audience growth here. The implication for those in the video entertainment industry is that online video – as a medium – appears to be tapping into later stage adopter segments that were perhaps reticent to embrace it even just a year ago."

The data not only illustrate the massive audience that online video services are attracting today, but also underscore the shifting media landscape today for many video entertainment consumers. Wright concludes, "Television networks, movie studios and other video entertainment entities will need to recognize the growing demand among all consumers for digital distribution. Streaming video is no longer something just teens and twenty-something's are enjoying, but rather it has become a fixture in mainstream America's daily routines."

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Radio News [10-26-2008]

FMC and A2IM Announce Results of Major Study on Independent Labels and Commercial Airplay

18 months after FCC Consent Decree and Rules of Engagement, report finds lack of progress on issues of payola, relationship between commercial radio and independent labels and artists

The American Association of Independent Music (A2IM) and the Future of Music Coalition (FMC) release the results of a comprehensive study they conducted, with funding from the Rockefeller Philanthropic Advisors, of a wide range of independent labels to assess the progress towards compliance with the 2007 FCC Consent Decree and Rules of Engagement. Stemming from Elliot Spitzer's high-profile investigation of payola, the FCC in 2007 signed agreements with four major commercial radio broadcasters (CBS Radio, Clear Channel, Entercom Communications, and Citadel Broadcasting), designed to increase the representation of independent music on commercial radio. Around the same time, the independent music community, led by A2IM and the FMC, signed a separate, voluntary "Rules Of Engagement" agreement with the radio chains promising more local and independent artists, 4,200 hours of independent music, and new anti-payola guidelines.

Has anything changed in the 18 months since the signing of the agreement?

"To paint 100% negative picture is wrong," says Daniel Glass, the chair of A2IM's Radio Committee and owner of Glassnote Entertainment Group. "There are success stories. But we are disappointed to see independents are still reporting lack of access and cooperation, despite the new agreements." The A2IM/FMC study details just how little things have changed. For the full study (PDF), click here.

"Radio is still a vital medium, with a good deal of untapped promise," says Ann Chaitovitz, Executive Director of Future of Music Coalition. "This report represents important groundwork to ensure that radio is accessible to local and independent artists and serves its local communities. By documenting the historic and ongoing barriers between commercial radio and independent music, we help ensure accountability and hopefully create more favorable conditions for indpendent artists and labels."

The study shows that:

** Over 92% of independent labels report no change in their relationship with commercial radio since the settlement.

** Nearly half of respondents reported that payola remains a determining factor in commercial radio airplay.

** Roughly 1 in 4 respondents said that they have been approached, either directly or indirectly, with requests for payola since the signing of the FCC settlement.

Despite these findings, "Independent labels remain optimistic in the face of a continuing lack of equal treatment by our friends at commercial radio," says Jim Mahoney, Vice President of Membership at A2IM. He points to the stunning success of independent music at non-terrestrial radio as an example of a possible future with traditional commercial radio. Rich Benloff, President of A2IM, continues, "Rebranding radio as cool and creating a stronger bond with their local listeners is vital to the health of radio. We invite radio programmers to read this report and open their minds - and playlists - to the opportunities presented by playing more independent music."

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Radio News [10-20-2008]

INDIE MUSICIANS OFFERED LOW-COST RADIO PROMOTION

Url: http://www.celebrateradio.com
International CELEBRATE RADIO, a service of non-profit Streetcats Foundation, is offering independnt musicians and bands very low-cost on-air, year-round promotion to 87 countries.

To raise money for its international at-risk youth initiative, One Heart for Kids, CELEBRATE RADIO with its 1600 song POSITIVELY MUSIC playlist, is offering bands and musicians it accepts into the program a number of on-air promotions that each last for a year.

They start with carrying musicians/bands on-air promotional station IDs for an entire year run-of-schedule for just $35-$45 total to featuring their 3-4 song special about 12 times a year for a 1-time yearly donation of $75-$115.00 or on international short wav radio to 14 million listeners for $85-$115 . There are other promotions available that are given for donations above $35 and blow $85 a year as well.

Artists must have music acceptable artistically to the station and songs featured have no explicit lyrics.

Musicians and labels must sign up before Dec.15, 2008.

Artists and indie labels may contact CELEBRATE RADIO at celebrateradio@gmail.com for details.

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Controversial Anti-Piracy Bill Signed Into Law
(Reporting by Diane Bartz; Editing by Bernard Orr, Gary Hill).

WASHINGTON (Reuters 10-20-08) - President George W. Bush signed into law on Monday a controversial bill that would stiffen penalties for movie and music piracy at the federal level.

The law creates an intellectual property czar who will report directly to the president on how to better protect copyrights both domestically and internationally. The Justice Department had argued that the creation of this position would undermine its authority.

The law also toughens criminal laws against piracy and counterfeiting, although critics have argued that the measure goes too far and risks punishing people who have not infringed.

The Recording Industry Association of America and Motion Picture Association of America backed the bill, as did the U.S. Chamber of Commerce.

"By becoming law, the PRO-IP Act sends the message to IP criminals everywhere that the U.S. will go the extra mile to protect American innovation," said Tom Donohue, president and CEO of the U.S. Chamber of Commerce.

Counterfeiting and piracy costs the United States nearly $250 billion annually, according to the U.S. Chamber of Commerce.

Rick Cotton, general counsel for NBC Universal, said the bill would give movie and music makers more tools to fight what he called a "tidal wave" of counterfeiting and piracy of everything from medical devices to automobile parts to media by organized crime.

"That is at the core of what this discussion is about," he said. "It is not about teenagers."

Cotton said he did not expect an IP czar to be named before Bush's term ended in January.

Richard Esguerra, spokesman for the Electronic Frontier Foundation, said he was relieved to see lawmakers had stripped out a measure to have the Justice Department file civil lawsuits against pirates, which would have made the attorneys "pro bono personal lawyers for the content industry."

But the advocacy group Public Knowledge had argued that the law went too far, especially given that fair use of copyrighted material was already shrinking.

Public Knowledge particularly opposed a measure that allowed for the forfeiture of devices used in piracy.

"Let's suppose that there's one computer in the house, and one person uses it for downloads and one for homework. The whole computer goes," said Public Knowledge spokesman Art Brodsky.

Brodsky argued that, at best, the bill was unnecessary because the recording and movie industry had the right to take accused infringers to court.

"There's already lots and lots of penalties for copyright violations," he said. "They've got all the tools they need."

Business News [09-24-2008}

Major Music Industry Groups Announce Breakthrough Agreement

In a breakthrough that will facilitate new ways to offer music to consumers online, the Digital Media Association (DiMA), the National Music Publishers' Association (NMPA) and the Recording Industry Association of America (RIAA), together with the Nashville Songwriters Association International (NSAI) and the Songwriters Guild of America (SGA), today announced an agreement on how music creators will be compensated for music distributed through certain online models.

The agreement, in the form of draft regulations submitted to the Copyright Royalty Judges, proposes for the first time mechanical royalty rates for interactive streaming and limited downloads, including for subscription and ad-supported services. The agreement proposes a flexible percentage of revenue rate structure, with minimum payments in certain circumstances.

Limited download and interactive streaming services will generally pay a mechanical royalty of 10.5 percent of revenue, less any amounts owed for performance royalties. In certain instances, royalty-free promotional streaming is allowed. Outside the scope of the draft regulations, the parties confirmed that non-interactive, audio-only streaming services do not require reproduction or distribution licenses from copyright owners.

The agreement does not address royalty rates for physical product or permanent music downloads.

"This historic agreement is the foundation for a new generation of music distribution," said David Israelite, NMPA President and CEO. "This agreement will ensure that songwriters and music publishers continue to thrive in the digital age. I am grateful for the good faith efforts of everyone involved in the discussions leading to this important announcement."

"This agreement provides a flexible structure to support innovative business models in the digital music marketplace that will benefit music fans, creators and online services," said Mitch Bainwol, Chairman and CEO, RIAA. "The agreement demonstrates that our industries can work collaboratively to solve complex issues."

