The
music industry is an ever-changing industry with its share of prosperity and
risk. Owners of records label must stay ahead of current technology trends,
copyrights infringements, and trademark infringements in order to stay
competitive. According to Sawan (2008), “A liability is a debt
or circumstance in which someone is held responsible for by law” (¶1).
Knowingly or unknowingly, record labels owners and their assets are targets on
the radars. Certain situations such as: the infringement case involving Grooveshark, the infringement case
involving Iggy Azalea, and the trademark infringement
case involving Taylor Swift; demonstrate some liabilities
that record labels can face.
Recent
technology has changed the availability of music to consumers. Record label
file numerous infringement lawsuits against streaming sites because some
streaming sites operate with the permission of copyright holders. Grooveshark
was the latest streaming company declared in fault by the court for infringing
against labels. According to Sisario (2014), “Grooveshark claimed 35 million
users and was attracting advertising from major brands like Mercedes-Benz and
Groupon” (¶3). Streaming sites have become one of the biggest liabilities to
record labels, since the Internet. Streaming sites that operate with proper
permission, infringe on the exclusive rights of copyrights holders, while
making a huge profit from advertisements.
Record
label face another liability in the form of their artist and their artist’s
past. The current Case of Iggy Azalea vs. Maurice Williams is a demonstration
of this liability. According to Nessif (2015), “Azalea filed a lawsuit for
infringing copyright and unlawfully promoting yet-to-be released music from her
early days as a struggling artist” (¶3). In this case, Maurice claims that Iggy
was under contract with him, and he owns numerous of pre recorded material.
Depending on the material that Maurice has in his possession, and the ruling of
the court, Iggy’s records label could have to share profits and possible face
the tarnishing of Iggy’s trademark.
Trademark
infringement is another liability that artists and record labels face in the
industry. Blue Sphere Inc. filed an infringement case against Taylor Swift for
the trademark phrase “Lucky 13”. According to Radar Staff, Taylor Swift wore clothing
with the phrase “Lucky 13” for a promotion sweepstakes ad. Blue Sphere had the
phrased “Lucky 13” registrar with the PTO in 1991. This infringement case can
ruin the image of Taylor Swift that took time and money for a record label to
create. The lawsuits against Taylor can also damage the promotion sweepstake,
Taylor was involved in, and the clothing company that had the phrase “Lucky
13”.
The
law requires streaming sites to obtain permission from record label to have
copyright material on their sites. The label that I own will be an indie label,
and royalties obtained from streaming sites will be vital to the company’s
success. If streaming sites continue to use copyright material illegally, it
could hurt the revenue for my label. Considering the case with Iggy, Family
Players Records will sign artists, and knowing the history of the artist will
be important. If Family Players Records signs an artist, who is under contract
with some else, this could cause the label to lose income for lawyer’s fees,
and agreements might have to be made with the contract owners to share profits,
that should belong to my label. This situation will in turn interfere with the
budget, fix cost, and marketing planning. The case involving Taylor Swift
brings awareness of the importance of seeking permission to avoid trademark
confusion. Using a trademark, that someone else owns can tarnish the image of
my label, and cause for profitable items to cease production.
The
music industry, as mention can bring success; however there are many risks.
There are people whom seem to targeted successful people and their accomplishment
for financial gain. Beside people who seek financial opportunity from
successful individual, individual like my self who seek success in the music
industry have to make sure that we do our research, and seek legal advise
before we invest time, creativity, and effort in a product.
~LTL