To:
`
`Subject:
`
`Sent:
`
`Sent As:
`
`Attachments:
`
`SkyRadio LLC (wjotm@dewittmcm.com)
`
`U.S. TRADEMARK APPLICATION NO. 87790225 - 100% ARTISTS ROYALTIES - 89739.15
`
`5/24/2018 10:16:23 AM
`
`ECOM124@USPTO.GOV
`
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`UNITED STATES PATENT AND TRADEMARK OFFICE (USPTO)
`
`OFFICE ACTION (OFFICIAL LETTER) ABOUT APPLICANT’S TRADEMARK APPLICATION
`
`*87790225*
`
`CLICK HERE TO RESPOND TO THIS
`LETTER:
`
`http://www.uspto.gov/trademarks/teas/response_forms.jsp
`
`VIEW YOUR APPLICATION FILE
`
`U.S. APPLICATION
`SERIAL NO.   87790225
`
`           
`
`MARK: 100% ARTISTS
`ROYALTIES
`
`CORRESPONDENT
`ADDRESS:
`  
`       WILLIAM J.
`O'BRIEN
`
`       DEWITT
`  
`MACKALL CROUNSE
`& MOORE S.C.
`
`         901 MARQUETTE
`AVE.
`
`           2100 AT&T TOWER
`
`    MINNEAPOLIS, MN
`    
`55402
`
`APPLICANT: SkyRadio
`LLC
`
`    
`
`CORRESPONDENT’S
`REFERENCE/DOCKET
`
`NO:       
`
`  89739.15
`
`   
`
`CORRESPONDENT
`
`E-MAIL ADDRESS:       
`
`wjotm@dewittmcm.com
`
`OFFICE ACTION
`
`STRICT DEADLINE TO RESPOND TO THIS LETTER
`TO AVOID ABANDONMENT OF APPLICANT’S TRADEMARK APPLICATION, THE USPTO MUST RECEIVE APPLICANT’S
`
` 
` 
` 
` 
` 
` 
`

`

`COMPLETE RESPONSE TO THIS LETTER WITHIN 6 MONTHS OF THE ISSUE/MAILING DATE BELOW.   A RESPONSE
`TRANSMITTED THROUGH THE TRADEMARK ELECTRONIC APPLICATION SYSTEM (TEAS) MUST BE RECEIVED BEFORE
`MIDNIGHT EASTERN TIME OF THE LAST DAY OF THE RESPONSE PERIOD.
`
`ISSUE/MAILING DATE: 5/24/2018
`
`The referenced application has been reviewed by the assigned trademark examining attorney.  Applicant must respond timely and completely to
`the issue(s) below.  15 U.S.C. §1062(b); 37 C.F.R. §§2.62(a), 2.65(a); TMEP §§711, 718.03.
`
`SUMMARY OF ISSUES
`
`Refusal under Trademark Act Section 2(e)(1) – Merely Descriptive
`Refusal under Trademark Act Sections 1, 2, 3, and 45 – Failure to Function as a Trademark
`
`SEARCH OF OFFICE’S DATABASE OF MARKS
`
`The trademark examining attorney has searched the Office’s database of registered and pending marks and has found no conflicting marks that
`would bar registration under Trademark Act Section 2(d).  TMEP §704.02; see 15 U.S.C. §1052(d).
`
`SECTION 2(e)(1) REFUSAL - MERELY DESCRIPTIVE
`
`Registration is refused because the applied-for mark “100% Artists Royalties” merely describes a characteristic of applicant’s goods being that
`the performer will receive all of the royalties for the creative work being downloaded with applicant’s software.  Trademark Act Section 2(e)(1),