"Innovative music services will enjoy a more stable business environment because of this agreement and that will benefit music fans and music creators alike," stated Jonathan Potter, Executive Director of DiMA. "DiMA is particularly pleased with the agreement to end litigation and threats of litigation involving several of our member companies, so that they can focus on building innovative businesses that can effectively fight piracy, the music industry's greatest threat."

Roger Faxon, Chairman and CEO of EMI Music Publishing, who was independently represented in the CRB, also lauded the agreement. "We're very pleased that these matters have finally been agreed, and that we have reached an agreement that is good for the songwriters we represent, and good for music consumers. This is a first step to establishing fair rates that properly compensate writers for their creative efforts, and we'll continue to work hard to establish a framework that properly reflects the value of songs in all their digital forms."

"NSAI, the Nashville Songwriters Association, is proud to be part of this historic agreement which assures that America's music creators are compensated, music consumers benefit from the many new choices provided by digital technology, and those who invest in America's intellectual property are rewarded," said Steve Bogard, President, Board of Directors, NSAI.

"Digital music has become the ubiquitous soundtrack of American life," said Rick Carnes, President of SGA. "The digital age has helped American songwriters create more value for both the economy and the culture than ever before. With this deal, the Songwriters Guild of America, the music publishers, the record labels, and the digital music services have come together in an historic agreement that creates a workable payment structure and a fair rate for songwriters in the digital music distribution models of today and tomorrow."

Agreement Facts:

* The agreement proposes mechanical royalty rates that cover both limited downloads and interactive streaming, including when offered by subscription and ad-supported services.
* The percentage rate structure in the agreement provides much-needed flexibility for new business models.
* The agreement permits the use without payment of certain kinds of promotional streams, in the interest of encouraging paid uses of musical compositions.
* The agreement confirms that the mechanical licenses issued under its provisions will include all reproduction and distribution rights necessary to provide the licensed limited downloads or interactive streams.
* Outside the scope of the draft regulations, the parties confirmed that non-interactive, audio-only streaming services do not require reproduction or distribution licenses from copyright owners

Business News [09-24-2008] more news

ASCAP 'Bill Of Rights for Songwriters and Composers' Builds Momentum; Travels to Washington, DC

ASCAP (the American Society of Composers, Authors and Publishers) today announced that the 'Bill of Rights for Songwriters and Composers' continues to build momentum - garnering support from some of the most prominent members of the music community, and surpassing 10,000 signatures online. Launched in April 2008, the 'Bill of Rights' is an advocacy and awareness- building initiative designed to remind the public, the music industry and Members of Congress of the central role and rights of those who create music

Signed by a Who's Who list of songwriters and composers from all genres of music, this initiative continues to build awareness and support, as well as to spark dialogue on the relationship between copyright and creativity. Among those who have signed are: Alan & Marilyn Bergman, Trace Adkins, Sara Bareilles, Jackson Browne, Desmond Child, John Corigliano, Stacy "Fergie" Ferguson, Troy Gentry, Eddie Montgomery, Keri Hilson, Quincy Jones, David Lang, Steve Miller, Ne-Yo, Lionel Richie, Stephen Schwartz, Marc Shaiman, Marco Antonio Solís, Olga Tañon, Dr. Billy Taylor, Justin Timberlake, and Jimmy Webb, among many others.

"Songwriters and composers know more than anyone how our copyrights are increasingly under threat as competing interests argue over the future of the business of music," said Academy Award-winning lyricist Marilyn Bergman, President & Chairman of ASCAP. "To ensure that future generations have the opportunity to make a living from the creation of music, it is critical that we continue to build support behind this important initiative. Thousands of people have already voiced their opinion that it is time to vigorously defend the rights of music creators. Our goal now is to empower thousands more to carry this message forward."

On-site at the Copyright Alliance Exponential
ASCAP's 'Bill of Rights' will be brought to the 2nd Annual Copyright Alliance Exponential, which is being held on Capitol Hill in Washington, D.C. on September 24, 2008. The event is attended by Members of Congress and a range of business and creative professions that recognize the role of copyright as a critical foundation for creative growth.

ASCAP will have a booth at the event where attendees can learn about the 'Bill of Rights for Songwriters and Composers,' as well as take the opportunity to sign it electronically on-site. In addition, ASCAP member Felix Cavaliere - one of the creative forces behind Rock and Roll Hall of Fame inductees The Rascals - will be on hand to share his perspective on the importance of protecting the rights of music creators.

ASCAP encourages all those who wish to show their support to take part in spreading the word. It has created special digital banners and logos that can be posted to personal websites and profile pages. These assets are available on the special "Bill of Rights" section of ASCAP's website where the full text of the "Bill" may be viewed and signed: http://www.ascap.com/rights.

The "IP" Court Supports Enforceability of CC Licenses

The United States Court of Appeals held, in Jacobsen v. Katzer, that "Open Source" or public license licensors are entitled to copyright infringement relief.

The Court of Appeals for the Federal Circuit (CAFC), the leading intellectual property court in the United States, has upheld a free copyright license, while explicitly pointing to the work of Creative Commons and others. The Court held that free licenses such as the CC licenses set conditions (rather than covenants) on the use of copyrighted work. As a result, licensors using public licenses are able to seek injunctive relief for alleged copyright infringement, rather than being limited to traditional contract remedies.

Creative Commons founder Lawrence Lessig explained the theory of all free software, open source, and Creative Commons licenses upheld by the court: "When you violate the condition, the license disappears, meaning you're simply a copyright infringer. This is the theory of the GPL and all CC licenses. Put precisely, whether or not they are also contracts, they are copyright licenses which expire if you fail to abide by the terms of the license." Lessig said the ruling provided "important clarity and certainty by a critically important US Court."

In August of 2007 the Northern District of California ruled that breach of certain terms of the open source license at issue, the Artistic License, is a mere contract violation and is not a form of infringement. Today's ruling vacated the district court's decision and affirmed the availability of remedies based on copyright law for violations of open licenses. The federal court noted that ignoring attribution requirements contained in the license caused reputation and economic harm to the original licensor. This opinion demonstrates a strong understanding of basic economic principles of the internet; attribution is a valuable economic right in the information economy. We strongly recommend reading the opinion.

Creative Commons filed an Amici ("friends of the court") brief with the CAFC in this case. This brief was cosponsored by the Linux Foundation, The Open Source Initiative, Software Freedom Law Center, the Perl Foundation and Wikimedia Foundation. Significant pro bono work on this brief was provided by Anthony T. Falzone and Christopher K. Ridder of Stanford's Center for Internet & Society.

Disc Makers Acquires Leading Online Independent CD and Download Seller CD Baby

Disc Makers, the leader in CD and DVD manufacturing for independent artists and filmmakers, announced today the acquisition of CD Baby, the largest independent music seller in the world, following a 7-year close strategic partnership between the two companies.

CD Baby enables independent musicians to sell their music in both physical (CD) and digital (download) format through its online store cdbaby.com. The Portland, Oregon-based company is the largest seller of independent music in the country, working with over 240,000 artists worldwide, and its online music store receives over 100,000 visitors each day. With over 2 million digitized tracks under management, CD Baby is also the largest provider of independent music for Apple iTunes and other digital download sellers like Amazon MP3, Napster, and Rhapsody.

"I'm excited to bring together the two strongest brand names in the independent community," said Tony van Veen, President of Disc Makers. "CD Baby has paid musicians more than $81 million over the past 10 years for CD and download sales. It is one of the greatest tools created to allow musicians to make money from their music. Now artists can get manufacturing, CD sales, download sales, and web hosting – through CD Baby's HostBaby division – seamlessly and more easily than ever."

CD Baby will continue to operate as a separate company, focused on online CD sales, distribution, and download sales. CD Baby founder Derek Sivers commented: "It's amazing that this little hobby I started 10 years ago has benefited so many musicians. Disc Makers was my first choice to take the company to new heights. Their operational expertise is just what little CD Baby needed to grow up."

Sivers will continue to be involved with CD Baby as a consultant.

