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XThe EU's Article 17 Is Already Changing the Digital Music Landscape
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Musicians are facing a tough road and the pandemic hasn't made life any easier. But changes are afoot that could help.
A flurry of deals between music copyright owners and a grab bag of online video purveyors may be just the first step in a process that could see "the most important copyright reform since the U.S. passed the Digital Millennium Copyright Act (DMCA) 22 years ago," according to one industry observer.
With it, artists and rights holders should be better positioned to benefit from the growing relevance of music across social media platforms, gaming consoles, virtual gyms and much more.
"There clearly has been a frenzy of activity," David Israelite, president and chief executive of the National Music Publishers' Association (NMPA), a trade association representing American music publishers and songwriters, told dot.LA.
The changes stem from a battle that has been playing out in Europe that has pitted the creative community against some of tech's giants such as YouTube and Facebook. Those companies depend on content created by artists.
Last year, the EU adopted tough new copyright laws set to take effect by next June. Though the regulations are facing a slew of challenges, global digital companies are looking to come into compliance to get ahead of the curve, and possibly gain an edge over competitors.
In August, Santa Monica-based Snap struck a deal with several big music companies for rights to their music. L.A.-based Triller signed a deal with digital music firm 7digital for back-end support on its licensing management.
In July, TikTok agreed to terms with NMPA, which included a settlement for past violations and an agreement for the future. The Culver City-based company also recently signed deals with indie digital rights managers Merlin and Believe.
The Believe agreement could be particularly beneficial. It allows the independent artists affiliated with Believe-owned TuneCore to upload tracks onto TikTok, the company announced last week, potentially bringing them a massive new global audience.
And in-home fitness, much of which relies on music, is becoming more popular. Apple, for instance, recently announced a new subscription fitness program that will involve music.
The company is "doing it the right way – licensing from the very start," Israelite said. NMPA will undoubtedly be watching other competitors in the fitness space closely.
European Union member countries will begin enforcing Article 17 by June 2021 that require platforms to make an upfront effort to avoid copyright violation.
Photo by Guillaume Périgois on Unsplash
Why Are All These Deals Happening Now?
In the U.S., the current legal framework – which emerged with the DMCA, before social media existed – requires platforms to respond to takedown notices, but not to proactively ensure that songs that show up in user feeds are properly licensed.
When a song's rights holder issues a takedown notice, it leaves the platform with the choice of obtaining a license, removing the song from the platform (and potentially upsetting users) or possibly getting sued.
Songs have two kinds of copyright: one for the sound recording, and one for the underlying composition. If a platform is making money in part thanks to a song, both copyrights are relevant.
Since the performer is the face of the music, the songwriter can sometimes be forgotten.
"You often see (platforms) start with labels then move on to publishers. Sometimes they won't, though, or sometimes they won't get to the smaller, independent publishers," Israelite added.
Platforms can also take "Safe Harbor," meaning "what they don't know is on their platform, they're not liable for," said Wilson Hays of L.A.-based Pex, a tech company that monitors audio and visual assets across the web. But by June of next year, the EU will begin enforcing reforms that require platforms to make an upfront effort to avoid copyright violation. The new E.U. laws won't apply directly to content posted in the U.S., but companies with international operations may find it easier to roll out compliance changes across their global operations rather than taking a piecemeal approach.
Hays believes that many are already trying to get ahead of Article 17's requirements before the new legislation takes effect. It may behoove them to do so, since the U.S. is looking at its own copyright reforms.
This is a big deal, Hays said.
"Life will get better come 2021 for independent rights holders because they will have tools at their disposal that will allow them to have more control over their content — on top of generating more revenue," he added. "This attribution will happen prior to upload, allowing any creator to participate in whatever revenue is generated from the get-go."
Indian social media companies, too, are facing a tougher regime of music copyright enforcement. Several short-form video companies that have gained popularity in the wake of TikTok's ban in the country, including Triller, are facing lawsuits.
Amazon-owned streaming video company Twitch also relies heavily on music.
Photo by Caspar Camille Rubin on Unsplash
Music Has Become a Core Component of Social Media
On YouTube, for example, there are at least 10 seconds of music on 84% of the platform's videos, and over half of all videos on Instagram contain music, according to Hays. Getting their licenses in order allows platforms to let their users include music in their videos without needing to worry they will be taken down.
Amazon-owned streaming video company Twitch also relies heavily on music. The company has taken heat for Jeff Bezos' poor performance before Congress in July, when representatives asked him if the company pays out royalties. He couldn't say, but the answer is… rarely.
