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Bertlesmann & KKR Launch Music Rights Biz

Bertelsmann AG and Kohlberg Kravis Roberts have creates a joint venture to develop a global music rights management business. Bertelsmann will contribute its BMG Rights Management music rights unit and own 49% of the joint venture. Bertelsmann AG's Hartwig Masuch, currently CEO of BMG Rights Management, will continue as CEO of the new company.

BMG had sold its recorded music holdings to Sony last year, but retained its signifigant publishing interests.

Franklins Row: The Publisher As The Label

"Where The Publisher Is The Label And The Writer Is The Artist"

That's the motto of Franklins Row Music Publishing. Formed by several songwriters, this innovative company hopes to combine the attributes of a music publisher with the distribution and marketing of a record label. They concentrate on the creation of singles by writers who are also performers and their model centers on the cost efficiencies of creating and releasing one song at a time.

But despite their new business model, Franklins Row has chosen a very old school approach to marketing. The company's first single, "Rock the Girl" by Mesh Lakhani began airing as 30-second paid promos on LA's 102.7 KIIS FM yesterday.

Warner Chappell Adds 3 A&R Execs

Music publisher Warner/Chappell Music announced several hires to its U.S. A&R team including the appointments of both Lee Dannay and Brad Aarons to Vice President of A&R and Peter Visvardis to Senior Director of A&R.

The trio will be responsible for working with the company’s existing roster of songwriters as well as identifying and signing emerging songwriters. All three executives will report to Greg Sowders, Senior Vice President and Head of A&R for Warner/Chappell Music.

Copyright Royalty Board Makes Few Rate Changes

There was no real game changer on Thursday as the US Copyright Royalty Board ruled that for the next five years:

• Mechanical download rates would remain at 9.1 cents per track
• Ringtone rates were set at 24 cents. This mirrors the industry practice 10% of revenue on a $2.50 ringtone and was actually higher than the 15 cents per song requested by publishers
• Following a joint industry agreement, services that stream music on the net will pay 10.5% of revenue minus the 5% paid in performance royalties retroactive to 2001.

Industry reaction:

EMI Music Promotes Three Executives

EMI Music Publishing has promoted three executives to key commercial roles within its Music Resources and Music Services divisions.

Jovanka Ciares has been appointed Vice President of Music Services & Licensing with responsibility for the company’s licensing and negotiations with national and global advertising agencies. Marty Fernandi and Eric Shaw have both been promoted to Vice President positions within the Music Resources team, working on new business development and creative music supervision with brands, agencies, video game developers and merchandising companies.

Scott Francis Now Pres. Warner/Chappell

Scott Francis has been named to the newly created position of President, Warner/Chappell Music, and Chairman and CEO, Warner/Chappell Music U.S. Francis, a veteran music publishing executive who previously served as President of BMG Music Publishing's BMG Songs North America division, will run WMG's U.S. music publishing operations as well as play a role in Warner/Chappell's global strategy. (press release)

EU Wide Music Licenses Approved

The European Commission has approved EU wide song licenses, a move sure to speed the growth of territory wide download, broadcast and music 2.0 services. Previously country by country licensing was the norm.

It's "a blessing for us," says 7Digital's Peter Davias. But some artists group disagree fearing EU wide licenses will lead to lower payouts. One bright spot for disgruntled acts: they can now sign with a right organization outside of their home country if they prefer.

Full EC statement

3 Truths About Last.fm's Royalty Plan

• Last week's announcement offering direct royalty payments to unaffiliated indie artists was not altruism as some would have you believe.  The laws require that they pay for use. Last.fm was simply circumventing established groups like Merlin that it has failed to come to terms with.

• By making a public offer to musicians it has also unilaterally created a base line for all future negotiations with other rights holders

• By speaking out, Merlin has turned successful negotiations with Last.fm a make it or break it issue for the fledgling group; who a year after its inception has yet to complete a single significant deal on behalf of its 12K indie members.

Tell us what you think of Last.fm royalty offer and Merlin's response in two quick Hypebot polls here as well as the comments section.

Royalty Rate Negotiations Bear Fruit

National Music Publishers' Assn. president/CEO David Israelite confirmed to Billboard that music publishers, record labels and digital music services have agreed on new royalty rates for the next five years limited downloads and internet streaming. The parties have not yet been abke to agree on rates for permanent downloads, ringtones and physical goods.

Because the U.S. Copyright Royalty Board is not scheduled to rule on new rates until October, the terms of the agreement remain confidential.

Universal Pictures Adds Music Execs

Harry Garfield has been promoted to EVP of Music for Universal Pictures and Eric Polin has joined the company as SVP of Music Publishing.  Both will report to Kathy Nelson, President of Film Music for Universal Pictures.

EMI Music UK Names McGoff SVP A&R

EMI Music Publishing UK, has appointed Kenny McGoff to head function as SVP, Head of A&R. He will report to EMI Publishing UK President Guy Moot and to be based in London. McGoff originally joined the company as A&R Manager in 2000, and has since signed UK songwriters including Arctic Monkeys, The Enemy, The Feeling, the Fratellis, Kasabian, Paul Epworth, Reverend & The Makers, Scouting For Girls and The Zutons. - MORE AFTER THE JUMP.

