The major recording labels and music publishers, who own music rights, are at odds over on-demand or interactive music streamed over the Internet, which allows consumers to listen to whatever song they want when they want. While the world's big music labels argued successfully that free song-swap service Napster infringed their copyrights, songwriters and music publishers now claim that at least one major label, Vivendi Universal's Universal Music Group, has violated their copyrights. The House Subcommittee on Courts, the Internet and Intellectual Property has called a hearing for May 17 as the major record companies gear up to launch online subscription services they hope will convert millions of Napster users into paying customers.
Publishers say they are merely defending songwriters' rights to be compensated.
The licensing conflict centers on streaming music, which enables users to listen but not copy songs online. For months, publishers, labels and Webcasters have been in negotiations over how much publishers should earn for streamed music. Publishers claim that to stream music requires reproduction of a composition, which carries a larger royalty payment than a performance. The labels argue that streaming music should be treated as performances and if there are reproductions then they are subject to compulsory licenses. The labels have asked the copyright office to set rates for these licenses.