CREATIVE INDUSTRIES INFRASTRUCTURE

WEEK THREE/FOUR

Today's Class

Recap on what we regard as Creative Industries More information on DCMS (Department of Culture Media & Sport) Finalise discussion on Music Publishing Copyright Various other forms of Intellectual Property

Defining Features Of A Creative Industry

Here is the DCMS quote again:

Those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property

Based on the use of intellectual property Potential to create employment Originates from creative ideas

As you will remember from last week, the DCMS is the government department responsible for the Creative Industries. Other departments they are responsible for include: Broadcasting Licensing and gambling Libraries Museums & Galleries Sport Tourism Telecommunications & Broadband

Where Record Companies are in the business of making money from the copyright in sound recordings, Music Publishing is all about making money from the copyright in the song itself. When we talk about copyright in a song, we are usually talking about the music and the lyrics. History of Music Publishing and how it has evolved to today's business Main Streams of income: PRS (www.prsformusic.com ) MCPS (www.prsformusic.com) Synchronisation Sheet Music We will come back to PRS & MCPS later today.

Again, like Record Companies, there are major, multinational Publishing Companies, and they are as follows: Sony Music Publishing Universal Music Publishing EMI Music Publishing Warner Chappell Music Publishing There is currently a takeover of EMI Publishing being finalised with Sony Music Publishing There are of course many independent publishing companies, again, just like record companies.

Independent Music Publishers Like record companies, the independent music publishing industry is made up of thousands of companies, however, there are some big independent publishers: BMG Rights Management Kobalt Global Talent Bug Imagem Bucks

What is Copyright?

Copyright is a property right which covers original literary, dramatic, music or artistic works, sound recordings, films, broadcasts or cable programmes and typographical arrangements. As stated in a previous slide, in a song this covers music and lyrics We have Copyright so that people are able to enjoy the benefits of their own original work in the knowledge that it will not be pirated or exploited by others.

Ownership of copyright Doesnt have to be registered, it is an automatic right. For copyright to exist, it must be put down in permanent form. An idea in your head cannot be copyrighted, for example. Posting your work back to yourself using recorded delivery is a good way of showing when you created the work. Owning copyright gives you exclusive rights to it. Ownership can be split between more than one person.

Copyright Infringement

Infringement of copyright is simply using someone elses work either wholly or partly without the consent of the copyright owner. Examples of ways of infringing copyright could be copying the work, issuing copies of the work to the public, to perform, show or play the work in public, to make an adaption of the work etc.

Challenging Copyright Infringement

Copyright infringement cases are a matter for the high courts. However if you feel that infringement of your copyright exists because of a dispute with a licensing company or a collection society etc, then you can seek advice from the Copyright Tribunal.

Remedies to Copyright Infringement

Should courts decide copyright has been infringed, there are a number of possible remedies:
Grant an injunction to stop further use Award copyright owner damages Make infringing party give up the related goods sound recordings, close down websites etc.

There are ways of protecting your copyrights, to reduce the possibility of infringement: Conditional access technology protects creations such as broadcasts. Best example Sky or Virgin TV packages. Copy protection devices protects creations such as songs and sound recordings, ensuring that there is technology within the recording that makes it difficult to copy. Copyright notices symbols to show that something has been copyrighted and shouldn'tt be infringed. Digital rights management aims to limit what consumers can do with recordings and music once they have bought it.

As discussed already, there are two copyrights in a recorded piece of music: One copyright in the song itself, generally owned by a Music Publisher or the original songwriter, with revenue generally coming from PRS, MCPS and Synch fees. One copyright in the master sound recording, generally owned by the record company that the artist is signed to, with income coming from music sales, again Synch fees, but also from PPL. Lets take a look at these collection societies in the next slide:

Three main collection societies that have been discussed recently:

PRS (Performing Rights Society)

Members are composers, songwriters and music publishers

MCPS (Mechanical Copyright Protection Society)

Members are music publishers & writers MCPS & PRS work together as an alliance Is a subsidiary of the Music Publishers Association)

PPL (Phonographic Performance Limited)

Record labels and recording performers

VPL (Video Performance Limited)

Copyright in a Sound Recording expires 70 years after the recording was released. Copyright in a literary, dramatic, musical or artistic works (for example, a song) expires 70 years after the writers death. Upon writers death, copyright will be inherited by whoever the author has granted the rights to for the period up to 70 years after the authors death. Transferring copyright in a will is called disposition.

Its important to note that there are occasions when the author of a copyright may not necessarily be the owner of that copyright. For example: Assignment of copyright when you have sold your copyright to someone else (i.e. to a music publisher) When a piece of intellectual property has been created during employed time. In this case, it is owned by employer, unless agreed otherwise. When the intellectual property has been funded by another, for example a record company in the case of a sound recording.

