This is just over an hour welcome, everybody. I apologize for the lack of space. More people showed up and we were expecting. If you were expecting jayz will be o on the panel, i apologize. This is an Academy Briefing and we have been doing these things since about 1996, which is pretty remarkable. These are meant to be informative issues, discuss things on as we see them and we try to provide a good baseline understanding some of these key issues. Todays panel is in the era of streaming who is a bigger music mogul, jayz or congress, and in conjunction with the congressional hearing caucus and the cochairs on this and inside or senator john thune and senator Patrick Leahy and the house side is anna eshoo and a few weeks ago the congresswoman announced that the congressman from georgia would be the cochair of the house side of the caucus and we are thrilled to have him. Without any particular policy approach or advocacy is a brave thing to do and they want to have more information and education on these difficult issues my name i is jimmy and im the director of the caucus academy. A little bit of housekeeping. It will be on cspan today lie on cspan. Org also tonight on time on cspan television. The hash tag today is music moguls and you can follow along at caucusac and we will broadcast afterwards. Let me start off by setting the stage. This is supposed to be an educational events. Congress has been very involved in music and a lot of people dont know that and a lot of people dont understand where congress is involved for the federal government and oversight of those things that you would be surprised to find that out. Wwe will go into more detail on that in just a minute. There are a lot of players in the marketplace an market this o understand. We didnt have the space for the time to do that so this is a good group of folks to my right is the executive Vice President. An artist and songwriter and producer and next to him is julia Vice President of the Global Policy profound exchange and she will explain kind of what that is and what that organization does. And then next to her is curtis who is the executive Vice President of the National Association of broadcasters. And then finally at the end, the senior policy counsel for the communication industry association, and then singer and songwriter so we are thrilled to have this group of folks. I guess we will do fine with a music mogul is. Its money, jayz, they reported that hes worth a billion dollars. Thats a lot. Congresss net worth, i dont know what his net worth is. Explains a lot. We can argue about that later. The Cultural Impact of jayz and people like taylor swift and other folks like that is part of our fabric of song and music and its hard to quantify that. But i think for the purpose of the panel we will probably talk about your power to control your creativity into music and that is where it gets a little bit interesting. Congress has tried to get involved to be a part of how musicians get compensated and how they control their copyright and that is the heart of what youre talking about as a music mogul wa that can control musicd the like. So, just to go way back like 200,000 years since the beginning of the species, phone and music has been such an important part of who we are. Its been around to tell our history and inspire us and its hard to underestimate the impact and influence of music and song when it comes to us as a species. But it hasnt been until recently we were able to start kind of controlling our music. Years ago when they were telling stories to music they were unable to copyright them and they were not able to record them. Unfortunately, at the beginning of the republic here in the United States and about 1790, there was the first copyright act during that time, Congress Actually gave a copyright for the composition, the notes and the lyrics of the music that somebody would write. And then finally come over the last century or so, we created new ways to keep that sound recording of that music and transmitted to a larger audience. As we broadcast radio and part of the 20th century. Then we had, Cable Television and then we launched satellites into space, and then eventually the internet came along. So there has been all those new development on how we can transmit the sound recording and thats where it gets really complicated. It was pretty easy 200,000 years ago, nobody had any right to do anything with a reason. They just sing songs around the camp fire. On the way over here, we all took a number from my office in the uber driver was really chatty and said where you going whats going on. And i said, were going to talk about music moguls in congress and he looked at me like i was crazy i said no really, and he said what to about. And i said turns out look at your dashboard, and he had all his apps on innocent every button that you see, is controlled by different regulatory regime. Artists and songwriters are compensated differently depending on the button push. Lets say you play all about that base by making trainer. And we had that one song in your to play that if you could on everything a bun that had, the competition for that would be very different for each one of the services. Youve a button that is a spotify off on your dashboard and thats what we would call interactive music streaming. You can actually specify which songs you want to listen to, megan trainer, justin bieber, you make your playlist. Then pandora app on his dashboard, that is what we call noninteractive streaming. It streams to you, you cant control it, but you get we get basically. Then theres another button with his itunes playlist, is a ready downloaded, he was able to play his entire playlist, thats a different regime because the songs that he had a copy of and stored on his computer. Then theres the fm button, if you pressed it and you get lucky and megan trainer comes on, that the same song for over a broadcast airway and it comes into your car with the tuner, and you tune your childhood and it catches the analog transmission