Music Industry News Network

Business News [06-18-2008]
Bush Administration Supports Performance Rights Act

In case you missed it, the Bush Administration joined Democratic and Republican predecessors in supporting "The Performance Rights Act" (H.R. 4789) as "a matter of fairness and equity."

In the Department of Commerce's letter to Congressman Howard Berman, chairman, Subcommittee on Courts, the Internet and Intellectual Property, the DOC stated that this legislation is "an appropriate and workable approach to providing compensation to recording artists and record labels for the transmission of their works by over-the-air broadcast stations."

The endorsement came shortly before Chairman Berman's subcommittee held a hearing on the legislation where famed recording artist Nancy Sinatra testified on behalf of the music FIRST Coalition, along with Tom Lee, president of the American Federation of Musicians.

House Subcommittee Approves H.R. 4789, The Performance Rights Act
Radio News [06-29-2008]

The musicFIRST Coalition issued the following statement today after the House Subcommittee on Courts, the Internet, and Intellectual Property passed H.R. 4789, the Performance Rights Act. The statement may be attributed to Doyle Bartlett, executive director, musicFIRST Coalition.

“Subcommittee passage of H.R. 4789 is a major victory for America's artists and musicians and a major triumph for fundamental fairness.

We applaud Representatives Berman and Issa and the members of the subcommittee for their hard work on this bill. With their leadership and support we have made significant progress toward creating a fair performance right on radio. But we still have a long way to go.

A loophole in the law lets AM and FM music radio stations earn $16 billion a year in advertising revenue without compensating the artists and musicians who bring music to life and listeners' ears to the radio dial. It's not right, it's not fair and we are going to make sure it is changed.

All other music platforms - satellite radio, Internet webcasts, and cable television music stations - pay artists and musicians to use their music. It's only fair that terrestrial radio be held to the same standards.

"H.R. 4789 includes important accommodations for small, public and religious radio stations. We are committed to working with the members of the subcommittee, our supporters in the House and Senate and broadcasters to address all reasonable concerns.

"Today's vote moves us one step closer to ensuring that all performers - from aspiring and local artists, to background singers and well-known stars - receive fair payment when their work is played on AM and FM radio. The subcommittee's action today is a harbinger of things to come."

Sen. Leahy Comment on House Subcommittee Markup of Performance Rights Act
Senator Leahy issued an encouraging statement in response to the House Judiciary Subcommittee on Courts, the Internet, and Intellectual Property's markup of H.R. 4789, the Performance Rights Act, indicating his support for a fair performance right for artists and musicians. Below is Sen. Leahy's statement.

Comment Of Senator Patrick Leahy (D-Vt.), Chairman, Senate Judiciary Committee, On The House Subcommittee Markup Of Performance Rights Legislation June 26, 2008 WASHINGTON (Thursday, June 26, 2008) - Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.), reacted today to the House Judiciary Subcommittee on Courts, the Internet, and Intellectual Property's markup of legislation to recognize the rights of musical performers. Last year, Leahy introduced legislation to end an exemption benefiting traditional, over-the-air broadcasters and to ensure that performing artists are compensated when their sound recordings are played on the radio. Representative Howard Berman (D-Calif.), who chairs the House subcommittee, introduced companion legislation. In November, Leahy chaired a hearing on the legislation in the Senate Judiciary Committee, and Berman chaired a hearing in the House earlier this month.

"Members of the House Judiciary Committee today took the first steps in moving forward legislation to provide fair performance rights to artists. Since I joined with Senator Hatch and our friends in the House last year to introduce performance rights legislation, I have heard from both performers and local radio stations about this legislation. The House Subcommittee's mark today has continued the debate on how best to protect the rights of performers and songwriters, and the needs of noncommercial and small commercial radio stations, like many stations in Vermont. I hope the Judiciary Committee might be able to turn its attention to this issue before the end of the year."

NAB Statement on Today's Subcommittee Markup Vote
Following today's vote in the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, NAB Executive Vice President Dennis Wharton released the following statement.

"Today's vote comes as a complete non-surprise, given the House IP Subcommittee's history of support for the RIAA-backed tax on local radio stations. Despite today's action, there remains broad bipartisan resistance to the RIAA tax from members of Congress who question whether a punitive fee on America's hometown radio stations should be used to bail out the failing business model of foreign-owned record labels."

Yesterday, Reps. Gene Green (D-TX) and Mike Conaway (R-TX) circulated a letter to colleagues noting the momentum for the Local Radio Freedom Act, which staunchly opposes a performance tax. The letter, which urges additional support for the resolution, cites the official co-sponsor count according to the Library of Congress, 221, a figure that includes 219 active members of House of Representatives (Reps. Roger Wicker and Al Wynn no longer serves in the House).

A companion resolution, S. Con. Res. 82, has been introduced in the Senate and is supported by 13 senators.

"Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over the air, or on any business for such public performance of sound recordings," reads the Local Radio Freedom Act.

Court Ruling Denies EMI Access to Millions of Personal MP3 Files

A New York Judge has denied a request by EMI to force MP3tunes to turn over all music files for its 125,000 users. For now, this means the contents of personal music Lockers will remain private.

In court EMI v MP3tunes, EMI demanded that MP3tunes provide copies of the more than 100 million songs in their subscribers' personal music Lockers. MP3tunes offers a free and paid service for people to store their music files digitally so customer or music fans can both keep them backed-up and listen to them anywhere through a Net radio, like those from Logitech, Reciva or Terratec, or from any Net connected device, such as a Wii or PC. The newest feature allows subscribers to automatically sync their music files to a device of their choosing so all their music is where they want it to be, without the hassles of running software and plugging devices in via USB! cables. All access to a music Locker requires a unique username and password, and there is absolutely no sharing between Lockers.

MP3tunes strongly objected to EMI's request, because it was both an invasion of user's personal storage, and because it would create a huge technical and financial burden, with more than 300 terabytes of files in personal Lockers. Files are not MP3tunes' possessions any more than the contents of a safety deposit box are owned by the bank that houses them. The storage provided by MP3tunes is the user's own space. A Locker is empty when someone opens an account and that customer decides what files are placed into their Locker. All files are stored at the request of the user. People who choose to utilize remote storage should be guaranteed the same level of privacy they have for the files stored on their local hard disk.

No corporation should have the right to demand the content of tens of thousands of personal accounts be turned over to them. There's no reason to suggest that the users are doing anything but listening to their own music collections in a modern manner. There are millions of Gmail accounts that have MP3 files stored in them - same with Yahoo, AOL and Microsoft's email and hosting services. If EMI can gain unfettered access to wantonly look through personal accounts on MP3tunes, those services will be next.

EMI is trying to eliminate online storage and take people back to a prehistoric time before Internet services existed. I'm not sure the Judge saw this as a privacy issue, but he got it right when he rejected EMI's demands to turn over personal files for thousands of unsuspecting people. It is an early, but very important, ruling in our battle with EMI. This fight will likely prove to be a long one, because some record labels would rather spend millions in attorney fees trying to outlaw all new technologies, like online storage and web hosting, rather than figure out how to use them to grow their business. At stake is personal ownership and privacy in the digital era - both issues worth fighting for.

-- Michael Robertson, MP3tunes

AFL-CIO Supports Performance Rights

The AFL-CIO Executive Council committed to righting a wrong - the lack of compensation to musicians and singers whose recorded music AM/FM radio broadcasters use to attract listeners and thus to sell advertising.

In "Fairness in Radio: A Performance Right for Sound Recordings," the Executive Council called for enacting bills in Congress, H.R. 4789 and S. 2500, that would enable musicians and singers to receive compensation for terrestrial radio play of their recordings, as they already do for satellite and Internet use. The Council highlighted the inequity of compensating songwriters, but not vocalists and musicians. It pointed out that the United States is virtually alone among technologically advanced countries in denying compensation to these performers for terrestrial radio broadcasts of their recordings.