Platforms that delay getting their licensing deals in order can save themselves cash. They can also avoid navigating the complex copyright landscape. But as they grow, that strategy can come back to bite them.
"Once they begin generating substantial revenue, then they'll draw the attention of rights holders," said Hays.
At least part of the change has to do with a growing intolerance by the creative community of extremely wealthy companies using their music without proper licensing. Another driver is the successful, high-profile legal disputes that Israelite said have "sent a message to other companies."
Peloton, for example, faced a protracted legal battle before agreeing to terms that, as with TikTok, accounted for past violations and set new terms for artists featured on its platform. Such cases, Israelite noted, have "accelerated the choice these companies have to make": Either license properly, or be a copyright infringer, and bear the consequences of receiving takedown notices or getting sued.
In the wake of Jeff Bezos's embarrassing admission to Congress, Twitch is "starting to become more of a focus for the need for proper licenses," said Israelite.
As has already been seen in India, TikTok competitors in the short-form video space can't just focus on having the right algorithm and attracting a big user base. Israelite pointed to Triller as an example of a startup that has deals with record labels (for the recordings) and some publishing deals but may soon have to play catch up.
"I think they'll have to deal with a pretty large problem for a significant number of songs being used without proper permission from publishers."
Israelite also noted that Twitter has no publishing licenses yet.
More ripples are likely to emerge wherever music can be found in the digital landscape, from social media to gaming, fitness and beyond. Whether that change comes in the form of lawsuits or more licensing agreements remains to be seen.
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Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
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Diagnostics Startup Polygon Raises $4M To Test Kids for ADHD and Dyslexia
Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
Here’s how Jack Rolo describes his childhood: He was good at chess, and bad at spelling. He was good at math, and bad at reading. Rolo went on to study physics at Durham University in his native England—and despite often struggling in his courses, it wasn’t until after he graduated that he was diagnosed with dyslexia, a common language processing disorder that affects reading.
Rolo’s experiences informed his founding of Polygon, a Santa Monica-based diagnostics startup that emerged from stealth on Friday with $4.2 million in funding, and the goal of better diagnosing dyslexia, ADHD and other learning-related disabilities. The funding includes a $3.6 million seed round led by Spark Capital, as well as $600,000 in pre-seed funding led by Pear VC.
“It really is a product I wish I'd had access to at an earlier age myself,” Rolo told dot.LA.
After moving to California to earn his MBA degree at UC Berkeley, Rolo met his co-founder Meryll Dindin, who now serves as Polygon’s chief technology officer. Together, they’ve built a platform that aims to partner with schools to test children for a myriad of disabilities that may affect academic performance. (The startup claims it’s already teamed with schools in California, but did not disclose which.) Rolo says he envisions that these assessments become as ubiquitous as vision and hearing exams: that every student, regardless of age, background or academic performance, will be tested.
As is, testing for disorders like ADHD and dyslexia often depends on parents, teachers or pediatricians observing a child, detecting something amiss and intervening. There are problems with this method; for instance, girls are chronically underdiagnosed with ADHD because it presents itself differently than it does for boys. Teachers juggling crowded classrooms may not be able to perceive why a specific child is falling behind. And Black and Latino children are often overlooked when it comes to diagnosing disabilities.
“Common roots of referral are teachers, and typically that's flagged because they'll see the student failing,” Rolo said. “That's part of the problem—that this then becomes almost a wait-to-fail approach, when ideally you want to pick these things up proactively.”
Polygon employs full-time psychologists who evaluate students through a telehealth platform. After undergoing a range of standardized assessments and interviewing their parents and teachers, a student who is diagnosed will receive an "Individualized Education Program," a schooling curriculum tailored toward their disabilities.
Assessments start at $995, which Polygon says is up to five times cheaper than traditional disability testing alternatives. The company plans on driving that cost down further by collecting a large data sample of assessments and building machine learning technology to “pre-screen” students; those who are flagged would then undergo more extensive testing.
“Ultimately, what we're trying to move toward is a model quite similar to the optician, where everyone gets the evaluation,” Rolo said. “Yes, assessments are still not accessible for all families just yet—but this is the beginning, and we hope to drive this cost down way further over time.”
Polygon said the new funding will go toward expanding beyond California and growing its network nationally.
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Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
ZipRecruiter CEO Ian Siegel on How the Job Market Has Shifted
Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.
On this episode of Office Hours, host Spencer Rascoff talked with ZipRecruiter CEO and founder Ian Siegel about how he built his company, the lessons he's learned along the way and how he's seen the pandemic drastically reshape the job market—probably for good.
