In what seems to be becoming a trend, Last.FM has come under fire for forcing artists and labels who upload their music to the site to relinquish all royalties for internet radio and on-demand playback. The license lasts for at least a year, after which the artist can terminate it, but still, it's unfortunate that indie artists and labels that upload their music to Last.FM don't get paid. (Last.FM has to pay royalties for music it decides to program on its own and -- presumably -- for music it plays as part of alternate licensing deals.)
The clause in question:
I sent a question to a Last.FM spokesperson asking whether they're considering changing the license; hopefully we'll know more soon.
Update: A post on Last.FM's blog indicates that, somehow, the "royalty-free license" referred to above does not really mean that the license is royalty-free. Last.FM apparently means that it will pay royalties to SoundExchange, but can't pay small labels or artists directly (the way it will the big labels), due to administrative costs. The post advises small bands and labels to join an indie aggregator or collection society if they want to collect the royalties owed them under the "royalty-free license." Hmmm.
