Microsoft seemingly settles mechanicals lawsuit, as Google also targeted
The musician who has sued Tidal over allegedly unpaid mechanical royalties has seemingly settled with Microsoft over the same issue. In fact, it seems that John Emanuele is aiming for a full set of mechanical royalty lawsuits, with litigation launched against Google Play and Slacker as well as Tidal and Microsoft. I think if you sue them all you possibly get a free set of whisky tumblers.

As previously reported, John Emanuele of The American Dollar and his publishing company Yesh Music sued Tidal earlier this week, claiming that the streaming service had either failed to pay or had underpaid mechanical royalties due on the streams of his music.

The core complaint in the lawsuit mirrors that in the legal actions being pursued by David Lowery and Melissa Ferrick against Spotify, ie that the streaming services failed to comply with the administrative requirements of the compulsory licence that covers the so called 'mechanical rights' in songs in the US, and therefore streamed those works without licence.

That is basically copyright infringement. So, rather than the nominal mechanical royalties the plaintiffs may or may not be due from Spotify, Tidal et al, all three musicians are suing for statutory damages, which could be as high as $150,000 per streamed song.

The Microsoft lawsuit, filed last November, was based on streams serviced by Xbox Music - or what is now Groove Music - and followed a similar line to that filed against Tidal, ie that when The American Dollar provided their music to Microsoft's streaming platform via Tunecore, only the recording rights were cleared.

So the mechanical rights of the song copyright were not covered, and Microsoft was therefore obliged to either license those rights directly, or to comply with the terms of the compulsory licence, which requires the digital service to alert the copyright owner of its intent to stream their work.

As much previously noted, the licensing of mechanical rights in the US - which was handled by the record labels for both CDs and downloads Stateside - has long been inefficient, but has become a particularly big issue in the streaming domain, where the digital platform is the licensee.

The digital services argue that a lack of decent copyright data - in particular a database that states which song copyright is contained within any one recording - makes it impossible for them to file the paperwork required by the compulsory licence. There is some sympathy for that argument in the music publishing sector, though others say that the well-funded streaming firms should have done something to address this issue when they first launched in the American market.

Either way, while most streaming firms are so far fighting the mechanical rights lawsuits, Microsoft seemingly settled. Digital Music News has published a court filing from last month in which Yesh Music and Emanuele state that litigation against the IT giant was being "voluntarily dismissed with prejudice". The terms of any settlement are not known.

Emanuele also sued Slacker Radio on the mechanicals issue last month. Although, best known as a personalised radio service - which, under copyright conventions in the US, would only have to license the 'performing rights' in songs, not the mechanical rights - Slacker does offer a fully on-demand option. Meanwhile new legal action against Google Play was filed on Tuesday.

Quite how all this is going to turn out still remains to be seen, though I think we can now officially called the whole mechanical rights situation in the US a "shitstorm".

Russian court rules against labels in ongoing vKontakte dispute, IFPI announces appeal
The International Federation Of The Phonographic Industry has confirmed that Universal Music and Warner Music plan to appeal the latest ruling in Russia over the liabilities, or not, of social media firm vKontakte for all the music piracy that occurs on its networks.

As previously reported, Universal and Warner sued vKontakte in 2014, with the cases getting to court last year (Sony Music also sued, but settled). The initial judgement in the two cases was something of a mixed-bag, in that the court said vKontakte must do more to stop the unlicensed distribution of music over its platform, but refused to award the major music firms damages for past infringement on the social network.

Both sides then claimed victory in the case, with the record companies saying their key aim was to force vKontakte to stop the infringement on its networks, rather than to win damages, so they were happy with the result. The social media firm, meanwhile, said the lack of damages vindicated its arguments, and as for the order to do more to combat piracy, well, it was doing a whole load more already, so no real changes would be required.

Despite both sides claiming victory, the judgement was nevertheless appealed, and was therefore back in court this week, and this time the ruling was indisputably in vKontakte's favour. In two separate rulings - on the Universal and Warner cases respectively - appeal judges overturned the part of last year's judgement that said vKontakte must do more to combat piracy, but upheld the no damages bit.

The IFPI confirmed pretty quickly that both Universal and Warner would now appeal the appeal. The trade group's CEO Frances Moore told reporters: "These are disappointing judgments which are out of step with rulings both in Russia and around the world, and leave Russia as one of the very few significant music markets in the world that is dominated by a single unlicensed service. The decisions will be appealed".

Full details of this week's judgements, and the rationale behind them, are yet to be published. As previously reported, vKontakte has had runs in with various local and global music and other content companies, with a group representing the book industry recently seeking a web-block injunction against the social media platform in the Moscow courts.