`15 U.S.C. §1052(e)(1); see TMEP §§1209.01(b), 1209.03 et seq.
`
`A mark is merely descriptive if it describes an ingredient, quality, characteristic, function, feature, purpose, or use of an applicant’s goods
`and/or services.  TMEP §1209.01(b); see, e.g., In re TriVita, Inc., 783 F.3d 872, 874, 114 USPQ2d 1574, 1575 (Fed. Cir. 2015) (quoting In re
`Oppedahl & Larson LLP, 373 F.3d 1171, 1173, 71 USPQ2d 1370, 1371 (Fed. Cir. 2004)); In re Steelbuilding.com, 415 F.3d 1293, 1297, 75
`
`USPQ2d 1420, 1421 (Fed. Cir. 2005) (citing Estate of P.D. Beckwith, Inc. v. Comm’r of Patents , 252 U.S. 538, 543 (1920)).  
`
`The determination of whether a mark is merely descriptive is made in relation to an applicant’s goods and/or services, not in the abstract. 
`DuoProSS Meditech Corp. v. Inviro Med. Devices, Ltd., 695 F.3d 1247, 1254, 103 USPQ2d 1753, 1757 (Fed. Cir. 2012); In re The Chamber of
`Commerce of the U.S., 675 F.3d 1297, 1300, 102 USPQ2d 1217, 1219 (Fed. Cir. 2012); TMEP §1209.01(b); see, e.g., In re Polo Int’l Inc., 51
`USPQ2d 1061, 1062-63 (TTAB 1999) (finding DOC in DOC-CONTROL would refer to the “documents” managed by applicant’s software
`rather than the term “doctor” shown in a dictionary definition); In re Digital Research Inc., 4 USPQ2d 1242, 1243-44 (TTAB 1987) (finding
`CONCURRENT PC-DOS and CONCURRENT DOS merely descriptive of “computer programs recorded on disk” where the relevant trade
`
`used the denomination “concurrent” as a descriptor of a particular type of operating system).   
`
`“Whether consumers could guess what the product [or service] is from consideration of the mark alone is not the test.”   In re Am. Greetings
`Corp., 226 USPQ 365, 366 (TTAB 1985).
`
`An “artist” is “1. One, such as a painter, sculptor, or writer, who is able by virtue of imagination and talent or skill to create works of aesthetic
`value,
`especially
`in
`the
`fine
`arts.”  
`the English Language,
`search
`of
`“artist,”
`The American Heritage Dictionary of
`https://www.ahdictionary.com/word/search.html?q=artist (May 24, 2018).  A “royalty” is “A share paid to a writer or composer out of the
`proceeds resulting from the sale or performance of his or her work.”   The American Heritage Dictionary of the English Language, search of
`“royalty,” https://www.ahdictionary.com/word/search.html?q=royalty (May 24, 2018).  “Artist royalties” are the share paid to the producer of a
`
`  
`  
`  
` 
`  
` 
`  
` 
` 
` 
`

