YouTube takes music royalties seriously
New York music royalty outfit RightsFlow has been acquired by Google for integration into YouTube.
YouTube will incorporate RightsFlow’s technology management system to help navigate the complex territory of music publishing royalties. RightsFlow CEO Patrick Sullivan said in a blog statement that YouTube “shares in our vision of solving the really challenging problem of copyright management."
YouTube described RightsFlow as being at the forefront of solving the complex issues of licensing and royalty payment management.
After taking a fair share of legal wrangles on as the YouTube platform developed, the video sharing giant claimed that it had a longstanding commitment to solving “the really tough challenges around online copyright—how to manage content rights in a quickly evolving technology world.”
“We’ve already invested tens of millions of dollars in content management technology such as Content ID and, with over 3,000 major media companies using it, we’ve come a long way in just a few years. But we want to keep pushing things forward,” YouTube product manager David King said.
YouTube said that the acquisition would help to more rapidly and efficiently license music on the platform and make it easier for copyright owners to manage their content online.
Sullivan said that teaming with the worldwide platform and reach of YouTube, RightsFlow would now be able to drive awareness, adoption, and licensing success to a much larger audience.
“We remain committed to the highest standards of service and innovation. Our goals remain to enable the monetization of music and content consumption, to simplify the complexities surrounding copyright compliance, and to ensure that creators are paid for the use of their work,” he added (read more here)
Court decision pending on Cape York’s Hopevale mining royalty dispute
THE Aboriginal shire council in Noel Pearson's home Cape York community is seeking an "extraordinary" emergency court injunction to stop nearly $6 million in mining royalties and land going to a rival indigenous group.
Justice Jim Henry in the Cairns Supreme Court will this afternoon hand down his decision in the long-running dispute, which has divided the south-east Cape York Aboriginal community of Hopevale.
The court yesterday heard the rival group, the Congress of Clans, represents native title holders in Hopevale and is a "creature" of the powerful Cape York Land Council, part-established by Mr Pearson in 1990.
The Queensland government recently decided the Congress should be responsible for administering a parcel of 110,000 hectares of land around the community, currently administered by Hopevale Aboriginal Shire Council, as well as royalties worth nearly $6m from the nearby Cape Flattery silica mine.
The decision will come into effect tomorrow, unless the Hopevale Council's application to the court is successful.
Late yesterday, Mr Pearson told The Australian he was sad and "a bit embarrassed" that his home community had been embroiled in such a legal dispute.
"I'm saddened by the lack of leadership from our community leaders and that we're conducting this futile Hopevale vs Hopevale court case," Mr Pearson said.
He said the move to transfer the land to native title holders had been two decades in the making and the Congress was the correct body to be in charge.
However, Hopevale Council mayor Greg McLean, one of the instigators of the legal challenge, said the Congress was not representative of the entire community of 1500 people.
"There's a lot of people that will be left out," Mr McLean said, noting that a busload of 21 concerned traditional owners had travelled from Hopevale for yesterday's court hearing.
Hopevale Council's barrister Douglas Campbell SC told the court that the Congress would keep $600,000 in royalties for administration costs which was "inappropriate".
Mr Campbell said the council would no longer be able to perform essential local government services, because $20m worth of its sewerage, rubbish and water infrastructure was on land soon to be controlled by the Congress.
However, solicitor-general Walter Sofronoff QC, representing the Queensland government, said the Congress had agreed to give the Council full access to the land.
Describing the Council's court action as "extraordinary interference", Mr Sofronoff also said it was appropriate for the Congress to have close ties with the Cape York Land Council, because of the body's experience with Aboriginal land issues.
Request Denied: Verizon Must Pay Royalties To ActiveVideo Without Delay
Verizon really can’t catch a break in this ActiveVideo case. After a jury determined that they had infringed upon a handful of ActiveVideo’s patents, Verizon fought to have the court stay their monthly royalty payments. That motion was just recently shot down, and Verizon must start shelling out a few million dollars to ActiveVideo every month beginning on December 16.
What’s that? The case doesn’t ring any bells? Here’s a quick recap: ActiveVideo filed suit against Verizon in May 2010 citing the infringement of a handful of their television service-related patents. ActiveVideo licenses their CloudTV platform (which encompasses said patents) to partners like Cablevision, with whom Verizon competes in markets like New York.
In addition to being liable for millions of dollars in damages, Verizon has been ordered to pay ActiveVideo $2.74 for each one of their FiOS television subscribers, which means a total monthly payout as high as $11 million. There’s a timeline attached to these payments, too: Verizon will have to shell out those royalty payments until either one of two things happens.