Within the copyright of a musical work the author (the person who creates the work) has 2 sets of rights: The Economic Right the creator has the right to financially benefit from the work The Moral Right the creator has the right to be identified at all times as the author of the work (regardless of how many times the copyright is bought or sold) and to prevent it from being distorted or mutilated, this is sometimes known as the integrity right. The creator also has the right to ensure no one else is claiming authorship of their work. This is known as false attribution. An author can choose not to use moral rights. If this is the case, it is called waiving, and sometimes has to be done as deal breaker to a Music Publishing deal.

Theres two possible ways of handing over a piece of work to a third party

Assigning Licensing.

Assigning

Assigning is essentially selling the copyright to a third party. The copyright could be sold in whole or in part, in perpetuity or for a limited period. There can also be an agreement for all future works to be assigned to the third party as well, which negates any need for constant new agreements. All assignments must be signed over in writing by the copyright owner.

Licensing

Where assigning is selling, Licensing is more like renting, giving people permission to use the copyright according to the terms and conditions of the licence contract. Licenses may be exclusive, or nonexclusive. Again, any license agreements must be signed in writing by the copyright owner.

The digital music legislation that affect music businesses are part of the digital economy act 2010. The Digital Economy Act comes in the aftermath of the Gowers Review in 2006, and the Digital Britain white paper in 2009, and acts to work in conjunction with and provide amendments to the Copyright Designs and Patents Act 1988 and the Communications act 2003.

Obligations on internet service providers (ISPs) aimed at the reduction of online infringement of copyright

Power for the Secretary of State to obtain a court order to block an internet location that is being used in connection with copyright infringement
Increased penalties for copyright infringement

Based on the points on the previous slide, the overall impact that the act will have on the music industry is that there is now proper legislation in place for illegal downloaders and file-sharing:

A copyright holder can request an infringement list from an ISP. If a copyright holder finds that a subscriber has infringed, or allowed infringement of a specific copyright through the Internet, they can make a report within 1 month to the relevant ISP with evidence, referencing the IP address and time. There are no exemptions to this, and it does not matter whether the subscriber is aware of the infringement or not. The ISP will then be obliged to notify the subscriber by post or email. A description and evidence of the apparent infringement will be provided in the notice. Information about copyright laws and legal music services will also be included. Consequences for subscriber is that they could have their internet use suspended or slowed down, and / or fined anything up to 50,000.

Copyright is, of course, a type of intellectual property that exists world wide, some of the non UK legislation that is extremely current at the moment includes: Digital Millennium Copyright Act USA

Similar legislation to Digital Economy Act, for the USA European legislation for copyright, which incorporates various aspects of individual

Copyright Directive European Union

Other types of intellectual property

Aside from copyright, there are other types of IP that exist in the Creative Industries:

Patents Trademarks Designs

We will look at each of these in a bit more detail now. It is worth noting that copyright, is the only type of IP we are looking at here, which does not have to be registered. The three above, all must be applied for, granted, and registered.

Patents

A patent protects new inventions and covers how things work, what they do, how they do it, what they are made of and how they are made. It gives the owner the right to prevent others from making, using, importing or selling the invention without permission. Some of the top examples of patents include:

GPS Technology iPhone / iPad / iPods The Bar Code

Trademarks

A trade mark is a sign which can distinguish your goods and services from those of your competitors (you may refer to your trade mark as your "brand"). It can be for example words, logos or a combination of both. The only way to register your trade mark is to apply to us The Intellectual Property Office. You can use your trade mark as a marketing tool so that customers can recognize your products or services. UK Legislation that governs trademarks is Trade Marks Act 1994.

Trademarks

Trade marks are acceptable if they are: Distinctive for the goods and services you provide. In other words they can be recognized as signs that differentiates your goods or service as different from someone else's.

Examples Of Trademarks

Designs

What is a registered design?

It is a total right of ownership to the appearance of a product or part of a product. It lasts for five years at first but may be extended over four five-year periods up to a maximum of 25 years. Registering a design provides further protection over any protection which may exist automatically in the design. A registered design is a property which, like any other business commodity, can be bought, sold or licensed.

Some of the IP we have discussed today have symbols to show they are copyrighted, or registered. Some of the main ones you may see in the music or the creative industries are shown in the next few slides:

Copyright Symbol

Trademark Symbol

Registered Trademark Symbol

Sound Recording Copyright

Before we finish

Please take the time to revisit this PowerPoint on the blog before next weeks class. All of your PowerPoint's contain everything you will need to know to pass the assessment for Creative Industries Infrastructure. Any questions on anything between now and next week, please email.