`

`creative work from the proceeds thereof.  See generally, Voogt, Budi, Heroic Academy, “The Artist’s Guide To Spotify: Playlists, Royalties,
`Verified Profiles and more,” available at: https://heroic.academy/artist-guide-spotify-playlist-royalties-verified-profiles/ (April 12, 2018);
`SonicBids Blog, “Music Royalties 101: What They Are and How to Collect,” available at: http://blog.sonicbids.com/music-royalties-101-what-
`they-are-and-how-to-collect (Aug. 27, 2014); Obringer, Lee Ann, How Stuff Works, “How Music Royalties Work,” available at:
`https://entertainment.howstuffworks.com/music-royalties6.htm (May 24, 2018); Sound Exchange, “About Digital Royalties,” available at:
`https://www.soundexchange.com/artist-copyright-owner/digital-royalties/
`(May
`24,
`2018); BMI, General
`Royalty
`Information,
`https://www.bmi.com/creators/royalty/general_information (May 24, 2018).  The number “100%” refers to “A proportion or share in relation to
`a whole; a part” where 100 represents the whole.  See The American Heritage Dictionary of the English Language, search of “percentage,”
`https://www.ahdictionary.com/word/search.html?q=percentage
`(May
`24,
`2018); Wikipedia.com,
`search
`of
`“percentage”,
`http://www.wikipedia.org/wiki/percentage (May 24, 2018).  Thus, “100%” refers to an entire whole of something, and here, that “something”
`is artist royalties.  When used together as the mark, “100% Artists Royalties” the phrase means that artists receive all of the allotted payment
`from the proceeds of creative works downloaded by users of applicant’s software.  Therefore, this wording is merely descriptive of a
`characteristic of applicant’s goods.
`
`“A mark may be merely descriptive even if it does not describe the ‘full scope and extent’ of the applicant’s goods or services.”   In re
`Oppedahl & Larson LLP, 373 F.3d 1171, 1173, 71 USPQ2d 1370, 1371 (Fed. Cir. 2004) (citing In re Dial-A-Mattress Operating Corp., 240
`F.3d 1341, 1346, 57 USPQ2d 1807, 1812 (Fed. Cir. 2001)); TMEP §1209.01(b).  It is enough if a mark describes only one significant function,
`attribute, or property.  In re The Chamber of Commerce of the U.S., 675 F.3d 1297, 1300, 102 USPQ2d 1217, 1219 (Fed. Cir. 2012); TMEP
`§1209.01(b); see In re Oppedahl & Larson LLP, 373 F.3d at 1173, 71 USPQ2d at 1371.  Therefore, the mark being descriptive of a characteristic
`of the artist’s royalty arrangement from applicant’s software, as opposed to the function of the software does not change the descriptive
`meaning of the mark in relation thereto.
`
`Although each mark must be evaluated on the specific facts of the case, the plural of a generic term is generally still generic as pluralization
`usually does not alter the meaning of the term beyond making it plural.   See In re Cordua Rests., Inc., 823 F.3d 594, 603, 118 USPQ2d 1632,
`1637 (Fed. Cir. 2016) (citing In re Belgrade Shoe, Co., 411 F.2d 1352, 1353, 162 USPQ 227, 227 (C.C.P.A. 1969); Wilson v. Delauney, 245 F.2d
`
`877, 878, 114 USPQ 339, 341 (C.C.P.A. 1957)); TMEP §1209.01(c)(1).   
`
`Two major reasons for not protecting descriptive marks are (1) to prevent the owner of a descriptive mark from inhibiting competition in the
`marketplace and (2) to avoid the possibility of costly infringement suits brought by the trademark or service mark owner.  In re Abcor Dev.
`Corp., 588 F.2d 811, 813, 200 USPQ 215, 217 (C.C.P.A. 1978); TMEP §1209.  Businesses and competitors should be free to use descriptive
`language when describing their own goods and/or services to the public in advertising and marketing materials.  See In re Styleclick.com Inc., 58
`USPQ2d 1523, 1527 (TTAB 2001).
`
`For the foregoing reasons, the proposed mark “100% Artists Royalties” is refused because it is merely descriptive of the applicant’s goods
`under Trademark Act Section 2(e)(1).
`
`Applicant should note the following additional ground for refusal.
`
`FAILURE TO FUNCTION AS A TRADEMARK
`
`Registration is refused because the applied-for mark is a slogan or term that does not function as a trademark to indicate the source of
`applicant’s goods and to identify and distinguish them from others.   Trademark Act Sections 1, 2, 3, and 45, 15 U.S.C. §§1051-1053, 1127.  In
`this case, the applied-for mark is a slogan or term that is commonly used by those in applicant’s particular trade or industry to merely convey
`information about applicant’s or similar goods, specifically that the performer will receive all of the royalties for the creative work being
`downloaded with applicant’s software.   See In re Boston Beer Co., 198 F.3d 1370, 1372-74, 53 USPQ2d 1056, 1058-59 (Fed. Cir. 1999)
`(holding THE BEST BEER IN AMERICA for beer and ale a common claim of superiority and incapable of registration); In re Aerospace
`Optics, Inc., 78 USPQ2d 1861, 1864 (TTAB 2006) (holding SPECTRUM for illuminated pushbutton switches information about the multiple
`color feature of the goods and incapable of registration); In re Melville Corp., 228 USPQ 970, 971 (TTAB 1986) (holding BRAND NAMES
`
`FOR LESS for retail clothing store services a common promotional phrase and incapable of registration); TMEP §1202.04(a).  
`
`Slogans and terms that are merely informational in nature, such as statements or laudatory phrases about goods and/or services ordinarily used in
`business or in a particular trade or industry, are not registrable.  See In re Eagle Crest, Inc., 96 USPQ2d 1227, 1229 (TTAB 2010).  Determining
`whether the slogan or term functions as a trademark or service mark depends on how it would be perceived by the relevant public.  In re Eagle
`Crest, Inc., 96 USPQ2d at 1229; In re Aerospace Optics, Inc., 78 USPQ2d at 1862; TMEP §1202.04.  “The more commonly a [slogan or term]
`
` 
` 
` 
`  
`  
` 
`