Scenario A: Verizon figures out a way to retool their FiOS service in a way that doesn’t use ActiveVideo’s patents. Once they do that (and can prove it in court), there won’t be any need to pay royalties anymore.
Scenario B: In the unlikely case that Verizon can’t make things work, either technologically or in court, they continue to pay ActiveVideo until May of next year. At that point, Verizon will have to shut down their FiOS Video-on-Demand service entirely.
While Verizon’s top brass has probably whipped out the corporate checkbook already, the bigger question is how much work will it take to rid the FiOS service of ActiveVideo’s influence. Verizon’s got a few months to get cracking on the problem, but only time will tell if the new (and hopefully improved) FiOS can stand up to some intense legal scrutiny.
Tracking-Software Maker Stirs Phone-Privacy Fears
Little-known software installed on millions of smartphones is raising fresh questions about what data are being collected from mobile devices, where it's going and what it is being used for.
Security researchers have published blog posts and videos that appear to show software— from a company called Carrier IQ Inc.—collecting information on an HTC Corp. smartphone, running Google Inc.'s Android operating system. The software, which security researchers said was not transparently visible to consumers, is shown tracking actions such as when buttons are pressed and collecting personal data such as the content of text messages.
Such disclosures, which began making waves a couple weeks ago, prompted concerns from users and regulators alike, who began asking how many devices used the software and what it did. HTC said Thursday it isn't a customer, but that some carriers require the software to be used. Apple Inc., meanwhile, said it was already phasing out use of the software. Nokia Corp., meanwhile, said it hasn't used it.
A spokesman for Google said the search giant doesn't have an affiliation with Carrier IQ, adding that it doesn't control how mobile carriers or handset makers might customize Android. Google distributes the software free and allows device makers to change its code to add or remove features.
Some wireless carriers, including Sprint Nextel Corp., AT&T Inc. and T-Mobile USA, ask some of their phone manufacturers to put Carrier IQ on their devices. Each said they use the technology to monitor their networks and improve service.
The dust-up is the latest in a string of privacy controversies that have concerned consumers and lawmakers. Privacy researchers recently have uncovered information about smartphones tracking user's location history and apps that access and transmit user's personally identifying information.
On Capitol Hill, Sen. Al Franken (D., Minn.) has asked the company to answer questions about what data it collects, where that information is sent and how it is handled, among other things.
Carrier IQ said in a statement late Thursday that its software does not record, store or transmit the contents of text messages, emails, photographs, audio or video. Instead, it said it tracks whether text messages are sent accurately, for example, and figures out which applications drain a handset's battery. The company maintained that the software it makes is used to monitor and improve device and network performance, not to collect personal information.
"Our software makes your phone better by delivering intelligence on the performance of mobile devices and networks to help the Operators provide optimal service efficiency," it said.
"The revelation that the locations and other sensitive data of millions of Americans are being secretly recorded and possibly transmitted is deeply troubling," Sen. Franken said in a statement. "Consumers need to know that their safety and privacy are being protected by the companies they trust with their sensitive information."
The company earlier sent a letter to one security researcher, Trevor Eckhart, demanding he remove any reference to Carrier IQ in his published research, or face court proceedings and fines.
Carrier IQ later withdrew its demand after the Electronic Frontier Foundation, a digital rights advocacy group, backed Mr. Eckhart's research.
The EFF said it is acting as legal counsel for Mr. Eckhart and will continue to monitor the situation. Mr. Eckhart didn't respond to a request for comment.
A former executive of Carrier IQ described the company's technology as a "mobile intelligence service" being used on roughly 150 million devices world-wide. He also said that wireless companies in particular use the product to help analyze dropped calls, for example, or understand how much data a user downloads to their phone.
"We give them insight that they previously haven't had into their end users' experience, and the usability of the product," he said.
Dan Rosenberg, security consultant for Virtual Security Research, believes the software doesn't create a comprehensive log of all user keystrokes and send it to carriers. Rather, based on his own analysis, it appears that certain key-presses can be recorded, which may be used for technical support.
HTC said Carrier IQ's software is required by "a number of U.S. carriers," and that it isn't a customer or partner of the firm. HTC also said it doesn't receive any data from the company or the carriers who partner with Carrier IQ.
Samsung Electronics said Carrier IQ is available on some of its phones, but that carriers must request that it be added. The South Korean company said it doesn't receive any information from Carrier IQ.
Apple said it stopped supporting the software from Carrier IQ in most of its products when they were upgraded to the iOS 5 mobile operating system, which was released two months ago alongside the iPhone 4S.
