jclaydon
01-23-2008, 11:42 PM
For the past three years, I have been on a crusade to get at least one american karaoke company to listen to the concept of digital liscensing.
I have been circulating the following letter, with absolutely no reponse or results. I wasn't expecting much, but I was at least hoping for a form of acknowledgment. After reading it, am I just making things worse? Are my arguments faulty? Should I stop trying to write the companies.
enclosed is my letter<personal information has been removed>:
"
Empty Orchestra Entertainment
High River, AB
CANADA
To the president/operators of Chartbusters Karaoke: <i change the company name to whomever I'm writing to>
Most of the karaoke companies with whom I have attempted to correspond have either not bothered to respond at all, or simply responded with boiler plate responses that basically say "We don't have to explain ourselves or listen to you".
Since you seem to be such a good company that genuinely cares about their customers and who has been efficient and prompt with your customer service, I would like to share my thoughts with you on the subject of digital licensing for karaoke, and why it is a good idea.
Let's start with the easier argument, why is digital licensing a good idea for me, the KJ.
1. Expense. I have invested a considerable amount of money into my karaoke business. The most expensive component of that is the music, i.e. cdg discs. Discs can go missing, get stolen, scratched beyond repair and if a disc is discontinued, replacing it is impossible. To be able to keep a set of discs on a hard drive and just pay a yearly licensing fee means that you will never lose your investment.
2. Convenience - Being able to take advantage of computer technology allows me to run a better and more efficient show. The search capabilities of most software allow me to look up a requested song instantaneously. Also, if you have an extensive collection, the amount of bulk and physical space the cdgs take up can be both cumbersome and difficult to transport in addition to having to find space where they are easily accessible during your show.
3. Peace of mind - If karaoke companies were to grant licenses for LEGITMATE users, there would be no worry about whether or not a person is breaking the law. Because believe it or not, there is a LOT of confusion in Canada and many people think that the Fair Use arguments that protect non-commercial users apply to people who are running karaoke as a business.
Thus we can see that the advantages of digital licensing for the KJ FAR
outweigh any possible expenses incurred from paying fees to obtain this
licensing.
Now let's move on to the more difficult argument. Why digital licensing is
beneficial to you, a manufacturer?
1. Piracy is a fact of life, and it will NEVER go away completely. Why not spend your time, energy and money on the majority of people who WANT to do business legitimately?
There are always going to be people who have no problems with stealing no matter what a person does to change that. The music industry has gone thru significant technology changes before, and there has always been someone taking advantage of that, and yet the industry and musicians are still making money. It is always easier to change something by focusing on the positive than to change something by trying to eliminate the negative. It’s a basic principle of entropy.
I think that the best way to combat piracy is to make the benefits of NOT pirating cdg music outweigh the benefits of pirating. I have covered this argument to a degree in my above statements but there are other things as well.
Have you noticed how many people are starting to sell custom CDGs and the ability to download individual tracks in the US? Why? Because they are making TONS of money, that's why. Fair use claims DO cover KJs in the US.
I know a KJ in the US who has come up with a BRILLIANT system. A person who runs their show digitally and has internet access can instantly download a song that he/she does not have from the companies and pay for it thru paypal. The person gets to sing the song they want, for an additional fee. *i.e. if the track costs $2 they charge $5*. This makes the Kj money, giving him an additional reason to do business legitimately AND it makes the company money and promotes a better show, which makes Karaoke more enjoyable in general.
2. Legal Precedence by way of the Music industry
Digital licensing for Karaoke is inevitable.
Take a look at how digital licensing for music in Canada came about. One DJ who was using music that he had legitimately bought and ripped to his computer got arrested. With the help of several DJ organizations, they fought it over several years and finally won. Think of all the money that had to be spent by the music companies, who 'lost' anyway.
There are many legitimate legal arguments for licensing, and I believe that if they are finally made in a court, the outcome will be exactly the same.
3. An additional source of income.
Many companies who are against digital licensing will argue that the artists and companies are getting ripped off. I just don't think that's true. Let's look at the current system in Canada.
