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A Study on the Role of UGC Platforms in Copyright Law:                                                                                Chapter 2 Copyright in the Pre-Internet Age: An Intermediary-oriented Approach
              An Intermediary-oriented Approach

              the piano companies. It held that ‘copies’ in the context of copyright should be ‘in the same
                                                                             126
              sense and for the same purpose’ as the copyrighted work that is copied.  Because piano
              rolls and phonograph records were ‘operated in connection with the mechanism’, they were
              treated as ‘parts of the machine’ that produced the music rather than ‘copies’ of musical
                          127
              compositions.  The failure of the sheet music producers, to a large extent, was due to the
                                                                  128
              Court’s concern over monopolies in the recording market.  Before the Supreme Court
              made its decision, the Aeolian Co., the largest manufacturer of piano rolls in the 1900s,
              reached agreements with nearly all the music publishers for an exclusive right to record their
              compositions once the Supreme Court awarded music publishers control over the recordings
              of their compositions.
                                129
                 The difficult problem of securing revenue for copyright owners in the new distribution
              channel, and record manufacturers’ interest in free competition was soon handed over
              to the US Congress, which addressed it by crafting a compulsory licensing mechanism
              for mechanical reproduction of musical compositions. Copyright owners of musical
              compositions had the right to licence a record manufacturer to produce a record. However,
              once a composition was licenced, it could be recorded by any other record manufacturer at a
                                                               130
              fixed price without permission from the copyright owner.  This arrangement was adopted
              by the 1976 US Copyright Act and became the model for other national copyright laws. 131
                 In the battle over the right to record musical compositions, record manufacturers played
              the role of distributors, distributing musical compositions in a new channel. As the following
              account shows, as the value of sound recordings increased, the record manufacturers
              gradually shifted their position to become record producers.
                 2) Sheet music transmitted by radio broadcasting: Collective licensing of the public
              performance right
                 Phonograph recording technology transformed music from paper to another medium for the
              first time, although the recording quality was poor. The magnetic recording technology developed
              in the 1930s enabled sheet music to be broadcast so that consumers could enjoy music from their
              radios. Because radios were more portable and affordable than phonographs and player pianos
              (that played phonograph records and piano rolls), listening to music on the radio became the
              most popular way to consume it, and broadcasters made huge profits. Unsurprisingly, sheet music


              126  Ibid 11.
              127  Ibid 31.
              128  e.g., Banner (n 124) 113; Diamond (n 124) 421; Jessica Litman, ‘Copyright Legislation and Technological Change’ (1989)
                 68 Or. L. Rev. 275, 285; Alex Cummings, ‘From Monopoly to Intellectual Property: Music Piracy and the Remaking of
                 American Copyright, 1909–1971’ (2010) 97 The Journal of American History 659, 664.
              129  Litman, ‘Copyright Legislation and Technological Change’ (n 127) 285; Cummings (n 127) 664; Joanna Teresa Demers,
                 Steal This Music: How Intellectual Property Law Affects Musical Creativity (University of Georgia Press 2006) 38.
              130  17 U.S.C. § 1(e) (1909).
              131  17 U.S.C. § 115; e.g., Berne Convention, art 13(1); French Intellectual Property Code (2017), art L 214-1 of; Copyright Law
                 of the People’s Republic of China (2010), art 40.


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