Apple added that it plans to remove Carrier IQ completely in a future software update, though the tech company will still offer customers an opt-in diagnostic service that doesn't include recording of button presses or collection of any other personal information.
Microsoft Corp. said it doesn't ship Carrier IQ with its mobile phone software. U.S. cellular data carrier, Verizon Wireless, said it doesn't add Carrier IQ to its phones.
Sprint said it requests handset makers to add Carrier IQ "because it's a diagnostic tool that helps us make the phones work better and the networks work better and them all communicate better." "Generally speaking, all carriers use some service like this to basically determine what issues are occurring and how to fix them."Sprint said it doesn't and can't look at the contents of messages, photos, and videos using Carrier IQ.
AT&T said "we solely use CIQ software data to improve wireless network and service performance."
Verizon Wireless said it didn't use Carrier IQ. T-Mobile USA had no immediate comment.
(originally published at this link)
4 Oklahoma City charities join to prevent fraud
Four nonprofit agencies in Oklahoma City have joined in an effort to prevent fraud and keep people from receiving assistance and services from more than one of the charities.
The Greater Oklahoma City Clearinghouse consists of the Salvation Army, Christmas Connection, Bethel Foundation and Skyline Urban Ministries.
"There are those that are kind of taking advantage of the system," Christmas Connection executive director Shelly Dutton told The Oklahoman (http://bit.ly/tKzMYJ ), "but for the most part, people are looking for help."
She said the program uses Charity Tracker computer software, which allows officials to track clients by names and birthdates. Those who signed up at more than one agency are sent back to the first charity they registered with and not allowed to receive more aid.
Agencies pay a fee of about $185 to use Charity Tracker for a year, she said.
Christmas Connection has spotted 80 clients out of about 800 so far that already were signed up with another agency, Dutton said. About 35 of 200 clients were turned away from Skyline Urban Ministries for doubling up on charities, said Kim Parris, a site director for the Methodist charity.
Christmas Connection director Shelly Dutton told The Oklahoma n the agencies paid about $185 for the software for a year.
"Just for this year, just for using this one program, we were able to serve 35 (more) families," Parris said.
The Bethel Foundation, which serves about 2,000 single mothers and their children, has found 25 families signed up with more than one agency this year, Founder Lynda Powell said.
She said she wishes everyone was honest, but realizes that's not realistic and has no problem filtering out scam artists.
"That's not need. That's greed," Powell said. "I have a problem with that."
Maj. Francina Proctor, coordinator of women's ministries for the Central Oklahoma Area Command of the Salvation Army, said she did not know how many people had been rejected by the agency because of duplicating services. She said 1,900 families will receive help from the Salvation Army this year.
Other charities are interested in the program, Dutton said, and many have been calling to see if it's working. She said she hopes more groups will sign on and that the system will be used for back-to-school support and Thanksgiving meals.
How Good Royalty Software Works
Good royalty management software supports multiple or unlimited royalty recipients per contract, and author splits, so that managing dozens or hundreds of royalty recipients per contract is automated. Many books attribute royalties to more than one author, and publishers can't spend time hammering out separate royalty amounts for multiple authors on a single contract. Flexibility in parceling out royalties can be a huge time-saver in the long run, and the ability to slice up royalty calculations in many ways within a single contract is one of the very first, and most time-saving benefits of using royalty software
In addition, royalty contracts will typically have clauses for when books get sold at discount prices. Given that so many books do end up with a discounted retail price, automatically re-calculating royalty rates based on final sale price is another area in which royalty software proves it's worth. A good royalty management system will be able to easily incorporate any changes in actual sale price of a book; and if at a later point an author wants to pore through their royalty earnings, data on when discount prices were set, and how they affected royalty payments, is all documented.
Royalty Accounting:
Even for publishing companies which have the resources to hire full-time royalty accounting departments, a royalty software system can be an major efficiency booster - providing that it has accounting functionality. Good royalty software supports cross collateralization, so that resources can be allocated where they are needed, when they are needed. If payments need to be made to one author, and sales revenue is coming in from another, royalty software can reconcile these within the overall accounting operations. And to ensure publishers aren't caught short if books are returned by a retailer, dedicated royalty software is able to withhold reserves against returns - automating a potentially stressful royalty accounting challenge into a largely automated one.
Another key accounting feature in royalty software is the ability to handle advances, and to make advance payments directly through the software. Many author contracts provide for advances against future royalties. This involves two layers of accounting work: first is the AP task of cutting a check, and second is the job of reconciling that advance with royalties that do come in. Royalty software can automatically cut advance checks for a book, and then automatically reconcile advances to royalties revenue earned from that book.
