Friday, January 8, 2021

So Much MMA and MLC Jargon!

When reading in the Federal Register the United States' recent interim ruling regarding the public musical works database and transparency of the mechanical licensing collective, I realized that it was so packed with jargon that it would be impossible for most people to comprehend.

Therefore, below is a mini-glossary of many terms one needs to understand in order to make sense of the new interim rule. If I missed one that you wish us to add, please request it in the comments below.



  • A2IM - The American Association of Independent Music (“A2IM”) is the U.S. trade organization of independent music labels.
  • API – An application programming interface, which enables the sharing of data between different software applications.
  • ARM - The Alliance for Recorded Music (“ARM”) is a nonprofit coalition of the RIAA and A2IM, which collectively represent the labels that own and/or distribute most of the sound recordings commercially produced and distributed in the United States.
  • ASCAP - American Society of Composers, Authors, and Publishers (“ASCAP”) is one of the two largest PROs in the United States.
  • BIEM - An international organization of mechanical rights CMOs
  • BMI - Broadcast Music, Inc. (“BMI”) is one of the two largest PROs in the United States.
  • CISAC - The International Confederation of Societies of Authors and Composers (“CISAC”) is an international network of authors’ societies.
  • CMO – A collective management organization
  • CWR – Common Works Registration (“CWR”) is a format used by publishers to provide musical works data to performing and mechanical rights organizations
  • DDEX – An organization with an internationally recognized standard for information in messages exchanged between DMPs and the MLC
  • DLC – In the entertainment industry this term ordinarily refers to “downloadable content,” but in the context of the MMA, it specifically means the licensee coordinator (“DLC”) designated by the Copyright Office to represent MLC licensees in proceedings before the Copyright Royalty Judges and the Office, to serve as a non-voting member of the MLC, and to carry out other functions.
  • DMP – A digital music provider
  • DQI – As used by the MLC, the Data Quality Initiative (“DQI”) is a way for rightsholders to compare their many musical works repertoire records to The MLC’s database and identify discrepancies that need to be resolved for both datasets to be accurate.
  • DPID – The DDEX Party Identifier is a unique code assigned by DDEX to each entity that sends or receives DDEX messages. The sender and recipient of a DDEX message are each identified via their respective DPIDs.
  • ERN – DDEX’s electronic release notification standard to enable record companies to inform DMPs about product releases
  • Ex parte communications - An ex parte communication is an oral or written communication made without proper notice to all parties and not on the public record, from an interested person outside the agency to a member of the agency, an administrative law judge, or an employee involved in the decision-making process.
  • Federal Register - The Federal Register is a daily Federal Government publication that provides a uniform system for publishing Presidential documents, all proposed and final regulations, notices of meetings, and other official documents issued by Federal departments and agencies.
  • FMC – In the music industry, this refers to the Future of Music Coalition (FMC), a US-based non-profit founded by musicians, artist advocates, technologists and legal experts to futher education, research and advocacy for musicians.
  • GEMA – A CMO based in Germany
  • Interim rule - When an agency finds that it has good cause to issue a final rule without first publishing a proposed rule, it often characterizes the rule as an “interim final rule,” or “interim rule.” This type of rule becomes effective immediately upon publication.
  • IPI - Interested Parties Information (“IPI”)is a unique code assigned worldwide to each stakeholder of a musical work by CISAC. Such IPIs identify interested parties such as authors, composers, adaptors, administrators, arrangers, publishers, subpublishers, associated performers, and translators.
  • ISNI - International Standard Name Identifier (“ISNI”) is a standardized unique code permanently assigned to a “contributor” to and distributor of creative works by an ISNI agency. Such ISNIs identify researchers, inventors, writers, artists, visual creators, performers, producers, publishers, aggregators, and others.
  • ISRC - The International Standard Recording Code (“ISRC”) is a somewhat standardized unique code permanently assigned to a recording by its first owner. Such ISRCs identify recordings across different exploitations.
  • ISWC - The International Standard Musical Work Code (“ISWC”) is a somewhat standardized unique code permanently assigned to a musical work by a local registration agency when a work is first registered. Such ISWCs identify songs or version thereof across different exploitations.
  • LabelName – DDEX metadata field to show the name of the record label for the relevant product release