First of all, to perform music of any kind in a public place such as a bar you need a SOCAN license, a portion of which is supposed to go back to the artists.
Next when you purchase an actual CDG a portion of that money cost is supposed to be paying for the Artist
now companies are levying a fee on CD-R and DVDs and some of that money is supposed to be going to the Artists
to play music on a computer, a person can buy a digital license. a portion of which is supposed to go back to the Artists.
So if a karaoke license was granted that would mean FIVE sources for which money was supposed to be going back to the Artists – and companies - who are "getting ripped off"
In addition, digital licensing for karaoke would provide a stream of residual income for karaoke companies. In other words, this would be a fee that would go to the companies EVERY year, as opposed to a single purchase of a disc.
So we can see that there are advantages to both sides of the equation for digital licensing.
But some people might argue, "How would we prove that a person was doing business legitimately?" I have an idea for that as well.
Say someone wanted to obtain a license to use the current entire Chartbusters Essentials set *this is just an example it could be any set of discs by a single company*. They would email your company for a form, which would be sent to the applicant. They'd fill it out and submit documented proof *i.e. receipts* that they have paid for the entire collection along with a $50 processing fee that would cover the costs of processing each application.
Once the application has been processed and verified, a one year license would be issued for a set amount *let's use $100 as an example*. The next year, when the person wants to renew their license they would simply submit their last approval, along with the licensing fee of $100.
However, if they wanted to license any NEW discs that had come out since the last time or discs that they have purchased not covered by their current license, they would submit a new form, and pay the $50 processing fee again.
Sooner or later, I believe that the karaoke companies will be forced to make an arrangement that grants digital licensing that will cover all karaoke, but in the mean time, a company that is willing to listen to the public, could have a real opportunity to make money until that happens.
If you have any comments, questions, or concerns I would absolutely love to hear from a representative from your company. I can be reached by email at emptyorchestra@shaw.ca or by phone at or by letter at the return address listed above.
Thank you for your time.
Sincerely,
"
Comments? Criticisms?
thanks
I have been circulating the following letter, with absolutely no reponse or results. I wasn't expecting much, but I was at least hoping for a form of acknowledgment. After reading it, am I just making things worse? Are my arguments faulty? Should I stop trying to write the companies.
enclosed is my letter<personal information has been removed>:
"
Empty Orchestra Entertainment
High River, AB
CANADA
To the president/operators of Chartbusters Karaoke: <i change the company name to whomever I'm writing to>
Most of the karaoke companies with whom I have attempted to correspond have either not bothered to respond at all, or simply responded with boiler plate responses that basically say "We don't have to explain ourselves or listen to you".
Since you seem to be such a good company that genuinely cares about their customers and who has been efficient and prompt with your customer service, I would like to share my thoughts with you on the subject of digital licensing for karaoke, and why it is a good idea.
Let's start with the easier argument, why is digital licensing a good idea for me, the KJ.
1. Expense. I have invested a considerable amount of money into my karaoke business. The most expensive component of that is the music, i.e. cdg discs. Discs can go missing, get stolen, scratched beyond repair and if a disc is discontinued, replacing it is impossible. To be able to keep a set of discs on a hard drive and just pay a yearly licensing fee means that you will never lose your investment.
2. Convenience - Being able to take advantage of computer technology allows me to run a better and more efficient show. The search capabilities of most software allow me to look up a requested song instantaneously. Also, if you have an extensive collection, the amount of bulk and physical space the cdgs take up can be both cumbersome and difficult to transport in addition to having to find space where they are easily accessible during your show.
3. Peace of mind - If karaoke companies were to grant licenses for LEGITMATE users, there would be no worry about whether or not a person is breaking the law. Because believe it or not, there is a LOT of confusion in Canada and many people think that the Fair Use arguments that protect non-commercial users apply to people who are running karaoke as a business.
Thus we can see that the advantages of digital licensing for the KJ FAR
outweigh any possible expenses incurred from paying fees to obtain this
licensing.
