FROM RHYTHM TO REVENUE: THE ROLE OF MUSIC ROYALTIES IN THE ENTERTAINMENT INDUSTRY
- Youth 4 Journalism
- Jun 22, 2023
- 8 min read
By: Princess Nicolette Catbagan
Published: June 22, 2023
When you hear the term Royalties, what comes to mind?
For some, the answer might pertain to visions of grandeur and regalia: a crown fixed upon a ruler's head, a golden scepter, or even a luxurious throne. In contrast, others might associate it with images of the famous British Monarchy and its well-known members like Princess Diana, Prince Harry, or Queen Elizabeth.
Alas, these descriptions do not fit the context of Royalties in this case.
In a less popular definition, Royalties, or Music Royalties, pertain to the compensation an artist receives for their work and creations. It indicates that Songwriters, Singers, Producers, etc., can receive payment when other media platforms or public figures use their songs in events, Movies or TV shows, covers, and more. Dean Rod Vera, an Intellectual Property Lawyer and Dean of Law compared the process of paying royalties to the process of paying rent. When we use the property of another person, especially while we earn money through it, it’s only right to compensate them for allowing its use. Although the law doesn’t necessitate the payment of Music Royalties, neither is it forbidden for artists to demand fees and payment for their work.
SB19 vs. Showtime: The perception towards local artists in the Industry
In the Philippines, the concept of Music Royalties and Intellectual Property Rights is rarely discussed among peers. However, this has changed due to the recent controversy of Its Showtime Hosts Vice Ganda and Anne Curtis reacting to SB19 asking for a fee to play their music on Live Television. To give context, a contestant in one of the show's segments called 'Isip Bata' asked if they could dance to the popular single "Gento'' by SB19. However, one of the staff informed the hosts that the song could no longer be used. Vice Ganda jokingly tells the contestant, "Bawal, naniningil na sila, naniningil na. Yung 'Rampa' libre, ayaw niyong itry?" [Not allowed. They're now asking for payment. 'Rampa' is free, you don't want to try that?] to which Anne responds, "Talaga? Hindi ba good promo yon for the music industry? May ganon na pala, sayang." [Really? Isn't that a good promo for the music industry? There's something like that? How unfortunate.] Despite this exchange only taking up less than a minute of the show's hours worth of screentime, it sparked a debate among the netizens which lasted for days; the phrase RESPECT LOCAL ARTISTS trended on Twitter not long after the comment was made, and it only took a short amount of time after that to grab the interest of news outlets like Manila Bulletin and Inquirer Net.
Amongst the voices fueling the debate of "Should artists receive royalties or be satisfied with free promotion?" Two that stood out were Songwriter Thyro Alfaro and OPM Singer Sam Conception. The former posted on his Facebook a statement saying, "Wait.. Bakit issue to? Haha! Hindi pala common knowledge na usage (na official) = bayad? Hahaha! How do you think composers make money?" [Wait...Why is this an issue? Haha! Is it not common knowledge that official usage = compensation? Hahaha! How do you think composers make money?] one where he was met with a chorus of agreement and disapproval, one user comments, "Admit it or not, pag bagong artist and producers, kailangan nila ng push nang from shows like this para mag trend… So dapat po ba bawal din un?... [Admit it or not, if you're a new artist or producer, they need the push from shows like this to trend, so should that also be restricted?] Alfaro responds that there is still a type of Royalty for these situations called Performance Royalty. His response highlighted the public's unawareness of artists' rights for fair compensation and its different forms. On the other hand, Sam Conception released a four-word tweet, "Pay artists their royalties." Despite its shortness, it encouraged audiences to side with SB19 and continue advocating Local Artists' Rights.
The debate has caused quite a ruckus online, with both sides refusing to back down to defend their favored public figure. Anne Curtis and Vice Ganda's fans claim that their intentions weren't foul and even cite situations wherein both supported the band in their rise to fame. On the other hand, SB19 fans are determined to boycott the hosts, claiming they are public figures who should watch the narrative they fuel. What's more terrifying about this is how quick some audiences were to villainize SB19, labeling them as greedy and "mukhang-pera" when asking for compensation for their work. As if they aren't people making a living—despite their hard work and effort to create their music and art, compensation is no longer a right but an undeserved privilege.
Another disheartening aspect of the situation is how fans are more determined to protect their idol's honor or use the controversy to tear the other party apart, failing to see that on the larger scale of things, this only reflects the ignorance of the majority when it comes to artist's rights and their vulnerability to being quickly taken advantage of. The lack of awareness by Anne Curtis and Vice Ganda, the former not knowing about the existence of royalties, and the latter, a singer themselves, who lets their song be used for free without compensation (as they said when they asked, "Yung 'Rampa' libre, ayaw niyong itry?") is only a reflection of the cluelessness of the audience and the artists alike when it comes to the laws that protect their rights and ensure them fair compensation.
"Kaya hinde umaangat ang Pilipinas/OPM/Music Industry!" A common phrase uttered when issues like this arise, yet that's all they are: statements falling on deaf ears, words that go into one ear and out of the other. The public is so quick to cancel people yet so slow in recognizing the problem's root: ignorance. From their response, Vice Ganda and Anne Curtis were more confused about the existence of Royalties than they intended to shade SB19, yet the audiences are still so focused on shaming each party and damaging their reputations instead of solving the issue. Fortunately, there is a way to kill the problem from its root, and that is to learn. Learn the rights of local artists and understand them. Because how are we expected to “respect local artists”—as the trending statement suggests—when the majority doesn't even know what this respect entails?