DPE President Paul E. Almeida is a member of the AFL-CIO Committee on Public Policy and Legislation. He accompanied AFM President Tom Lee and AFTRA President Roberta Reardon as they spoke in support of the resolution first to the Committee and then to the Executive Council. DPE staff worked with AFM and AFTRA in developing the resolution.

For the full text of the resolution, go to/click on http://www.aflcio.org/aboutus/thisistheaflcio/ecouncil/ec03042008g.cfm

INTRODUCING BLUE COMET CAFÉ: THE PREMIERE VIRTUAL MUSIC VENUE!

Los Angeles, CA-January 10, 2008 - Thanks to the advances of technology and streaming video online, Blue Comet Café takes elements of what radio used to do, breaking new artists, and combines that with a social networking environment and a global reach that only the Internet can provide.

Blue Comet Café is a virtual showcase club for on-the-verge touring and recording artists. Videotaped live, the Blue Comet's "Main Stage" artists play the best traditional venues in the country with new songs and interview segments rotated on a regular basis.

"When you think of the best concerts you've ever seen, a lot of times it involves an artist who is just finding their audience, performing in a relatively small club for a few hundred people. Everyone wishes they had seen Bruce Springsteen at The Main Point in Philadelphia or Elton John at the Troubadour in Los Angeles or Norah Jones at The Bitter End in New York City when they were just starting out. The fact is you have to be at the right place at the right time and if you live in a smaller market, you're probably out of luck. That's no longer true thanks to Blue Comet Café," states co-founder Tom Crosthwaite.

In mid-February, Blue Comet Café will introduce their unique social networking capabilities where visitors, musicians, singer-songwriters, bands and fans will create their own profile pages, upload photos, bios, audio files and video clips. They will make friends, create groups and forums, and interact with like minded artists and fans worldwide.

This week's featured artist is Nashville based Billy Patrick, who is part singer-songwriter, part one-man-band and part street musician. Anyway you look at it, he's a whole lot of music, and his performance captured at Blue Comet Café is nothing short of spectacular!

There are future plans to periodically produce shoots where Blue Comet Café will videotape several artists for presentation on the Main Stage. The next shoot is tentatively planned for Los Angeles with Boston, Nashville, Austin and Toronto on the list of cities to visit.

Contact: Chip Schutzman
Company: Miles High Productions
Address: 6622 Delongpre Ave. Los Angeles, CA 90028
Tel: 323-806-0400
Fax: 323-462-0829
Email: chip@mileshighproductions.com
Website: http://www.bluecometcafe.com

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Music Industry News Network
Business News [03-26-2007]

DiMA Applauds U.S. Register Of Copyrights' Call For Copyright Modernization

U.S. Register of Copyrights Marybeth Peters testified before the House Judiciary Committee's Subcommittee on Courts, the Internet and Intellectual Property, calling for modernization of Section 115 of the Copyright Act to help legal music services compete with online piracy. Digital Media Association (DiMA) Executive Director Jonathan Potter issued the following statement:

"U.S. Register of Copyrights Marybeth Peters hit the nail on the head when she urged Congress to streamline the Section 115 licensing process and clarify the law regarding the scope of licensing rights for digital music services. A streamlined blanket music licensing system will guarantee digital music services access to more music with lower transaction costs, which in turn will encourage innovation, keep legal music prices low, grow our industry and increase royalties to all creators.

"Most importantly music licensing modernization will help level the playing field between digital music services operating within the law and their fiercest competitor – pirate networks that are 'stocked' with virtually every song ever recorded. The current licensing system fails the music industry not only because it is antiquated and ambiguous, but also because it gives an indirect advantage to illegal music sources, which are, far and away, the single greatest threat facing the music industry today.

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Music Industry News Network
Business News [02-18-2007]

Musicians' Union Criticizes IRS for Jobs Act Ruling

Url: http://www.afm.org

More than two years ago, Congress enacted the American Jobs Creation Act of 2004, designed in part to encourage independent film makers to produce their pictures here rather than in Europe, Asia, or elsewhere.

Last week, the Department of the Treasury's Internal Revenue Service (IRS) issued regulations that will likely undermine the beneficial intent of that legislation. The IRS has ruled that participations and residual payments must be considered "production costs" for the purpose of calculating the $15 million production limit stipulated in the federal production incentive contained in the American Jobs Creation Act of 2004.

Typically, participations don't happen unless a profit is made on a film, and residuals are usually based on sales and broadcasts, which won't happen unless the film is successful. Since the budget limit (except for distressed areas) is $15 million, this IRS decision creates a level of uncertainly that will make it very hard for the makers of low budget features to use the incentive.

The American Federation of Musicians (AFM) joins with the Directors Guild of America, the International Alliance of Theatrical Stage Employees, and the Screen Actors Guild in expressing its unhappiness over this unwise regulatory action.

"The movies are a major industry for this country and an important source of work for America's professional musicians, who create soundtracks that are the envy of the world," says AFM President Thomas F. Lee. "The AFM urges Congress and the Administration to take all steps necessary to undo this bureaucratic response to what was intended to be job protection legislation."

The American Federation of Musicians of the United States and Canada is the largest organization in the world dedicated to representing the interests of professional musicians. Whether it is negotiating fair agreements, protecting ownership of recorded music, securing benefits such as health care and pension, or lobbying our legislators, the AFM is committed to raising industry standards and placing the professional musician in the foreground of the cultural landscape.

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YouTube, Inc. Senior Staff Visit Japan to Discuss Preventive Measures against Copyright Infringements

Url: http://www.whitakercenter.org

As previously announced, 23 right owner groups and companies sent a letter to YouTube, Inc. on December 4, 2006 due to the situation where extensive amount of Japanese copyrighted audio-visual works such as television programs have been posted and placed without the permission of right owners and neighboring right owners on the U.S. video-posting website "YouTube." YouTube, Inc. responded on December 15, 2006 showing their views towards preventive measures against copyright infringements and indicated their intention to visit Japan to discuss the matter.

YouTube senior staff* visited Japan and met the delegates of 23 right owner groups and companies in the afternoon of February 6, 2007 at JASRAC. The parties discussed preventive measures against copyright infringements on the YouTube website in line with the items requested by the 23 right owner groups and companies, and the reply by YouTube, Inc. In this meeting, the delegates of 23 right owner groups and companies requested YouTube, Inc. once again to implement concrete measures in order to forestall copyright infringements and YouTube senior staff explained their position. The parties further exchanged their views on the issue.

YouTube, Inc. promised as immediate measures which they can take at this point is to indicate a warning notice in Japanese "not to upload audio-visual contents which are not authorized by the right holders" on the web page where users can see at the time of uploading audio-visual works.

Meanwhile, topics such as registration of user names and such, termination of user accounts of those who illegally uploaded audio-visual works, and issues regarding technical aspects of preventive measures against copyright infringements were also discussed. YouTube senior staff stated that although they had already carried out termination of IDs by the current system, they would assure efforts towards fundamental measures in technical aspects, working together with their owner company Google, Inc.

Furthermore, 23 right owner groups and companies and YouTube, Inc. agreed to discuss preventive measures against copyright infringements continuously. Through the two hour meeting, discussions were held in a gentlemanly and friendly manner.

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Musicians Institute And Hal Leonard Celebrate 10 Year Anniversary Of Publishing Collaboration

Url: http://www.mi.edu

2007 marks ten years since the founding of Musicians Institute Press, the publishing collaboration between MI and Hal Leonard Corporation, the world's largest publisher of print music. MI Press was created in order to put MI-style educational materials in the hands of musicians around the world, and publications are divided into four categories: "Essential Concepts" (based on various programs' core curriculum), "Master Classes" (content from elective courses); "Private Lessons" ("one-on-one" lessons with MI faculty instructors); and "Videos" (in-depth lessons on DVD).
 
Founded in 1977, Musicians Institute has long been recognized as one of the world's premier colleges of contemporary music; intense, hands-on degree programs designed and taught by top-notch working professional musicians are available for guitarists, bassists, percussionists, vocalists, keyboardists, and musicians into recording, luthiery, film scoring and the music business.

