“If we don’t pursue digital licensing or TV licensing how is the label supposed to survive? The problem is for some reason the general public in this country as well as organizations think music is for free. Music is not for free; it costs a lot of money.”
In this interview with Instep, Dr Akbar Yezdani talks about the licensing of music, its importance and why more record labels are essential for the growth of the music industry…
By Maheen Sabeeh

Instep: The issue of licensing of music, how did it come about?
Dr Akbar Yezdani: The issue has been around for some time. We told all the music channels to air music content legally. All the content Fire Records owns is copyrighted. By owning, we mean songs, videos, everything. It applies to every artist with Fire Records except Ali Azmat.
Instep: Why is his case different?
DAY: Ali Azmat opted for a different deal. He didn’t give us his rights for a lump sum like other artists. He didn’t ask for upfront payment. He opted for a royalty-based deal. We distribute his albums but we don’t have copyrights to them.
Instep: What about the rest of the industry?
DAY: Other than Ali Azmat, all other artists with Fire Records have been paid upfront. We purchase their rights and in return, they are paid in lump sum. In some cases, we make the videos and pay the rest. In some cases, the artist makes the video himself. I say we own the content because by paying a lump sum, Fire becomes the outright owner.
In a song there are two main things, the music and the lyrics. Now whether the music is changed but the lyrics are the same, even then the copyright still belongs to us. And if the music remains the same but the lyrics are changed, even then the copyright belongs to us. Neither can you make remixes nor can you change the words.
Basically, it is the transfer of rights from the artist to the label, which in this case is Fire Records.
Instep: Tell us about the licensing issue…
DAY: When Fire Records started two years ago, our major mainstream release at that point was Ali Zafar. Then the number of artistes kept on increasing – Abrar, Atif, Jal, Strings and so many others. But the starting point was two years ago. The content at that time was so limited that affirmative action was not entirely possible. It didn’t make sense to ask people for licensing. But as Fire Records grew so did the investment. We have made videos and released countless records.
What we say to everyone, not just channels, but radio stations and web-zines is that a huge amount is being invested in the industry. Fiscal sales are down. But that same content is running for free everywhere. Now if that content is running and all the parties are involved, we want to share the monetizing of that content. We want to share it because we have been investing in the music industry. Look at the global structure. Music is not for free. Royalties are given to the artistes and to the label.
Instep: This deal is important but what about the music industry and a cut in royalties for them?
DAY: Ali Azmat did not sell us his rights. He will have his options of royalties but if artists sell their rights to us in return for a large sum, then the royalty will be given to the record label because we own the content.
All other artists signed up with Fire were given a good deal with upfront payments for which they gave up their rights. They sold it for a price, which was mutually agreed upon so there’s no reason to crib.
If we don’t pursue this then how will the label make money? If we don’t pursue digital licensing or TV licensing how is the label supposed to survive? The problem is for some reason the general public in this country as well as organizations think music is for free. Music is not for free; it costs a lot of money.
There is no need to see this as a battle. It isn’t one. It is an alliance with channels and they have been very reciprocal. Whether it was Ghazanfar Ali from MTV or anyone else, they understood where I was coming from and have agreed to the deal.
At the end of the day, this will benefit everyone. More content will develop because investment will not stop. Remember a few years ago when piracy crackdowns took place? Record labels disappeared from the horizon. For them to come back, licensing is necessary. One record label cannot possibly release every artist in Pakistan. We need more labels to enter the market. And for that, laws have to be taken into account.
When I say royalty, it is a negligible sum. But when it accumulates, it will make a difference.
Instep: How many channels are currently onboard with Fire Records?
DAY: The deal has been done with Aag, MTV Pakistan, Play and Oxygen. Talks are on with Oye. But it gives me pleasure to say that most of the channels are with us and I’m very happy that MTV is onboard. Ghazanfar Ali has contributed to the industry. It was only a matter of time before we all came on the same page.
Instep: What about radio channels?