A Lawyer's Take: The Legal Principles Surrounding the Issue
Dean Rod Vera, an Intellectual Property Lawyer and University of Caloocan's Dean of Law, recently gave their opinion on the situation through his Youtube Channel and in an exclusive Interview with Y4J.
In the interview, he explains that Intellectual Property is something created by the mind and perceived by the senses. Regardless of whether the creation is tangible or intangible, it is considered property and could be restricted, authorized, and exploited by its rightful owner. Artistic works, such as music, fall under the Intellectual Property branch called Copyright, in which laws are established to protect artists' rights and their works; the Dean explains that when artists know they're protected and respected, it encourages them to make more—more music, movies, paintings—because they would know that they can make money out of it with the protection of the law. However, in the Philippines, this isn't always the case, and the comments from the Its Showtime Hosts and Internet users encouraging the idea that there is no need for compensation contradicts the law and reflects ignorance of it. An ignorance that can be harmful to both artists and their audiences alike. When Dean Vera was asked what he thought of the perception that lack of compensation can be justified by saying that it's free promotion, he called that belief unfair [in the context of Showtime]. He says that "Showtime is a show that makes money. It sells airtime to advertisers through the avenue of commercials. At the same time, we know that these artists who are hosts make money on their own...These artists, if you want to make them go to a party or even a promotional for anything, you have to pay for their time. In that sense, it's hypocritical for those two artists to say, 'Hey, it's for promotion anyway.' it's totally unfair for the [other] artists because it must be the artist's choice if it's used for free for promotional services or for a fee." He also adds that although he is not one to criticize the fans of the show/hosts, the hosts themselves are influencers, and from that label, what they say can influence millions of their audiences who are impressionable and quick to agree with their idols, which in the sense of the situation, is damaging not just to the reputation of SB19 but any Local artist who wish to exercise their rights and demand fair compensation and are now being criticized for it.
In this digital age, information and opinions can be easily shared. The claims that circulate online could impact a person's perception of a topic they are not that familiar with. Thus, despite the negative impression left by the response of Its Showtime hosts regarding SB19's demand for payment, Dean Rod Vera still sees the situation as an opportunity to raise awareness of the rights of our Local Artists.
"Time and time again, we see artists and musicians not getting their dues, not getting what's rightfully theirs compared to others. If you think about the Western world (in America), you'll see these rappers who are quite successful. They get charged and are well-compensated; it's the reverse here [in the Philippines]. Artists here, especially singers, are not as revered or respected as other celebrities." claims the Dean, but now there is a chance to change this. With many people defending their claims, citing the law, and siding with their favored artists as their participation in the ongoing debate, it sparks a conversation about their rights and spreads knowledge about it, a silver lining amidst the chaos and arguments online.
It's important to understand that although mistakes were made, it is only counterproductive to immediately assume malice from either Showtime or SB19, the former, despite their naivety, was only expressing their views, while the latter has the right to demand payment for something they worked hard for. However, we must also understand that ignorance wouldn't always be a valid excuse, and even though people are now talking about Music Royalties and Intellectual Property Rights, it doesn't guarantee that Local Artists would now be fairly compensated. So here’s the Dean's advice for ongoing and upcoming artists: get a lawyer. He says, "All of us when we have a medical issue, we go to a doctor. Without hesitation, if there's something really grave, we go to the emergency room. Knowing full well that it will cost thousands to go there, that's how much the professional fee is. It might cost you PHP 5,000 to stitch up a wound or maybe even more, depending on the hospital...Now, for artists [in a similar context], the best thing is to consult a lawyer. Because a lawyer, who is under the rules of ethics, should only work for that client. Do the best for that client and what's most advantageous for that client." He also adds that if the artist wants to go cheap and do it by themselves, there will be consequences, such as being exploited and taken advantage of. But, if an artist can't hire a lawyer, he suggests reading up on legal resources and asking for free legal advice if they find one available. He also urges artists to always get an agreement for everything. When performing in a concert, have a contract. Read and look up the contract when putting up a song on a streaming service. Know your rights and know when they're being violated. Regardless of whether one has a lawyer, it is essential to be self-conscious if they're being fairly treated and respected.
All in all, there is a lot to learn from this issue, but as the sparks in the argument's fires are slowly dying out, it feels inevitable that we will go back to how the situation was before—with Local Artists being mistreated and people just waiting for the opening to take advantage of them. It poses the question, can OPM artists succeed and thrive in this industry? Unfortunately, with the biggest obstacle standing in their way being their countrymen's ignorance, criticism, and contempt, it's a long way to go before they get there.
But it doesn't always have to be that way. The change that could define the answer to that question is within the grasp of each Filipino audience. The choice is theirs. Would they choose knowledge or ignorance? Appreciation or Criticism? Kindness or Contempt? They can either tear their artists down or be the one who lifts them up.
So, dear reader, let me ask you, after all that’s been said and done. What kind of audience do you choose to be?
References:
https://www.youtube.com/watch?v=7HHCIgH6IwQ&t=35s https://medium.com/@ki90grq8y/the-issue-of-sb19-royalties-on-its-showtime-5f898a263c52 https://mb.com.ph/2023/6/13/vice-ganda-anne-curtis-spark-online-debate-over-song-royalties https://entertainment.inquirer.net/503830/respect-local-artists-sb19-song-triggers-discussion-on-music-royalties https://manilastandard.net/showbitz/music-concerts/314339208/respect-local-artists-trends-on-twitter-sparks-debates-about-song-royalties.html https://abogado.com.ph/pay-up-jesus-falcis-asks-showtime-to-pay-for-sb19-royalties/
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