`

`is used, the less likely that the public will use it to identify only one source and the less likely that it will be recognized by purchasers as a
`trademark [or service mark].”   In re Hulting, 107 USPQ2d 1175, 1177 (TTAB 2013) (quoting In re Eagle Crest, Inc., 96 USPQ2d at 1229);
`TMEP §1202.04(b).
`
`The attached evidence from various websites discussing artist royalties shows that this wording is commonly used by those in applicant’s
`particular trade or industry to refer to the money paid to authors and/or performers of creative works.   Please see attached evidence discussing
`artist royalties:
`
`available
`
`at:
`
`given?,”
`royalties
`music
`are
`“How
`Rights,
`Media
`New
`https://www.newmediarights.org/business_models/artist/how_are_music_royalties_given (Nov. 27, 2011).
`Day, Wendy, Songtrust, Insider Info, “Basic Music Publishing,” available at: https://blog.songtrust.com/music-publishing/basic-
`publishing (Aug. 1, 2017).
`Royalties You Never Knew Existed,”
`the
`of
`to Get All
`“How
`Digital Music News,
`https://www.digitalmusicnews.com/2016/02/15/how-to-get-all-the-royalties-you-never-knew-existed/ (Feb. 15, 2016).
`Voogt, Budi, Heroic Academy, “The Artist’s Guide To Spotify: Playlists, Royalties, Verified Profiles and more,” available at:
`https://heroic.academy/artist-guide-spotify-playlist-royalties-verified-profiles/ (April 12, 2018).
`SonicBids Blog, “Music Royalties 101: What They Are and How to Collect,” available at: http://blog.sonicbids.com/music-royalties-101-
`what-they-are-and-how-to-collect (Aug. 27, 2014).
`Obringer, Lee Ann, How Stuff Works, “How Music Royalties Work,” available at: https://entertainment.howstuffworks.com/music-
`royalties6.htm (May 24, 2018).
`Sound Exchange, “About Digital Royalties,” available at: https://www.soundexchange.com/artist-copyright-owner/digital-royalties/ (May
`24, 2018).
`BMI, General Royalty Information, https://www.bmi.com/creators/royalty/general_information (May 24, 2018).  
`The number 100% does not change this because it simply describes how much of a royalty the artist receives.  See generally, Hyperbot.com,
`“SoundExchange Royalties: The Producer’s Cut,” available at: www.hyperbot.com/hyperbot/2017/06/soundexchange-royalties-producers-
`cut.html (May 24, 2018) (showing an example of how royalties are calculated using percentages of a whole).  Because consumers are
`accustomed to seeing this wording used in this manner, when it is applied to applicant’s goods, they would perceive it merely as informational
`matter indicating how much of a royalty the artist receives when applicant’s customer(s) download a creative work.  Thus, this slogan or term
`would not be perceived as a mark that identifies the source of applicant’s goods.
`
`available
`
`at:
`
`RESPONSE TO OFFICE ACTION
`
`If applicant has questions regarding this Office action, please telephone or e-mail the assigned trademark examining attorney.  All relevant e-
`mail communications will be placed in the official application record; however, an e-mail communication will not be accepted as a response to
`this Office action and will not extend the deadline for filing a proper response.  See 37 C.F.R. §§2.62(c), 2.191; TMEP §§304.01-.02, 709.04-.05. 
`Further, although the trademark examining attorney may provide additional explanation pertaining to the refusal(s) and/or requirement(s) in this
`Office action, the trademark examining attorney may not provide legal advice or statements about applicant’s rights.   See TMEP §§705.02,
`709.06.
`
`TEAS PLUS OR TEAS REDUCED FEE (TEAS RF) APPLICANTS – TO MAINTAIN LOWER FEE, ADDITIONAL
`REQUIREMENTS MUST BE MET, INCLUDING SUBMITTING DOCUMENTS ONLINE:  Applicants who filed their application
`online using the lower-fee TEAS Plus or TEAS RF application form must (1) file certain documents online using TEAS, including responses to
`Office actions (see TMEP §§819.02(b), 820.02(b) for a complete list of these documents); (2) maintain a valid e-mail correspondence address;
`and (3) agree to receive correspondence from the USPTO by e-mail throughout the prosecution of the application.  See 37 C.F.R. §§2.22(b),
`2.23(b); TMEP §§819, 820.  TEAS Plus or TEAS RF applicants who do not meet these requirements must submit an additional processing fee of
`$125 per class of goods and/or services.  37 C.F.R. §§2.6(a)(1)(v), 2.22(c), 2.23(c); TMEP §§819.04, 820.04.  However, in certain situations,
`TEAS Plus or TEAS RF applicants may respond to an Office action by authorizing an examiner’s amendment by telephone or e-mail without
`
`incurring this additional fee.    
`
`/Alyssa Paladino Steel/
`
`Trademark Examining Attorney
`
`U.S. Patent & Trademark Office
`
`Law Office 124
`
` 
`  
` 
`  
`