and thats a different one. I think i captured his entire dashboard. Then theres the sirius exim satellite radio button and that is regulated a little bit differently. We wont talk about cable because its hard to drive, but basically thats kind of it. He looked at me like i was nuts but it is actually true. And we dont think about that and we walked on the street or gartner cars or listen to music, we dont give it much thought. But behind the scenes congress is heavily involved and flushes out a little bit more of who the players are, let me go to kevin, he will lay out who the players are, who they are and what the copyrights are involved in this. So last year i was running around working on the music modernization. And this is so competent, so i got the puppet. [laughter] so sally the songwriter comes up with notes and lyrics and to write the notes and lyrics down on paper, she has written a really great song. So to market the song and bring it to the marketplace to potentially get movies into get out audiences, she partners with the publisher. Do we have a publisher . Its a publishers job to help get that out audiences and she could potentially approach recording artist to see [laughter] okay, so she does a really good job, she is able to get we ricky the recording artist, and he agrees to record the song. And he goes into the studio and comes out with a complete sound recording. This is a different copyright. In the revenue for flows different. So ricky comes out of the studio with a sound recording hold on. Is ricky there. [laughter] ricky partners with a record label, the record label helps ricky market that sound recording. Then they sound the sound recording and a master for the sound recording in the intellectual copyright embedded in the sound recording. I want you to notice i want you to notice they have different hats. Red hat are the notes in the words, the musical composition, the teal hats, those of the sound recording. The performance is captured by microphone to magnetic paper to an audio file in the recording studio. When you think through life and think its really helpful to think through these copyright separately because licensing and compensation works different from each one. Money from composition goes to sally in the publisher rat. In most cases, a company that wants to use music cost to arrange a license for the composition and sound recorder. They had to make sure both sally and ricky get paid. There is one big exception, sometimes a Single Person will play multiple roles. For exhibit, sally may decide really talented, im going to choose to record my own song in a max of comfortable publishing it and releasing it commercially my cell. So she will act as her own publisher and record label. So she would wear all four of these hats but in that case it is still helpful in understanding how the licensing works to think through each one of the Revenue Streams differently. And to think through each one of those roles. Alternatively sometimes people Work Together to create a musical composition. You may have ten different songwriters working together to write a song with ten different publishers representing. Its important to crate systems to make sure all those folks get whatever money they earned in those circumstances. It has a lot to do with determining how much he gets paid and how the money gets to them. Congress has a role in determining what exists, what their offerings are, how much it cost and whether they have any special obligations to public in terms of localism diversity, user privacy, consumer disclosure about sponsorship. Congress can do this sometimes directly and sometimes in the oversight role over the federal agencies and jurisdiction. Then as new technologies are adopted, to mention that music licensing works different ways for different types of services and met lou noll loss to make sure the money goes were supposed to go. There like performing Rights Organizations. I go around to different types of services, i collect money from them, look red hat. And i pay sally the songwriter in the publisher. Those first were set up in the early days of radio and i we have four major performing Rights Organization on the composition side. And then, later on, julie will talk more, sound exchange was set up, the job is to pay these guys, the artist in the label. There you go. And most recently as a part of the music modernization act, a new body called the mlc was set up, and when thats operational they will collect mechanical royalties on the Digital Space from spotify, apple music, and these will be paid to the publisher and the publisher entered will pay the songwriter. I think thats good. Thats a good start. [laughter] [applause] thank you kevin. I was a little nervous about that but that was great. I think one of the things i mentioned, there are a lot of people that represent up there, a huge oversight that we dont have a performance Rights Organization, a pr rope. And is committed, that is either ascap, bmi, and i remember the of acronyms. Physicallybasically, lets go to elaborate on the sound recording side, i think recently you mightve heard that taylor swift had been upset that her first four albums had been left to control. Maybe allie can ask point what that means and kevin just had to keep a fictional sound recording there. Im happy to follow up on kevins presentation. As kevin mentioned, theres two copyrights, there is a composition news go work which is the songwriter writes a song, fixed into music or recording. That he showed all the different intermediaries the help license out the different rights. Then theres a sound recording side which is the artist and labels. One thing and not discussed, in addition to music, theres a copyright. In addition to being the two copyrights, copyrights are often described as a bundle of rights. So if your copyright owner, your exclusive right to do a bunch of different things. A right to reproduce, distribute, publicly perform, display, write to prepare drooping of works, those of the main ones. A