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European Authors’ and Performers’ Organisations Welcome Draft Report On Private Copying Levies

European Authors’ and Performers’ Organisations Welcome Draft Report On Private Copying Levies

Brussels, October 10 2013. We, the undersigned European organisations, who give voice and visibility to the concerns of hundreds of thousands of professional authors and performers who make a living in the creative industries, warmly welcome the draft report by Ms Francoise Castex MEP on private copying levies.

This draft initiative report of the European Parliament comes a few months after Mr Vitorino’s recommendations on the future of private copying. These were mainly based on the concerns of the importers of IT products subject to the payment of levies (all of which are made outside the EU, as there are no manufacturers in Europe anymore) and did not take into account the concerns of European authors and performers.

Ms Castex’s approach rightly underlines that “culture and artistic creation form the bedrock of the European identity past and present” and that the “private copying system is a virtuous system that balances the right to copying for private use with fair remuneration to rightholders, and that it is a system worth preserving”. Ms Castex therefore calls on Member States and the Commission to modernise the system and agree on common principles so that private copying levies can continue to provide an invaluable source of income for authors and performers, secure the freedom to copy for consumers and guarantee that those who benefit from the exception through the sales of copy-enabling products also contribute to cultural diversity.

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Collecting Societies Form Online Alliance

This article has been reproduced from PRS for Music Magazine

 

M meets the chief executives of PRS for Music, GEMA and STIM who are coming together to revolutionise the way their collecting societies handle online music licensing and digital royalty payments. They reveal how the partnership, which is based around the creation of a processing and a licensing ‘hub’, will keep pace with the digital music explosion and deliver universal benefits for members.

What is the current view from your society?

Robert Ashcroft (PRS for Music):
Here at PRS for Music, recorded music remains an important part of our business, even though it’s in sharp decline. We have to consolidate our systems to find the economies of scale needed to continue to provide this important royalty source to members. Meanwhile, the world of online is a growing part of our business. We processed 126 billion online music usages last year and are going to be dealing with trillions of usages before too long. We are working with STIM and GEMA to form a consolidated back office hub to be able to deal with these kinds of volumes.

Dr Harald Heker (GEMA):
I would agree with Robert. The driving force at GEMA is online music use and its exploding volumes. We need convincing technical solutions that allow for the processing of higher volumes and we trust that we can build them better by using the expertise and experience of three like-minded partners.

Kenth Muldin (STIM):
Music is one of the most consumed digital cultural expressions in the world. Here at STIM we are excited about the fantastic potential that advanced technology brings to music distribution – in a way that ensures that creators get paid for the music they make, thus balancing out the digital age music economy. Our ambition is to create a more modern and cost-efficient management of music rights in Europe, to the benefit of rightsholders, businesses and music fans.

Why are you partnering on the hubs project?

KM:   I am very proud of this innovative partnership with two of the largest collecting societies in Europe and we can’t wait to launch it. I think we share two commonalities: firstly, a commitment to ensure all digital use of our members’ music is identified based on accurate authoritative data. Secondly, we strongly believe in the development of modern copyright processing systems that are able to match complex consumer behaviour with the continual evolution of new digital music services.

HH:    I believe there are two different sides to the hubs co-operation: the front office and the back office. Looking at these two parts together, I think that the hubs will create a rather unique combination of all partners’ particular individual strengths.

RA:    We know that, at present, music users may have to go to over 30 places to assemble all the licences they need to launch a pan-European digital music service. There is therefore a benefit for the user community in consolidating rights into a number of competing hubs – to have half a dozen as opposed to 30 would clearly make their lives easier. From our side, we understand it is a competitive market and negotiating rights through a hub serves the interests of all our members as well as those of music users.

What are the benefits of this strategy?

RA:    If you have a large block of rights you are more likely to be at the front of the queue when the deals are done, and that means you have the chance to be a price influencer as opposed to simply a price taker. It’s our responsibility in representing our members to seek to shape the deals and business models of the future and not just be price takers.

HH:    Through front office co-operation, there will be one point of contact for the repertoire block that all partners represent. That will clearly help us ensure our members receive their adequate share of remuneration. On the back office side, we will be able to develop new systems and processes together with PRS for Music and STIM which will reduce all our costs and extend the possible scope of such joint solutions.