`

`alyssa.steel@uspto.gov
`
`(571) 272-8808
`
`TO RESPOND TO THIS LETTER:   Go to http://www.uspto.gov/trademarks/teas/response_forms.jsp.   Please wait 48-72 hours from the
`issue/mailing date before using the Trademark Electronic Application System (TEAS), to allow for necessary system updates of the application. 
`For technical assistance with online forms, e-mail TEAS@uspto.gov.  For questions about the Office action itself, please contact the assigned
`trademark examining attorney.  E-mail communications will not be accepted as responses to Office actions; therefore, do not respond to
`this Office action by e-mail.
`
`All informal e-mail communications relevant to this application will be placed in the official application record.
`
`WHO MUST SIGN THE RESPONSE:  It must be personally signed by an individual applicant or someone with legal authority to bind an
`applicant (i.e., a corporate officer, a general partner, all joint applicants).  If an applicant is represented by an attorney, the attorney must sign the
`
`response.  
`
`PERIODICALLY CHECK THE STATUS OF THE APPLICATION:   To ensure that applicant does not miss crucial deadlines or official
`notices, check the status of the application every three to four months using the Trademark Status and Document Retrieval (TSDR) system at
`http://tsdr.uspto.gov/.   Please keep a copy of the TSDR status screen.   If the status shows no change for more than six months, contact the
`Trademark Assistance Center by e-mail at TrademarkAssistanceCenter@uspto.gov or call 1-800-786-9199.   For more information on checking
`status, see http://www.uspto.gov/trademarks/process/status/.
`
`TO UPDATE CORRESPONDENCE/E-MAIL ADDRESS:  Use the TEAS form at http://www.uspto.gov/trademarks/teas/correspondence.jsp.
`
` 
` 
` 
` 
`  
`

`

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`The Artist’s Guide To Spotify: Playlists,
`Royalties, Verified Profiles and more
`ram Vougt
`
`n June 2015, the service reported 75 million active users, of which 20 million were
`on a paid plan (that‘s over 25%). Recently, their chief revenue officer shared that
`they were on track to hit the 100 million active user mark before the end of 201 5.
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`

