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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117401
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Im looking to start up a digital record pool. What legal

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JA: Hello. What do you want help with?
Customer: Im looking to start up a digital record pool. What legal things will I need to do?
JA: What state are you in? It matters because laws vary by location.
Customer: Florida
JA: Has anything been filed or reported?
Customer: Not yet
JA: Anything else you want the lawyer to know before I connect you?
Customer: Server is hosted in Canada, site is already made looking to make everything official.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Can you please explain what your specific questions are for us? I mean the site is going to be hosted outside the US and you will be compiling records on it I understand that, but what are your specific questions about that for us?
Customer: replied 7 months ago.
Hello,Appreciate the response. Below I listed the questions;1. How can I legally provide music to working DJs on a website for promotional use only?
2. I have been getting Notice of DMCA removal from Google Search since last year September on my site. What should I do?
3. Is there a loophole for getting around DMCA?
4. My website is finished after being in beta for a year. I want to start reporting taxes, will this be a conflict with DMCA?
4. To me, it seems more like they just don't want songs listed on Google search. If I made my site private and disallowed Google adding pages to search will this help the issue in the long run?
5. I heard a rumor and might be true because I seen other digital record pools do it. If you provide feedback about the songs to the record labels that they won't bother? In fact, how do other digital record pools operate legally?
6. I want to cover myself in this since I plan on launching another site similar to the one I have now. Can I get in serious trouble or is there a gray area that will keep the labels off my back?Notes
1. The site is hosted in Canada on a dedicated server box.
2. The company will be registered in Tampa, FL and also reported in Florida.
3. I have about 100 paying members at the moment.
4. I only provide music to DJs once the application has been approved and checked.
5. I have DMCA, terms and conditions and privacy policy on my site if that helps at all.
6. I have a form if a company wants a song taken down they can have it removed from the site.Thank You
Thank you for your reply.
1) For distribution of music or posting the music for any purpose, you need to pay royalty fees to ASCAP/BMI/Harry Fox Agency, whichever one the artist is signed up with. There are some artists that simply will not allow their music to be reproduced, so you cannot publish those works.
2/3) You will need to remove any allegedly infringing item in response to the DMCA take down. Again, you have to get permission and pay royalty for use of the music, it is not very much usually, it is based on the number of copies that would be distributed (volume).
4) It is a copyright violation to publish copyrighted works on your site without paying royalties, no way around that. However, it is not a copyright violation to provide only links to where people can find the songs and not actually having the songs on your site. In other words, you are not having the songs on your website, you are just putting links where everyone can find the songs.
5) Making the site private and not for commercial use would be a possible way to get around it, since copyright law prevents commercial use of the copyrighted work.
6) I would suggest if you want to be legal and want to put the music right on the site, you should look into paying royalties to ASCAP/BMI/Harry Fox because it is likely going to be financially beneficial to do so.
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Customer: replied 7 months ago.
Thank you for the answers. I have one more question. How do I go about paying royalties? Any information on how to do all of this will be greatly appreciated. I want to get an idea how to get this started legally when I'm ready to.Thank You

Thank you for your reply.

I believe I answered this above about paying royalties. You contact ASCAP/BMI/Harry Fox Agency and they will set the royalty payments based on the volume of your distribution of the material.

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