By combining these two methods, it should be possible to attain a high degree of accuracy, protect privacy, and prevent "cheating."
What if the music industry won't do it?
The music industry is still a long way from admitting that its existing business models are obsolete. But the current effort to sue millions American music fans into submission is destined to fail. After a few more quarters of lackluster sales, with file-sharing networks still going strong and "authorized services" failing to make up for sliding revenues, the music industry will be needing a "Plan B." We hope they will see that voluntary collective licensing is the best way forward.
If, instead, they continue their war against the Internet and continue inflicting collateral damage on privacy, innovation and music fans, then it may be time for Congress to take steps to force their hand. Congress can enact a "compulsory license" and create a collecting society to move us toward a sensible solution. Government involvement, however, should be a last resort — the music industry has the power to implement a sensible, more flexible solution right now.
What about artists who won't join? How do we gather all the rights?
Artists and rights holders would have the choice to join the collecting society, and thereby collect their portion of the fees collected, or to remain outside the society and have no practical way to receive compensation for the file sharing that will inevitably continue. Assuming a critical mass of major music copyright owners joins the collecting society, the vast majority of smaller copyright owners will have a strong incentive to join, just as virtually all professional songwriters opt to join ASCAP, BMI or SESAC.
The complexity of music industry contracts and history make it very difficult for record labels and music publishers to be sure what rights they control. Accordingly, by joining the collecting society, copyright owners will not be asked to itemize rights, but will instead simply covenant not to sue those who pay the blanket license fee. In this way, music fans and innovators are not held back by the internal contractual squabbles that plague the music industry.
What about file sharers who won't pay?
The vast majority of file sharers are willing to pay a reasonable fee for the freedom to download whatever they like, using whatever software suits them. In addition to those who would opt to take a license if given the opportunity, many more will likely have their license fees paid by intermediaries, like ISPs, universities, and software vendors.
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