In 1997, Hal Leonard Corporation, the world's largest and most innovative music print publisher, created the Musicians Institute Press imprint to exclusively publish books, book/CD packs and DVDs from these acclaimed educators. Prior to that, MI professors authored books and lessons through various publishers, but none of these were sanctioned by the school. The first book branded with the Musicians Institute Press imprint was Rock Lead Basics for Guitar and remains among the bestsellers. Other top-selling titles include Harmony & Theory, Vocal Technique, Ear Training, Guitar Soloing, Bass Fretboard Basics, Double Bass Drumming and Salsa Hanon. There are currently more than 100 titles in the line with more being added regularly, and combined sales have surpassed over a million units.

Comments Hal Leonard Vice President of Pop & Standard Publications Jeff Schroedl, "We're very proud to serve as the official publisher for Musicians Institute. For countless musicians, attending MI is a lifelong, but unattainable, dream. We're pleased to do our part in making the unsurpassed curriculum from this school available to these students of music."

Keith Wyatt, Vice President of Programs for MI, says, "We're elated to have simultaneously reached both the 30-year anniversary of the school and this ten-year milestone with Hal Leonard. We knew from the beginning that Hal Leonard would be the publisher best-quipped to distribute MI Press on the widest scale, and we also knew that we could trust them to help us translate MI's unique educational style into print and video. We were absolutely right on both counts."

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Music And Movie Industries Applaud Release Of New Study Documenting High Cost Of Piracy On Los Angeles Economy

A new report released says that global piracy and counterfeiting cost Los Angeles-area companies $5.2 billion and the city at least $483 million in tax revenues in 2005. Representatives from the music and movie industries said the report would be a rallying cry for additional anti-piracy efforts by the city and praised local officials for their commitment to devote more attention and resources to the problem.

The study, conducted by the Los Angeles Economic Development Corporation (LAEDC) and commissioned by Los Angeles Mayor Antonio Villaraigosa, Councilmembers Wendy Greuel and Jan Perry and County Board of Supervisor Zev Yaroslavksy, identifies measurable losses in local revenues, jobs, wages and taxes due to piracy. While the report describes the economic devastation of piracy across nine different sectors of the Los Angeles economy, it finds the entertainment industries – motion pictures, music, and related industries – to be hit hardest. For a complete copy of the report, please visit http://www.laedc.org/consulting/projects/2007_piracy-study.pdf.

Local officials also announced the formation of an Inter-Governmental Task Force on Piracy and Counterfeit Goods, a group made up of a diverse cross section of the community representing industry, law enforcement, business leaders, government, prosecutors and judges. The goals of the task force will be to come up with specific policy recommendations and to identify resources to deal with the problem of counterfeited goods.

"This report pointedly illustrates piracy's true costs, both to the music community and to Los Angeles, and we believe it will be a real catalyst for additional anti-piracy measures by the city," said Mitch Bainwol, Chairman and CEO of the Recording Industry Association of America (RIAA). "Just this week, the Grammy's celebrated some of the music industry's most well-known stars. This study reminds us of the individuals who work every day, in a much less public way, to make that music possible. The trafficking of stolen music stunts growth and advancement for the creative industries, working families and the community as a whole. We are very thankful to the leaders who commissioned this report and to those who have joined them in stepping forward to tackle this problem head on."

"The LAEDC report confirms what our industry has been consistently saying: the crime of film piracy doesn't just hurt Hollywood, it damages economies everywhere movies are produced and sold. Motion picture piracy results in lost jobs and wages for middle class American workers inside and outside of the movie industry, and we now have even more evidence of the specific damage it does to the Los Angeles economy and workforce," said Dan Glickman, Chairman and CEO of the Motion Picture Association of America, Inc. (MPAA). "We appreciate the leadership the City and County of Los Angeles have provided on this issue and for working so hard to curb piracy in Los Angeles."

According to the report, global piracy disproportionately hurts Los Angeles because of its concentration of so many of the firms that make the original products prone to counterfeiting. As a result, the LAEDC report indicates that the local black market across the nine identified sectors could be valued as high as $17.4 billion.

The motion picture and television production industry in 2005 generated more than 1.3 million American jobs – over 500,000 of those jobs were in California; $30.24 billion in wages to American workers; and $10 billion in state and federal taxes. In 2005, the worldwide motion picture industry lost $18.2 billion as a result of piracy.

The recording industry reports that the global trade of pirate music discs was worth $4.5 billion globally in 2005, with 80 million discs seized – up from 36 million discs in 2004

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Tish Ciravolo - Biography

Combining a lifelong passion for making music with a desire to “level the playing field” for dedicated female guitarists and bass players of all ages, Tish Ciravolo, founder and president of Daisy Rock Guitars (www.daisyrock.com), is a Renaissance woman of the music industry and a true pioneer of the instrument manufacturing world.

Since being founded in 2000, Daisy Rock has nearly doubled in size each year, with 2005 sales exceeding $2.4 million. The catalog includes acoustic and acoustic-electric guitars, 6-string and 12-string electric guitars, and electric basses in a vibrant selection of colors. The company offers an ample bouquet of models from popular lines such as the Butterfly, Daisy, Heartbreaker, Pixie, Wildwood, Stardust, Tom Boy, and Rock Candy series, and 2006 marks the launch of the Star series, Stardust Retro-H and Elite Custom guitars, Rock Candy Custom and Custom Special guitars, Rock Candy Special Basses, Stardust Elite Rebel and Elite Petite Rebel guitars, and the Cheetah Heartbreakers.

Now distributed by Alfred Publishing since spinning off from Schecter in 2002, Daisy Rock’s current 37 models are available at over 500 music retailers throughout the United States and Canada. With the addition of many new distributors, Ciravolo’s imaginative designs are also gracing the walls of another 200 dealers across the pond.

When the Los Angeles-based Ciravolo says, "The boy’s club is over," she means that for all females. Daisy Rock offers a variety of guitars that appeal to girls of any age. Younger girls are drawn to the Butterfly, Daisy, Star and Heart shapes as well as the pallet of yellows, purples, pinks and blues. Adult women are drawn to the solid construction and amazing sound quality of Daisy Rock’s lighter-weight, slimmer-neck designs.

Famous artists from across the musical spectrum also love their Daisy Rock guitars, including Joan Jett (The Runaways), Heart’s Ann and Nancy Wilson, Louise Post (Veruca Salt), Hilary Duff, Lindsay Lohan, Kathy Valentine and Jane Wiedlin (Go-Go’s), Share Ross (Bubble and Vixen), Susanna Hoffs (The Bangles), Nina Hagen, Annie Minogue, Lisa Loeb, Wanda Jackson, Dolly Parton, Ella Hooper (Killing Heidi), Precious Finch (L7), Marla Sokoloff, Shonen Knife, and Anna Waronker . Girls, however, aren’t the only ones having fun with Daisy Rock guitars—The Cure’s Robert Smith, and The Psychedelic Furs’ Tim Butler, Chris Stein from Blondie, Sylvain Sylvain from The New York Dolls play them, too, as do Adam Levy (Norah Jones) and Paul Leary (Butthole Surfers).

Ciravolo’s dream that “every girl who wants to play guitar is welcomed and inspired to do so” is centered on the love she has for her two daughters, seven-year-old Nicole and five-year-old Sophia.

“When the time comes, I want their experience as musicians to be different from when I was growing up, when every guitar available was designed with men in mind,” Ciravolo says. “I want them to be able to walk into a music store anywhere and be able to find something made with them in mind. Daisy Rock is not about making me rich and famous or being a hero to anyone. It’s simply an opportunity to leave a legacy for my kids and to provide females with great instruments designed with them in mind.”

In a sense, Ciravolo’s daughter Nicole is the true visionary behind Daisy Rock. When Nicole was a one-and-a-half years old, she drew a picture of a daisy, and her mom was inspired to draw a neck on it. She developed the design and took it to her husband, Michael Ciravolo, the president of Schecter Guitars. (Schecter had grown under Michael’s leadership from its original roots as a small instrument parts company in the 1970s and ’80s into a major guitar manufacturer. Early Schecter endorsees included Michael’s old friend Robert De Leo from Stone Temple Pilots, as well as artists like Prince.) “I told Michael that I wanted to create a line of guitars designed just for girls and women,” says Ciravolo, “so that’s what I did.”

