"Sampling and New Independent Dance Labels: The Importance of Understanding Copyright Law"
by Jenna
Bruce
Music Industry Law Correspondent
Long Buckby, Northamptonshire, UK
September,
2002
This
article considers whether those founding and operating new
independent record labels specialising in 'dance music' genres have
sufficient knowledge of legal issues relating to copyright law, and
in particular, the sampling of music. With the rapid technological
advances of recent times, the accompanying issue of how much is
actually known about relevant copyright law has tended to be somewhat
overlooked. Consequently, many dance music record companies have had
to subsequently overcome legal difficulties relating to sampling.
Samples can generate considerable income for the original copyright
owners, and for those who ignore clearance procedures, the issue of
brevity often affords no legal protection against infringement
proceedings. (N.B.: The context of this article relates solely to UK
Copyright Law and is based on interviews with a number of UK music
industry professionals.)
Copyright in the UK
Great Britain was the first country in the world to establish a formal copyright law (Statute of Anne, 1709). Generally speaking, copyright law serves the fundamental purpose of protecting creative works from misuse and unwanted exploitation, and in doing so allows the creators to generate income from their works. It could be argued that copyright protection, and its subsequent provision of economic incentives, were underlying factors which drove Britain to become the world's first industrialised society, and to proceed to use this wealth, confidence and influence to found an Empire (incorporating the US colonies, India, Australia, Canada, South Africa etc). The legacy of British notions of copyright continue of course be witnessed today, in language, in thought and in statute, throughout the Western-world, among the English-speaking peoples and in many other territories.
A series of domestic copyright laws (most notably in 1911, 1956 and 1988) have continued to strengthen and protect the rights of creators.
Copyright in the UK is deemed to come into existence automatically when a composition is created (section 3[2] of the Copyright, Designs and Patents Act 1988), provided that it is preserved in a tangible format - as with a CD recording, or sheet music, for example. The Copyright, Designs and Patents Act bestows on rights owners the ability to undertake what are called acts restricted by copyright (section 16[1]). These are the (five economic) rights to:
1. Copy the
work
2. Issue copies of the work to the public
3. Perform, show or play the work in public
4. Broadcast the work or include it in a cable programme
5. Make an adaptation of the work and do any of the above in relation to such adaptation
In order for another party to carry out any of these activities, they must first gain consent from the original copyright owner, or their agent (such as the Performing Right Society [PRS] or Phonographic Performance Limited [PPL] for broadcasting and public performance use). Failure to do so may constitute an infringement of the copyright in the work, and the party found to have misused the copyright may perhaps be subject to legal proceedings.
However, the infringement must relate to a substantial part of the original work. Furthermore, what is regarded as substantial is not definitively set out in statute, and Wall (1998: 131) observes that it is impossible to define this concept other than in relation to a particular work and the circumstances involved. This means that each case is decided on its individual merits, based upon the context, and often involves calling for expert input from musicologists. Sampling of certain musical sounds (e.g. drum loops) can be very difficult to trace back to an original source if 'lifted' from an existing sound recording. Frith (1993: 7) discusses the concept of substance, and concludes that a more significant concept is recognisability - which applies when, on hearing a bar of music, a listener can easily identify a similar sounding piece of music. This whole concept particularly applies to the sampling of music (and involves correctly identifying the original composition).
When assessing the level of damages in any possible copyright infringement case, it is worth remembering that the UK has no concept of 'statutory' damages or formulaic parameters for calculating these. Instead, any award of damages is usually arrived at by an individual judge on the basis of the material gain derived from the infringement. Note also that the UK, at present, actually has no formal copyright registration facility or procedure (in sharp contrast to the role performed by the Library of Congress in the USA).
Sampling
Sampling can be undertaken in a number of ways. It may involve the simple extraction of a section from an existing sound recording. Alternatively, it may involve the recreation of a specific portion of music or lyrics. The former case is a breach of phonographic copyright and the songwriter's rights, whilst the latter involves a breach of the songwriter's rights (as no sound recordings are actually involved).
Sampling is no new phenomenon, and indeed has occurred regularly since the 1960s. However, with rapid technological development since 1985 (Low: n.d.), the necessary technical equipment facilitating the sampling of various parts of existing compositions has become more readily available to music users and producers. The ease of portability, and the falling cost of purchasing this equipment, has enabled the creation of music in the ordinary home - with technology that would previously only have been found within a professional recording studio environment. In the late 1980s, Bentley (1989a: 113) recognised that technological change was an important factor, which has especially been felt by the pop industry recently. Sampling, he pointed out at that time, has become the fashion.
