This article contains wording that promotes the subject in a subjective manner without imparting real information.(April 2014) |
Warner/Chappell Music Inc. et al. v. Fullscreen Inc. et al. | |
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Court | United States District Court for the Southern District of New York |
Holding | |
A settlement was reached requiring Fullscreen to take down all unlicensed videos on its company YouTube channel. Fullscreen's partners were to obtain licenses for past and future content. | |
Keywords | |
Copyright infringement, multi-channel network, mechanical license |
Warner/Chappell Music Inc. et al. v. Fullscreen Inc. et al. (13-cv-05472 [1] ) was a case against multi-channel network Fullscreen, filed by the National Music Publishers Association on behalf of Warner/Chappell Music and 15 other music publishers, [2] which alleged that Fullscreen illegally reaped the profits of unlicensed cover videos on YouTube without paying any royalties to the rightful publishers and songwriters.
According to the lawsuit, the defendant Fullscreen was accused of having "willfully ignored their obligation to obtain licenses and pay royalties to exploit the vast majority of the musical content disseminated over Fullscreen's networks." [3] Among the musical content that Fullscreen allegedly infringed upon were songs by Justin Bieber, Kesha, Kanye West, Lady Gaga and Katy Perry. [1]
The National Music Publishers Association filed this copyright infringement lawsuit in the Southern District of New York on August 6, 2013, [2] accusing Fullscreen of 4 distinct copyright violations: 1) direct copyright infringement, 2) contributory copyright infringement, 3) inducement of copyright infringement, and 4) vicarious copyright infringement. By way of explanation, the plaintiff suggested that Fullscreen 1) copied directly from another's work without a license (direct infringement), 2) contributed to and supported its partners' infringement (contributory copyright infringement), 3) is liable for the actions of its partners' infringement and directly profited financially from the act (vicarious infringement), and 4) knowingly aided/induced the act of infringement.
Prior to this, the NMPA filed a similar lawsuit against another multi-channel network, Maker Studios, which then agreed to settle out of court and to establish a compensation model for both past infringements and future licenses that fully comply with the Copyright Act. [2]
The National Music Publishers Association (NMPA) is a trade association for American music publishers and songwriters, including Warner/Chappell Music and Palm Valley Music. [2] It was founded in 1917 and had more than 300 members in 2014. [4]
Fullscreen is one of the largest YouTube multi-channel networks that generates over 3 billion monthly video views across all of its channels. This multimillion-dollar company was founded in January 2011 by CEO George Strompolos, and houses some of YouTube's most successful talent, including Lindsey Stirling, The Fine Brothers, Tyler Ward, and Megan Nicole. [5] According to the company, Fullscreen is affiliated with over 15,000 YouTube channels that have garnered a total of 200 million subscribers and over 2.5 billion views per month. [3] Fullscreen acquires more than 30 million unique visitors each month, [4] across all of their channels. Like many other multichannel networks, Fullscreen primarily consists of channels with covered musical content. The network profits directly from the advertising revenue generated by these unlicensed music videos.