NOTE TO LABELS, PUBLICISTS, ETC: Despite the many stories we run on EMI, Hypebot is not partial to them. (We don't dislike them either.) It just that their press department does a better job of getting us timely info. Please make sure we're on your lists: hypebot-at-skylineonline-dot-com.

EMI Ups Sexton To EVP Worldwide Licensing

Cynthia Sexton has been promoted to EVP, Global Brand Partnership, Licensing and Synchronization for EMI Music.  In this expanded role, Sexton’s is responsible for worldwide licensing of all EMI assets for film, television and branded products and services.  She will also oversee new initiatives to develop relationships between EMI’s labels, artists and consumer brands. 

Equity vs. Cash For Rights Societies?

The major labels and publishers often get flack for stalling innovation with demands for large advances and other demands, and deservedly so. But performing rights societies, with their own complex set of rules and priorities are often a roadblock as well.

A new UK white paper proposes that performing rights societies consider negotiating for equity with music startups rather than a more specific payment structure. "Should Societies Pursue Equity?" acknowledges...

Music Publishing Fast Facts

• The Harry Fox Agency represents over 1.9 million songs from almost 35,000 music publishers for mechanical licensing within the U.S.
• Under American Copyright Law, mechanical licenses are required for music to be distributed through online music services.
• The current U.S. statutory mechanical rate is 9.1¢ for songs five minutes or less and 1.75¢ per minute for songs over five minutes.

Nate "Danja" Hill Dominates SESAC Awards

Songwriter/producer Nate “Danja” Hills took home top honors as Songwriter of the Year at SESAC’s 12th annual New York Music Awards last week in NYC. Hill had an impressive array of hits in the last year by Nelly Furtado, Justin Timberlake, Timbaland and 50 Cent.  Hills also won Song of the Year award for his smash hit, “Say It Right,” as recorded by Nelly Furtado.

See a full list of winners after the jump.

EMI Wins ASCAP Publisher Of The Year

Last night, EMI Music Publishing was named publisher of the year for a record 14th time by ASCAP at their annual Pop Music Awards. EMI songwriters including Fergie, Beyonce, Nelly Furtado and Stargate’s Tor Eric Hermansen also won ASCAP awards.

SpiralFrog Adds Warner/Chappell Music

SpiralFrog has signed a deal with music publisher Warner/Chappell Music to add their catalog to the free ad-supported download site's growing offerings.

Signing rights from music publishers is a critical element in SpiralFrog’s push to make ad-supported music downloading available. Licensing sound recordings and music videos requires more than just obtaining rights from the recording artists  and record labels. The writers and composers of the songs themselves must also be compensated and music publishers license these underlying compositions.

Ricall Signs Big Life & Blue Mountain Music For Licensing

Ricall, the UK based online music licensing company, has signed a deal with two independent music publishers - Big Life Music and Blue Mountain Music - to bring all the tracks from their catalogs including Bob Marley, Free, Snow Patrol, The Waterboys, Futureheads and Badly Drawn Boy onto their online licensing platform.

MediaNet Disputes Publisher Lawsuit

Several major music publishers have filed a lawsuit against white label download provider MediaNet Digital claiming the company was delivering downloads for Yahoo, HMV, FYE and others without the proper licenses.  Yesterday, MediaNet predictably fired back:

"This complaint is completely without merit, MediaNet and others were licensed by the NMPA to distribute musical works until a final publishing rate was established, and this remains the case. NMPA's suit and PR push is a transparent political move during the Copyright Royalty Board hearings to establish an industry-wide standard.

This is nonsense, and we look forward to the CRB reaching a final conclusion on rate standards."

Whatever its merits, the lawsuit comes at a critical time for MediaNet who is also facing the possible loss of its biggest customer Yahoo! to a Rhapsody or another competitor.

Publishers File Suit Against MediaNet

Several members of the National Music Publishers’ Association have filed a class action lawsuit against MediaNet seeking damages, a declaratory judgment and injunctive relief "to put an end to MediaNet's willful and ongoing copyright infringement". MediaNet delivers the downloads and tech that powers online stores for Yahoo!, HMV and others. Publisher plaintiffs include Sony/ATV, Peer International, Frank Music and MPL.

The suit argues that MediaNet was originally covered under a 2001 agreement when it was owned by record labels, the company has refused to enter into a new agreement since 2005 when it was bought by private equity firm Baker Capital in 2005.

The filing comes as the Copyright Royaly Board is in the midst of hearings to determine new mechanical royalty rates. Expect many more lawsuits as the value and importance of digital sales and music 2.0 services grows.  (more)

EMI Publishing Makes Senior A&R Appointment

EMI Music Publishing has appointed Declan Morrell as Senior VP, East Coast Creative in NYC. Morrell is currently SVP of A&R at EMI Music Publishing UK, where he was responsible for signing leading songwriters including James Blunt, Take That, Bullet For My Valentine and Busted. The New York A&R team also includes Jake Ottman, who was recently promoted to Vice President of A&R.