Jan 1, 2002 12:00 PM, COMPILED BY SARAH BENZULY

It's been two years since the labels first took Napster to court, and after numerous court dates, court injunctions, court reversals and “trial periods,” it seems that the court only set a baseline from which the labels and Internet services must work. Case in point, the Internet services and the labels are beginning to figure out a royalty plan. The NMPA, HFA and RIAA did it last month, and this month, SoundExchange (the collection and distribution agency for sound recording performance license fees) began making direct deposits into artists' bank accounts — to the tune of $5.2 million. SoundExchange will now be under the joint control of recording artists (and their representatives) and record companies (and their representatives).

Royalty payments are the necessary end result of the collaborations, but isn't the actual service needed to bring in the payments? While MusicNet and Pressplay remain on pause, Full Audio, owned by Clear Channel Communications, plans on launching its own music subscription service. To start, the subscription service will be offered on a limited scale, at 30 stations in Chicago, Houston, L.A., Phoenix and Salt Lake City.

Meanwhile, Napster's not rolling over: CEO Konrad Hilbers wants the federal government to step in and create a compulsory standard requiring music labels to license their music at a fair price, rather than waiting for the legislature to pass the MOCA (Music Online Competition Act) that was presented to Congress in early August. And perhaps Uncle Sam will listen to Hilbers' plea now that Napster's going to be serving our country: In the wake of September 11, the Pentagon is considering using Napster's peer-to-peer service (the same one that got Napster in trouble to begin with) to help the military share information across its many branches, agencies, ships, airplanes, tanks and troops.

Send your “Current” news to Sarah Benzuly at sbenzuly@primediabusiness.com.

Mix Books

Modern Recording and Mixing

This 2-DVD set will show you how the best in the music industry set up a studio to make world-class records. Regardless of what gear you are using, the information you'll find here will allow you to take advantage of decades of expert knowledge. Order now $39.95

Mastering Cubase 4

Electronic Musician magazine and Thomson Course Technology PTR have joined forces again to create the second volume in their Personal Studio Series, Mastering Steinberg's Cubase(tm). Edited and produced by the staff of Electronic Musician, this special issue is not only a must-read for users of Cubase(tm) software, but it also delivers essential information for anyone recording/producing music in a personal-studio. Order now $12.95

Newsletters

MixLine

Delivered straight to your inbox every other week, MixLine takes you straight into the studio, with new product announcements, industry news, upcoming events, recent recording/post projects and much more. Click here to read the latest edition; sign up here.

MixLine Live

Delivered straight to your inbox every other week, MixLine Live takes you on the road with today's hottest tours, new sound reinforcement professional products, recent installs, industry news and much more. Click here to read the latest edition; sign up here.