A settlement was reached that required Fullscreen creators to license their music videos or remove them completely. The channel managed by Fullscreen was to remove all offending videos entirely, whereas Fullscreen partners were given the opportunity to license these videos. [6] George Strompolos, Fullscreen CEO, commented:
David Israelite, NMPA president and CEO, noted:
After the settlement, Fullscreen and Maker Studios announced a deal with Universal Music Publishing Group, which allows the networks access and monetization of Universal's entire music library. [7]
Multi-channel networks (MCN) are companies that work with YouTube channels and assist with funding, rights management, audience development, and monetization. They are neither affiliated with nor endorsed by Google and receive a portion of the advertising revenue that they help generate for their affiliated YouTube channels. [8] Recently, it has become more profitable to work with brands on integrated marketing, using clever ways to incorporate advertising within a YouTube creator's video. Though MCNs can offer YouTube creators with connections to brands and sponsorship deals, as well as financial support, there has been criticism against them. YouTube personality Ray William Johnson left his MCN Maker Studios when he was asked to renegotiate his contract and give up 40% of his advertising revenue and 50% of the intellectual property of his show, Equals Three. [9]
Content ID is a system built by YouTube (whose parent company is Google) in 2007 that scans every video uploaded to YouTube for copyright infringement. Copyright holders register their content into the system, and when Content ID identifies usage of that content in a user-generated video, it notifies the rights-owner and allows them the choice to 1) monetize the video, 2) block the video completely, or 3) track the video and gain all analytics insights. YouTube producers may dispute or appeal Content ID claims. Content ID has made it easier for content owners to track down usage of their content and regain control over its availability and monetization on YouTube. Uploaders receive a strike for each case of infringement, and have their accounts suspended upon their third strike. YouTubers and certain publishers have settled on blanket synchronization licenses, that allow publishers to take up to 50% of the revenues generated by videos that use their content. [10] YouTube has direct licensing contracts with many music publishers, which pay them the due royalties for cover songs uploaded by YouTubers. Multi-channel networks like Fullscreen, however, are not covered under these contracts. [11]
Copyright infringement cases regarding unlicensed videos on YouTube began long before this case between the NMPA and Fullscreen. In 2007, Viacom sued Google over alleged copyright violations within its YouTube service. [12] In March 2014, the two companies announced its settlement, stating that "Google and Viacom today jointly announced the resolution of the Viacom vs. YouTube copyright litigation. This settlement reflects the growing collaborative dialogue between our two companies on important opportunities and we look forward to working more closely together." [13] When the lawsuit was first initiated, Viacom was asking $1 billion in damages from Google, alleging that YouTube had engaged in "brazen" and "massive" copyright infringement, by allowing its users to upload thousands of videos owned by Viacom, without licenses. [12] In 2010, Google's motion for summary judgment seeking dismissal was granted, based on the Digital Millennium Copyright Act's "safe harbor" provisions. Though Viacom appealed, District Judge Stanton granted summary judgment again, in favor of defendant Google in April 2013. [13]
The second phase of Viacom Inc., was an American multinational mass media and entertainment conglomerate with interests primarily in film and television. It was established on December 31, 2005, as one of two companies which succeeded the original Viacom, alongside the second CBS Corporation. The controlling shareholder of both companies was National Amusements, a theater company headed by businessman Sumner Redstone. The split was structured so that the original Viacom changed its name to CBS Corporation and spun out its cable and film interests as a new Viacom.
The Orchard Enterprises NY, Inc., doing business as The Orchard, is an American music and entertainment company, specializing in media distribution. It is a subsidiary of Sony Music Entertainment, based in New York City. In 2019, the company sold off its film and television division, which was renamed 1091 Media.
The Harry Fox Agency (HFA) is a provider of rights management and collector and distributor of mechanical license fees on behalf of music publishers in the United States. HFA has over 48,000 music publishing clients and issues the largest number of licenses for physical and digital formats of music. It was founded in 1927 by the National Music Publishers Association. The agency was sold to performing rights organization SESAC in 2015, which was itself acquired by The Blackstone Group in 2017.
YouTube is an American social media and online video sharing platform owned by Google. YouTube was founded on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim, three former employees of PayPal. Headquartered in San Bruno, California, United States, it is the second-most visited website in the world, after Google Search. In January 2024, YouTube had more than 2.7 billion monthly active users, who collectively watched more than one billion hours of videos every day. As of May 2019, videos were being uploaded to the platform at a rate of more than 500 hours of content per minute, and as of 2023, there were approximately 14 billion videos in total.
The National Music Publishers' Association (NMPA) is a trade association for the American music publishing industry. Founded in 1917, NMPA represents American music publishers and their songwriting partners. The NMPA’s mandate is to protect and advance the interests of music publishers and songwriters in matters relating to the domestic and global protection of music copyrights.
Warner Chappell Music, Inc. is an American music publishing company and a subsidiary of the Warner Music Group. Warner Chappell Music's catalog consists of over 1.4 million compositions and 150,000 composers, with offices in over 40 countries.