--------------------------------------------------

Elvis Presley Enterprises suffers set back in long-running Sony legal battle
A New York court has refused to force Sony Music to reveal more information about the royalties it receives from exploiting the recordings of Elvis Presley.

As previously reported, Elvis Presley Enterprises went to court in December seeking access to Sony Music's accounts as part of a long-running and multi-layered contract and royalties dispute in Germany, which has being going through the motions for years.

The legal battle covers lots of ground, but in amongst it all are some common gripes from legacy artists earning royalties off old recordings, including how the labels share digital income (ie by applying the lower 'sales' rate used on CDs, rather than the higher 'licensing' rate, even though the labels' digital deals are licensing arrangements), and deductions that the majors make as income moves around the world.

According to The Hollywood Reporter, the New York judge refused to force Sony to share more financial information with Elvis Presley Enterprises mainly on the basis that, if such figures were required for the German case, then the German courts could demand they be released.

The Presley company argued that 'discovery' rules were narrower in Europe, but that didn't win any favour from the judge, who also noted that, since EPE filed its legal request in the US, some of its case in Germany has been dismissed.

HMV Hong Kong raises new finance through share sale
The private equity firm which bought the HMV business in Hong Kong and Singapore has announced it has sold just over 18% of the company to Japan-based World Innovation Lab.

As previously reported, AID Partners bought HMV's six stores in Hong Kong and two in Singapore in 2013 when the UK-based entertainment retailer fell into administration. The private equity outfit also secured the rights to the HMV brand in China, Macau and Taiwan.

AID Partners says that the $9 million generated by the share sale will be used as general working capital at its HMV company, while it hopes the alliance with World Innovation Lab, which has a number of investments in the technology and media sectors, will also bring to the table strategic expertise to help further develop and promote the business.

The Hong Kong-based HMV is a totally separate company to the UK business, which was bought out of the aforementioned administration by Hilco, which had already acquired the HMV Canada company two years earlier. As also previously reported, the Hilco-owned HMV has also begun a new round of international expansion, with the plan to move into new markets through brand licensing arrangements.

Facebook Messenger and Spotify solve the problem of it being easy to share music with friends
Messaging, eh. That's the thing, isn't it? The thing that's going to change everything. The day when people can share songs with each other while messaging their messages, that will be the day everything really changes. And never before has that been possible. Except when it was. But ignore that, because this is the day when everything is going to change. Because Facebook Messenger has gone and got itself some Spotify integration.

It couldn't be easier, either. Say you're chatting away with someone on the Facebook Messenger app on your phone, and suddenly you think to yourself, "I would love to share a great song, album or playlist with this person". All you have to do is click the 'more' button in the Messenger app (that's the one with three dots), then scroll down for ages to find the Spotify button. Then scroll down again when loads of other things in the menu expand and push everything else further down. Then maybe scroll down for third time to finally get there. And press 'open'.

The Spotify app will then load (assuming you have it on your phone, of course) and present a page asking you to search for something to share, and offer suggestions from music you've played recently. Once you've found your selection, press it and you'll be taken back to the Messenger app.

It'll then ask you if you want to confirm your post and, if you chose to do so, the person you are talking to will receive a picture of the artwork of the track you chose. They will then instinctively tap on the image, which will just open a slightly larger version of it. Once they've closed it, they will notice a tiny link at the bottom, which they can then click to open their own Spotify app and immediately play the music you've just sent.

It may take considerably longer than it would to just go and get the link yourself and paste it into a message, but this new way has the added bonus of having a picture attached and a link that is much harder to click than if you just sent the URL like you normally would.

Technology is so great. I really feel like I'm in the future.

Radiocentre welcomes OfCom's radio regulations report
Commercial radio trade group Radiocentre has welcomed a new report from media regulator OfCom on the regulatory framework covering commercial radio stations in the UK, and in particular the obligations put on AM and FM stations by their licences.

The big commercial radio groups have long been lobbying for a relaxation of the rules governing AM and FM stations which, the broadcasters say, now have to compete with digital and online radio-style services which are not subject to the obligations and restrictions of those broadcasting on the traditional analogue platforms.

Said rules have been significantly relaxed over the years, but some radio firms still want less regulation, mainly to allow more flexibility to change music and programming policies on the fly, and to network more programming to save money, so that content can be created in regional hubs even when a station is technically a local service.

The report from OfCom boss Sharon White, backed by research from Kantar Media, was requested by the government's media minister Ed Vaizey last year, and may inform decision making on how regulation of the radio market should now further evolve.

Radiocentre particularly notes Kantar's findings on commercial radio's local news provision which, the research firm says, reaches a large number of people, and a more diverse audience than BBC radio (in terms of age, social class and ethnicity), and which is seen by many as "more accessible" than print and online news.

