In today's CMU Daily: The US Supreme Court has answered an important question regarding damages in copyright cases. The question was posed as part of a dispute over a sample in a Flo Rida track - and the answer to it could increase damages payments in future copyright infringement cases in the US

One Liners: Good Neighbours, Pure Tone deals; LIVE, Satellite414, TaP Music appointments; UMG’s start up hub; Downtown credit facility; Apple Music label tools; FAC’s Step Up Fund; LGBTQ+ meetup at TGE; Libertines hotel pivots; Beatles video; new music from Megan Thee Stallion, Camila Cabello, Post Malone, more

Also today: Music Venue Properties becomes landlord to a second grassroots venue; TikTok is expanding its labelling of AI generated content

Plus: Apple discovers that not everyone thinks smashing up musical instruments is creative

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Supreme Court ruling could boost damages payments in US lawsuits over historical copyright infringement

The US Supreme Court has answered an important question about damages in American copyright infringement cases which was posed during a dispute over a Flo Rida sample. Basically, the top court ruled, if a copyright owner sues over an infringement that took place years or even decades ago, providing their claim meets the requirements of the statute of limitations, they can claim damages all the way back to the day of infringement.

The sample at the centre of this legal battle came from 1984 Tony Butler track ‘Jam The Box’ and appeared in Flo Rida’s 2008 release ‘In The Ayer’. Butler, working with music publisher Warner Chappell, cleared the sample for use in Flo Rida’s track. However, years later a man called Sherman Nealy popped up claiming that he actually owned the copyright in ‘Jam The Box’, having signed Butler to his Miami-based label Music Specialist back in the 1980s.

Under US copyright law, infringement claims must be made within three years of the infringement or - by applying a thing called the ‘discovery rule’ - within three years of the copyright owner discovering the infringement. Nealy argued that he only discovered the infringing Flo Rida sample in 2016, less than three years before he sued in 2018.

By applying the discovery rule he could make a claim, but then came the big question about damages. If his claim was successful, could he only claim damages back up to three years - in line with the statute of limitations - or all the way back to the release of ‘In The Ayer’ in 2008?

That question was put to the Eleventh Circuit Appeals Court, which said all the way back to 2008 seemed right. But that conflicted with how the Second Circuit Appeals Court, elsewhere in the US, answered the same question in another case in 2020. Hence why the whole thing was bounced up to the Supreme Court.

In its judgement, the Supreme Court first said that it “assumed” the discovery rule applied in this case and Nealy could therefore pursue an infringement claim. On that basis, it considered “whether a claim satisfying that rule is subject to another time-based limit … preventing the recovery of damages for any infringement that occurred more than three years before a lawsuit’s filing”. It then ruled, “We hold that no such limit on damages exists. The Copyright Act entitles a copyright owner to recover damages for any timely claim”.

So that's nice and straightforward. Except, you might wonder, why is the Supreme Court merely “assuming” that the discovery rule applies in this case, meaning that Nealy can sue and the damages question is subsequently posed?

Well, some people argue that the discovery rule shouldn't even apply in copyright cases, and those people would have quite liked the Supreme Court to say so. But, the Supreme Court decided that - because that specific question hadn't been raised in the Flo Rida sample case - it wasn't going to answer it.

“In this case”, the judges wrote, “we assume without deciding that a claim is timely under that provision if brought within three years of when the plaintiff discovered an infringement, no matter when the infringement happened”.

Six of the judges in the Supreme Court backed the judgement, but three dissented. Those three judges felt that the question as to whether or not the discovery rule applies in copyright cases is rather important and should have been answered. Probably with a big fat “no”.

In a dissenting judgement, they wrote that the court had considered how the discovery rule should operate under the Copyright Act, “but in doing so it sidesteps the logically antecedent question whether the act has room for such a rule. Rather than address that question, the court takes care to emphasise that its resolution must await a future case. The trouble is, the act almost certainly does not tolerate a discovery rule. And that fact promises soon enough to make anything we might say today about the rule’s operational details a dead letter”.

Nealy’s copyright infringement lawsuit is actually still going through the motions at a district court level while the big question about damages was posed in the Supreme Court. If Nealy ultimately prevails, yesterday's judgement could have a big impact on the damages he can claim.

The ruling will also impact on the damages claimed in other copyright infringement lawsuits. Indeed, it may make pursuing a lawsuit more attractive for copyright owners relying on the discovery rule in relation to infringements where the big damages stem from usages long ago.

Meanwhile, we await to see whether any future case will force the Supreme Court to answer that initial discovery rule question. If answered “no”, that will render yesterday's ruling redundant, as the dissenting judges noted.

Spiritmuse Records // Label Manager (London Hybrid)

Your Culture // Campaign Management Assistant (Brighton)

Gondwana Records // Part Time Social Media, Online Marketing & Digital Content Manager (Manchester Hybrid)

Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

The Beatles, Apple Music, Megan Thee Stallion + more

DEALS

Universal Music’s Capitol and Polydor labels have jointly signed Good Neighbours following the success of their debut single ‘Home’. The UK duo’s debut EP will be released by their existing indie label partners Some Action in the UK and Neon Gold in the US with support from the major subsidiaries later this year. They will then become solely Universal-signed after that.

A&R exec Pete Ganbarg and Warner Music’s Atlantic Records have partnered on new label venture Pure Tone Records. “It's the best of both worlds”, says Ganbarg. “A golden opportunity to run my own shop, while at the same time having the backing of the outstanding Atlantic team who I've worked with so closely over the past fifteen-plus years”.

APPOINTMENTS

Live music industry trade body LIVE has appointed Ross Patel as its first Green Impact Consultant. “We have worked with Ross for some time now in various capacities and have always been impressed with their energy, knowledge and commitment to sustainability issues”, says CEO Jon Collins. “This new role will see Ross leading and further amplifying the work of ‘LIVE Green’ and helping us in our mission to green the live music sector as quickly, fairly and effectively as possible”.

Music PR firm Satellite414 has promoted Claire Coulton to Head Of Press. “I joined the team at Satellite414 six years ago and in that time I have learnt so much working alongside our CEO Carl Fysh on artists like Lana Del Rey, Adele, Halsey and 30 Seconds To Mars”, she says. “I’m excited and ready to progress from Senior Publicist into the role of Head Of Press, continuing to expand my roster in the years to come”.

TaP Music has hired Will Bloomfield as Co-President and Head Of Global Artists Management. He joins from Modest! Management. “I am so THRILLED to be joining the world class team of talented executives at TaP”, he says. “The remarkable work they have done over the last fifteen years has made TaP synonymous with great taste, credibility and developing artists into global superstars”.

LABELS & PUBLISHERS

Universal Music has launched UMusicLift, an online hub for music-related start ups and entrepreneurs. “We are constantly engaged with numerous start ups, sharing our knowledge and advice to help them thrive in the highly complex ecosystem of the music industry”, says Universal’s SVP Digital Innovation Strategy & Business Development Kristen Bender. “As time goes on, we will continue to build on this library of resources featured on UMusicLift. Adding this important resource to our already broad programmatic support of early-stage entrepreneurs, we’re looking forward to continuing to support the next generation of start ups”.

Downtown Music has expanded its partnership with Bank Of America to offer an additional $500 million of advances to independent artists, songwriters, labels and publishers in exchange for taking short-term shares in future royalties. “Downtown is at the centre of a major shift in the music industry where creators and the businesses that support them are completely aligned”, says CEO Pieter van Rijn. “Our clients depend on us for the resources they need to bring their work to life and retain ownership and control of their work. Flexible financing solutions like this are another essential way we can support artists and grow the industry as a whole”.

DIGITAL

Apple Music has launched a collection of new tools for label and distribution partners to track plays on the streaming service, as well as global radio play and Shazams. Find out more here.

FUNDING

The UK’s Featured Artists Coalition has announced the return of its Step Up Fund for a third year. It will provide grants of up to £8000 to ten independent artists. Applications open on 15 May. Full details here.

INDUSTRY PEOPLE

Network for LGBTQ+ people working in the music industry Music+ is organising a meet up at next week’s Great Escape. It will take place at The Actors in Brighton from 5-7pm on 17 May. Register to attend here.

ARTIST NEWS

The Libertines’ Albion Rooms hotel in Margate will close to paying guests at the end of June. As the band recently indicated, it will instead become a residential recording studio and events space.

RELEASES

The Beatles have released a new music video for ‘Let It Be’. It features clips from the restored ‘Let It Be’ documentary, which is available now on Disney+.

Megan Thee Stallion is back with new single ‘Boa’.

Camila Cabello has released new single ‘He Knows’, featuring Lil Nas X.

Post Malone and Morgan Wallen have teamed up for new single ‘I Had Some Help’.

Central Cee has released new track ‘CC Freestyle’.

Fredo is back with new single ‘Top G’.

Charli XCX has released new single ‘360’. Her new album ‘Brat’ is out on 7 Jun.

Jodie Harsh has released new single ‘Joy’.

DJ Seinfeld has released new single ‘If U Like Me’.

Metronomy’s Anna Prior has released new solo single ‘Up2U’. Her debut EP ‘Almost Love’ is out on 13 Jun.

Orange Goblin have released new single ‘Cemetery Rats’. New album ‘Science, Not Fiction’ - their first for Peaceville Records - is out on 19 Jul.

Music Venue Properties announces purchase of The Ferret in Preston

Music Venue Properties - the entity set up by the Music Venue Trust as part of its Own Our Venues initiative - has acquired its second venue, The Ferret in Preston. It means the venue’s operators will now have a landlord whose mission is to support local grassroots music communities.