DAY: The other day I was reading somewhere that 122 licenses have been issued to radio channels. Who is monitoring their content?
But to answer your question, we are talking to them and very soon we will finalize an agreement with them as well. We are not competitors. We are partners. We are content generators as long as we can afford it. We will continue creating content.
Instep: How are record labels operating in India?
DAY: Some artists separate their rights. Take Strings for instance. Pakistan rights are separate and international rights are separate. But in India, things happen differently from Pakistan. Indian record labels do not sign any artist or release their album until they have all the rights including the audio, video, radio, broadcasting, television licensing as well as a share in concert profits. They don’t do it like us.
We have no share in concerts. On average, an Indian record label has a cut of 50 percent. In a few cases, that percent may be 30-35 percent but nothing less than that.
Instep: One concern within the music industry is the airing of foreign content on local channels…
DAY: It isn’t my domain. That is the domain of Pakistan Electronic Media Regulatory Authority (PEMRA). Every channel that is given a license in this country specifically mentions how much content of which nature they can air. Now if there are violations happening, that is a cause for concern for PEMRA.
There are three regulatory bodies. One is PEMRA. The second is the Intellectual Property Organisation of Pakistan (IPO) and the third is Pakistan Telecommunication Authority (PTA). It saddens me to say that they are not playing their role. Every Internet provider that provides illegal content in Pakistan should be stopped by PTA.
Instep: Digital sales have become a norm. What is your view?
DAY: Digital sales are happening. We’ve just signed a deal with Wateen. Wateen is going to legitimately stream our content on their portal. We are getting into other digital partners with this. So you see once an interest is created, which is mostly economic, but once we have partners it won’t be just us, our partners will also fight piracy. All the channels will become partners in terms of licensing and they won’t allow other channels to show pirated stuff because then they will be paying for it themselves.
Instep: How will Fire Records tackle the issue of Internet piracy?
DAY: If you look at our catalog till June 2010, the forthcoming albums and videos, we’ve invested twice as much in content development that is all on the new artists. How are we going to monetize?
An ordinary person is downloading from the Internet without realizing that they’re hurting the industry. You might love a song by a certain artist. You might really like a song but instead of buying it legally, you download it illegally for free. The consequence is that the artist will not be able to produce another album after three years because he won’t have any money. The label won’t have money either and they wouldn’t be able to invest in the artist. Downloading illegally not only hurts the music industry but it also hinders the sound, which is compressed on the web. Why should one wait for regulators and authorities to force you to do what’s right?
Instep: Do you think Internet piracy can be contained in Pakistan?
DAY: My question is why not? In Dubai, they’ve blocked illegal sites. If you go and type some site which has illegal content, it says this is against UAE rules.
In Pakistan, PTA (Pakistan Telecommunications Authority) provides service to Internet Service Providers (ISP). PTA comes on top of PTCL (Pakistan Telecommunications Company Ltd). If PTA directs PTCL to block all illegal content, they will have to comply.
What is the job of the PTA? Under the law of PTA, it is written that they will protect copyrights. ISPs will not do so until PTA asks them to.
We told PTA to block illegal content. They forwarded us to the IPO (Intellectual Property Organisation). IPO then said to us that they won’t do it until an inter-ministerial committee doesn’t sit down. That committee has the Prime Minister as its chairman.
We were told to make a list of issues we would like to discuss. The PM would see the list and decide if he would like to put it on the table. No one knows the last time the committee had a meeting or if they talked. There is so much bureaucracy that it’s ridiculous.
Instep: Is there a plan to counter the Internet piracy issue?
DAY: There is an international regime being created on the Internet and very soon you will see a massive Internet operation crackdown and it will be so big that people are really going to be taken aback by it.
This is a plan, which is almost done, we are in the operational phase and we will go after everybody who is pirating music. I am responsible for my artists. I’m not the regulatory body for the entire industry. I can only stand for the rights of Fire Records. Fire Records will relentlessly pursue anybody and everybody who tries to pirate our artists and cause a loss to the industry. We will go after them.