Importantly, Low insists that sampling has created several problems in the field of copyright law. The main problem appears to be with the interpretation of the law regarding what is, and what is not, protected by copyright. Songwriters clearly wish to be recognised as the creators of their works, and to protect and earn income from their works. Increasing numbers of young music users, however, wish to acquire and use music for free, and many are unaware of the full implications of creators rights - especially with regard to using samples of another composers music.
There appear to be two moral opinions regarding sampling, which Victoroff (1996: 82) explains concisely: At its best, sampling benefits society by creating a valuable new contribution to modern music literature. At its worst, sampling is vandalism and stealing .
These opinions depend on the viewpoint of the person passing judgement. Some originators of music believe that wherever, and to whatever extent their work is used, they should receive appropriate payment. On the other hand, those undertaking the actual sampling often regard themselves as being creative in their own right, even if there is some small debt to the musical idiom of another composer. Low comments that, to some extent, all music is essentially derived from other peoples ideas, anyway. From a historical perspective, musicologists have shown that a number of Georg Frideric Handels compositions owe a great debt (often literal) to his Italian contemporaries - and, perhaps, were he to be alive and composing now, he may have had several writs launched against him for infringement of copyright under todays laws. As the human audio range is so limited, it is also perhaps inevitable that 'soundalikes' will occasionally occur. Likewise, music is not created in a vacuum. Instead, the music creator is exposed to a variety of influences, which, intentionally or subliminally, may ultimately manifest themselves within their creative output.
In 1987, celebrated UK record producer Pete Waterman stated that excessive sampling was harming the music industry, and that clear guidelines urgently needed to be established (Anon 1987b: 1). With its core functional interest in collecting mechanical royalties for publishers and composers, Britain's Mechanical-Copyright Protection Society (MCPS) backed up Watermans views, as did Tony Prince of the Disco Mix Club. Watermans plea was renewed in 1990, in a further article in Music Week, (Anon 1990a: 3), and then, in the same year, music publishers looked towards ending what they saw as unlawful sampling (Anon 1990b: 1). Music Week highlighted the success of dance music as a contributory factor to increased sampling, and cited John Fogerty as saying that the new breed of artists dont seem to understand or want to understand the whole essence of copyright what we must do is educate people .
Twelve years on, has this situation been rectified?
The Music Industry and Dance Music
Contemporary dance music has a strong emphasis on the grass-roots impetus. Consequently, the barometer for success is quite often, in the first instance, the dance floor (be it in the UK, or in popular Mediterranean resorts frequented by young UK tourists - such as San Antonio [Ibiza, Spain], Ayia Napa [Cyprus] or Faliraki [Rhodes, Greece].
Perhaps it is partly due to this 'limited' and 'localised' initial approach, that a cavalier attitude to sampling is prevalent in dance music. This often manifests itself in the form of 'white label' releases (limited 12" vinyl with minimum packaging, and sometimes only with a mobile phone number for contact purposes). These white labels, if containing unlicensed samples, are of course in breach of copyright - regardless of the scale of their initial manufacturing run or the extent of their publicity horizon. If the 'trial' record is a success, and travels to a wider audience by airplay or sales, then it is inevitable that this will ultimately be brought to the attention of the original holder of the master rights or songwriting rights who will then be likely to pursue a claim for copyright infringement. Indeed, note that music publishers are usually contractually obliged to perform the role of legal guardian and custodian of their songwriter's copyrights.