  • LAD – January 1, 2021, the license availability date of the MMA’s first blanket licensing regime.
  • Library of Congress - The Library of Congress is the largest library in the world, with millions of books, recordings, photographs, newspapers, maps and manuscripts in its collections. The Library is the main research arm of the U.S. Congress and the home of the U.S. Copyright Office.
  • MAC – The Music Artists Coalition (MAC) is a digital rights advocacy organization for musical artists.
  • Marginal Cost – The cost for the supplier to produce one more unit of a good or service.
  • Metadata – Information about information or accompanying files
  • MIC – An American coalition of associations whose members use and perform music over airwaves, through the internet and in retailers, theaters, hotels, restaurants, and bars.
  • MLC – In the music industry, this refers to a mechanical licensing collective (“MLC”) established by the MMA (defined below) to administer the blanket license, receive notices and reports from digital music providers, create and maintain a publicly accessible database containing information relating to musical works, collect and distribute royalties, and identify musical works and their owners for payment. The U.S. Copyright Office (defined below) designated Mechanical Licensing Collective, Inc. as such MLC.
  • MMA – In the music industry, this refers to the United States’ Musical Works Modernization Act, title I of the Orrin G. Hatch-Bob Goodlatte Music Modernization Act, H.R. 1551. The law establishes a new blanket compulsory license that will be administered by a mechanical licensing collective, which will make available a public musical works database as part of its statutory duties.
  • NOI – Usually in the music industry, NOI refers to “notice of intent” to use a copyright. However, in other instances, including the recent Interim Rule that inspired this post, it refers to a “notification of inquiry” from the U.S. Copyright Office, which is basically a notice of The Office’s quest for information and/or commentary from stakeholders.
  • NPRM – A notice of proposed rulemaking or NPRM is the official document that announces and explains the agency’s plan to address a problem or accomplish a goal. All proposed rules must be published in the Federal Register to notify the public and to give them an opportunity to submit comments.  The proposed rule and the public comments received on it form the basis of the final rule.
  • The Office – In the context of the MMA, this refers to Copyright Office.
  • PII - Personally identifiable information
  • PLine – DDEX metadata field to indicate the year of first
  • release of an audio-only sound recording followed by the name of the entity that owns the phonographic copyright thereto.
  • PRO – In the music industry, this refers to a copyright performance rights organization or society, which licenses rights to publicly perform musical works.
  • Public Musical Works Database – Under the MMA, The MLC must establish and maintain a free-of-charge public database of musical work ownership information that also identifies the sound recordings in which the musical works are embodied, a function expected to provide transparency across the music industry.
  • Recording Academy – A U.S.-based society of music professionals including performers, songwriters, producers, and engineers.
  • Register of Copyrights - The Register of Copyrights is the Director of the U.S. Copyright Office and a recognized leader and lawyer within the U.S. government. By statute, the Register works under the general direction of the Librarian of Congress and carries out a variety of legal and policy functions that are enumerated throughout Title 17.
  • RIAA - The Recording Industry Association of America (“RIAA”) is the U.S. trade organization of major music labels.
  • U.S. Copyright Office - The Copyright Office administers the national copyright system and provides advice on copyright law to congress, federal agencies, the courts and the public.
  • SCL - Society of Composers & Lyricists (“SCL”) seeks to advance the interests of composers and lyricists working in the visual arts (e.g., film, TV, video games).
  • SFTP – Secure file transfer protocol
  • SGA - Songwriters Guild of America (and its predecessor-in-interest the Songwriters Protective Association (“SPA”)) have represented the rights of songwriters since 1931.
  • SNBL – A DMP that is a significant non-MMA blanket licensee because it obtained one or more voluntary, or direct, licenses from copyright owners and is therefore subject to earnings and usage reporting obligations which are separate from those under the MMA.
  • SoundExchange – The agent designated by the Librarian of Congress to administer sound recording performance rights in the United States, the organization collects and distributes royalties on behalf of recording artists and master rights owners.
  • SRCO – A sound recording copyright owner.
  • Statute – a law
  • UPC – A Universal Product Code is a unique code assigned to physical products in the United States by the GS1 global standards organization, which is headquartered in Belgium. Such UPCs convey data when scanned by retailers and marketplaces.

