Monday, May 17, 2010

ASCAP Gets Slapped For It's Greed...

That two-year old court case that ended in defeat for the American Society of Composers, Authors and Publishers (ASCAP) should be a precedent-setting decision made in uncharted waters. The disagreement was based on whether mobile should generate more revenue than other traditional media, like radio or TV. When ASCAP was challenged about the $41 million tab they imposed on MobiTV for 8 years of mobile royalties, a New York U.S. District Court Judge ruled in favor of MobiTV and found that mobile is like any other delivery technology from cable TV to satellite. That $41 million has shrunk to a more manageable $300,000. MobiTV CFO Bill Losch is pleased with the court's decision: "I think from our perspective we definitely feel we should pay a fair price, but what ASCAP was proposing was not only out of the realm of possibility, it was also a completely different model than the accepted model. We are a leader in the space as far as content aggregation, and we felt it was important for them to establish a precedent." Am I the only one who sees more precedent establishing decisions on the horizon???

Where ASCAP went wrong was asking for a higher royalty rate and off of a different revenue base that was much larger. A traditional cable operator normally pays different rates for different content, typically a fraction of a percent. ASCAP proposed charging rates based on what the end-user pays in subscription feeds, not what MobiTV was paying for the content. That was a much larger revenue base. Based on those two factors alone the fees were drastically different. What ASCAP was doing was making up their own rules, which doesn't work unless your name is Gordon Gekko...

Since everything is negotiable and there is no rate rulebook for royalties, the ASCAP v MobiTV case will be played out again and again. Only the names of the litigant and defendant will change...

Timeline Memories...

1.1792] NYSE sighting: The New York Stock Exchange is founded by a couple of dozen brokers meeting under a tree on what is now Wall Street. They were probably out of work. This is what they created...
2.1846] Safe Sax: The saxophone is patented by Antoine Joseph Sax...
3.1875] Derby 1st: Aristides wins the 1st Kentucky Derby...
4.1939] Peanuts, popcorn, Cracker Jacks and TV?: Princeton beats Columbia 2-1 in 10 innings at Baker Field in the 1st televised baseball game on experimental W2XBS. This was the New York Times review: "It is difficult to see how this sort of thing can catch the public fancy" (gulp)...
5.1970] Hammerin' Hank: Henry Aaron singles and homers in a game against the Reds giving him 3,000 hits and 570 home runs. Only two other players have had 3,000 hits and 500 or more home runs: Willie Mays and Eddie Murray. Barry Bonds fell 65 hits shy of that mark...
6.1973] Scandalous: The Senate begins hearings into the Watergate scandal...
7.1983] Getting out the broom: The Islanders sweep Edmonton in 4 games to win their 4th consecutive NHL Stanley Cup. Only Montreal has done better, winning 5 in a row (1956-1960)...
8.1992] "Happy Trails": Bandleader Lawrence Welk dies of pneumonia at 89...2004] Tony Randall passes away at 84 of complications brought about by pneumonia...
9.1996] This one's for Megan: Bill Clinton signs legislation authorizing "Megan's Law", named for 7-year old Megan Kanka from New Jersey who was raped and killed in 1994. This law requires neighborhood notification when sex offenders move in to a neighborhood...
10.1998] Perfecto: David Wells pitches a perfect game as the Yankees beat Minnesota at Yankee Stadium. It's just the 13th perfecto in the modern era of baseball...

Music Memories:

1963] On the way to Monterrey: Joan Baez headlines the 1st Monterrey Folk Festival. The festival also features: Bob Dylan, making his west coast debut, Peter, Paul and Mary and The Weavers...
1973] Released on this date: "You Are The Sunshine Of My Life" - Stevie Wonder...1975] "Captain Fantastic and the Brown Dirt Cowboy" LP - Elton John (the LP is certified Gold when it ships)...1975] "I'm Not In Love" - 10cc...
1974] #1 on this date: "The Streak" - Ray Stevens. Boog-uh-dee, Boog-uh-dee...1983] "Let's Dance" - David Bowie...
1980] On "Saturday Night Live": Paul and Linda McCartney are the musical guests...

Commentary:
A tribute to Shadoe Stevens will take place on Tuesday, June 15th at the Silent Movie Theatre in Los Angeles. The tribute will feature 'Federated Group' Commercials Best Of & Shadoevision. One of the most berserk, outrageous and unforgettable TV comedies of the 1980's doled out thirty seconds at a time will be featured along with other wacky delights. Shadoe Stevens will play a mime playing Shadoe Stevens. For more information and a free translation of the tribute, call 323-655-2510 or go to http://www.cinefamily.org/ ...


"Happy Birthday...happy birthday":

Craig Ferguson (48), Enya (49), Sportscaster Jim Nantz (51), Bob Saget (54), Sugar Ray Leonard (54), Taj Mahal aka Henry St. Clair Fredericks (68) and Dennis Hopper (74)...

Timeline Countdown: 1 days until Memorial Day,, 34 days until Father's Day & 35 days until summer...