Gracenote Agrees To Deal to Publish Lyrics on the Web

By NICK WINGFIELD and ETHAN SMITH
Wall Street Journal

July 14, 2006; Page A10

http://online.wsj.com/article/SB115283681180606417.html?mod=hps_us_at_glance_mm


Technology company Gracenote Inc. has reached an agreement with dozens of 
music publishers that will allow it to offer digital copies of more than 
one million song lyrics over the Internet, paving the way for companies 
that use Gracenote's services like Apple Computer Inc. to offer lyrics with 
song downloads.

The deal -- the most comprehensive effort yet to offer lyrics legally on 
the Web -- is also a likely prelude to legal action by music publishers 
against a multitude of Web sites that post lyrics without permission from 
copyright holders. Such a move would parallel past efforts by recording 
companies to sue providers and users of Internet file-sharing software for 
swapping songs, while also licensing songs to online music retailers like 
Apple's iTunes Music Store.

Record labels generally own rights to the recordings of songs, while music 
publishers -- some of which are owned by the same parent companies as the 
labels -- usually control the underlying melody and lyrics for songs.

The agreement between closely held Gracenote, of Emeryville, Calif., and 
Bertelsmann AG's BMG Music Publishing, Vivendi Universal SA's Universal 
Music Publishing Group, Sony Corp.'s Sony/ATV Music Publishing, Peermusic 
and dozens of smaller publishers will allow Gracenote to offer song lyrics 
through digital music retailers, Internet search engines and other 
potential partners.

Gracenote Senior Vice President of Sales and Marketing Jim Hollingsworth 
said it will be up to Gracenote's partners whether to charge consumers 
extra for song lyrics or to offer them for free as part of song and album 
sales. Gracenote is best known for operating a large online database that 
iTunes and other programs tap to automatically label music with artist, 
song title and other information when users are copying CDs onto their 
personal computers. The company didn't disclose financial terms of its deal 
with music publishers.

Unauthorized copies of lyrics are easily accessible for free through search 
engines on sites that compile lyrics and profit by selling advertising. 
"Unlicensed reproduction has been a sore point," said Ralph Peer II, 
chairman and chief executive of Peermusic, a large independent music 
publisher. "But it has certainly gotten to be a more serious sore point as 
commercial sites have grown to make their income off these lyrics."


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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