But, says the report, "where local news programmes are made is of less concern to listeners than their quality and local relevance". Which is a key finding for those broadcasters seeking to make local news out of the local locale.

Welcoming the report, Radiocentre boss Siobhan Kenny said: "We welcome OfCom's report and look forward to the next phase of consultation when the government brings forward detailed proposals. This initial phase of thinking lays the ground work for developing a sensible regulatory framework allowing commercial radio to continue to compete and thrive in future".

--------------------------------------------------

Loud And Quiet to distribute in New York City
London-based free music mag Loud And Quiet has announced that it will start distributing in New York, with this month's edition - with Anna Meredith on the cover - already available in various venues, record shops, cafes and bars across Manhattan and Brooklyn. The magazine previously tested out the idea of distributing Stateside with a small pilot run, before kicking off full-on NYC distribution this month.

Confirming this, the title's founder and Editor Stuart Stubbs told reporters: "It's been an ambition of ours to get the magazine into New York for a few years. We feature a lot of bands and labels that are based there, and areas like Brooklyn and the Lower East Side of Manhattan have always seemed a perfect fit for what we do. We're hoping that fans of interesting new music over there will like it as much as they have over here in London and throughout the rest of the UK".

Commenting on other innovations in the pipeline, Stubs added: "We celebrated ten years of Loud And Quiet in 2015, which was a milestone we maybe never expected to reach. Alongside launching the magazine that we're very proud of in the States, our plans for 2016 include a number of exciting digital launches, which we'll be announcing within a couple of months".

Union J are still a thing, but 25% less a thing
Union J are now a trio, people. Or a trio again, if you follow 'X-Factor' history very closely, which we do not here at CMU. Plus the bigger news here is possibly that Union J are still anything at all. They've not split up! Except with George Shelley, who they've kicked out.

Speaking to The Sun, the remaining trio (the original trio, if you like) said that Shelley had to go because he'd shown a terrible lack of commitment. Terrible it was. After he went on 'I'm A Celebrity... Get Me Out Of Here' he seemingly got a bit too big for his boots. Because apparently being in a group most people think have split up and going on a programme many people think has been cancelled makes you the big man around town these days.

"I wrote a really strong email", said the group's Josh Cuthbert. "We basically gave him an ultimatum. It was, 'You're either in the band or you're not'. George was in a position where he did the jungle, he came off it and his head space was different to ours. Using a sporting analogy, he wanted to turn up to the big matches but not turn up to training".

"I would much rather have someone who wants to do it and is committed to do it", Cuthbert added. "I'm not going to lose any sleep over him not being in the band".

Fellow Union member Jaymi Hensley was less quick to write off his former bandmate, though, saying: "It's heartbreaking. I spoke to him the other day and I said I'm heartbroken over this. I am absolutely devastated. This is taking up all my time and affecting my home life".

Still, something had to give, he continued: "When you turn up to something and the other person can't be there, or they are turning up late, that makes you not love the project. One negative view can ruin it for everyone. I am bitter about things that have happened. He wasn't putting his full effort in. One member is not bigger than the band and we feel that there should be no member who is bigger than the project".

A spokesperson for Shelley, meanwhile, insisted this was a resignation rather than a sacking, saying: "George left Union J as he had been offered a two year contract with Capital Radio and a contract with the BBC. He wants to focus now on broadcasting. He is beyond charming and not a diva at all. The other members of Union J are simply jealous he has achieved the start of a new career and they have not. George had agreed to be totally magnanimous towards them".

How big of him.

BMG, Universal Music, Three Six Zero, more

Other notable announcements and developments today...

• Alistair Norbury, an ex-label exec and music publisher and, most recently, artist manager, has become EVP International Artists at music rights firm BMG, part of the company's plan to further expand its recorded music and artist services business. BMG boss Hartwig Masuch is "particularly pleased" about the hire.

• Universal Music has nabbed Sony Music's merch and trademark licensing dude Mat Vlasic to run its big merchandising business Bravado. He replaces Tom Bennett as CEO of the merch division, the outgoing chief being off to launch his own thing.

• Management firm Three Six Zero has only bloody well hired Amy Wheatley, previously off of Columbia Records, as its new Head Of UK Marketing, so that she can do some marketing gubbins with all of the agency's musical acts. Three Six Zero CEO Mark Gillespie is "delighted". Wheatley herself is - wait for it - yep - "THRILLED".

• Rhapsody saw its revenues rise just over 16% in 2015 while the streaming service's user-base went up 45%. Oh, and losses rose over 66% to $33.5 million. So, growth all round then. These figures come via a financial report from RealNetworks, still a key shareholder in the streaming firm, which operates as Napster outside the US.

