Karaoke
Legal Talk - What's Happening with Karaoke
This page is here
to discuss the current issues going on in the world of Karaoke.
To put it mildly, Karaoke and the Karaoke Scene is a mess right
now for publishers, disc manufacturers, karaoke hosts and karaoke
companies.
Statement of fact.
- I am not an attorney and this page represents my opinions
based on a GREAT deal of research.
I have consulted and received many attorney's opinions as well,
however, all of this is purely speculation as there has never
been a case of Karaoke format shifting or Music format shifting
ruled upon in any US Court.
Format Shifting would
be putting a CDG's content into a hard drive, DVD, or CDG backup.
The Digital Music Industry has become a multi-billion dollar
industry, and one of the largest winners in all of this has
been Sound Choice who is one of the largest supplier of midi
style Cell phone ring-tones.
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Sound Choice is the
leader and the creator of the best quality karaoke disks for
years now. They are being sued and have been sued by numerous
music publishers for violating their clients copyrights.
Current Sound Choice (Slep-Tone Lawsuits) - Click on links for
copies of legal paperwork and filings. (All public record documents)
1. Sulit v. Sound
Choice Inc et al - Copyright infringement - still in progress
Case History
2. Famous Music v
Sound Choice - Copyright Infringement - still in progress
Case History
3. Andrew Scott Music
v Sound Choice - Copyright Infringement - settled out of court
Case History
4. 1st Media v Napster,
RealNetworks, Sound Choice -
Violation of patent technology for digital transfer of music
files - still in progress
Case History
Technical Brief
Meanwhile Sound Choice
and Stellar Records (Pop Hits Monthly) is threatening / harassing
clubs and karaoke hosting companies in many markets and telling
them that any "hard drive based" system is a violation
of the law and that if the clubs do not get rid of hosts and
hire hosts using original CDG's only they risk losing their
liquor and or business licenses and risk fins of up to $10,000
per song on computer hard drive systems.
News
release from Sound Choice - Click to view
News
release form Stellar Records - Click to view
Content
from Sound Choice certified letter to bars - Click to view
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So let's talk about
the laws that exist and what they cover.
1st thing mentioned
is
US Copyright laws (17 U.S.C. §§ 102, 201, 201d)
so I suggest you click on the link and download your very own
copy. This is an adobe acrobat file and you can search it for
text. I recommend that you search for the word "karaoke"
- It does not appear!. next search for the word "graphic"
- it does not appear!
Next thing mentioned
is the Digital
Millennium Copyright Act (DMCA, title 1, and 17 U.S.C. §§
109, 117). so I suggest you click on the link and download
your very own copy. This is an adobe acrobat file and you can
search it for text. I recommend that you search for the word
"karaoke" - It does not appear!. next search for the
word "graphic" - it does not appear!
So looking at the
above statements, if you were to state that this law pertains
to the karaoke industry it would need to be applied via case
law or actually ruled upon in a an actual court. If you check
Sound Choices forums I actually stated this to them.
There is NO LAW that
SPECIFICALLY deals with Karaoke disks.” - egodfrey
This is correct (as far as I know). BC - Sound Choice, Studio
Manager.
Now BC went on to
assert many of his opinions after this, but once again, the
only factual statement is that there has never been a case ruled
on. ANY other content is speculation until it is ruled upon
in a court of law. Please feel free to go to Sound Choice's
Karaoke Forums to read both viewpoints.
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Let's look at how
an actual law firm interpreted these items:
Please
see www.IPJustice.org - Entire article - http://ipjustice.org/wp/2007/02/22/karaoke_legal_myths/
Here is a PDF file of this document as it appears:
This is based on
an original article that appeared several years ago:
Digital
Copyright Question: Fair Use of Karaoke CDG's - Click to
view article
Bottom line is that
when it finally goes to a court this decision will hinge on
the definition of "Fair Use"
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Now let's get back to some facts.
1. The Karaoke industry
is being damaged severely by pirating, illegal copies, illegal
downloads etc. I will never disagree with this and you would
be hard pressed to find anyone in the industry who does not
agree with this.
