QUOTE]Originally posted by D*I*S_Frontman
Let's reason this out for just a moment.
Apple has probably SCORES of lawyers who anally examine every scrap of paper that leaves Cupertino. Certainly an ad intended for an national campagn would be carefully scrutinized. There is no way Apple will lose this, or pay Eminem one red cent more than whatever they have already paid in royalties (if anything).
This is APPLE--remember? The company that can email you a cease-and-desist order for posting new PowerMac schemata faster than you can ftp it to your homepage. Remember the MMD diagrams?
Apple has a zealously diligent legal team. Eminem has no case. I predict he won't get squat from this publicity grab. Apple might even countersue. [/QUOTE]
I understand your reasoning, but I clearly see the fault behind it. Its like me saying I'm an excellent driver, so the accident must not be my fault.
The royalties that Apple pay Feminem are a direct result of them seeking permission to resell his material in a mechanical form. That falls under the mechanical rights realm. The copyright holder and the sound recording owner get paid every time a mechanical copy of their music is sold.
However, performing a copyrighted composition in a public venue falls under a different jurisdiction. When a cover band plays a Feminem song at a club, someone has to pay Feminem. When a company puts a lyric copyrighted by Feminem in its commercial, it must get his permission first, pay him what he asks, and in addition, pay him some publishing money (a certain amount for every time the commercial is aired - which is set, I believe, by ASCAP/BMI).
If a company puts the actual recorded song into a commercial, they must pay the person(s) who own the copyright to the underlying composition as above (the person who wrote the words and melody, the publishing comany who owns partial rights, the record label if the artist signed a bad contract, etc...) and the person(s) who own the copyright to the sound recording (in many cases the record label) a certain amount every time the commercial is aired. These can be different groups of people, but the point is that these specific channels of payment are seaprate and distinct.
Feminem is right in that, if they didn't ask his permission and compensate him, they have broken US copyright law. Whether or not this will equate, in some judge's mind, to false endorsement is something we can discuss.
But the fact (not my opinion) is that US copyright law was broken. A composition is copyrighted the moment is is placed into a tangible form. The fact that Feminem had not yet formally copyrighted the composition by the time the commercial aired is irrelevant as long ashe can prove he wrote it before the commercial aired. Which should be easy, because the song was released before the commercial aired.
Apple will have to pay for copyright infringement, no matter what the decision is about the endorsement thing.