Nokia's pre-loaded devices launching under the brand "Comes with Music" is a great offering for consumers who want the instant gratification of having at least some of their favorite music pre-loaded for listening on a portable device.
Pre-loaded music that is either niche or genre based is a very intriguing idea, and you can think of a few different way this offering could be sliced, diced and priced.
But what is also interesting about the offering is that it is not going to be available in the US or outside of the UK in Europe (at least according to the announcements). Why might that be?
Rights clearance for these preloaded devices is very complex, particularly in the US and especially if the device maker does not want to pay the full statutory rate for the songs (remember, each recording has two copyrights, the song and the sound recording, not usually controlled by the same person).
This is potentially a great opportunity for the more flexible independent music community to step up, and also for songwriters to get a payday, albeit not necessarily 100% of the statutory rate (assuming the devices are not priced at a price point that could justify the full rate).
It would be fairly straightforward to base a license on a percentage of the retail price for the device with a sliding scale depending on the number of recordings. What is not so straightforward is where a technology company would go to obtain all the rights they need.
This is a lot easier to do in the UK given the unilicense that is available for publishing, and points out a frustrating hole in the licensing process for legitimate technology companies trying to use music--and pay for it.
-- Chris Castle
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