2. If you are making
copies of an original karaoke disc and selling them...on hard
drives, burnt discs, DVD's, Super CDG's.. whatever format...
you are breaking the law! No disagreement here with that viewpoint!
3. If you are buying
1 copy of a disc and you are then putting that on a hard drive
or burning multiple copies for use at shows... you are breaking
the law! Anytime you buy 1 copy of a disc and make multiple
copies to be used at simultaneous venues, you are displacing
a sale and taking money away from the manufacturer. No disagreement
on this statement.
4. Downloading from
any shared site without a legal license and payment per song
is a violation of copyright laws. Many file sharing sites have
popped up and are rampant for providing songs at no cost, which
displaces a sale. This is illegal.
5. Buying a hard
drive loaded with songs instead of buying through normal channels
(manufacturers) is displacing sales and is illegal.. Once again,
no argument. This takes money away from manufacturers and artists
and it gives companies music with nearly no cost allowing them
an unfair competitive advantage in the market.
6. In all of these
areas we fully support any manufacturer who is trying to keep
the industry legal and fair to all hosting companies, artists,
singers, etc.
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Now for some opinions.
1. These are our
opinions and do not represent any factual content. This is what
is considered gray area until there is a legal case to support
it or to contradict it.
2. We believe that
if you have purchased a work of art (music) in any format, you
have a right to protect it in regards to security, archival,
ease of use, archival by putting it into a digital format of
your choice**. However, you CAN NOT make multiple copies of
this work for use on multiple systems. If you own 4 Karaoke
and or DJ systems that are out working, events, you must purchase
4 copies of the musical work.
** with the caveat that if you are downloading music from a
paid site, you must adhere to their terms of service, which
include, no shifting of the format to any style other than those
they list.
2. This directly
conflicts with the stance taken by Sound Choice and several
other manufacturers. We feel that they are working on a noble
and almost impossible cause, but need to make an exception for
those maintaining 1 for 1 copy integrity. Sound Choice originally
hired Joseph Senter and his SPINorg.com organization to watch
guard their position. After a few years, they disagreed with
Senter, who began promoting CAVS and digital music downloads.
they then formed KAPA which is an organization run by SOUND
CHOICE. Sound Choice often validates their points by quoting
or referencing KAPA, but it is important to understand that
KAPA is Sound Choice's property.|
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Let's talk about Sound Choice's actions:
We have been in the
karaoke industry for about 16 years and we have been buying
discs in dramatic fashion that entire time. We did use original
CDG's up until about 4 years ago. I have over the years personally
reported 5 different hosts who I know were using illegal copies
with NO originals. I provided names, clubs addresses, night
of shows and estimates of how many discs we are talking about.
SPIN, KAPA, Sound
choice DID NOTHING!
I have given them
name, physical address, e-mails on several individuals selling
hard drives. I offered them the hard drive as evidence. It contains
105,000 karaoke songs and the ENTIRE Sound Choice catalog.
THEY DID NOTHING!
I have sent them
user name and info for karaokeinfo.com and pleaded for them
to bust them…. NOTHING!
Fair Use is defined as for private use only… However my
Karaoke disks actually say not for us for public performance.
Sound Choice originally was selling those almost entirely to
KJ’s. They have admitted. “that is not what we meant.
"
I have an article
printed from Sound
Choice’s FAQS page in 1999 that states you can make
one copy for backup purposes and in the event your original
is lost or destroyed you can use that at a show. IT IS OFF THEIR
WEBSITE! .....
.....UPDATE
....06/09/07....THE SOUND CHOICE FAQS PAGE HAS BEEN REMOVED.......HMMMM
Bottom line (my opinion)…
If it ever comes down to it format shifting will be ruled to
be fair use for many reasons. Read the article above ipjustice.org
for more info.
Next Bottom line…
Sound Choice is suffering as technology makes Karaoke less expensive
and they are being sued because they did not obtain legal rights
in the first place to most of their disks. They paid compulsories
after the fact, but why do you think they have pulled the Eagles
disk , Celine Dion disks, Alanis Morrisette, and many others…
because someone raised a fuss after the fact and forced them
to since they never got legal permission. They are trying to
stop us from format shifting so they can charge us more money
and sell us the same song in digital format for way more than
we paid for it in the first place.
