Press Release
| Several NMPA Members File Class Action Lawsuit Against MediaNet Music Streaming Company Failed to Obtain Licenses |
|
WASHINGTON—Several members of the National Music Publishers’ Association today filed a class action lawsuit on behalf of music copyright owners against MediaNet, which operates an online music service, seeking damages, a declaratory judgment and injunctive relief to put an end to MediaNet's willful and ongoing copyright infringement. The named plaintiffs in the suit include Sony/ATV Songs, Peer International, Frank Music Corporation and MPL Publishing. “It is critical to the future of music that creators take a stand against free riders such as MediaNet that earn profits on the backs of others’ work,” said NMPA President and CEO David Israelite. “The case of MediaNet is particularly egregious because it offers copyrighted musical works to its partners and consumers knowing that it does not have permission to do so and that it is not compensating the copyright owners.” In 2001, NMPA and its licensing subsidiary The Harry Fox Agency, Inc. (HFA), entered into an agreement with the Recording Industry Association of America (RIAA) to license digital uses of its copyrighted musical works -- including limited downloads and interactive streams -- at rates only now being determined by the Copyright Royalty Board (CRB). A similar "rateless" deal was then offered to, and agreed to, by a number of digital media companies who have gone on to develop businesses based on this agreement. While MediaNet was originally covered under the 2001 agreement when owned by record labels, it refused to enter into a new agreement with HFA on similar terms when it was sold by the labels to a private equity firm, Baker Capital, in May 2005. Despite repeated warnings from music publishers that it is not properly licensed, MediaNet continues to operate its unauthorized music service directly and as a white-label provider to third parties who offer it to their own customers. The filing comes as the CRB is in the midst of hearings to determine mechanical royalty rates for the use of musical works, including by streaming music services such as MediaNet. MediaNet and other digital companies are represented in the proceeding through their trade organization, the Digital Media Association (DiMA). “DiMA members reaped the benefits of rateless deals for seven years, but now they have taken the position in the current CRB proceeding that music publishers and songwriters are not entitled to royalties for interactive streams,” Israelite said. “This is a flagrant and egregious violation of the agreements music publishers were willing to make in order to allow new business models to flourish to the benefit of music fans. These companies are now jeopardizing these services and acting not only in a manner harmful to songwriters and music publishers, but to consumers as well,” Israelite said. About the NMPA Founded in 1917, the National Music Publishers’ Association (NMPA) is a trade association representing more than 700 American music publishers. The NMPA’s mandate is to protect and advance the interests of music publishers and their songwriter partners in matters relating to the domestic and global protection of music copyrights. |