Sunday, December 20, 2020

Definition of Royalties



"Royalties" are earnings in exchange for the right to use intellectual property. 

Thursday, December 10, 2020

Upcoming Audit and Objection Notice Deadlines for P.E. 12/31

Attn. Counsel:

Wait not until March to enlist our assistance. Gratitude from your auditors, Boschan Corp. (424) 248-8866

Thursday, June 1, 2017

Copyright Infringement Remedies & Apportionment

It was my great pleasure to meet and speak yesterday with several copyright infringement experts at the Beverly Hills Bar Association.

L-R: Robert F. Helfing - Partner, Sedgwick LLP, Karen Vogel Weil - Partner, Knobbe Martens, Professor Richard Walter - Associate Dean, UCLA School of Theater, Film and Television, Cedar Boschan - Forensic Accountant and Expert Witness, Boschan Corp., Vera Golosker, Esq. - Attorney, Pierce Law Group LLP

L-R: Vera Golosker, Esq. - Attorney, Pierce Law Group LLP, Cedar Boschan - Forensic Accountant, Boschan Corp., Robert F. Helfing - Partner, Sedgwick LLP, Karen Vogel Weil - Partner, Knobbe Martens, Professor Richard Walter - Associate Dean, UCLA School of Theater, Film and Television

For those of you who missed this great program, below is an example of one of the visual aids I presented concerning apportionment:



Also, the program will be available to stream soon from the Beverly Hills Bar Association here.

Tuesday, May 23, 2017

The Beverly Hills Bar Association has invited our founder, Cedar Boschan, to speak about copyright damages at its upcoming May 31, 2017 program.  Click the link below to sign up:

https://www.bhba.org/index.php/component/jevents/icalrepeat.detail/2017/May/Wed/625/-/comprehensive-copyright-infringement-remedies



Cedar plans to share her experience and insights about topics such as:

- How how she renders an opinion regarding actual damages suffered by a Plaintiff as a result of infringement
- Factors she considers when it comes to apportionment (i.e., allocating profits derived from the infringement)
- How she has been able to show that an infringer’s gross revenue is or is not reasonably related to infringement
- Document requests and interrogatory questions she suggests attorneys make in order to help prove damages

See you there!


Friday, December 23, 2016

2016 Year in Review - Tech & Game News

Professionally speaking, in 2016, I found articles about in-app purchasesthe value of interactive game deals, pricing of bundles and discounting to be most relevant news to my practice of auditing game publishers and distributors, while right of publicity cases like this and this were most relevant to my forensic accounting work.

Further, followers of my tech feed on Twitter - especially game developer CFOs and attorneys - were most engaged by the following news in 2016, especially news reported by Gamasutra and VentureBeat:
There were many shares of information that did not engage readers, so I did not mention them.  What was the most interesting games earnings news story not mentioned here, especially those that pertain to royalties and/or damages?



Friday, April 22, 2016

Three Business Tactics From Prince

Just as Prince the musician was at once visionary, experimental, subversive and successful, so was Prince the business executive.  

The genius gift of Prince's music will be with us forever, but I also hope we remember some of the business tactics that seemed to serve him well:

·         Manage Supply – Prince strategically limited exploitations of his work and avoided overexposure in order to maximize the value of his music and brand

·         Embrace Change – Prince was not afraid to cycle through an array of advisors and business models in order to best support his individual career path

·         Activism – Prince was a fiercely outspoken artist rights and copyright advocate, which he leveraged to favorably renegotiate at least one record deal

What lessons have you learned from Prince and his great legacy?

Monday, April 18, 2016

Productions Running Away to... Birmingham, Alabama?

Dozens of post-production/visual effects houses in the Los Angeles area have gone out of business over the past few years - or moved to locations such as Canada that offer tax incentives to producers.

According to anecdotes from visual effects artists and others who were formerly employed in LA post-production houses like Laser Pacific, it seems that most of LA's post-production jobs had moved outside the United States.

So, during a recent trip to Alabama for the 2016 Sports and Entertainment Symposium (SES), I was surprised to learn that one of the beneficiaries of runaway productions has been Birmingham and it's rapidly growing post-production house, Red Sky Studios.

A photo posted by Cedar Boschan (@auditrix) on



Red Sky Studios' CEO Stephen Preston explains that Alabama's "film incentive covers 25%-35% of covered expenses."

A photo posted by Cedar Boschan (@auditrix) on



Should you have any questions about what Alabama production or post-production costs may qualify for Alabama subsidies and/or tax incentives, I met an accountant who audits production expenses to see whether they comply with the state law(s).  His name is Mark Underhill, CPA with Barfield, Murphy, Shank and Smith and I imagine he should be able to consult with you to answer your questions and ensure you or your client are complying with the relevant legislation.

Alabama's tax incentives and its growing track record of work (e.g., the visual effects in the movie Woodlawn, for example) are definitely driving expansion at Red Sky Studios, which is growing beyond Birmingham, Alabama;
Much of Red Sky Studios' work is performed on-site but some aspects are outsourced to foreign workers.


Red Sky Studios Woodlawn VFX Reel from Red Sky Studios on Vimeo.

On a private tour of Red Sky Studios in Birmingham, Alabama, we found the facilities to be nondescript (no sign out front) but impressive.

A theater and man at work at Red Sky Studios:




We hope Red Sky Studios enjoys so much growth that it opens an LA office.  There are plenty of underemployed visual artists and editors here, after all!