Protecting
copyright of course is central to any organisation in the rights
business. Gould (2001) discusses the potential for success in
establishing a new independent record label, and states that there
are two key fundamentals on which any record label depends: artists
and copyrights. These phonographic copyrights are identified as
being the non-tangible assets" of the record label as they
usually own the copyright in the sound recordings
produced by their artists (the copyright life of a sound recording in the UK is currently 50 years from the end of the year in which the recording was first released or first broadcast), and generate income from their
exploitation (through routes such as sales, licensing, compilations,
synchronisation fees and broadcasting). Where a section of a
recording is sampled, the record label that owns the rights in the
original master will want to claim remuneration for its use. For
this to occur legally, label managers must first understand the
nature of copyright law, so that they, and those around them (i.e.,
the artists, producers and songwriters), may all benefit from lawful
income. Proper procedures can be observed and permission (before
commencing manufacturing) can quite often be granted after
negotiation. Passman
(1998: 231) observes that in recent years, record labels have become
unwilling to release records containing even very small samples,
unless they are cleared (i.e., unless permission has been
granted by the original copyright owners, and a licence fee usually
paid). Recording contracts now tend to include a clause making
artists responsible for sample clearance, and consequently liable for
any claim made against them for the use of uncleared samples. As
Krasilovsky and Shemel (1995: 285) state, record companies learned
to [make artists and producers] bear the full responsibility
of unlicensed sampling. Another standard clause gives the
record label the right to object to 'unsatisfactory' master
recordings, and this can extend to the rejection of masters that
infringe copyright (Victoroff 1996: 83). This right is very
effective, if asserted - because artists have no option but to abide
by the law. Yet for this to happen, record label managers must be
aware of the detail of the law, and the options available to
them. Similarly, producers may be contractually obliged to observe
proper procedures and avoid the use of unlicensed samples. The
Need for Music Business Education As
the music industry in the UK continues to develop an increasingly
formalised approach to music business education (by virtue of a wide
range of taught courses up to Masters level), then the next
generation of record label managers may perhaps be more educated with
regard to copyright and sampling. Several
high profile legal cases that involve sampling have also been
reported throughout the music press. Some have also been discussed in
the popular tabloids and broadsheets. Cases include the claim
resolved between Chrysalis Music Publishing and EMI Music Publishing
over a sample in the song, U Sure Do by Strike (Anon
1995a: 3). It was explained by record label Fresh that
they did not gain clearance, as they only expected a small number of
recorded units to be sold. This assertion emphasises how the issue
of sample clearance is ignored at the peril of independent record
labels, even where they have no confidence in large-scale sales. Harrison
(2000: 13) presents a number of examples of cases relating to
sampling. The leading British case was the writ brought against
independent dance label, Shut Up and Dance, by the
Mechanical-Copyright Protection Society in 1992. Shut Up and Dance
was accused of twelve infringements of copyright, after the labels
owners disclosed that they had never cleared samples. They did not
defend the action, and were forced to pay damages for every sample in
their repertoire. In
1987, Pete Waterman Ltd. and All Boys Music sued 4AD Records over the
release of a single, allegedly containing an uncleared sample of the
Stock, Aitken and Waterman hit, Roadblock. As with the
majority of cases involving sampling, this was settled out of court.
Frith (1993: 7) contended that this settlement was achieved because
the industry didnt want a
formal ruling that might make sampling either cheaper or more costly
by firmly defining concepts like substance. Any legal
precedent might have provided crucial interpretations of copyright
law, which in turn could have irrevocably changed established rates
of income from sampling, one way or the other.
Another
interesting test case occurred when Produce Records sued BMG in 1999
(Produce Records Limited v. BMG
Entertainment International UK and Ireland Limited [1999]).
Here, a seven and a half second sample was disputed, but eventually
BMG settled out of court, so that, yet again, no precedent was set.
Then,
in 2002, it was shown that even short samples of lyrics needed
copyright clearance. The case involved Robbie
Williams, who was forced to pay
damages to Loudon Wainwright III due to the similarity of lyrics in
Williams song, Jesus in a Camper Van, to a line
from I am the way (New York Town). Williams song
then had to be removed from future pressings of the album on which it
was released (see: Ludlow Music Inc v. Robbie Williams, Guy
Chambers, EMI Music Publishing Limited, BMG Music Publishing Limited
[2002]).
Abramson
(1999) mentions an unwritten three
second rule, also discussed by McKenna (2000), which he
claims has developed by common custom in the British music industry.
The custom he refers to depends on the convention that if three
seconds or less of a composition is sampled, no legal action is
usually taken against the sampler. However, it needs to be stressed
that this custom is in no way recognised in law. Copyright
Law : Access to Information Where
new record company managers have limited knowledge of copyright law,
especially when first establishing their labels, they tend to utilise
various sources of information. Some, for example, gather
information from music industry framework organisations (and/or
through their own research), whenever the need arises; others,
however, will rely primarily on legal advisors in order to acquire
appropriate and accurate information.
In
contrast, lawyers and music industry organisations list several
methods as to how they believe
label managers obtain relevant copyright information - and these
suggestions go well beyond those rather limited information sources
specified by most label managers.
These
sources include: the
Internet word
of mouth advice
from other labels courses self-tuition publications
such as books, newspapers, and journals The
significant difference between these sources, and the responses of
label managers whom the author questioned, is emphasised by what
lawyers and music industry organisations believe are the most
effective methods of informing
managers. Lawyers and music industry representative bodies
particularly recommend legal publications and copyright seminars,
although at least one label manager interviewed had a rather low
impression of the value of some of these expensive
seminars on sampling. Information
on courses and seminars is indeed readily available from the
Internet, and also in the music press. The Global Entertainment
Group for example, who advertise in UK trade magazine, Music
Week, mention in their literature that their schemes are endorsed
by leading music industry professionals. Such professionals include
Ed Bicknell, manager of Mark Knopfler (formerly of Dire
Straits - whom Bicknell also managed).
As
short and intensive industry seminars can sometimes be expensive,
they are not always perhaps viable for new independent labels with
limited budgets. AIM
(Association of Independent Music) though do operate a free legal
advice service for their large membership of, predominately, young
record label bosses. What
Record Label Managers Would Have Found Useful Label
manager John Truelove rejects the idea raised by lawyers that whilst
practical experience provides a great education, there are plenty of
other theoretical methods of obtaining information. In common with
other record label managers, Truelove maintains that only by coming
across the urgency to decide if sampling permission is required in a
particular circumstance, can one determine, on a case-by-case basis,
what is really necessary and relevant.
In
the wake of such pragmatic attitudes, industry organisations maintain
that there is a significant difference between what the managers
should know, and what they
actually know. Industry organisations insist that all the relevant
information on sampling is now readily available - in music business
texts, law texts, and copyright user guides. Areas which need to be
studied by new label managers, they argue, include:
the
precise legal difference between recording and musical/literary
rights clarification
regarding ownership of copyright what
constitutes infringement of copyright and
also clearance of rights - and how to achieve this Helen
Smith, from the Association of Independent Music (AIM), notes that
the consequences of a successful action for copyright infringement
against an independent record label are severe, and therefore sample
clearance cannot be left to chance. Yet the financial implications
of a sampling-related writs are still blithely ignored by some
independent record labels, according to Ivan Chandler of
Musicalities, a music publishing and copyright consultancy. He
comments that Labels do not
realise the implications of releasing records containing uncleared
samples and the problems that may beset them as a result of ignoring
the warnings. This can be due to a lack of knowledge, or,
more seriously, the intentional ignoring of advice. Lawyer Rupert
Sprawson stresses that, in his experience, label managers realise the
full implications of copyright law all too late, often when
a company or person is on the receiving end of litigation or
litigious correspondence! Note
that obtaining permission to sample on a new record can be a two-fold
process as it requires: clearance
from MCPS for use of the composer or lyricist's work (or from the
publisher directly) clearance
from the original record label if sampling from an existing sound
recording This
process is therefore seen as complicated and time consuming. Thus
some independent label managers are not in possession of the complete
facts in relation to sampling and copyright law. Such facts can
indeed be obtained from a variety of sources, including the Internet,
music industry texts and law texts, and music industry courses and
seminars. However, sampling and UK copyright law is still a
relatively new and evolving subject. It was only in the mid 1990s,
for example, that music industry texts which focussed specifically on
the British music industry became available. These texts tend to
incorporate chapters on the basics of copyright, but even these may
not contain the level of detail needed by label managers (though
there have been a number of copyright users guides published).
Searching
the Internet can locate a vast amount of information, of course, but
much of it is often irrelevant, and this is too time consuming an
activity for most busy independent label managers. Who
is Responsible for the Provision of Information? While
record label managers and specialist music lawyers tend to feel that
music industry organisations are presently the main source of
information on sampling, such organisations themselves look to the
Government for their lead. Since the Government sets the
legislation, copyright consultant Ivan Chandler argues, they must
therefore ultimately be responsible for providing the
relevant information.
The
Patent Office, the Government department that deals with all
intellectual property rights (and incorporates the Copyright
Tribunal), does issue basic literature on each of these rights,
including copyright. However, this remains general information, and
does not relate specifically to the music industry. While the
Department for Culture Media and Sport assists the music industry
(DCMS, n.d.) and acts as its advocate
within Government, several label managers still feel that
the Government could do more to help them in practical terms. Dr.
Kim Howells, MP (Minister for Tourism, Film and Broadcasting) made a
key speech at the Creators Rights Alliance Conference, in March
2002 (Howells, 2002), in which he indicated that the Government must
do more than it has done in relation to preserving the integrity of
creators rights. In particular, he spoke of educating music
users, especially Britains youth, against stealing
the revenue from creative artists. Howells made no excuse
for the lack of Government action on this matter, and openly invited
the suggestions from creators organisations, amongst others, on
what should be done. Who
Should be Responsible for the Provision
of Information? By
far, the majority of specialist music lawyers and independent label
managers seem to be agreed that it is music industry organisations
who should be responsible for the provision of relevant
copyright information and advice - a view which contrasts with the
organisations dependence on the Government. John Reed (Head of
Business Affairs and International at Defected Records), insists that
we rely on these organisations to supply us with any updated
revisions on copyright matters. He feels that lawyers
advice is generally too expensive for many small labels. The
Association of Independent Music (AIM) claims that, until it was
formed in 1999, new music label start-ups had no economical or
reliable source of copyright advice, (whereas the Musicians'
Union had been offering free legal advice for years to its members).
The British Phonographic Industry (BPI), which represents many record
labels in the UK (not just the independents as AIM does), is often
mentioned as the prime music industry organisation that should be
responsible for the provision of detailed and up-to-date copyright
advice information to new record labels.
Some
independent label bosses feel that the BPI could perhaps promote a
greater knowledge-base in this area more effectively. The
Experience of Lawyers Several
lawyers interviewed in the course of research for this article
indicated that, whether due to blatant ignorance or lack of
education, there still remains a real problem with regard to sample
clearances today - well over a decade since music industry journals
first raised such issues on numerous occasions (Anon 1987b; Anon
1990a; Anon 1990b). The experiences of many lawyers reinforces the
importance of record label managers coming to grips with copyright
law and the sampling issue before
embarking on any recording project involving samples. Due
to client-solicitor confidentiality, specific details of cases can
rarely be given. But there are plenty of dangers out there. Lawyer
John Byrne comments that independent
labels sometimes know about samples on their records but take the
risk, while Peter Scott warns of continued lack of sample
clearance at some labels. More bluntly, James Harman lists
ignorance and incompetence at the label as a
factor behind some of the worst situations relating to the abuse of
samples he has experienced.
In
Conclusion It
is clear from responses offered by interviewees, as well as through
secondary research, that fundamental knowledge of relevant
information in relation to copyright law and sampling is now
essential when setting up an independent dance label. Yet, what
record labels managers believe should occur in the music industry
with regard to the provision of information is very different to what
those behind the scenes entities (i.e., the music lawyers
and music industry organisations) believe should happen. Lawyers
and music industry organisations refute the idea that new label
managers have relatively few sources of relevant copyright
information, and, indeed, there are now numerous sources available to
anyone conducting research in this subject area. But do new and
inexperienced record label managers really have time and money to
spend on this? It is, of course, ultimately the responsibility of
record label managers themselves to locate this information, though
perhaps such information could be made more readily and cheaply
accessible through the agency of a subsidised industry body, geared
towards helping new independent record companies. It is unlikely
that anyone entering the music industry for the first time, with a
view to setting up an independent dance label, will quickly obtain
accurate information, unless they have previous experience, or
already know where to look. At
the same time, record label managers need to be made fully aware of
the consequences of copyright infringement in cases involving samples
(however long, or short, these samples may be - and irrespective of
whether they are musical or lyrical samples). With dance music being
one of the most popular music genres in the United Kingdom at
present, this clearly remains a pressing matter of concern.
The
cavalier attitude adopted by many dance music labels and producers
who operate on the margins of the law (by sampling by design and
without permission) is a worrying issue which requires addressing.
This sampling may be undertaken with the best of intentions (to
honour, adapt and elevate an existing piece of music or lyric);
however, as mentioned, it remains wholly illegal. In
the late 1980s, Sexton (1988:18) cited James Horrocks as having
said that sampling will run its course. Yet over a decade later,
there appears to be no diminution in the number of samples used (or
potential income and writs deriving from them); consequently, more
accurate and readily accessible legal advice for start-up dance
record labels is still as greatly needed as ever.
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(1987a) Sampling Faces Legal Test, Music Week.
26 September 1987, 4. Anon.
(1994a) New Sampling Battle to Set Legal Landmark, Music
Week. 13 August 1994, 3. Anon.
(1994b) Another Claim on Whigfield Smash, Music
Week. 3 December 1994, 5. Anon.
(1995b) Sample Snag Hits Bjork, Music
Week. 24 June 1995, 1. Anon.
(1995c) Bjork Sample Dispute is Settled, Music
Week. 12 August 1995, 3. Anon.
(2000) Criminal Records?, E
Jay. August 2000. Abramson,
L. (1999) Sampling: the issue comes to court through the
Macarena case, Music and
Copyright. No.155: 11. Ashurst,
W. (1999) The Bands Guide to Getting
a Record Deal. London: Sanctuary. Bagehot,
R., ed. N. Kanaar (1998) Music
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Maxwell. Baskerville,
D. (1995) Music Business Handbook
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L. (1989b) Sampling and Copyright: is the Law on the Right
Track?, Journal of Business Law
1989. Bentley,
L. (1993) Should Digital Sampling Be Given An Improved Legal
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L. (2002) Between a Rock and a Hard
Place: The problems facing freelance creators in the UK media market
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