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The Copykat: Licensing, Lawsuits, In Addition To Legislative Updates

Community Health Systems fails Microsoft check-up on licensing


Technology giant Microsoft has filed a accommodate against Community Health Systems for “willfully infringing Microsoft’s copyrights through unlicensed role of Microsoft’s software,” according to a lawsuit filed concluding month. Microsoft also alleges Community Health Systems is guilty of willful breach of its contractual obligations, in addition to implied covenant of adept organized faith in addition to fair dealing.

Community Health Systems is a Fortune 500 someone companionship based inward Tennessee, USA. CHS is the largest provider of full general infirmary services inward the U.S. inward price of issue of astute attention facilities. According to its website, CHS’s affiliates own, operate or lease 126 hospitals inward twenty states amongst some 21,000 beds. 

Microsoft in addition to CHS create got a issue of licensing agreements for its software, which prohibit CHS from distributing, sublicensing, renting, leasing, lending or hosting whatever Microsoft software. The products inward inquiry include Microsoft’s Windows, Office, SQL Server in addition to Datacenter.

According to the 2013 Business & Services Agreement (MBSA) signed betwixt the parties, Microsoft has “the right to verify compliance amongst the license terms” through an independent auditor, Deloitte. In belatedly 2016, Microsoft notified CHS that it was exercising its contractual rights to verify licensing in addition to contract compliance.

Around this time, CHS was inward the procedure of selling off (divesting) diverse hospitals to novel management. As reported past times the Nashville Business Journal, CHS has sold to a greater extent than than xxx hospitals inward the past times xv months, in addition to plans to sell to a greater extent than this year. CHS is alleged to create got sweetened the divestment deals past times providing its buyers access to Microsoft Corp. software. The lawsuit states that “despite having no right to make so, CHS intentionally facilitated the continued role of Microsoft software past times these divested entities.”

CHS has champaign missed numerous mutually agreed upon deadlines, in addition to has failed to render consummate information to Microsoft. Microsoft insists that this demonstrates CHS’s “unwillingness to comply amongst its contractual obligation and/or amongst the independent verification process.” Microsoft’s lawyers accuse CHS amongst existence “largely non responsive to, if non obstructionist of” the Deloitte audits.

For reference the complaint, Case 3:18-cv-00291, was filed March 15th inward the U.S. District Court for the Middle District of Tennessee, in addition to made world several days agone inward early on April. According to the Docket, Microsoft’s legal squad has been granted a representative management conference inward early on June. CHS has until May vii to response to the complaint.


"Grande" victory on vicarious liability inward RIAA piracy case

The Recording Industry Association of America’s legal battle against Texan mesh service provider Grande Communications has been given the light-green low-cal proceed to trial, although amongst the vicarious copyright infringement claim removed.

Pursuant to the Judge’s recent order, the thing continues on the contributory copyright infringement claim alone. This motion is considered past times Torrent Freak to hold upwards a partial defeat for the RIAA’s piracy lawsuit, equally the vicarious copyright claim against Grande Communications has been dismissed. 

By way of background, several major tape labels including Universal Music, Capitol Records, Warner Bros in addition to Sony Music - represented together past times the RIAA - brought activity against Grande Communications for the copyright infringements of its customers. The master copy complaint, IPKat’s numerous posts on the subject.


House Judiciary Committee goes for a modern remix of U.S. of A. Copyright Law

Copyright legislation is getting an update on the other side of the Pond, too. The U.S. House Judiciary Committee voted unanimously today (32-0) to approve House Bill 4706, “to render clarity in addition to modernize the licensing scheme for musical plant nether department 115 in addition to to ensure fairness inward the institution of sure enough rates in addition to fees.” More normally known equally the Music Modernization Act, the neb right away heads for consideration past times the total House of Representatives. The human activity has received broad bipartisan back upwards from Democrats in addition to Republicans alike, in addition to appears to hold upwards “on the fast track” for approval. 

Speaking to ABC news, John Simson noted that Americans “...have a 1909 statue trying to principle 2018 technology, in addition to it doesn't work.” Mr Simson is a professor at the American University in addition to founding fellow member of Sound Exchange, a non-profit scheme fix to collect in addition to distribute functioning royalties.

