[A2k] Merlin Cautions Members On Last.fm Program

[Anne-Catherine Lorrain]

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---------- Forwarded message ----------
From: Anne-Catherine Lorrain <aclorrain@gmail.com>
Date: 2008/7/15
Subject: Merlin Cautions Members On Last.fm Program
To: a2k discuss list <A2k@lists.essential.org>


*Merlin Cautions Members On Last.fm Program*
July 10, 2008 - Global
<http://www.billboard.biz/bbbiz/industry/global.jsp>| Digital
and Mobile <http://www.billboard.biz/bbbiz/industry/digital_mobile.jsp> |
Indies <http://www.billboard.biz/bbbiz/industry/indies.jsp>

   By Lars Brandle, London

Merlin, the global rights body for independent music, has alerted its
12,000-plus members to Last.fm's newly launched artist royalty program,
warning some of its license terms and conditions appear "ambiguous" and
"open to legal interpretation."

The London-based trade association made clear its concerns in a bulletin to
its membership, in which it highlights a number of reservations in relation
to Last.fm's initiative.

"The Program announced today does not appear to offer any compensation for
any past illegal use of repertoire," reads the Merlin memo. "It is unclear
to us whether or not the terms and conditions of the Program are intended to
prevent master owners pursuing such compensation."

Last.fm's artist royalty program claims to pay unsigned and independent
artists for each time their music is played on the free streaming music
service. Since it was unveiled in January, more than 450,000 tracks have
been uploaded by participating bands.

Merlin, which itself launched for business during the Midem trade fair in
January, has revealed it had been negotiating with Last.fm over the last few
months on a non-exclusive blanket license and a settlement agreement on
behalf of its members. "Unfortunately, these negotiations have stalled,"
Merlin explains, "in particular due to Last.fm's unwillingness to properly
address its illegal infringing activity."

A spokesperson for Last.fm tells Billboard.biz, "While we are disappointed
that Merlin is talking publicly about our discussions, we respect them and
their members, and will continue to work hard to close a deal with them."

Merlin concludes in its bulletin: "Several provisions of the licence terms
and conditions of the Program appear ambiguous and open to legal
interpretation. We note that this would tend to lead to uncertainty as to
the "true" meaning of the licence. The licence points out that if you are
unsure about any of it - 'You are advised to obtain independent legal
advice'. We would endorse that view."

Merlin president Charles Caldas tells Billboard the organization is close to
striking content deals with a host of key online music services, and is
negotiating with the likes of MySpace Music, XM Satellite Radio and YouTube.

http://www.billboard.biz/bbbiz/content_display/industry/e3ia9dec6e36d9df17496f128685373b60d


Anne-Catherine Lorrain
TransAtlantic Consumer Dialogue (TACD)
TACD Intellectual Property Expert
Avenue de Tervueren, 36 bte 4
1040 Bruxelles
Tel: +32 2 740 28 17
Mobile: +32 473 99 97 92
Cell (US): +1 (202) 390 6264