I have no spoken
to 3 IP attorneys regarding this matter. They say it is entirely
civil. Sound Choice would have to prove how you have damaged
them and caused a loss of revenues. They also say it would be
comical for Sound Choice to try to drag you into court for violating
their copyright on a work that they never obtained legal permission
to release in the first place and that they are not the actual
artist that wrote the work. See above legal cases!
We are in the process
of removing any Sound Choice that we have in any other format
and we are now into our 3rd year of boycotting their disks.
We are buying all of the companies that are on Super CDG and
we are buying all of the Panorama Monthlies as they are releasing
them in mp3+G format to start with so there is no repercussions
about format shifting.
Let's look at the
letter that Sound Choice is sending to bars in detail:
The letter below
is being sent in the Phoenix and Scottsdale area. Our letters
are not a hoax and we are taking action.
If you feel you can
help in some way please give me a call at 1-888-210-6100. Thanks
for your concern,
With Best Regards,
Shelby W, Wood Business Affairs Director Sound Choice Multimedia
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Dear…..(Bar
Owner)
This letter
is to inform you that we have received information reporting
that your establishment has been hiring or providing entertainment
that violates certain US Copyright laws (17 U.S.C. §§
102, 201, 201d) and the Digital Millennium Copyright Act (DMCA,
title 1, and 17 U.S.C. §§ 109, 117). The specific
complaint is that you have contracted with a Karaoke host/company
who has a Karaoke music library, or have purchased your own
Karaoke music library, which contains illegal copies of Sound
Choice copyrighted music, either on “burned” CDGs
or DVDs, or computerized copies.
Editorial Comment: Sound Choice is basing this on speculation.
Sure they have long contended that any copy of any kind is illegal...
great, but as covered in great detail above... that is their
opinion. - They have done no discovery, they have done no due
diligence to investigate the facts. the individual bars getting
this letter are getting it because according to Shelby Wood
(author of the letter) there is a "whistle blower"
in Arizona that told them this KJ is illegal. She never checked
but the one company that ever got busted for being illegal in
Arizona is the company that is calling her. they are doing so
because their own business practices have nearly put them out
of business and they have no other means to fight back. Many
of the bars may have illegal discs, but many of them do not.
We only use 1 for 1 digital files and we have literally thousands
of discs and well over $100,000 in receipts to prove it... Of
course Sound Choice never called us to ask and they refused
to return my calls to discuss. Seems a bit negligent to send
out a letter of this scope without doing some homework on the
companies you are making accusations against.
As the owner
or manager of an establishment that uses Karaoke entertainment,
you may not understand how serious this offense may be. Karaoke
hosts who use illegal copies of music also put your business
at risk. Some of the consequences that you could face include:
¨ Fines
up to $250,000 and/or up to 6 months in jail per occurrence
(per occurrence is per copied song, and per each time a copied
song is played). Editorial Comment: Not only is there no case
in existence or adjudicated that deals with a KJ or DJ format
shifting music, there is certainly no case that would hold liable
the company that is paying the host to perform a Karaoke show
without any knowledge of their legal status. To obtain any of
these fines Sound Choice would have to prove that the bar knowingly
and willingly financially harmed Sound Choice. In retrospect
it would be easy to prove that the bar if playing a Sound Choice
track benefited by receiving free advertising of the quality
of their karaoke works. This in mind this would NEVER hold up.
¨ Confiscation
of equipment used to play the contraband music, such as speakers,
players, and amplifiers that may belong to your facility.
Editorial Comment: Only with a court order which would require
a great deal of proof (none of which has been investigated at
all) and a legal precedent to base the seizure on.
¨ Potential risk of the loss or suspension of the liquor
license for bars/clubs using contraband music or contracting
with KJs using contraband music. Editorial Comment: We called
and spoke to an official in the Arizona Liquor licensing board.