Tish grew up in Merced, California, where her best friend Barbara taught her to play guitar as they attended El Capitan High School. The young Ciravolo—whose first exposure to a girl playing rock bass was Suzi Quatro as Leather Tuscadero on the television show “Happy Days”—was a quick learner and by age 16 was on tour with a band called Plateau. When Plateau ended up playing in Kansas City, she decided to stay there and enrolled in Penn Valley Community College as a journalism and business major. After receiving her degree, she relocated to Los Angeles, where she balanced a series of crazy-making day jobs (waitress at Duke’s Coffee Shop, temp positions, assistant to Jay Leno and his former manager, the late Helen Kushnick, to name a few) with amateur night performances at The Improv and Comedy Store. Intent on being a rock star during those middle 1980s, she gravitated towards what would become her primary instrument, the bass. Like her influences Simon Gallup and Tim Butler, she played with a pick. “They kicked me out of the Dick Grove Music School after five minutes,” she recalls, “because I didn’t want to play with my fingers.”

Hopping from band to band, inching ever closer but never getting to that elusive record deal, Ciravolo became the quintessential L.A. rock queen. She played in bands over the years including Rag Dolls, The Velvets (a female Psychedelic Furs-type outfit), They Eat Their Own (new wave pop), and eventually, her own group, Shiksa and the Sluts. Then she entered her “big hair metal phase,” hanging with the popular band Lipstick from 1988 to 1992. “We had a billboard on the side of the Roxy and everything,” she says. “We did the windmill head shaking routine when we played, which was big at the time. We were also house band at the Whisky for a time, and played in the Battle of the Bitches at FM Station.” Finding other creative outlets, Ciravolo also made two independent films (The Wake, and Birds & The Bees) and wrote sitcom with partner Karen Peterson.

“Through all those years of playing music, of great success and crushing disappointment, I always had so much fun,” Ciravolo says. “It’s physical, it’s artistic, and it’s who I am at heart. These days, I’m in this punk band called sASSafrASS, and we do covers like “Cherry Bomb” by the Runaways plus original material. I’m kind of over the whole ‘getting the record deal thing,’ and it’s more fun than I ever had before. If I got a record deal now, it would probably interfere with everything I’m doing with Daisy Rock.”

Ciravolo’s commitment to young female musicians extends into the realm of book publishing. With music education giant Alfred Publishing, she has released three instructional titles: Girl’s Guitar Method, books 1 & 2, and Girl’s Bass Method. Each teaches easy-to-follow course material from a female perspective, with a style and design that addresses the interests of today’s young women.

Barbara’s passing from breast cancer in 2000 inspired Ciravolo to donate liberally to breast cancer organizations. Daisy Rock also promotes breast cancer awareness through a national ad campaign in which Ann and Nancy Wilson are extensively involved.

Ciravolo is committed to numerous female-driven causes in addition to promoting breast cancer awareness. Through a scholarship program called Girls Rock (for which the Donnas are spokesgirls), Daisy Rock sponsors underprivileged girls, hooks them up with guitars, and sends them off for the experience of a lifetime at DayJams Rock & Roll Camp. Daisy Rock sponsorships include the sixth annual VH-1 Divas special in 2003 and the 2005 national LadySixString Lyric Writing Contest, and among the company’s numerous guitar donation recipients are the Make a Wish Foundation and VH-1 Save the Music. Additionally, the Ciravolos hold online auctions at Guitars4Kids.com, an organization they created from which all monies raised benefit St. Jude Children's Research Hospital.

“There are so many things I love about Daisy Rock Guitars and all of the endeavors we are involved in here,” Ciravolo says. “But there’s no greater feeling than reading letters from young girls who had no idea there were guitars out there for them. The wonder of discovery is so incredible, and it’s as if learning how to play our guitars helps them discover their true selves. I always wonder how different my own life in music would have been had I grown up playing a Daisy Rock guitar. It’s exciting just to know that something I have created has made such a difference.”

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Important News for all Songwriters
by NSAI’s Bart Herbison.
From Bart Herbison, Executive Director, Nashville Songwriters Association.

Dear California Songwriter:

Whew! It has certainly been a busy and eventful few months in Washington, DC. Congress did not act on music licensing legislation. The Section 115 Reform Act, or SIRA, was legislation that would have fundamentally changed the way songwriters get paid for digital mechanicals. The precedents in SIRA would also likely have impacted future copyright debates in Congress.

Absent Congressional action, the music licensing framework SIRA created is now left to the marketplace and to the Register of Copyrights. The Copyright Office has made it clear that they do NOT share songwriter views on how we should be compensated in the future. That was evident in the recent "ringtones" decision by the Copyright Office. Their ruling was that "ringtones" are part of the compulsory license, therefore the songwriter should receive only a mechanical royalty instead of being able to negotiate the price of the "ringtone."

The election will also heavily impact the copyright debate going forward. Congress will have all new Committee Chairs and Subcomittee Chairs. Representation from California-based songwriters has never been more important to our legislative efforts. Many California members of the House and Senate will play prominent roles in the new Congress. It is IMPERATIVE that we urge Congress to speak on some very imortant issues before the Copyright Office rules, perhaps adversely, on multiple issues that will impact songwriter payments for decades to come. Next year is also the year that the Copyright Office will rule on the new mechanical rate for the next five years.

We are continuing our efforts to engage the California writer-community in our political-advocacy work. Toward that end, we are planning a California songwriter trip to Congress. (We cannot set the date until Congress sets their 2007 Calendar, probably in mid-January. The target dates for the trip are May 21-23, 2007).

We will first hold briefings and meetings in California February 20-23, and April 17-20, 2007 (subject to change, of course). Please tentatively set your calendars for these dates. We REALLY need a large contingent on the May DC trip. We ask that everyone pay their own expenses on these trips, that is how we've managed to do 2,000 appointments with Members of Congress over just the past six years! We will have a cost estimate soon, but we will likely spend two nights, Monday and Tuesday, and return late Wednesday. We will likely arrive on Monday and hit the Hill Tuesday and Wednesday for dozens of appointments. We will split into several groups, each accompanied by a "Team Captain" very familiar with the legislative process and issues. Tuesday night will likely be a "Guitar Pull" with everyone playing one or two songs. We will, of course, play songs in almost every office throughout Tuesday and Wednesday.

During 2007 a "California Advisory Board of Directors" will be appointed for the "National Songwriters Association." Board and Committee meetings, regular briefings and activities will be held throughout the year.

In 2006 we changed the United States Tax Code. I am confident that together, we can impact music licensing and related issues such as board representation, an end to controlled composition and pass through payments and even define NEW revenue streams for songwriters. I am really excited about the next few months and just want to say that I LOVE you guys. (gendre non-specific -- lol!)

Bart Herbison, Executive Director
National Songwriters Association

Meanwhile, here are some links to pertinent legislative information.

SIRA AND RINGTONES-

http://www.nashvillesongwriters.com/news.ez?viewStory=870

SONGWRITERS LOBBY CONGRESS-- (give this link some time)

http://www.visionsphere.com/nsai/legislative/CapitalGainsR_RJuly21o6.pdf
http://www.bizjournals.com/nashville/stories/2005/09/19/story7.html

SONGWRITERS CAPITAL GAINS TAX EQUITY ACT

http://www.mcall.com/business/columnists/all-kristof609jun09,0,7034572.column?
coll=all-randomcolumnistsbus-misc

OTHER LEGISLATIVE NEWS

http://www.nashvillesongwriters.com/news.ez?viewStory=728

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YouTube Goes Mobile

YouTube, a consumer media company that enables people to watch and share original videos through a Web experience, today announced that, in early December, its leading video entertainment service will be available to people on mobile devices. In its first strategic mobile distribution agreement, YouTube will enable Verizon Wireless V CAST consumers to access a selection of YouTube videos from their mobile phones exclusively for a limited time.