Saturday, January 2, 2016

2015 Year-in-Review: Music Royalties

Beyond Blurred Lines:


1. 2015 Year-In-Review: Live Music Preliminary numbers suggest that the largest component of the music industry may have continued its strong run in 2015, perhaps increasing by as much as 10% if preliminary reports are any indication.  

Pollstar says that the top tours of 2015 include Taylor Swift, AC/DC, One Direction, U2 and Foo Fighters were the top earners.  Plenty of commentators have problems with Pollstar's list, though.

Our post last September may interest those looking for deeper analysis:




2. 2015 Year-In-Review: Recorded Music
Preliminary reports from Nielsen and Billboard in 2015 were positive, showing streaming revenues continued to rise and and download sales fell in most genres.  Physical sales are mostly down, with a few exceptions (e.g., vinyl sales are up and WMG reports rising physical sales). (FYI, global recorded music sales totaled about $15 billion in each 2013 and 2014 according to IFPI.)

2015 was an especially good year for the growing sector of sound recording performance royalties. Major developments include:
  • In 2015, the USA's Copyright Royalty Board increased future royalty rates payable to SoundExchange for non-interactive audio streaming by webcasters like Sirius XM and Pandora
  • Sirius XM and Pandora settled disputes with rightsholders regarding historic uses of pre-72 sound recordings to the collective tune of $300 million
Our post last October may interest those looking for deeper analysis:

The RIAA's 2014 Reported Revenues Reveal the Growing Relevance of SoundExchange's Distributions of Sound Recording Performance License Fee Royalties 


Other 2015 notable record industry news includes:
  • Wu Tang Clan finally sold a sole copy of its album for $2 Million to notorious pharma exec./criminal defendant Martin Shkreli - click here for Bloomberg's report
 Click to View: 2015 Damages Year-In-Review
Click to View

3. 2015 Year-In-Review: Music Publishing
Globally, the latest figures from CISAC showed 2.4% growth to about about $9.2 Billion USD during 2014 (based on an estimated average exchange rate from Euros to Dollars of 1.329). Almost $8 in $10 global publishing revenue dollars represent performing rights license fees.

However, in the United States, The National Music Publishers' Association (NMPA) revealed in 2015 that domestic revenues fell 2.5% in 2014 to $2.15 billion.  

Domestically, about $5 of every $10 publishing revenue dollars represent performing rights license fees.  While "performance" and "other" revenues are growing, highly government-regulated "reproduction" revenues continue to melt away, representing a mere fraction of what sound recording copyright holders are able to collect via free market licensing.

Also, publishers aren't happy with the Department of Justice's position that any rightsholder can issue a license for 100% of a copyright. (See also 
The NY Chapter of the Association of Independent Music Publishers (AIMP)'s 2015 program on the difference between fractional and 100% licensing and SONY/ATV's Martin Bandier's letter).

Thus, publishers led by associations including the NMPA and the AIMP continued to seek in 2015 deregulation of both performance and reproduction licensing and royalty rates. For more details, check out Billboard's Cheat Sheet for Copyright Reforms: Radio Royalties, Simplified Licensing and More.

However, the music industry - especially the music publishing sector - does not have much funding to lobby lawmakers in Washington D.C.  During a talk at the Association of Independent Music Publishers (AIMP), NMPA's David Israelite pointed out that all songwriter and publisher groups combined spend only about one fortieth of the amounts that the MIC coalition spends on lobbying.





Speaking of the NMPA, 2015 was the end of an era for the organization, which sold its mechanical licensing and collection arm - The Harry Fox Agency - to SESAC, a performance rights organization which is not directly subject to the consent decrees under which ASCAP and BMI operate.



L - R: John JosephsonSam Kling & Dennis Lord of SESAC - seated with Michael Simon of The Harry Fox Agency (HFA) on the heels of SESAC's acquisitions of HFA and Rumblefish (Photo by Cedar Boschan)

See SESAC CEO John Josephson's vision for expansion in this article and this video. (The latter video is free to AIMP members, in which AIMP lunch attendees questioned Spotify's PDF statement formats to payees of non-HFA clients, which are inordinately expensive to process.  Also, certain audience members expressed dismay over the appearance of a conflict in HFA's audit of Spotify on behalf of HFA clients who pay HFA an 11.5% commission, in light of the fact that Spotify is itself HFA's client).

SESAC is but one example of the evolution in the music publishing rights marketplace. As another example, Kobalt, which has expanded into performance royalty collection, made a similar move in 2015, acquiring from Sindee Levin her US mechanical collection society, AMRA, a small HFA competitor.

In terms of judicial activity, some of the key music publishing cases this year include:

Many more copyright and music publishing cases appear on our rather uncurated listicle of damages news with which our readers engaged in 2015: