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1/10/11

Music Companies Pay $45 Million For Illegal Piracy

Warner Music, Sony BMG Music, EMI Music and Universal Music were ordered to pay millions in damages due to the illegal use of thousands of songs on their CDs. A beautifully ironic twist.

(www.newswire.ca) The current music licensing system allows for recordings to be issued without preclearance from copyright owners but subject to licensing agreements with CMRRA and SODRAC, who represent most publishers and songwriters. The vast majority of royalties owing for such sales have always been and will continue to be paid promptly by the record labels. The proposed agreement settles all alleged copyright infringement liability related to that small minority of unlicenced works that have accumulated over the years. The proposed agreement also establishes a new mechanism that will expedite future payments of mechanical royalties to music rights holders.

Bad outcome. Two companies are now above copyright laws and have a complete monopoly on music. This was a payoff for complete control.

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