I'm starting a digital download service, due to launch in a few weeks. we're negotiating licensing agreements directly with independent labels and unsigned artists. our standard contract contains a clause that states: the format of the site is that customers will be able to preview in their entirety individual tracks, but will not be able to download them. tracks available for preview will not automatically play on after the other, rather the user must click the next song to hear it. our understanding of the DMCA, CARP and DPRSA is that with these restrictions we do not qualify as a webcaster and so no performance royalties would be due in any case. however the law is vague, and i wondered if this is why sites like iTunes, amazon, tower, etc limit previews to 30 seconds, or is this just a practical consideration having to do with bandwidth?
You really owe it to yourself to contact an entertainment attorney and pay for a little advice. This can be an EXTREMELY complicated area. As for iTunes, I can guarantee you Apple isn't worried about bandwidth. More likely, the labels require them to only allow clip previews for free.
we've got a good attorney, and the question only recently came up in negotiations with particular label. my suspicion w/ regarding the 30 preview is that apple/amazon, etc. are afraid a user will somehow capture the stream and so will avoid paying for the track.. of course, the captured stream would be of extremely low quality, but there are users for whom that doesn't matter. another possibility is that apple, like amazon and tower, uses muze to provide the preview clips, and that's how muze provides the data. ultimately the answer lies in what constitutes a "preformance" of a song. theoretically, a panhandler on the subway singing "i'm an errand boy for rhythm" owes ASCAP and the Nat Cole estate a royalty for the performance of that song. the questions is, does offering a web preview of that song by john pizzarelli obligate me or the recording rights holder to pay ASCAP the same performance royalty. the answer hinges on whether the preview qualifies as a webcast, in which case the answer is probably "yes." in apple's case, i imagine that 30 seconds is all they've been licensed for by the recording rights holder (record label) and there is no royalty due to the song rights holder.
You'll really want to talk to the labels about it and get their opinion. For that matter, call ASCAP and BMI and speak with their legal group. I'm sure they can provide those answers as well.
Have you talked to any Rap Labels? If so what are they? Also if you want some good music, I'll give you all my music for free of charge. They aren't bad at all.
if you've got samples, email me through the bbs and we can talk- we're definitely looking for unsigned talent. haven't spoken w/ any rap labels, and currently don't have plans to do so, though that could change.