A copyright troll is a party that enforces copyrights it owns for purposes of making money through strategic litigation, in a manner considered unduly aggressive or opportunistic, sometimes without producing or licensing the works it owns for paid distribution. Critics object to the activity because they believe it does not encourage the production of creative works, but instead makes money through the inequities and unintended consequences of high statutory damages provisions in copyright laws intended to encourage creation of such works.
Viacom International, Inc. v. YouTube, Inc., 676 F.3d 19, was a United States Court of Appeals for the Second Circuit decision regarding liability for copyright infringement committed by the users of an online video hosting platform.
Roblox Corporation is an American video game developer based in San Mateo, California. Founded in 2004 by David Baszucki and Erik Cassel, the company is the developer of Roblox, which was released in 2006. As of December 31, 2023, the company employs over 2,400 people.
A Let's Play (LP) is a video documenting the playthrough of a video game, often including commentary and/or a camera view of the gamer's face. A Let's Play differs from a video game walkthrough or strategy guide by focusing on an individual's subjective experience with the game, often with humorous, irreverent, or critical commentary from the player, rather than being an objective source of information on how to progress through the game. While Let's Plays and live streaming of game playthroughs are related, Let's Plays tend to be curated experiences that include editing and narration, and can be scripted, while streaming is often an unedited experience performed on the fly.
Fullscreen, Inc. was an American entertainment company which offered software tools, services, and consultation to social media content creators and brands. It was an original multi-channel network on YouTube. It was fully acquired for $845M in 2018 by AT&T-owned Otter Media, which is now a subsidiary of Warner Bros. Discovery.
A multi-channel network (MCN) is an organization that works with video platforms to offer assistance to channel owners in areas such as "product, programming, funding, cross-promotion, partner management, digital rights management, monetization and sales, and audience development," in exchange for a percentage of the ad revenue from the channel.
BBTV is a Canadian media and technology company founded by CEO Shahrzad Rafati in 2005. In 2019, the company was the second-largest video property by unique viewers, according to comScore. Its head office is in Vancouver, British Columbia, Canada. BBTV's clients include the NBA, Paramount Global, and Sony Pictures.
Google has been involved in multiple lawsuits over issues such as privacy, advertising, intellectual property and various Google services such as Google Books and YouTube. The company's legal department expanded from one to nearly 100 lawyers in the first five years of business, and by 2014 had grown to around 400 lawyers. Google's Chief Legal Officer is Senior Vice President of Corporate Development David Drummond.
Jukin Media, Inc. is an entertainment company that operates by identifying shareable or otherwise compelling user-generated videos, negotiating with the video owners, and then licensing the videos for third-party use and/or featuring the videos in its own productions. The company was founded in 2009 by Jonathan Skogmo, Aldo Carrascoso and Josh Entman and is headquartered in Los Angeles, California.
YouTube copyright issues relate to how the Google-owned site implements its protection methods. The systems are designed to protect the exclusivity of a given creator and owner and the rights to reproduce their work. YouTube uses automated measures such as copyright strikes, Content ID and Copyright Verification Program. These methods have been criticized for favoring companies and their use of copyright claims to limit usage of uploaded content.
Content ID is a digital fingerprinting system developed by Google which is used to easily identify and manage copyrighted content on YouTube. Videos uploaded to YouTube are compared against audio and video files registered with Content ID by content owners, looking for any matches. Content owners have the choice to have matching content blocked or to monetize it. The system began to be implemented around 2007. By 2016, it had cost $60 million to develop and led to around $2 billion in payments to copyright holders. By 2018, Google had invested at least $100 million into the system.
Audible Magic Corporation is a Los Gatos, California-based company that provides content identification services to social networks, record labels, music publishers, television studios, and movie studios. The company also provides digital platform music management services for Internet radio, subscription music services, on-demand streaming, and fitness and gaming applications. The services help companies identify and protect copyrighted content, manage rights and monetize media.
Equals Three, LLC v. Jukin Media, Inc., 139 F. Supp. 3d 1094 was a copyright infringement lawsuit where the court evaluated if commenting on humorous videos in a transformative manner is fair use or exploiting videos for their humor without paying for their use.