lot of what we will talk about is a Public Performance part, private performance if you sing in the shower, you dont have to worry about copyrights, but the Public Performance part is a lot of what kevin was expanding to a vervarious different entities to license out services in order to make sure that the artist is getting compensated. Another thing were not getting too much today, this also affects any place where music is played. That is most restaurants or bars that have the radio or spotify or pandora or other Services Playing in there. That includes live music, so a lot of times these will have helped distribute these. So, as you mentioned the sound recording copyright just been in the news lately, talk of masters, asked her is the individual sound recording once its completed and everyone and all the people at the music producer labels has been completed. So were talking about copyright a lot, but theres also a lot of intersection with other areas of law including contract law, employment law, 70 different intersections that copyrights intersect with. So the master recording, a lot of times when artist, especially the beginning of their career will sign with different stakeholders in order to help fund making music. But its pretty standard for artist to not own these. Sometimes later in your career, we have to have the right terminated back to you or the power to buy the back when youre music mobile like rihanna. Hers is not able too so she had written about it, controversy about it. I think that shows us that even people that have power it can be really complicated figuring out who is able to retain these important pieces of music, but also is being transferred from one owner it did not really changed that much but it really helped that people talking about this issue a lot. Another thing that happened with master recently, mightve her, there was recording about 2008, that involves a lot of master recordings from iconic pre1972 music. It was really devastating. The music modernization act, we will talk more about later, did not change some of the things that affect daytoday music distribution, music reproduction and will help to bring together these different players, some of which are here, there are 70 people that are affected by music and owned different pieces of this music marketplace puzzle. But that is all as some of you may have known, from being in Congress Lost her, that was a pretty big thing that happened lester, there was a consensus bill where it changed some of the important music roles and built on a lot of the history that congress has had in the past so part of that is there rules for pianos and try to figure out how to supply the streaming. Its a really big challenge but a lot of people came in together and pass a consensus bill last year that will talk more about later. Thomas edison give us ability to record a sound into a sound recording like the masters. Over the years new technologies came along to take the sound recording and transmit it to audiences like radio, radio broadcast, telephone, the internet, satellite. As a happens over a pretty time, Congress Jumps into deal with the new technology and try to figure this out. Thats why it might become located. Allie just talked about the sound recording in the performance right, when you take the sound recording and send it over the internet or over broadcast, its a Public Performance. The other part as kevin detail, its actual notes that are written down. And actually create it. So people represent them, the National Association, not every songwriter is part of this, but a lot are. So daniel, if you can elaborate on the composition and what it means in white important in the different types of transmissions . Hey everyone, im dania, im from the National Music publishing association. We represent publishers and their songwriting partners, i will get into it a little bit more but there is a very songwriter based on a national, he says often hes testified on the hill under brick times that songwriting is americas smallest Small Business and its true. But also happens to be one of the most heavily regulated by congress. It has almost 75 of its revenue regulated by congress through various laws as well as will get into later that are governed by the department of justice. It is a very small industry. Its the entire industry, both the publishers and songwriters is probably two to 3 billiondollar industry in the United States. If you think about how you listen to music today, whether its apple music, sirius exim, you know that any of those companies, individually have multiple billions more than our entire industry. Yet whether or not its heavily regular. When you think about how you listen to music you probably dont know how mean just under music is originally created by songwriters and then to be distributive by publishers who help songwriters in more ways than distribution, they help songwriters create music and live while they are crating music, they help them partner with other writers so they could write songs, they help them partner with artist so they can record the song. All of that is heavily regulat regulated, and for the most part the royalties that are received by songwriters and Music Publishers are set by the government, they are calculated by the government and their calculated in proceedings that people like me and others have to go to every few years to actually do a trial to set what the rates will be. I think when you are think about daisies sound recording you think hes pretty powerful. But the funny thing is, if you thing about him for the songs that he is written, he is probably not as big as a music mobile as you think. For most of his rights for most of the songs that are played over spotify wrapper music he does not have a chance to say no you cannot use my songs if you dont use the rate that i think is a fair rate. He has to let those Digital Services use the songs and distribute the songs as a songwriter. So very briefly, i think theyve gotten to this a lot already. We will