“This is a monumental moment for The Ferret”, says the venue's Director and Programme Manager Matt Fawbert. “We’re extremely pleased to be able to say that our venue is now safe and secure for years to come. To have a landlord that is dedicated to live music and supporting grassroots music venues gives us the security and confidence to not only continue delivering great live music to the people of Preston, but also to invest even more in grassroots music and culture and create something very exciting in our city”.

The Music Venue Trust launched its Own Our Venues initiative in May 2022, having recognised that a key challenge for many grassroots venues is dealing with the insecurity that stems from being a tenant in a building with a landlord that has its own commercial priorities.

MVP was established as a charitable community benefit society as part of the Own Own Venues scheme, with people and companies then encouraged to invest in that entity so that it could buy the freeholds of a network of grassroots music venues. It then acquired its first venue, The Snug in Atherton, last October.

Its second purchase provides a particularly good case study as to why something like MVP is so beneficial. “Just over two years ago The Ferret team found out their building was up for sale when a sign was mounted on the front of the building”, MVP's Matthew Otridge explains. “But today they can look forward to working with a landlord who will support its ambition to bring music to its local community”.

Welcoming the second venue purchase, MVT CEO Mark Davyd says, “This second purchase by Music Venue Properties is further demonstration that, when the music community comes together around a great idea, we can deliver real positive change to the UK's grassroots music venue sector”.

“The Ferret is the second venue removed from the commercial marketplace under the Own Our Venues scheme”, he adds. “It is now able to make long term plans for its future, and the future of live music in Preston, as a result of a new cultural lease that provides it with permanently protected status. We have already seen the huge difference this has made for the Snug in Atherton, and we want to see this project rolled out to many more venues across the country”.

The news of MVP’s second venue purchase comes a day before Parliament's Culture, Media & Sport Select Committee is due to publish its report on grassroots music venues, following an inquiry that included the recent hearing where MVT were among those to present.

We'll be dissecting what that report says on this week's Setlist podcast, which will go live over the weekend.

TikTok to expand labelling of AI content to videos created on third party platforms

TikTok has announced that it is expanding its labelling of AI-generated content within the short form video app, by automatically labelling content that has been generated by AI on third party platforms.

The clear labelling of AI-generated material is one of the demands being made by the music community, so that both users and the music industry can see what content is entirely generated by AI. Politicians and news organisations have also been making similar demands, more concerned about AI generated content exacerbating the fake news problem and being used to influence elections.

“Our users and our creators are so excited about AI and what it can do for their creativity and their ability to connect with audiences”, Adam Presser, TikTok’s Head Of Operations and Trust & Safety told ABC News. “And at the same time, we want to make sure that people have that ability to understand what fact is and what is fiction”.

TikTok already labels content made using its own AI tools, and the app's existing rules require creators to manually add labels to their own content if it has been generated with AI. However, the company will now also utilise digital watermarks included in AI-generated content made on other platforms to label that content too.

It's an initiative enabled by its participation in the cross-industry Coalition For Content Provenance And Authenticity, which has developed a Content Credentials specification.

Microsoft, Google, Adobe and - as of this week - Open AI are all part of that Coalition, as are the Recording Industry Association Of America, Universal Music and Sony Corp. Though there are still some notable gaps in its membership among popular AI platforms.

As lawmakers around the world seek to regulate AI, labelling AI-generated content is certain to be a requirement of any new regulations. The recently passed EU AI Act states that providers of AI models “generating synthetic audio, image, video or text content, shall ensure that the outputs of the AI system are marked in a machine-readable format and detectable as artificially generated or manipulated”.

With TikTok already facing political woes in various countries over its systems for dealing with harmful content and ownership by China-based ByteDance, it’s probably worth its while being seen to be ahead of things when it comes to labelling the outputs of generative AI.

And Finally! Apple finds out the hard way that not everyone thinks destruction is a form of creation

This week Apple launched a new advert attempting to harness the viral power of hydraulic press videos by creating one of its own on a massive scale.

The premise is simple, really. The new iPad Pro is the thinnest Apple has ever made. Also, there are loads of things you can do on an iPad. Watch TV, make music, draw, play games, read books. What better way to show that than to take physical representations of all those things and then show them being crushed down into a brand new iPad? How exciting!

Just imagine all of those amazing tools packed into one little iPad. This video is all about celebrating creativity. Everyone involved in the marketing of the Apple tablet must have been slapping themselves heartily on the backs all through the making of this video.

But it turns out that many people see videos of things being crushed in hydraulic presses as being more about destruction than creation. And so Apple found itself having to apologise for a video that filmmaker Asif Kapadia called “the most honest metaphor for what tech companies do to the arts, to artists, musicians, creators, writers, filmmakers: squeeze them, use them, not pay well, take everything then say it’s all created by them”.