In this landmark arrangement, YouTube will deliver a sampling of the most popular videos to Verizon Wireless' V CAST subscribers in the United States. With the largest community for online video entertainment, YouTube's move into the mobile space will enable a new audience of mobile users to enjoy entertaining videos virtually whenever and now wherever they want.

"We are excited to launch our new mobile service and to partner with Verizon Wireless to bring YouTube videos to a new audience," said Steve Chen, chief technology officer and co-founder of YouTube. "People want to be entertained in a way that fits their individual lifestyle. This service offers our community and Verizon Wireless subscribers a new opportunity to connect and engage with their favorite videos. We will continue to roll out more exciting partnerships and features for the mobile user over the coming year."

"Delivering YouTube content gives V CAST customers a mobile connection to video content that has revolutionized how people are being entertained today," said John Harrobin, vice president of digital media for Verizon Wireless. "Today's announcement is groundbreaking for mobile video, and we're proud to be working with the leader in online video entertainment. This relationship signals Verizon Wireless' commitment to bring the very best entertainment to V CAST customers."

YouTube will provide Verizon Wireless' V CAST customers with a variety of videos, enabling users to access video clips on any one of the Verizon Wireless V CAST-enabled handsets, including the Chocolate (LG VX8500) and MOTOKRZR K1m. Video enthusiasts also will be able to record and share their favorite moments with their mobile phones – whether it's an unbelievable skateboard trick or memorable moments, such as their child's first steps.

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Industry Profile: Mike Gormley

— By Jane Cohen and Bob Grossweiner

Industry veteran Mike Gormley is president of management firm, L.A. Personal Development. But after 24 years, he is launching Yes, Dear Entertainment, a new company, which will include management, marketing and publishing, through his new partnership with Jolene Pellant, a former VP of Marketing at Live Nation. Two management clients have already been signed, marketing has several clients and the publishing signings and an administration agreement with a major publisher are expected shortly.

Mike started out in music industry as a musician and journalist in his native Ottawa and then as a columnist with the Detroit Free Press, where he was youth editor or what was becoming at the time, rock journalist. Mike also wrote for Playboy, Creem, Billboard, Chicago Sun Times, and others on a freelance basis. "I continued writing somewhat after joining Mercury Records, but eventually I didn't have time to do the research," he notes.

Mike joined Mercury Records, based in Chicago, in 1970 as director of Publicity. Although not in the A&R field, he was instrumental in the signing of the New York Dolls and Kraftwerk. He also oversaw the PR campaigns for Thin Lizzy, The New York Dolls, Rush, Bachman-Turner Overdrive, The Runaways, The Ohio Players and many others.

In 1979 Mike left the label, which had been absorbed by PolyGram a year after he took on corporate public relations duties and helped establish the PolyGram brand in the U.S. He was chosen to move to PolyGram's headquarters in Hamburg, Germany, but when the president of PolyGram decided to move to New York, he wanted Mike to go there with him. "I was disappointed because I really wanted to move to Europe for a while," he recollects, "and right at the same time I got a call from A&M asking if I wanted to move to L.A. Like I had to think twice."

At A&M, Mike rose to the post of vice president of Publicity and assistant to the Chairman Jerry Moss. There he worked with The Police, Supertramp, Herb Alpert, Styx, Peter Frampton, Joe Jackson, Squeeze and others.

Mike left A&M in 1982 to start his own management firm, L.A. Personal Development with manager Miles Copeland, who was the manager of The Police, of which his brother Stewart was the drummer. Over the years, Mike has managed several major acts from their early days through to major international recognition, including The Bangles and Oingo Boingo. Boingo front man Danny Elfman has become a major film composer with help from Mike, who convinced him to do the music for "Pee Wee's Big Adventure" many years ago. (Elfman is now one of the top composers in the film industry having scored "Beetlejuice," the first two Batman movies, "Spiderman," "The Red Dragon" and "Chicago." His work on "Good Will Hunting" and "Men In Black" each earned Elfman an Academy Award nomination.)

Five years later, Miles left L.A.P.D. to produce movies. "Wall of Voodoo had dissolved, The Bangles were breaking up and basically had broken our working relationship, so he left and I kept the company and Oingo Boingo, got Danny Elfman going in movies," Mike explains. "I went from there."

Other artists Mike has managed include Wall Of Voodoo, Angelique Kidjo and Concrete Blonde.

Mike also worked with Filter in their early days, and Paige O'Hara, best known as Belle in Disney's "Beauty and the Beast" films. Mike served as the music supervisor on several films and TV shows, including "Adventures in Babysitting" and the first season of "The Equalizer."

Mike founded and ran Wildcat Records, distributed by Universal, which had success in several genres, including Top Ten on the AC charts with Michael Damian and AAA success with The Boomers. In the process he discovered comedian Craig Shoemaker.

Now settling into his new partnership with Jolene Pellant, Mike informs that they already have several marketing clients including 85 art theaters around the country such as the Laemmle Theaters in California, City Theaters in New York, and Anjelika theaters in Texas, New York City and California.

"We will market their in-theater music programming and expand the exposure of the music presented," explains Mike, noting that other clients are about to be announced. "What type of music it will be is hard to say, but we deal mostly in singer/songwriter/alternative artists."

Management clients include: singer/songwriter Quincy Coleman, a recent KCRW Morning Becomes Eclectic guest, and Greenlandik/Danish singer/songwriter Simon Lynge, who is writing with, and for, Lucie Silvas, whose last recording sold over a million in the UK alone.

"Simon is recording in L.A. with John Mattox (The Young Dubliners) and Matt Folger (Michael Jackson, Paul McCartney)," informs Mike. "He isn't finished recording yet, and we've a licensing deal in Scandinavia. There's more to come."

L.A.P.D. will stand on its own as a separate company with singer/songwriters Ronny Cox and Clair Marlo.

Also new on the block, Mike just began teaching at UCLA Extension's continuing education program called, "The Insider's Guide to Music Management." The class covers, among other things, what music managers do, why they are important, and how to avoid management pitfalls. The course began on Oct. 11 and will continue each Wednesday thereafter for a total of six classes, ending Nov. 15.

His professional organizational involvement includes sitting on the boards of Music Manager's Forum and L.A. WoMen In Music. Mike is also on the Management/Legal Advisory Committee for AFTRA and is past president of the Conference of Personal Managers.

Why did you leave the record business and decide to become a manager?
My position with A&M became boring. My staff was doing the creative stuff. I was going to meetings to find out what time the next meeting was to take place. There was some political crap going on that I didn't need in my life. Miles and I'd worked pretty close together on his bands, and he knew my frustration.

How did the idea to start an artist management company with Miles Copeland come about?
Miles knew of my frustration. One day he and Jay Boberg took me out to lunch and hit me with the idea of starting LAPD. Jay really wasn't involved. It was his idea to invite me in so he came along to the lunch. Miles was still living in London, the Police were the hottest thing going, but he signed L.A. based bands Oingo Boingo and Wall of Voodoo for management, and he really didn't have anyone to take care of them. So we made a deal. I took a drop in salary but became partners with Miles. About six months after we started the company, we found The Bangles, then called the Bangs.

How did the name LAPD evolve?
Miles Copeland managed The Police. His brother Ian had the booking agency FBI, and, of course, there was IRS Records. It came from all of that.

How did you come up with the name for your new company?
I thought it would be fun when someone calls the company, the receptionist would answer, "Yes, dear."

How did you get involved with the UCLA Extension program?
I've been a guest speaker at several classes in their Entertainment division, and about a year ago they asked if I'd any ideas for a music business class. It turns out they've never done any kind of entertainment management class so they liked that when I suggested it.

Where do you see the future of the music industry headed?
Music was meant to be enjoyed, not rammed down your throat by corporate greedies with law and marketing degrees. What is happening is a simple fact of people taking back their music now that avenues via the Internet, etc. are being provided. We should all still make a living but let the artists control their music. We should be working for them, not making them the low man on the totem pole, for the most part.