Title I (the outset section) of the neb seeks to address how modern digital music services operate, past times creating a blanket licensing scheme to speedily license in addition to pay for musical operate copyrights. Another fundamental aim includes discouraging litigation inward favor of exactly ensuring that artists in addition to copyright owners are paid inward the outset house without such litigation. 

Title II, entitled “Compensating Legacy Artists for their Songs, Service, in addition to Important Contributions to Society (CLASSICS) Act” volition focus on world functioning rights for pre-1972 recordings. In particular, musicians amongst pre-1972 recordings volition have royalty payments when their tracks are played on the radio, amongst royalties in addition to then allocated for recordings played on the Internet, cable, in addition to satellite radio. 

Title III, the “Allocation for Music Producers (AMP) Act,” volition ensure that tape producers, audio engineers, in addition to other creative professionals have compensation for their work.


The Music Modernization Act volition also create an American way or “mechanical licensing collective,” that would theatre all music publishers nether i roof. The digital streaming services volition thence pay the agency, which tracks in addition to collects royalties on behalf of the artists.

IP Subcommittee Vice Chairman Collins noted that “the electrical current music licensing landscape undervalues music creators in addition to under-serves music consumers. Outdated copyright laws create got produced unnecessary liabilities in addition to inefficiencies inside the music licensing system, in addition to stakeholders across the music manufacture create got called for reform. [...] This neb moves the music manufacture towards a freer in addition to a fairer market, enabling it to leverage the nowadays in addition to hereafter benefits of the digital age.” 

More statements from Judiciary Committee leaders on the their passage of the Music Modernization Act tin forcefulness out hold upwards found on the committee website.


Spotify turns upwards the mass on licensing technology

On the topic of licensing, the solar daytime afterward the Music Modernization Act was approved past times the Judiciary Committee (see above) Spotify announced plans to purchase Loudr.fm, a San Francisco-based companionship which provides licensing technology. The bargain has been described past times Reuters equally the acquisition of a “cover vocal licensing theatre to tackle copyright risks.”

As a companionship which offers “Big Data for Music Rights,” Loudr’s platform obtains mechanical licenses to distribute recordings equally digital downloads, ringtones, CDs or vinyl records. Publishers are able to “digitalize their collection procedure in addition to gain to a greater extent than insight into the rights they control,” in addition to businesses are able to “discover in addition to automate publisher payments for music content at scale.”


Spotify’s purchase of Loudr comes only months afterward existence hitting amongst a lawsuit seeking damages of upwards to $1.6 billion (£1.1 billion) past times Wixen Publishing, the California-based companionship that represents Tom Petty, Neil Young, Rage Against the Machine, Missy Elliott in addition to others. The Wixen lawsuit, similar others, demonstrates the difficulty Spotify faces inward tracking downwards the right publishers connected to songs, in addition to ensuring the right royalties finds its way to the appropriate rightsholders.

In its New York Stock Exchange listing document, Spotify disclosed that licensing in addition to royalty payment problems are a fundamental threat to its trace of piece of occupation concern model. To brand its 35 meg tracks available for listeners, Spotify requires licenses from the musicians in addition to tape labels who ain the songs. Additionally, Spotify has a complex royalty payment scheme, in addition to it is hard to gauge the amount payable to musicians nether their license agreements. Even if Spotify secures the necessary rights to audio recordings from tape labels in addition to other copyright owners, artists may wishing to discontinue licensing rights, grip dorsum content, or growth their royalty fees.

In a press release dated 12 April, Spotify explained the Loudr squad of publishing specialists in addition to technologists volition bring together Spotify’s New York offices. “Loudr volition contribute to Spotify’s continued efforts towards a to a greater extent than transparent in addition to efficient music publishing manufacture for songwriters in addition to rights holders.”


This update past times Kelsey Farish
The Copykat: Licensing, Lawsuits, In Addition To Legislative Updates Reviewed by Dul on May 19, 2018 Rating: 5

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