Currently under consideration in the Senate is S. 978. This is legislation that is directed to prevent the unauthorized streaming of copyrighted works. The primary targets of this legislation are underground streaming services that offer US television network programming and sports to a global audience for a fee. Normally, this type of network programming that we enjoy on services like Hulu are not available outside the United States due to licensing agreements and market exclusivity in these foreign markets.
Other companies provide “proxy” services that permit a computer user in another country to “tunnel” through another computer with an IP address in the target country to appear like the user is in that country in order to view content. REC defends the use of proxy services as they have legitimate purposes such as verifying the presentation of websites and advertising that are geographically dynamic and in countries where internet content is restricted by government regulation, proxy services provide the only window to the truth in the outside world.
While the law rightfully would target commercial streamers, some may interpret the law differently and the impact would stifle the creativity of our future talent.
S.978 calls for any unauthorized streaming (public performance) of 10 or more copyrighted works over a 180 day period to be a felony with up to 5 years in prison.
We are deeply concerned about the impact this regulation would have on cover artists. Those who sing (e.g. karaoke) or play instrumental covers of popular songs. These artists will record their work and then post them on streaming sites such as YouTube for peer evaluation as well as to showcase their talent. Under the new regulations, they would be criminals. This is because while the cover artist may not financially benefit from the work being played on YouTube, the copyright owner may claim that the presence of the work online has resulted in them in “losing” more than $2,500 as a result of this creative derivation of the work. Of course, it will be up to the artist to have to defend themselves in this situation.
We are also concerned that parody, which is an art form that is protected by that grey area called “fair use” may get sucked into this new vacuum as parody songs use the same melodies as copyrighted songs.
Speaking of melodies, if this law is taken to the letter, a video of a child opening an electronic greeting card that plays the melody of “Happy Birthday” can land the parents in jail after the 10th play.
If this legislation is allowed to become law, talented kids will no longer be allowed to be influenced by today’s artists in their effort to shape American popular culture for tomorrow. The common chain of learning a talent is to listen to other’s (copyrighted) works, attempt to emulate them, record your attempt, play it to others for a peer review and then use that inspiration to produce your own original works. If the labels allow this to happen, it will reduce the amount of potential talent in America that the education system hasn’t already strained as a result of the elimination of arts and music programs in our schools.
This legislation also may have potential impacts on legitimate operators of internet streaming services as it puts the technical makeup of an internet radio station under the microscope, especially those who have to use a “backhaul” internet stream to feed programming to the licensed streaming provider. This is no different than a studio-to-transmitter link in terrestrial broadcasting. In licensing agreements such as Live365, this backhaul stream could be interpreted as “unlicensed” as the originator of the program (the one streaming the backhaul) does not carry the licenses, the streaming provider does.
While we understand the need for more controls on the unauthorized retransmission of network television entertainment and live sports via internet streams, REC Networks feels that the language of S.978, while short, is far reaching and will impact the ability of future artists to hone their talents, be able to follow their artists and this will have a direct impact on American culture and how it reflects to the world as well as putting a blanket over the mirror that reflects the world’s culture on America. When we are at a point where parents now have to question whether their children learning to whistle by blowing a popular tune or whether an innocent video of a birthday party can be considered a felony, we have gone too far.
Just as we are dependent on the film and recording industries for entertainment, they are also dependent on us for our financial support. If these industries do not give some leverage to promote the future of film and recording, then there will eventually be no film or recording industry, simple as that.
