The Spotify Paradox: How the Creation of a Compulsory License Scheme for Streaming On-Demand Music Services Can Save the Music Industry

45 Pages Posted: 1 Feb 2015

See all articles by Jake Richardson

Jake Richardson

Gunderson Dettmer et al., LLP; University of California, Los Angeles (UCLA), School of Law, Students; University of California, Los Angeles (UCLA), Anderson School of Management, Students

Date Written: November 5, 2014

Abstract

The digitalization of digital media has repeatedly forced Copyright Law to address cutting edge issues of Law. The Digital Performance in Sound Recordings Act extended compulsory licenses to digitally broadcast media. Notwithstanding the complications intrinsic to this provision, the Act stopped short of creating a compulsory license for interactive and on demand services. Streaming services like Spotify, Rdio and now Google Play All-Access are transforming music distribution. Yet these companies are subject to a rate-hike cliff, whereby labels and copyright owners can license content to upstart distributors for relatively little compensation, only to subsequently raise these rates as distributional platforms begin to become profitable. To combat this phenomenon, a compulsory rate should be extended to interactive digital webcasters, and should be structured so as to incentivize both parties to negotiate for a fair rate, outside of the compulsory one.

Keywords: Streaming, Music, Compulsory, Spotify, CRB, Copyright, Royalty,

Suggested Citation

Richardson, James, The Spotify Paradox: How the Creation of a Compulsory License Scheme for Streaming On-Demand Music Services Can Save the Music Industry (November 5, 2014). Available at SSRN: https://ssrn.com/abstract=2557709 or http://dx.doi.org/10.2139/ssrn.2557709

James Richardson (Contact Author)

Gunderson Dettmer et al., LLP

1200 Seaport Blvd
Redwood Shores, CA 94063
United States

University of California, Los Angeles (UCLA), School of Law, Students ( email )

Los Angeles, CA
United States

University of California, Los Angeles (UCLA), Anderson School of Management, Students ( email )

Los Angeles, CA
United States

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