Category: Collection societies

What’s in the latest issue of Music & Copyright?

Issue and ItalyThe newsletter begins with a look at the ruling by the European Court of Justice on website blocking. In a case referred by the Austrian Supreme Court, the ECJ said an ISP can be required to block subscriber access to websites that infringe copyright. However, any block must ensure a fair balance between the opposing interests that are protected by fundamental rights.

The ECJ said that a person who makes protected content available to the public on a website without the agreement of the rights holder is using the services of the business that provides Internet access to people accessing that subject matter. According to the published ruling, an ISP is “an inevitable actor in any transmission of an infringement over the Internet between one of its customers and a third party.” Therefore, an ISP that enables its customers to access protected subject matter made available to the public online by a third party is an intermediary whose services are used to infringe a copyright.

Our second feature examines the latest figures published by the Brazilian trade association ABPD. As recently as 2011, Brazil was still outside the mainstream globally when it came to trade revenues from recorded music. Its trade revenues from physical recorded-music sales actually rose that year, as did its overall recorded-music trade revenues. But trade revenues from physical formats have begun falling sharply, and gains made by digital services in the country are struggling to counter the demise of the once-dominant CD. According to ABPD, total trade revenues from its member companies, which include all of the majors and most Brazilian independents, were down 4.8% last year, to BRL374.1 million (US$174.4 million), from BRL392.9 million in 2012. Continue reading

Has the music industry forgiven Justin Timberlake for his MySpace links and accusations of artist exploitation?

myspace_2452447bDepending on where a musician sits in the music industry value chain, a top-10 list of what’s most important to an unsigned artist will differ greatly to one compiled by a million-album seller. Scratching a living out of music is something tens of thousands of musicians do every day. Although the Internet has opened up the promotion and distribution of music to anyone with a computer, it has also made selling music a lot more difficult as almost every single release in a digital-music store is available for free somewhere online. Continue reading

Is repertoire fragmentation the new enemy of digital-music services in Europe?

Last year the European Commission introduced new proposals for a directive on the collective management of copyright and multiterritory licensing of music. The proposals, which target collection-society transparency and the efficient working of digital-distribution businesses in Europe, are working their way through a series of committees. After that, they must be agreed upon by the European Parliament and European Council of Ministers.

What the directive will not do is interfere with the way music publishers administer their rights. All of the major publishers and a number of independents have withdrawn the rights to certain repertoire for licensing on a multiterritorial basis. Some see these moves as a step towards the creation of a new form of fragmentation, one based on repertoire, rather than national borders. Publishers have long claimed that withdrawing certain repertoire rights streamlines the licensing process. However, music ownership can involve multiple publishers and therefore digital services that want to provide an all-encompassing offering still need to sign more licensing deals than the number of countries they operate in. Continue reading

A short history of the music industry: different formats, familiar names but the same old problems

M&C coverIn the past 20 years or so, all sectors of the music industry have been through massive change. Format transitions, company consolidation and greater scrutiny of copyright and licensing have changed the industry beyond all recognition. But have the changes made for industry improvements, and more important, have the main players learned from their mistakes? The recent discovery of the first issues of Music & Copyright has allowed for a unique look at just how much certain things have changed, and how much they haven’t.

The newsletter’s 20-year anniversary came and went in September, but thanks to a long-standing subscriber, copies of the first 24 issues published have been found and make for interesting reading. Despite containing names that have either long since left the music industry or been swallowed up as part of industry consolidation, the headlines for a number of news stories resonate closely with happenings today. Continue reading

Why emerging markets are taking center stage in international digital-service rollouts

Toward the end of last year, Deezer and iTunes extended their footprints to include several countries that are often considered emerging markets. The growth of broadband Internet use around the world, providing access to a wealth of unauthorized recorded music, has made life difficult for new digital-service rollouts. But with the balance of economic power expected to shift away from the current leaders, is now the time for the emerging markets to start living up to their name? Continue reading

When royalty collection costs outweigh the benefits, is it smaller artists that miss out?

Blog picThe accuracy of data regarding the reported use of music is key in determining the level of royalties paid to authors, publishers, performers and producers. Improvements in technology to identify what music has been played and performed at all manner of venues and establishments has resulted in higher collections and greater confidence that royalties are reaching the correct recipients. But is there a point where collection costs outweigh the benefits? And if so, are the smaller, less commercial artists the ones in danger of missing out? Continue reading

Absence of recognized licensing structures in the Gulf States opens the door to international collection-societies

Few regions in the world have escaped the spread of digital-music services. Even in the least developed territories, basic digital services, such as ring tones and ring-back tones, have been rolled out in an effort to tempt customers to go digital. But even though many of the Gulf States have highly developed technology infrastructures, digital-music services have been slow to take hold. Moreover, the lack of collection societies to administer rights collections has left the region as something of a rights wasteland. Could overseas involvement kick-start the rights-administration process? Continue reading

Performance-rights distributions continue to defy global economic uncertainty

Performance-rights collections paid to record companies (producers) and performers are often seen as the poor relation to authors’ rights, with global receipts from performance rights traditionally much lower than the equivalent authors’-rights total. Yet for the past couple of years the growth in performance-rights collections has outshone authors’-rights collections. Moreover, the revenue stream is growing in importance as the recorded-music industry continues to battle falling sales. Continue reading

Big differences in splits for digital-music performance and mechanical rights in EU-27

As the issue of multiterritory licensing comes under the spotlight in Europe, differences in rates charged and rights splits will become more evident. Will an EU directive that breaks down national borders be followed by a bigger push for deeper collection-society harmonization across the region?

With publication of the European Commission’s new multiterritory licensing proposals, Brussels’ efforts to harmonize the EU’s digital-music landscape are looking to build on legislation harmonizing authors’ and publishers’ rights that are managed by collection societies. Continue reading

Demystifying Pan-European digital music rights – new report

The number of digital-music services in Europe is growing every year and consumers across the continent are being presented with an array of different ways to listen to music. Digital-music delivery and consumption has undergone a rapid transition. However, such has been the speed of the sector’s evolution, new business models specializing in digital-music delivery across Europe have forced those organizations charged with issuing licenses to rethink the way they operate.

Music publishers and collection-societies in Europe have taken to the task in different ways (see below table for major music publisher initiative details). But, in contrast to a few years ago, when digital-music services were required to negotiate countless licensing deals, agreements between music publishers and collection-societies have reduced the necessity for endless rounds of licensing negotiations. Continue reading