KM:   Our hubs will provide access to millions of works for download, subscription and streaming services. The combined repertoire will be among the largest of its kind in Europe. Our joint aim is to make music licensing and royalty payments more efficient, encouraging market entry for legal services and allowing music lovers to enjoy music. But most of all, we strive to obtain a more transparent and efficient remuneration system that will result in more money when the music they create gets played.

What are the next steps?

RA:    We are seeking competition clearance for the hubs we have proposed in partnership with GEMA and STIM and, subject to the outcome, plan to launch next year.

HH:   Subject to this clearance, GEMA is ready to move on with the project in 2014.

KM:   Another step is to continuously explain the importance of copyright to the creators’ ability to make a living. Clearly defined, easy-to-apply and predictable legal rules enable rightsholders get paid for their work. I hope these hubs will have an impact on business provisions for online music across Europe, and perhaps also inspire other collecting societies to tag on to this development.

 

http://www.m-magazine.co.uk/news/collecting-societies-form-online-alliance/

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Copyright modernisation – an update on the EU plans

The question of whether or not EU copyright laws need to be modernised has kept EU institutions busy this year. At the end of 2012, the Commission launched twin initiatives. On the one hand a discussion forum called Licences for Europe was opened with the aim of identifying practical, industry-led solutions to problems of content delivery in Europe (quick fixes for which no legislation is needed). On the other hand, the Commission started an internal review of all EU copyright-related laws to see whether some needed to be updated.  The results of both initiatives should be announced by the end of this year or early in 2014. Our view is that it is crucial to take all the necessary time and effort to analyse the reasons for, and likely implications of any change in copyright law, as it is the backbone of how artists make a living. Below are the next steps of the modernisation effort we can expect in the coming months:

  • 24-25 October: European heads of state to discuss copyright reform at EU summit dedicated to the digital economy
  • Mid-November: launch of a public consultation by the European Commission, possibly to be accompanied by the Commission’s initial findings on its review of the EU legal framework on copyright
  • 13 November: presentation of the results of the Licences for Europe initiative
  • Mid-January: consultation closes
  • March 2014: Final Commission conclusions to be discussed by the College of Commissioners and decision on whether new legislative proposals are necessary
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IP Forum helps to advance the debate on copyright levies

On Tuesday 1 October, GESAC –the organisation behind this website- attended Marielle Gallo’s IP Forum on copyright levies. With Françoise Castex’s draft parliamentary report on the issue released, and the deadline for amendments set for 18 October, we were eager to hear what the invited speakers had to say on the issue at this timely panel discussion.

As Marielle Gallo pointed out, technological developments have offered in recent years many more ways to copy cultural works than there used to be. It’s not just about teenagers burning CDs any more. How can artists ensure fair remuneration for their work in such a context?

While technology is in constant evolution, consumer behaviours remain largely the same, according to David El Sayegh of French author society SACEM. A recent study revealed that 75% of downloaded music files (and subsequent private copies) originate from authorized sources such as YouTube. Streaming hasn’t replaced private copying. Private copying still has a significant place in the remuneration of artists. The revenues collected through private copying levies contribute to the financing of cultural projects and events to the benefit of all, a fact that is not well known amongst consumers. David El Sayegh re-stated that author societies are open to finding a balanced compromise on the issue of private copying levies. Such a solution would both allow consumers to make private copies and rights holders to receive compensation for the copied works.

Striking the balance between the different voices in the copyright levies debate has been António Vitorino’s arduous task since he was appointed mediator on the issue by the European Commission. Speaking at the IP Forum, he said that he was not advocating for the end of levies but was looking at how to apply the copyright levies logic in the sector of online on-demand services.

On his specific proposal to shift the responsibility for the payment of the levies from storing device manufacturers to retailers, he recognized there was a risk of overburdening retailers with red-tape. He also stated that the recommendations he made at the beginning of the year were neither “absolutely true” nor “absolutely false”. We were happy to hear him advocate for a spirit of compromise and openness as key tools for reaching a solution on the issue of copyright levies.

Followers of this website will remember that rightholders organisations have jointly expressed their dissatisfaction with the report of Mr Vitorino. GESAC has also reflected its views on Mr Vitorino’s recommendations and made its proposals for the improvement and better functioning of the system.

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