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`Consumers have adopted the Swedish service en masse, with Scandinavian countries
`leading the way, followed by the rest of Europe and now the rest of the world. By allowing
`people to experience the platform for free through their adsupported freemium model and
`over-delivering on user experience, Spo‘tity's initial growth was largely driven by word of
`mouth instead of advertising.
`
`Now, having captured the majority of market share in Europe and with the competitor
`Apple Music entering the scene, Spotify has attracted more venture capital and is
`beginning paid advertising campaigns to win users in territories such as the USA.
`
`This IS Interesting for anists and labels alike, as it means that streaming is now getting
`more exposure than ever.
`
`Contents EShow
`
`Personally, I’m a fan.
`
`Tim) years ago I started using Spatify, immediately subscribing to a paid plan alter
`discovering the smooth user experience, nice interface, large catalog of music and ability
`to stream at 320kbps MP3 quality (yeah, Netherlands mobile networks rock).
`
`Before, I had been an iTunes kind of guy, downloading music and syncing it to my iPhone
`to listen on the go. It worked. but the process was far from optimal — because 0! the set-up
`time of downloading and migrating the files to my phone, in reality, I ended up listening to
`the same collection of music for extended periods of time.
`
`The switch to Spoti'l'y reminded me at my initial migration from Vlfindows to 05X...
`
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`awkward at first but much more efficient once I got accustomed to the interiace.
`
`The new paradigm
`
`I think the popularity of streaming services such as Spotify, Apple Music and even Net‘flix
`are symptoms of a new paradigm: accessibility over ownership.
`
`Consumers prefer easy access and a comfortable user experience over actually awning
`products and services.
`
`After all, why would you purchase CDs if you can stream high—quality music on your
`desktop or smartphone, with your whole collection being accessible cross-device and
`have the option to sync for offline listening? It’s simply a better user experience.
`
`Sure, some people still purchase CDs and vinyl because to mem nothing beats the
`experience of having a physical product. Others still purchase CD5 or download Iossless
`quality files because the audio quality is better. Both are valid arguments. | get them.
`however percentage wise this is just a minority of all the music listeners.
`
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`Streaming is changing the game and with Spolify being at the forefront, I wanted to
`dedicate a post to talk abuul how you can get the most out of it.
`
`Getting your music on Spotify
`
`You can view Spotify as a store similar to iTunes and Beatport, falling in the category of
`nan- 1..
`_\
`
`For those of you unclear about the distinction, an aggregator is a company that provides
`distribution services to a large user base, supplying the content to multiple digital service
`providers (DSPs) (iTunes I Spotify I Beatport I Apple Music etc).
`
`Distributors essentially do the same thing, but at a smaller scale (fewer clients with bigger
`catalogues) and work closerwith specific record labets and artists and can assist in
`facilitating marketing placements on the stores.
`
`In terms of the time it takes for your music to be live on the store, Spotify is one of the
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`quicker DSPs and depending on your distributor’s processes, your music can be up on the
`store within 1—3 days alter delivering the content.
`
`Spotify royalties
`
`There’s been a lot of fuss in respect to Spotify’s royalty payments.
`
`Firstly you will have to understand the difierence between the freemium and premium
`models. The one is free to use and shows ads (display and audio) to users, whereas the
`premium mode? is ad-free and requires a monthly fee.
`
`Plays are not treated equal on the platform. Plays of premium users result in a higher
`payout to rightsholders than those of freemium users.
`
`How it works — roughly — is that Spotity takes all the subscription (premium) and
`advertising (freemium) revenues over a said period, dividing those monies by the total
`amount of streams.
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`Rightsholders are paid out based on those rates and from what l understand these are
`corrected by the percentage of plays that came from the treemium I premium users (so
`larger % of streams from paid users = higher royalty rate and vice versa).
`
`Of course, that imposes a problem.
`
`Vlfith their tremendous growth, going from 60m active users of which 10m paid in late
`2014, to 75m active users of which 20m paid in mid 2015, the growth of tree users is
`larger than paid users, thus diluting the per-stream royalty rate.
`
`The more users Spotify acquires, the lower the per-stream royalty rate, unless the paid—to-
`free subscription ratio maintains or rises. It’s like inflation.
`
`The rates are also influenced by the country of which the streams originate (because of
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`rates on behalf of the label (by wflhholding it from the master royalties) and allocates itto
`the PRS’ whom in turn collect for the publishers or songwriters directly.
`
`These rates are much lower, with some songwriters reporting receiving roughly $0,00009
`per stream. That‘s $90 for 1.000.000 plays.
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`Nonetheless, Spotiiy is becoming a significant revenue stream for record labels and
`performing artists. With Heroic, we've seen Spotify's share of our distribution income shill
`from 10% to over 55% in the last two and half years.
`
`Free Download ‘Spotily Best Practices’ Checklist
`
`Pair that up with a decrease in iTunes (Apple is pushing consumers towards their Apple
`Music streaming service) and Beatport sales (their new streaming service is terrible, the
`pro.beatport.com store is confusing and SFX stock has plummeted) and you can see how
`streaming is going to account for the lion’s share of (digital) recording revenues in the
`coming years.
`
`Playlists
`
`The biggest driver of plays on Spotifif are playlists and charts.
`
`These are lists that are curated by both consumers and companies, which list tracks that
`they enjoy. Spotify's playlists are cool because when you follow one, you’ll get a
`notification every time a track is added to that playlist. That's what drives the plays.
`
`Every user has the ability to create playlists and retitle them, however the ability to
`customize artwork and add a description is restricted to VIP I verified accounts.
`
`In the past Spotiiy allowed users to discover playlists of other users via the browse
`sections of the app, however, these playlis‘ts have been removed and only those
`controlled by Spotify and the major labels are now shown.
`
`

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`Yeah, there's a monopoly going on there.
`
`Because Spotity's success hinges on their ability to use the music of the major
`labels, there have been intense negotiations and the majors have managed to
`negotiate higher-than-standard royalty rates and control over a share of the advertising
`space and playlisls on the platform
`
`Most users don’t realize this, but all those popular playlists that don’t carry the Spotify
`brand are all controlled by the majors: Filtr is owned by Sony Music, Digster by Universal
`Music Group and Topsify by Warner Music Group.
`
`This control allows them to irrfluence (Spotify) chart positions, plays on theirtracks and
`improve the success rate of their releases beyond Spotify (improving