Also key is the capability to factor in any advance payments into the life of a royalty contract - something no small publisher should be spending hours doing manually, then worrying about keeping track of.
And in terms of payables, a major reason to adopt royalty software is that it can automate royalty and advance payments. Royalty management software has the ability to automate payments, on whatever timetable is stipulated by contracts (weekly, monthly, annually, etc). And to maximize the efficiency gained by automating payments,the software can cut checks directly - it's far more efficient if your royalty accounting software can determine what payment needs to be made - and then make that payment itself, rather than having to route through your general accounting software.
And finally, of course, is integration with your existing general ledger. Good royalty software will populate your accounting ledgers with all future liabilities. That in and of itself is both a huge time save, and a great way to cut down on potential human error. Make sure first that the royalty software you choose is able to accurately calculate what your royalties liabilities are (as outlined in Contract Management above), and second that it will automatically feed this data into your existing accounting framework.
Depending on your needs, you may want to look for specific capabilities with regard to managing sub-rights, including managing contracts and payments in multiple countries/currencies. And if sales tracking or marketing are areas you want to improve efficiency in, there are options to explore in royalty software for these areas too. Finally, you may want to look into software features that will allow authors to investigate their own sales and royalties - an optional feature with several of the better royalty software systems.
Conclusion:
The above examples are just some of the basic ways royalty software can help a publisher of any size to be efficient and accurate, and to avoid any end-of-fiscal-year surprises of unexpected royalty liability. It's a reality of the publishing industry today, that managing even a small number of books involves an exponential amount of accounting, a large percentage of which can, and should, be automated.
One reality in the business of publishing is that publishers have unique accounting requirements, and require a more purpose-built accounting solution than most generic accounting software programs. Quickbooks and similar programs may have worked for some aspects of publishing in the past, but using them means large amounts of data transfer and royalty calculations must be done manually - a labor expenditure that hurts competitiveness and accuracy.
The business value provided by a royalty software system is that it allows publishers to focus on doing what they need to do, and what they do best - finding great books to publish. Plus, in most cases, royalty software manages royalties (and all of their inherent idiosyncrasies) more effectively than a dedicated royalty accountant.
In a business with small margins, and increasing competition across a widening digital spectrum, publishers need to leverage any available advantage - and a royalty management system is a great place to start. Publishing is one of the industries most affected by the digital revolution, but royalty software provides a way for publishers to operate efficiently, and to maximize competitiveness.
Royalty Software – What It Does, Why Publishers Need It
The publishing industry is operating in an economy that may or may not be recovering, and simultaneously in a Brave New Technological World; there is both less economic wiggle-room, and an explosion in the number of ways a book can be sold.
Along with the huge opportunities to promote content, booksellers in the digital age have to navigate a vastly more complex landscape of royalty calculation. In the best case scenario, this can involve major time investment and major headaches; in the worst case, it can present lost revenue, and create regulatory compliance problems.
Fortunately, there are purpose-built tools that provide royalty processing solutions. The biggest publishers have used these solutions for many years, and they are becoming more of a business reality for smaller or mid-size publishers. This article will provide an introduction into what royalty management software does, and why it is becoming a necessity for publishers.
How Complicated are Book Sales?
Once upon a time, book royalty contracts stipulated royalties based on a simple percentage of all books "sold," and royalty accounting was a minor part of a publisher's overall accounting workflow. If 10,000 books sold in a year, and the author's contract stipulated a royalty rate of 20%, the publisher would cut a check for $2,000. That simplicity is long gone.
In today's bookselling landscape, even the most simple book contracts involve a mind-boggling number of calculations. In each of the basic categories of hardcover, trade paperback, and mass-market paperback, there are separate calculations for print, e-book (both wholesale and agency), physical book (again, both wholesale and agency). Each of these specific segments of a book's sale demands its own royalty calculation. In practice, a single book can span several of these sales categories.
On top of this segmentation between "types" of sales, the majority of book contracts involve sales thresholds, or "escalators." These allow for a separate and differing royalty rates to be paid, depending on the numbers of books sold. For example, an initial royalty rate may be set on the first 10,000 sales of a book. Once that benchmark is hit, a separate rate - an "escalator" - may kick in.
Keeping on top of royalty contracts is critical for publishers, for both profitability and regulatory compliance. However, without an efficient way to run the major bookkeeping operations involved, managing royalties can eat into time that should be spent on finding great new books to bring to market, and working with authors to do so. Publishers need specific tools to manage royalty processing, so that they can focus on the core functions of their business. This is why dedicated royalty processing software is becoming ubiquitous in publishing, for organizations large and small.
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