The Federal Courts have ruled against applying the "First Sale" doctrine to
digital files, supposedly because of the EULA that comes with purchased
digital files, that basically say you've purchased limited digital rights,
not a recording.That alone complicates the issue of an appraisal.
That said, taking away a vital secondary market means no one can
legitimately collect "out of print" digital files! Which means a loss to
history and culture.
An independent archival professional specializing in still photography,
moving images and recorded sound.
On Mon, Jun 24, 2019 at 9:02 PM Steve Smolian <[log in to unmask]> wrote:
> Are there documented instances of an organization or person buying a group
> of similar digital files? Perhaps photographic? Video? Is that
> documentation accessible? Can permission be found to use it to support
> another appraisal? I know of one presently in negotiation but have not
> heard that money has yet changed hands. But all rights will be
> transferred, should there be a sale.
> This differs from a transaction involving analog tapes as, with them,
> there is value added if they are of an early generation, as was clear on
> this board when the fire losses were recently discussed. This is to say,
> don't go there if your are looking for an analogous transaction. It would
> have to be of digital media.
> Steve Smolian
> -----Original Message-----
> From: Association for Recorded Sound Discussion List <
> [log in to unmask]> On Behalf Of Lou Judson
> Sent: Monday, June 24, 2019 8:42 PM
> To: [log in to unmask]
> Subject: Re: [ARSCLIST] Appraisal of digital music files
> Maybe the effective value might be the advertising income if posted on
> Utube! Sorry if that sounds snarky, but really, the content does not sound
> legitimate to me…
> OR the cost of making the digital archive at commercial engineering rates?
> I would ask for complete archival documentation and specific rights issues
> before committing to any kind of estimate! If they balk, it is scammish.
> Lou Judson
> Intuitive Audio
> > On Jun 24, 2019, at 5:29 PM, Steve Smolian <[log in to unmask]> wrote:
> > The IRS requires the appraiser to determine the fair market value of
> what is being appraised. An appraiser has to find the price at which these
> or similar items are sold. The appraiser would have to investigate what
> rights may travel with them, if such rights are presently included, and
> what value any such rights may contribute to their fair market value.
> > Steve Smolian
> > -----Original Message-----
> > From: Association for Recorded Sound Discussion List
> > <[log in to unmask]> On Behalf Of Steve Greene
> > Sent: Monday, June 24, 2019 6:37 PM
> > To: [log in to unmask]
> > Subject: Re: [ARSCLIST] Appraisal of digital music files
> > My donor described them as popular and cutting-edge Russian and
> > (nearby
> > regions) artists. I hate to generalize, but I'd assume many, if not most
> are pirated and traded in informally via peer-to-peer. Traded digitally,
> that implies they aren't much older than 25 years (assuming some may have
> been ripped from vinyl). I assume my potential donor has them on a hard
> drive, but most may have come from peer-to-peer "back in the day". It may
> hinge on whether the MP3 binaries include a EULA license wrapped up in the
> > Also, it occurs to me that the "first sale" question has never really
> been settled. There was one Federal Court decision that said "no", re-sale
> is illegal, probably based on the EULA.
> > Steve
> > Steve Greene
> > (301) 842-8923
> > historicity.co
> > An independent archival professional specializing in still photography,
> moving images and recorded sound.
> > On Mon, Jun 24, 2019 at 6:00 PM Hugh Paterson III
> > <[log in to unmask]>
> > wrote:
> >> Are they their own creation? Or are they tied to a Hard-drive? Are
> >> they giving a copy, or are they deeding the rights to the music?
> >> On Mon, Jun 24, 2019 at 2:31 PM Steve Greene <[log in to unmask]>
> >>> Does anyone know if the IRS has settled on rules for the appraisal
> >>> valuation of collections of digital music files (not tied to an
> >>> artifact like a tape or CD)? A quick search reveals very little
> >>> information
> >> on-line
> >>> about this case. A potential client has reached out, and I had very
> >> little
> >>> to go on based on my searches. I'd hate to mislead anyone about the
> >>> acceptability of a potential donation for a tax deduction.
> >>> TIA,
> >>> Steve
> >>> Steve Greene
> >>> (301) 842-8923
> >>> historicity.co
> >>> An independent archival professional specializing in still
> >>> photography, moving images and recorded sound.