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Sales of recorded music in the United States and throughout the world have declined for three consecutive years. Three of the five major record companies are now reportedly for sale. Lay-offs are decimating record industry professionals.
The International Federation of the Phonographic Industry blames the situation on CD burning and unauthorized Internet file sharing. The problem can be traced in large part to the Digital Millennium Copyright Act of 1998. In negotiations for drafting the law, the record labels agreed to make Internet Service Providers (ISPs) immune from copyright infringement liability for the acts of those subscribing to their services. This was part of the quid pro quo for giving owners of musical recordings the exclusive right to digitally transmit masters on the Internet. Because they could not attack the ISPs for allowing such services as Napster to exist, the record labels began attacking the file-sharing services.
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
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