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The Fifth Annual Interactive Music Conference
PROJECT BAR-B-Q 2000
brainstorming graphic

Group Report: Intellectual Property - Business Models To Save Your Soul

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Participants: A.K.A. "The Ass-Kickin' Electronic Hezbollah" Chris Gamboa; Creative Labs, Inc.
David Javelosa; Yamaha Corporation Gary Johnson; Cirrus Logic
Rick Kelly; Kinesoft B.J. Leiderman; BJ Leiderman Music
Dennis Staats; Dolby Laboratories Paul Silva; Zform LLC
  Facilitator: Dave Albert; Hasbro
 

1. BACKGROUND

  • Consumer Concerns
    • Find and identify music they like
    • Time shifting and transport the experience
    • Make sure your $ benefits the band, so they prosper
    • Try before you buy
    • Freedom from marketing/advertising if so desired
    • Tribalization vs. Mass-market:
      • are people in smaller tribes less likely to screw one another because they know each other
  • Business Concerns (Respect -> Trust -> Money)
    • "The path of least resistance makes men and rivers crooked."
    • Reeducation of consumers
    • Protect the businesses' investment made in marketing/promotion
    • Fear of change, learning new approaches, losing stability
    • Loss of control, elimination of the middleman
  • Artist Concerns
    • Fair compensation for your product
    • Equitable share of cash stream
    • Access to the promotion machine
    • Recognition
  • BBQ Concept of Fair Use
    • Noncommercial use
    • Private exhibition (small audience)
    • Excerpt with reasonable modification
    • Personal duplication
  • Benefits of the Labels/Machine
    • Protection from theft
    • Marketing investment (VC for artists)
    • Sharing the risk
    • Manufacturing and distribution
    • Filter - good and bad?
    • Is a label a brand or a machine
      • Tellarc/Blue-Note vs. Sony/EMI
      • Exposure to facilities

2. BUSINESS MODELS

  • Blanket Licenses by Royalty Collection Agencies for the ISP's
    • Royalty collection charging ISP's
    • Retail
    • Brick & Mortar/per unit royalty
      • Tower, Virgin
    • Click & Order
      • Amazon, CDNow
  The old MACHINE New Model
The label Traditional Record
Labels
BMG, WEA, Sony
MP3.com, IUMA
The station Broadcast networks
(radio, TV)

ISP's

Revenue stream

Royalty collection
Agencies
ASCAP, BMI, Harry Fox
Charging broadcast

Royalty collection NEXT
GENERATION
Charging ISP's

Free trade NO $$$ Peer to Peer
Royalty collection
charging ISP's
Retail

Brick & Mortar/per unit
royalty: Tower, Virgin

Click & Order
Amazon, CDNow
  • Royalty and Subscription Models
    • ISP becomes (radio station) cash distribution point (ASCAP, BMI, SESAC, Harry Fox)
    • ISP may select surcharge for royalty collection
  • Direct Subscription/Consumer Patronage
    • No middleman/machine
    • "Fair" pay for what you use
    • But what if (avoiding subscription) Peer to Peer?
    • Artist centric; requires granularity
  • Institutional Patronage
    • Government
    • Non Profit, Corporation for Public Broadcast
    • Corporate, NASCAR/Miller Beer Ad Model (Sponsorship, Advertiser is Patron), Merchandising Opportunity, Frequent Flyer Incentives
    • Individual Philanthropist/Patron, Performance Based, Artist-level Value-adds

3. FOOD FOR THOUGHT

  • Is there a New IP?
    • Expression of commercial value, not unitary
  • Is putting a speed bump in place to keep honest people honest a reasonable solution?
  • Will IP survive?
  • Is it valid?
  • Does IP law stimulate creativity/innovation?
  • Whose soul is being saved?
    • Consumer? Artist?
    • Please the consumer / Make a buck / Save their soul
  • China? The Internet is GLOBAL

4. POTENTIAL ACTION ITEMS

  • Create Watchdog Groups (Royalty Collection Agencies)
  • Distribution of Information
  • Endorse Blanket Licensing of ISP's
  • Or: Drop The Bomb, Kill Them All!

section 6


next section

select a section:  1. Introduction  2. Speakers  3. Executive Summary  
4. The Appliantology Group  5. The Multichannel Audio Working Group  
6. The Intellectual Property - Business Models To Save Your Soul Group 
7. The General Interactive Audio Group   8. Schedule & Sponsors