SoundCloud, the music and sound sharing service we saw launch this month has added a very important feature: support for different licenses. When you upload tracks, you can elect to protect your work with a conventional copyright or opt instead for a Creative Commons license. That’s an important feature I’d like to see all these services support. The one thing Creative Commons and conventional copyright advocates agree on is that being explicit about what rights you want to your work is essential.

Naturally, this means not only that you can upload works, but that SoundCloud could soon become a rich repository for CC-licensed work to use as video soundtracks or sample, in the way that Flickr’s CC search has fired up lots of (legal) image use. We have heard some dissatisfaction from readers about SoundCloud’s pricing scheme, but this announcement means SoundCloud remains one to watch — even if you’re not personally uploading to it.

SoundCloud also came up with a unique idea: they created a drop box for CC-licensed works which they played at a party.

You can read about the new licenses and other news tidbits on the SoundCloud blog:
Introducing SoundCloud Creative Commons Support

To any of you who get tired of incessant griping, remember: sometimes, people listen — especially if the griping is well-reasoned and constructive. Such seems to be the case with Apple’s NDA on mobile application development. Apple announced today:

…the NDA has created too much of a burden on developers, authors and others interested in helping further the iPhone’s success, so we are dropping it for released software. Developers will receive a new agreement without an NDA covering released software within a week or so. Please note that unreleased software and features will remain under NDA until they are released.

To Our Developers

I would be remiss if I didn’t give Apple some credit for making this move. This is what really matters: being responsive to criticism. We’re seeing some tremendous innovation in development for the iPhone and iPod touch, and in the mobile arena in general, from new kinds of synths and music making applications to Star Trek-like controllers. It’ll make a big difference to those developers to be able to talk.

And, speaking of which, this now means we can have all of those developer discussions that were crippled by the NDA. So, developers, we’d love to hear from you.

As music listening takes new forms, that builds new business models. But who calls the shots? Who gets to play, and who reaps the benefits? One immediate danger is that major label deals will dominate as outlets vie for position. Online outlets like MySpace have started to look a bit like the same-old, same-old world of major labels and big deals. “Indie” music sometimes makes an appearance, but nearly always in the form of signed artists and often in the shadow of the majors. Unsigned artists can get onboard, but the playing field often isn’t level – and while majors negotiate lucrative deals for their music, unsigned artists and indies have to give theirs away for free. At the other end of the spectrum, unsigned artists often don’t get paid by services that benefit from their work (like MySpace).

That’s why Last.fm’s announcement yesterday was a potential bombshell. Now fully available after months of development, the Artist Royalty Program will pay artists royalties on plays directly – no label required. Unsigned and independent artists can sign up to earn royalties from on-demand plays and Last.fm’s streaming radio.

Last.fm Artist Royalty Program (last.fm/uploadmusic)

Royalties 101

To fully understand what that means, let’s back up and talk about where royalties come from in on-demand online music. This is entirely separate from downloadable music – that’s pretty straightforward. If you, for instance, sell a track on your band’s website for 50 cents, people pay 50 cents, own the track, and you get 50 cents. If you sell it through another vendor, then you get a slice of the sales pie.

But on-demand, streaming music, via radio stations or elsewhere, works differently. Since the days of radio, broadcasters have wanted broader access to music. Obviously, if they had to negotiate rights individually for each track, they couldn’t exist. So the solution has always been a system of blanket royalties. In the online space, there are two kinds of royalties, coming from two different licenses. Here’s the simplified version (lawyers, feel free to clarify):