They refuse to have their name attached to this, but they stated
very clearly... "There is no intent now or any time in
the future to affect the liquor license of any bar in Arizona
based on the legality of an entertainer's music selection. This
is not our area of jurisdiction and if someone is making such
statements it is not based on any information we have shared
with them"
It is our
hope that, by providing you with this notification, you will
be able to protect your business. Compliance is easy. The law
requires all Karaoke hosts to use original manufacturer produced
music formats (CDGs, DVDs, Tapes, etc.). We are including a
flyer with information about how to identify illegal copies
of CDGs. If your current karaoke hosts are unable to produce
and exclusively use original productions of their music in their
original format, we recommend that you hire hosts who do comply
with the US Copyright regulations by buying and using original
Karaoke products. Editorial Comment: Once again, Read the documents
above. The term Karaoke, CDG or anything relating to Karaoke
does not appear anywhere in the documents ,which makes this
pure speculation and opinion.
Sound Choice
music is never licensed for use on any hard drive, so any Sound
Choice songs on a hard drive are illegal copies. The publishers
do not sell licensing for computerized music. This is to protect
the artist rights to royalties. To do so, makes you in violation
of the law as well as copyright and trademark infringement of
Sound Choice products. Sound Choice does not sell hard-drives
for this reason. The fines start at $1,000.00 per song working
in conjunction with the FBI for publishing rights of the artist.
Editorial Comment: This opens a whole can of worms. Lets start
with the first sentence. you can go to Sound Choice's website
right now and you can buy downloaded copies of Karaoke tracks
to your IPOD. IPODS are hard drive systems. They also sell a
digital subscription service that can be used via Dish Network..
This is a digital file downloaded and used via their device.
They also sell a preloaded hard drive based system via DOPI
Karaoke that is used for rental purposes: http://www.dopikaraoke.com/home/exampleuses/
Where can I find these hard drive downloads.. Pretty much anywhere
on Sound Choice's website:
http://www.soundchoice.com/karaoketv.htm
http://www.soundchoice.com/audio.htm
http://www.soundchoicestore.com/dopi-karaoke-system-c-4-p-1-pr-32633.html
http://www.soundchoice.com/video.htm
Let's think about this, based on the lawsuits above it appears
MANY artist have problems with the way Sound Choice does or
does not pay royalties. No judgment here, just a statement that
obviously there is an issue if all these publishers are suing?
Fair enough. Meanwhile artists are receiving funds for the music
being played in the form of ASCAP and BMI Fees. So it appears
Sound Choice is making a large issue about songs they may or
may not have rights to in the first place... Now I am trying
to be careful in what I say or how I say it as that is what
an educated person does. However Ms. Wood of Sound Choice should
follow the same rules as they clearly DO LICENSE MUSIC FOR USE
WITH A HARD DRIVE. They also are not taking such great care
of the artists as witnessed by 4 legal cases and one of those
case is about violating a patent for the digital use of music
files (on a hard drive)... Scratching your head yet?
It is not our desire
to take unnecessary legal action, and hopefully this information
will enable you to insure that your karaoke hosts are operating
legitimately. It is our intention to follow-up on this report
and to make a determination if the violation has ceased. If
the violation has ceased it will no longer be necessary for
us to take any further action. Please contact us immediately
at 888-210-6100, if you believe that the information we have
received is in error and/or to resolve this situation. Editorial
Comment: She is correct here. as stated above Sound Choice has
been handed all kinds of evidence and is not doing anything
with that information. They would prefer to bully, harass and
intimidate people and really do not want this to go to court
as they might lose and then they would not be able to threaten
like this any longer.
Thank you for your
cooperation and compliance. Editorial Comment: YOU ARE WELCOME!
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We would love to hear your comments on these issues. If you
have a valid point to make please send us an e-mail at: webmaster@azkaraokealliance.com
We are forming
a national Karaoke Alliance to protect our rights and take action
against such intimidation and threats as appear above. Please
e-mail us for more information and how you can join our group...
If you are not paying for legitimate copies of your music and
can not provide proof of such, don't bother to contact us. This
is about protecting technology capabilities, not defending people
who are stealing music.