What does the closing of Tower Records mean to the industry?
Well, it's sad, like the lack of vinyl albums is sad. But it's the times we live in. Downloads will expand, but stores like Amoeba in L.A. and San Francisco will still survive. People still like the shopping experience. It's nice and easy to buy books on line and have them delivered to you, but I still love to go to book stores as well and be able to touch them, read a bit, feel the atmosphere. Amoeba is huge but still feels like a mom and pop store and that sort of thing will stay around. And people will go to artists directly more than ever to get a new recording. In the big corporate way it's bad, but like when the major labels started folding, one could see the indies spring up and strengthen. This will be true in the retail field.

What have you learned from the record business that has helped you as a manager?
A lot about marketing and applied that to management. I still do. In fact, my new company with Jolene Pellant is a management/marketing/publishing company because she is a marketing marvel. But when I was with record companies, I did a lot of management things on a personal basis, giving advice to artists, etc. I just carried that over.

What's your take on the state of the record company business today?
The power is with managers now. We develop artists and look after their careers, not the immediate activity that people are focusing on like the recent recording or tour. There're still some good people with record companies who know what they're doing. They're slowly making their way to the top spots with the few majors left as well as the indies. There's so much passion with indie record people, and they will end up running things.

I'm about to sign an artist to my first major in many years and am looking forward to it. Indies have their pros and cons, majors have their pros and cons. You have to learn how to work with either one to make things come together for your artist. The main thing is run your own business, do what is right for your artist's career and separate the good advice from a record company from the bad advice.

What were your first impressions on seeing the New York Dolls?
There wasn't anything like them before or since. I remember David Johansen's torn and outrageous clothes. I remember their attitude which was pure punk, although that isn't the term one would have used then. They were sticking their finger at the music world or maybe the world in general. The Sex Pistols just couldn't have done what they did without the Dolls leading the way. And the whole slutty, female look, I don't know how they did it. How could you dress like that and be comfortable, but they did and they didn't give a shit about anyone.

Yet somehow they weren't scary or dangerous, well, not to some of us. I guess moms and dads were scared shitless, if in fact any moms and dads every heard of them. They were an over the top pop band. I remember when "18" hit for Alice Cooper. I figured someone like that in the main stream on pop radio would just drive moms, dads, preachers etc., crazy. That's what I had hoped the Dolls would do -- have a hit and be a household name and look and sound like that. Oh well.

As far as the show, I knew they weren't master musicians. They were sloppy, but who in hell would want them to be anything else? The power coming from the stage, and I don't just mean volume...you were not going to ignore them. That's what I loved. I don't remember people dancing. They were there to watch and take in the experience. That's what the Dolls were that night and many times after: an experience. I hope they are doing the same thing now. I love that the Dolls are back in the loop but I haven't heard the new record yet so I can't comment on it. But the world needs them right now.

How did you and Paul Nelson, the Mercury A&R executive, get them signed?
Here's how it came down. Paul Nelson actually worked for me in the PR department. He was a champion for the New York Dolls and tried and tried to get Mercury to sign them. Nobody said no, but nobody was being enthusiastic either, so Paul couldn't really proceed. He heard I was coming to New York -- Mercury was still in Chicago then -- and asked if I would come and see them. I honestly don't remember what club they were playing in, but I went there with Paul. I vividly remember the show and how incredible I thought it was.

When I returned to Chicago, I wrote a memo to Irwin Steinberg, the president of Mercury, and told him we had to sign the band. He contacted Paul and told him to proceed, and that's how it all began. When I think about what the Dolls meant to music and to that whole scene in NYC, London and L.A. and then the world, that memo seems so incredible. I was just expressing my opinion. I happened to see what Paul saw and supported him on it. After that I worked with their manager Marty Thau in getting the PR campaign going for them. They were a PR guy's dream, of course. That and PR for the Runaways were the two easiest assignments I had.

How effective are websites like MySpace.com and YouTube.com in marketing new artists?
I love them, and the others that are coming our way. We don't have a video with Quincy Coleman yet so we got permission to use footage from a TV pilot she did with her band this spring. She had to be on YouTube. She had to have some sort of video on her web site and MySpace. That's where the people are along with other areas of the Internet. We're going to do a video ASAP, but the live footage is at least giving her some presence there.

What type of acts do you look to sign?
I just know when I love someone. I don't look at types. Look at my background: Oingo Boingo, Bangles, Danny Elfman, Angelique Kidjo, Anne McCue and now Quincy Coleman -- all very different, all very talented. I just get hit in the heart and go from there. I saw Quincy, who I'd known for a few years, at Hotel Cafe in Los Angeles last November, and I just sat there and smiled for 45 minutes. She just did it for me. I immediately told her she wasn't going to be easy to get on the radio, but her audience would eventually be huge. It's all about the marketing, and people are really coming to see her all over the country. But no airplay -- yet.

So about types? Talented, willing to work, willing to learn, and I have to like them as people, but type of music can vary.

What makes a good manager?
I could sound hokey, but a manager these days has to believe so deeply about their client that they're willing to practically kill because they're running the artist's careers while they write, record and perform. And, you're presenting them to the world so you had better believe and fully understand what they're about and have the contacts and the brains to get their music out there. You're a marketing expert, a psychiatrist, a confidant and a CEO of a business the artist owns.

First concert attended
I swear, I was a little kid, but I did see Buddy Holly play once at The Auditorium, Ottawa, Ontario. Don't remember the year.

First concert worked
Rod Stewart, 1971, at The Auditorium in Chicago. I was director of Publicity for Mercury Records in Chicago.

First industry job
Director of Publicity, Mercury Records, Chicago, 1970.

Career highlights
Rod Stewart at Madison Square Garden 1973; hanging out with Johnny Cash and Carl Perkins in their dressing room at McCormick Place in Chicago in1976; Playboy magazine doing a story on Rod in 1972 -- they had only done jazz artists up until then; The Bangles hitting number one in 1987 with "Walk Like An Egyptian"; and being instrumental in getting the New York Dolls signed to Mercury.

Career disappointment
Had an all-Mercury show set up for the "Midnight Special" TV show in about 1978, but BTO wouldn't do it. I never really found out why they wouldn't do it, which made losing the opportunity hurt that much more.

Greatest challenge
New company about to start. Anything new is a challenge. It's a pleasant challenge, but when you try to expand, you run the risk of not getting into that new market. For us, going beyond strict management into marketing and publishing is new.

Best business decision
Leaving the record companies behind and starting my own management company with Miles in 1982.

Best advice you received
Run like hell, but I ignored the advice. There are hills and valleys, sharks and leaches in the music industry, like many industries. People told me to watch out, and some said don't do it. And I've met many of the types they warmed me about, and I've survived. Don't think I'm one of them, but I learned to identify and deal with them.

Best advice to offer
Activity breeds activity. In other words, if you do nothing or expect others to do it, nothing will happen.

Most memorable industry experience
Oingo Boingo on Halloween, just about any Halloween in the 1980s to the mid-1990s They would take place usually at the Universal Amphitheater in L.A. over six nights, which hold 6,189. We would sell out all six nights. We still hold the record there. We would also do one or two nights at Irvine Meadows, which holds 18,000. Amazing week every year. The band would come on stage, the crowd would stand up and never sit down. Never. Halloween to Boingo was like Christmas to anyone else.

Favorite team
Notre Dame football -- just because.

Favorite hotel
Beverly Wilshire in Beverly Hills.

What friends would be surprised to learn about you
I can be very loud.

Industry pet peeve
Hard to open CDs, but we don't have that to worry about much longer. CDs will be gone in a few years for the most part. iPods or whatever else is coming along will replace them.

Office paraphernalia
Old posters, gold and platinum records, pictures of my kids.

If I wasn't doing this, I would be...
...still be a journalist.

Industry mentors
Irwin Steinberg, Al Abrams, Miles Copeland.

Mike can be reached at: (818) 783-7372; e-mail: lapersdev@yahoo.com

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