We just dove deep into how music licensing issues could hinder the mobile music market (See The Ringtone Money Grab). The WSJ Online has a column this week about why licensing issues, technical difficulties and label priorities are (still) keeping many bands offline. This unfortunate state of affairs is impeding the fight against unsanctioned distribution networks deep into 2005.
We wonder if a central clearinghouse for music needs to be created.
Before we get to that, the WSJ piece notes:
Whatever artist tops your want list, you've probably wondered: Shouldn't this be easier? What's going on over there at the labels, anyway? Can't the interns be any faster about ripping CDs or transferring master tapes or whatever else it is they have to do? And, of course, there's the awareness that those unavailable songs are somewhere on the various file-sharing services, where they'll cost you nothing -- except the possibility of winding up with a virus, caught by the RIAA, or living with the knowledge that you're breaking the law.
Yet:
The labels control sound-recording rights and typically license all the material to which they have digital rights for a one- or two-year period. Alas, older contracts didn't address digital rights, which accounts for some of the highest-profile digital-music holdouts, such as the Beatles. (This is a new version of an old fight: The Beatles were one of the last bands to agree to have their music issued on CD.)
Then there are publishing rights, controlled by tens of thousands of individual publishers. About two-thirds of them are represented by a single association, but hang-ups are by no means unknown. Publishing rights are one of the chief reasons cover versions of songs and songs that include samples go missing from the legal digital world.
The column interviews Kevin Arnold of the Independent Online Distribution Association (IODA) and Tim Quirk of Real Networks' Rhapsody. (Both used to work down the hall from each other at Listen.com).
Mr. Arnold notes that 1.5 million songs is currently the benchmark for an online service, adding that he believes that benchmark will be replaced by five million. But he notes even that will leave a lot out: Gracenote -- the service that in all likelihood does the magic of identifying the CD you just put in your PC -- has nearly 50 million tracks in its current database.
With those numbers, talk of filling in the gaps is a bit premature: Your favorite lost album may remain lost for a while yet as the labels and services continue to work, however slowly and maddeningly, on the construction of a celestial jukebox that really would have everything.
This all makes us wonder. Is there an opportunity for a technology company (or companies) to build and serve as a caretaker to a central clearinghouse for all digitized tracks? The clearinghouse could provide open access to all stakeholders and ensure that publishers, performance rights organizations, labels are artists were properly compensated and the track was used according to its set parameters. Theoretically, interoperable, open DRM systems could be applied tracks in this system if desired. And, within the system, publishers and labels could provide their own value-added benefits. Likewise companies like IODA would be able to use the system to accelerate exposure to the artists that they work with and services like iTunes could notify rights holders of marketing opportunities on their network.
There are registries for domain names and central directory for the RFID process. Could there be one for music? Should there be one? Even if it was a good idea, is it technically possible?
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