In today's CMU Daily: Sony is “considering all options” when it comes to the dispute between the US music publishing industry and Spotify. Sony Music Publishing CEO Jon Platt has confirmed to songwriters represented by the company that the streaming service has been paying a discounted royalty rate since March. This is because Spotify claims that its premium subscription is now a music and audiobooks bundle, a position Sony does not agree with

One Liners: beatBread appointment; KT Tunstall to receive Ivor for Outstanding Song Collection; Jet tour dates; new releases from Billie Eilish, Vince Staples, Tones And I, Hard-Fi

Also today: TikTok wants anti-ban lawsuits fast-tracked; Stream-ripping service returns to court over Rickrolling takedown notices; Live industry welcomes prison sentences for ticket touts

Plus: Setlist podcast on the Spotify audiobooks bundle dispute

Sony Music Publishing is "considering all options" in the Spotify audiobook bundling dispute

The boss of Sony Music Publishing has sent a memo to the company’s songwriters updating them on the new battle with Spotify. The dispute was prompted by the streaming service reclassifying its main subscription package as a bundle in order to reduce its royalty obligations to writers and music publishers in the US.

Sony’s publishing business, CEO Jon Platt says, is “considering all options” to stop Spotify from claiming it can pay the lower bundle rate, which, he reveals, reduces payments by about 20%. That could potentially mean the publishers going legal as well as collecting society the MLC.

The compulsory licence that sets what streaming services should pay writers and publishers in the US has a provision for bundles. Spotify is now relying on that provision on the basis it offers access to audiobooks via a standalone package and as part of its main premium package.

“We do not agree with Spotify’s position”, Platt writes. While the compulsory licence “allows for a discounted bundle rate in certain circumstances”, he adds, “we do not believe this offering falls within the parameters that were agreed” the last time that licence was updated in 2022.

Providing a brief summary of the new Spotify battle to date, Platt explains, “Late last year, Spotify added an audiobook offering to its premium subscription tier. Spotify then unilaterally reclassified their subscription product as a bundle. They claim this enables them to pay a reduced mechanical royalty rate. In effect, Spotify is taking the position that all US subscribers are part of a bundle without choosing the bundle option”.

“Beginning with their March 2024 accountings”, he goes on, “Spotify began to pay at the discounted rate that they claim they are entitled. This has the effect of reducing mechanical royalty payments to songwriters by approximately 20%. The reduction does not currently impact royalties outside of the US”.

The National Music Publishers Association - of which Sony Music Publishing is a key member - has been scathing about Spotify's bundling tricks, with its CEO David Israelite previously indicating that his organisation’s members might consider legal action.

Then, last week, the MLC - the collecting society that administers the compulsory licence - filed a lawsuit against Spotify. Core to its argument is that, under the compulsory licence, a bundle must include music and additional content that has “more than token value”. The argument goes that fifteen hours of audiobook access that most premium subscribers never proactively requested does not have “more than token value”.

After referencing the MLC’s lawsuit, Platt adds that Sony is also “working with the National Music Publishers’ Association and considering all options” to force Spotify to continue paying the standard mechanical royalty to writers and publishers in the US.

He also notes that a number of other grievances were raised by the NMPA last week regarding Spotify’s display of lyrics within its app, and use of songs in videos and podcasts. None of those uses of songs are covered by the compulsory licence and the NMPA claims that there are gaps in Spotify’s other bespoke licences with the music industry.

“Earlier this week the NMPA sent a letter to Spotify putting them on notice that there are unlicensed videos, lyrics and podcasts on its service”, Platt's memo continues, adding that that letter was “an important step to ensure that songwriters are being paid properly across all aspects of Spotify’s platform”.

terrible* // Finance Assistant/Bookkeeper (London)

Spiritmuse Records // Label Manager (London Hybrid)

Your Culture // Campaign Management Assistant (Brighton)

Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

Billie Eilish, KT Tunstall, beatBread + more

APPOINTMENTS

Funding platform beatBread has hired Julian Dunn as Director Of Business Affairs. “As a music lover, I'm excited about the opportunity to bring my expertise to a company that is advancing opportunities for independent artists and labels”, he says. “This is a fast-moving space and I'm looking forward to helping the company establish its in-house business affairs capabilities”.

AWARDS

KT Tunstall is to receive the Ivor Novello award for Outstanding Song Collection at this year’s ceremony in London on 23 May. "My relationship with the Ivor Novello Awards began eighteen years ago in 2006, with ‘Suddenly I See’ winning Best Song Musically And Lyrically”, she says. “My statuette has remained the most meaningful of awards to me and coming full circle to receive this Outstanding Song Collection award feels like such a gesture of appreciation towards my work since then”.