• Spotify has landed itself a new Global Head Of Content Partnerships to be based out of New York. And who is it? Well, it's only bloody Tom Calderone, formerly President of VH1 which, for younger readers, is a thing called a television channel that plays music videos, like YouTube, but on a bigger screen and with no option to skip the shit.

• Surprise! Kendrick Lamar has released a new album after basketball player LeBron James told him to. 'Untitled Unmasterd' contained eight tracks and is available right now.

• Norway's Band Of Gold have been awarded the Nordic Music Prize at the by:Larm festival for their eponymous debut album, which judges praised for its "skillful, fascinating melding of varied styles and tropes".

CMU Beef Of The Week #296: Kanye West v Deadmau5
Kanye, Kanye, Kanye. What are we to do with you? Barely a day goes by at the moment without him saying something on Twitter that draws equal accusations of genius and idiocy. This week the tweeting sent him head to head with BOTW favourite Deadmau5.

It all started when Kanye posted a screengrab (well, photo) of his laptop screen showing that he was using YouTube to listen to Sufjan Stevens' heartbreakingly brilliant 'Carrie & Lowell' album. This would have been quite enough to send a lot of people into a spin, though it's worth noting that he was at least listening to an official upload of the album on the video site. But there was more to his 'screengrab' (shift + cmd + 4, Kanye. Come on) than that.

Having posted a picture of his entire screen, the other tabs he was viewing as he listened to that sweet acoustic music were on display. Browser tabs that seemed to show that Kanye had been inspired to make some new synth-based music. There was a tab with an info page for Xfer's Serum synth plug-in open. There was an article on 'the 50 best VST/AU plug-in synths in the world today', which contains a five star review of Serum. And in between the two was a Pirate Bay page which appeared to be offering illegal downloads of the software.

People noticed. Deadmau5 noticed. "What the fuck @kanyewest? Can't afford serum? Dick", he wrote bluntly.

Yeah, sure, Kanye might be $53 million in debt, but he should still be able to offset $189 against future Sufjan Stevens-influenced records, surely. Especially now all that good Tidal referral money is rolling in. And maybe he'll win some damages if he goes through with his threat to sue, erm, The Pirate Bay.

At this point, Kanye could have engaged in a debate about file-sharing, or denied that he was actually planning to download the software illegally, or any number of things. Instead the reply he went with was, "Is this person's name pronounced dead-mow-five?"

To be fair, it's a thought that's crossed all of our minds at some point, I'm sure. In a pondering mood, he began to wonder about Deadmau5's stagewear too. He continued: "# whose job is it to carry the head on the plane # hash tag # do you check the mickey mouse head or carry on # does it get hot?"

Yeah, no one said Kanye understands how hashtags work. But he was warmed up now. "Do you do birthday parties?" he asked. "My daughter loves Minnie Mouse. Can you please bring the Minnie Mouse head? Not yours, she specifically likes Minnie Mouse. I need you to perform at her party with specifically a Minnie Mouse dead-mow-five head... not a Mickey Mouse dead-mow-five head".

It's possible that Kanye was cleverly questioning Deadmau5's right to call him out for copyright infringement, when there have been accusations that his 'mau5head' stagewear takes food out of the mouths of Disney's babies. Or he might just have thought it was funny to pretend to try to book the producer for a children's party. Anyway, he finished, "I'm very detailed oriented and I will know the difference so don't try to just throw a bow on the original head"

Kanye also brought up the two artists' joint shareholder status at Tidal, claiming that Deadmau5's involvement in the streaming service had failed to drive very many downloads. Though, to be fair, the combined power of all the major artists who appeared at that embarrassing press conference when Jay-Z bought the streaming service haven't exactly managed to turn it into a world-beating digital set-up. Even the boost from the exclusive on Kanye's new album hasn't stopped speculation that the company won't last out the year.

Could Kanye have an idea to change that though? "I want to stream you performing in a Minnie Mouse head on Tidal", he tweeted. So, no.

"Imma let you finish... But you should probably be saving the money for a fourth grade education", Deadmau5 responded, adding: "I can out idiot an idiot. It's what I do".

It's not the first time Kanye West has been involved in a file-sharing controversy, of course. Way back in 2011, he was one of the parade of artists to appear in MegaUpload's 'Mega Song' video, shortly before the site was taken down and its executives arrested. Deadmau5 was nowhere to be seen, with any sort of mouse head or otherwise.

Meanwhile, the latest place West's 'exclusive' Tidal album 'The Life Of Pablo' turned up this week was on PornHub. It's been taken down now, but the site's founder reckons that an official release on the site would be the answer to all of Kanye's money worries.