Siegel moved to L.A. to be a writer in Hollywood. But he quickly realized he hated it. Instead, he moved into the fledgling online division at Warner Bros., From there, he found himself working at a series of VC-backed startups that became successful. As a result, he became known in the industry as an expert in taking online businesses that had plateaued and figuring out a way to help them grow. He said he hated every minute of it.
“What you are in that situation is you're an agent of change. And what I learned is you can be good at that, but no one likes you because everybody fears change.”
Instead, Siegel worked up the courage to start his own business.
“Why do I let people pay me such a small amount of money to turn around these businesses?,” he asked himself. “If I'm so good at this, why don't I just start my own and build it right from the very beginning. And that's what ultimately gave me the conviction to go launch ZipRecruiter.”
His time working at young startups too small to have their own HR departments gave Siegel the idea. After posting the same job position across multiple websites and printing out every single resume submitted, he realized he was facing a problem technology is built to solve.
“I just wanted a magic button that I could push. And it would send a job to all job boards at once, and then all the candidates from all those different sites would go into one easy to review list. That's exactly what we built with the first version of ZipRecruiter,” said Siegel.
Over time, ZipRecruiter’s mission has changed, he said, from a company aimed at solving a single pain point to a company trying to reinvent how the labor market functions. That, he added, is orders of magnitude more difficult, because “you are retraining America or potentially the world on a new way to do something.”
“And now you are knife fighting in the jungle, you are trailblazing,” he added. “I don't worry about how anybody in the current ecosystem operates. I'm truly fundamentally trying to change the labor market in the United States right now.”
Siegel said he’s seen the job market drastically change over the past couple years, as the pandemic accelerated the move to remote work and hybrid and remote positions surged. Fewer than 2% of jobs on ZipRecruiter had the words “remote” in them before COVID-19 stuck. Now, 60% of applicants say they’re seeking remote or hybrid work, and 12% of the jobs listed on the site offer a remote option—and that number is growing.
That reality has changed how he runs his own business.
“What I've done at ZipRecruiter is accept change,” Siegel said. “We are fully embracing remote. I believe remote is not only here to stay, it's a huge benefit.”
That, he says, is because employees and employers both save time on driving and grooming. They save money on gas and parking. The office, he added, will still have a purpose, but it will probably be more for building culture, and less for work.
"It'll be a much smaller space entirely designed around fun," he said. "No one will ever go in there every day purely for the purpose of doing their job, probably ever again."
One of the lessons Siegel said he’s learned as a serial entrepreneur is to make sure the work you pick is meaningful to you.
“It turns out every business takes the same amount of time, which is all your time,” he said. “So be thoughtful about how you spend it. Pick work that's meaningful for you. Pick work that has scale opportunity to it and that you're going to be excited to go into every day,”
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Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.
Riot Games Doubles Down on Mobile With ‘Aim Lab’ Investment
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Riot Games has invested in virtual shooting range developer Statespace, accelerating the Los Angeles video game publisher’s efforts to dominate the mobile gaming space.
Riot did not disclose terms of the investment but told dot.LA it took a “minority stake” in New York-based Statespace.
Statespace’s main product is a platform called Aim Lab, a free-to-play virtual shooting range that first-person shooter gamers can use to warm up their skills before heading into a competitive match. Statespace CEO Wayne Mackey told the Washington Post that the plan is to leverage its relationship with Riot to bring Aim Lab onto mobile platforms—a transition that he said is “imminent” and could happen as soon as next month.
Riot, in turn, wants to integrate Aim Lab as part of its growing base of titles with hardcore fan bases, like its first-person shooter game “Valorant” or its multiplayer online battle arena (MOBA) game “League of Legends: Wild Rift.” The idea is that esports players could use Aim Lab to warm up with weapons used in the actual games, and also for a postmortem on a match that they lost by giving them a chance to review footage of their defeat and figure out how to improve, Mackey said.
“We look forward to collaborating with Statespace on developing innovative training and coaching tools for Valorant and MOBA players around the world to improve their skills at every level,” Jake Perlman-Garr, Riot’s global head of corporate development, said in a statement Thursday.
Riot has been doubling down on mobile gaming in recent years. The publisher has released three mobile games in the last two years—including “Wild Rift,” its most popular mobile title—and has invested in mobile gaming companies like Double Loop Games and Bunch. That focus has come as mobile gaming has emerged as one of the industry’s fastest-growing sectors.
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Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him