GIGS & FESTIVALS

Jet have announced their first full tour of the UK and Ireland for fifteen years. They will be over this way in October, culminating in a performance at the Kentish Town Forum in London on 12 Oct. Tickets go on general sale on Friday.

RELEASES

Billie Eilish has released the video for ‘Lunch’ from her new album ‘Hit Me Hard And Soft’. She’s also announced that she will be in the UK and Ireland for live shows in July 2025.

Vince Staples has announced that he will release new album ‘Dark Times’ this week. Out now is new single ‘Shame On The Devil’.

Tones And I has released new single ‘Wonderful’. She’s also announced that she will play The Garage in London on 24 Jul.

Hard-Fi has released their first new song in a decade, ‘Don’t Go Making Plans’. It’s the title track of a new EP, set for release on 1 Nov.

TikTok wants its legal case against US “sell-or-be-banned” law fast-tracked

TikTok has asked a Washington DC appeals court to fast-track its lawsuit that seeks to block the “sell-or-be-banned” law recently passed by US Congress. In that bid it is supported by the group of TikTok creators who have also gone legal over the ban and US Attorney General Merrick Garland, who is the defendant in both lawsuits.

“The parties respectfully request that the court expedite briefing, argument and decision in this case”, legal papers filed on Friday read. All three parties argue that they meet the three criteria for having a case fast-tracked: first any delay will “cause irreparable injury”, second the decision under review “is subject to substantial challenge”, and third the general public “have an unusual interest in prompt disposition”.

Under the law recently passed by Congress, TikTok’s China-based owner ByteDance has until 19 Jan 2025 to sell the app, otherwise it will be banned in the US. The law was prompted by concerns that the Chinese government has access to TikTok user data via ByteDance, something TikTok has repeatedly denied.

In their respective lawsuits, both TikTok and the group of TikTok creators argue that any sale of the app, even just within the US, is unfeasible. Therefore Congress has basically instigated a ban of TikTok which, it is claimed, violates free speech protections in the First Amendment of the US Constitution.

If the ban goes into effect, TikTok argues, it will clearly “face irreparable harm”. Meanwhile the TikTok creators will also “suffer irreparable harm because the act violates their First Amendment right to create, share and receive content through their chosen platform, TikTok”.

Both TikTok and the creators also “maintain that the act is subject to substantial challenge” for the reasons they set out in their respective lawsuits. And, “in light of the large number of users of the TikTok platform, the public at large has a significant interest in the prompt disposition of this matter”.

With the “sell-or-be-banned” law setting a deadline of 19 Jan 2025, obviously all parties would like a ruling on this dispute before that date. However, as it seems likely whichever party loses will then want to take the case to the US Supreme Court, ideally a ruling from the DC court of appeal is needed sooner.

In last week’s legal filing, a ruling by 6 Dec this year is proposed, which still seems quite some way away, but that’s a pretty fast turnaround in the context of court cases.

To achieve that, it is proposed TikTok and the creators would submit written opening briefs to the court in June, Gardland’s offices would respond in July, allowing TikTok and the creators to respond to the government’s position in August. Oral arguments would then take place on “a date as early as practicable in the court’s September 2024 sitting”.

Y2Mate returns to court in ongoing legal battle over Rickrolling takedown notices

The operator of stream ripping platforms Y2Mate and YTMP3 returned to court last week in its ongoing bid to identify which stream-ripping rival has been filing copyright takedown notices against its websites in a bid to hit its search ranking.

It requested and got subpoenas against Google, Namecheap and Cloudflare, all of which, it says, might have information that will help with its ongoing search.

The court previously ordered Google to provide more information about the suspect copyright takedown notices it had received against Y2Mate and YTMP3. The notices accused the stream rippers of copyright infringement, but didn't seem to come from actual copyright owners.

“After significant delays from Google”, Y2Mate said in a legal filing last week, “Google eventually produced very limited documentation about the senders of the notices, which contained what are suspected to be false email addresses for the senders”.

However, all those probably false emails were Gmail accounts, which is why Y2Mate reckons Google might have more information about the people behind the emails. It has also linked the various Gmail addresses to a bunch of domains which utilise the services of domain registrar Namecheap and internet services company Cloudflare. This is why Y2Mate thinks they too might be able to help it identify the rogue takedown notice issuer.

Usually it is record companies who are seeking to block or downgrade stream-ripping sites, which allow people to grab permanent downloads of temporary streams. The music industry argues that stream-ripping services violate copyright law. In countries like the UK, labels have sought web-blocking orders against such services.

Meanwhile, in the US, they might file copyright takedown notices to Google, seeking to get specific links removed from the search engine’s database. Under US law, search engines need to remove links to infringing content if made aware of them. They will also often downgrade sites that are subject to a large number of takedowns.