Now let's move on to the more difficult argument. Why digital licensing is
beneficial to you, a manufacturer?
1. Piracy is a fact of life, and it will NEVER go away completely. Why not spend your time, energy and money on the majority of people who WANT to do business legitimately?
There are always going to be people who have no problems with stealing no matter what a person does to change that. The music industry has gone thru significant technology changes before, and there has always been someone taking advantage of that, and yet the industry and musicians are still making money. It is always easier to change something by focusing on the positive than to change something by trying to eliminate the negative. It’s a basic principle of entropy.
I think that the best way to combat piracy is to make the benefits of NOT pirating cdg music outweigh the benefits of pirating. I have covered this argument to a degree in my above statements but there are other things as well.
Have you noticed how many people are starting to sell custom CDGs and the ability to download individual tracks in the US? Why? Because they are making TONS of money, that's why. Fair use claims DO cover KJs in the US.
I know a KJ in the US who has come up with a BRILLIANT system. A person who runs their show digitally and has internet access can instantly download a song that he/she does not have from the companies and pay for it thru paypal. The person gets to sing the song they want, for an additional fee. *i.e. if the track costs $2 they charge $5*. This makes the Kj money, giving him an additional reason to do business legitimately AND it makes the company money and promotes a better show, which makes Karaoke more enjoyable in general.
2. Legal Precedence by way of the Music industry
Digital licensing for Karaoke is inevitable.
Take a look at how digital licensing for music in Canada came about. One DJ who was using music that he had legitimately bought and ripped to his computer got arrested. With the help of several DJ organizations, they fought it over several years and finally won. Think of all the money that had to be spent by the music companies, who 'lost' anyway.
There are many legitimate legal arguments for licensing, and I believe that if they are finally made in a court, the outcome will be exactly the same.
3. An additional source of income.
Many companies who are against digital licensing will argue that the artists and companies are getting ripped off. I just don't think that's true. Let's look at the current system in Canada.
First of all, to perform music of any kind in a public place such as a bar you need a SOCAN license, a portion of which is supposed to go back to the artists.
Next when you purchase an actual CDG a portion of that money cost is supposed to be paying for the Artist
now companies are levying a fee on CD-R and DVDs and some of that money is supposed to be going to the Artists
to play music on a computer, a person can buy a digital license. a portion of which is supposed to go back to the Artists.
So if a karaoke license was granted that would mean FIVE sources for which money was supposed to be going back to the Artists – and companies - who are "getting ripped off"
In addition, digital licensing for karaoke would provide a stream of residual income for karaoke companies. In other words, this would be a fee that would go to the companies EVERY year, as opposed to a single purchase of a disc.
So we can see that there are advantages to both sides of the equation for digital licensing.
But some people might argue, "How would we prove that a person was doing business legitimately?" I have an idea for that as well.
Say someone wanted to obtain a license to use the current entire Chartbusters Essentials set *this is just an example it could be any set of discs by a single company*. They would email your company for a form, which would be sent to the applicant. They'd fill it out and submit documented proof *i.e. receipts* that they have paid for the entire collection along with a $50 processing fee that would cover the costs of processing each application.
Once the application has been processed and verified, a one year license would be issued for a set amount *let's use $100 as an example*. The next year, when the person wants to renew their license they would simply submit their last approval, along with the licensing fee of $100.
However, if they wanted to license any NEW discs that had come out since the last time or discs that they have purchased not covered by their current license, they would submit a new form, and pay the $50 processing fee again.
Sooner or later, I believe that the karaoke companies will be forced to make an arrangement that grants digital licensing that will cover all karaoke, but in the mean time, a company that is willing to listen to the public, could have a real opportunity to make money until that happens.
If you have any comments, questions, or concerns I would absolutely love to hear from a representative from your company. I can be reached by email at emptyorchestra@shaw.ca or by phone at or by letter at the return address listed above.
Thank you for your time.
Sincerely,
"
Comments? Criticisms?
thanks