Y2Mate is used to being targeted by the music industry, but last year spotted takedown notices that seemed to come from an entity which didn't own any copyrights.

First, that entity filed a takedown against Y2Mate in relation to Rick Astley’s ‘Never Gonna Give You Up’, which suggested some sophisticated Rickrolling was going on. When Y2Mate sent a cease and desist letter to an email address linked to the takedowns, two days later a new copyright notice was filed linked to Cee Lo Green’s ‘Fuck You’.

More recently, last week's legal filing revealed, Y2Mate was “contacted by an individual making threats against the company that they would ‘spam negative links to your domains!!’ unless the individual’s demands were met”. Y2Mate said it “has reason to believe that this individual has been behind the actions forming the basis of this complaint”.

Issuing takedowns in relation to content in which you have no rights is in itself a violation of copyright law and on that basis Y2Mate launched legal proceedings against the rogue takedown issuer last year. However, to sue that entity, it obviously needs to know what that entity is.

The court granted subpoenas ordering Google, Namecheap and Cloudflare to provide Y2Mate with any useful information they have in relation to the email accounts and domains that have been identified, including IP addresses, names, mailing addresses and telephone numbers. However, any payment information, including bank account details, need not be shared.

Setlist Podcast: Music publishers go to war with Spotify

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss the battle between music publishers and Spotify over it’s plans to reclassify its subscriptions as bundles of music, audiobooks and podcasts, and commercial media companies hit out at the BBC’s plan to sell advertising on its podcasts.

🎧 Click here to listen - or search for 'Setlist Podcast'

Live industry welcomes ticket tout prison sentences

The music industry has welcomed the sentencing of four people involved in a £6.5 million fraudulent ticket touting operation. The judge overseeing the case handed down prison time of between one month and four years to four people previously connected to TQ Tickets.

Ed Sheeran’s manager Stuart Camp said he hoped it would set “an important precedent in the live music industry”. Meanwhile, Sheeran’s promoter - Stuart Galbraith, CEO of Kilimanjaro Live - said that the court decision was an important one for the live music industry and “good news for live music fans”.

“For Ed Sheeran’s 2018 UK Tour we helped thousands of fans at our ‘Victims Of Viagogo’ kiosks at the box office, where we reissued 6300 tickets and helped people get over £600,000 in combined refunds from Viagogo”, Galbraith added in a statement. “But this only helps victims after the crime, which is why we welcome today’s sentences and the strong message it sends to greedy ticket touts looking to exploit genuine live music fans”.

Camp continued, “We want to keep ticket prices accessible for as many people as possible and hope to get everyone a good seat at a fair price. Today’s sentences send a strong message, which I hope will help protect music fans and set an important precedent in the live music industry”.

Maria Chenery-Woods, her husband Mark Woods, sister Lynda Cheneray, and Chenery’s former husband Paul Douglas were all convicted of running the ticket touting operation. The court heard that they used a number of fraudulent practices in order to profit from selling tickets on resale sites such as Viagogo, Seatwave, StubHub and Getmein.

This included employing an array of tactics to circumvent ticket purchase restrictions on primary sites, including using a network of “corrupted” students.

They then used fake identities to sell the tickets at huge markups, and also put tickets up for sale before they had even sourced them. In some cases, where they failed to acquire tickets they had sold in this way, they would send out empty, ripped envelopes to make it look like the tickets had got lost in transit - something they referred to as “doing a fraudie”.

Chenery-Woods, who pleaded guilty before the start of her trial, received the harshest sentence, with four years in prison. She was also disqualified from being a company director for ten years. Douglas, who also pleaded guilty, was sentenced to two years and five months and disqualified from being a company director for six years.

Woods and Chenery were found guilty at trial. Woods received a two year prison sentence (suspended for two years), was disqualified from being a company director for four years, ordered to do 250 hours of unpaid work, and given an electronic curfew between 8pm and 6am for four months.

Chenery was given a one month prison sentence (suspended for two years), disqualified from being a company director for three years, and told to undertake 180 hours of unpaid work and to complete 20 days of rehabilitation.

Arrests were made in 2017 following an investigation by National Trading Standards. Chenery-Woods - who went by the nickname Ticket Queen - had already been named as one of the country’s most prolific touts in an article published by The Observer the previous year.

Chair of National Trading Standards, Michael Bichard, said that the sentencing “marks another significant milestone in our work to combat online ticket touts, which has already resulted in landmark prosecutions, and sends a clear message that criminals trying to rip off honest fans risk prosecution”.

Earlier this year, the Labour Party committed to introducing a price cap on resold tickets if they win the next General Election later this year. Labour leader Keir Starmer said his party would pass new laws that would mean touts could only sell tickets for 10% above the face value.