Copyright Case Frees up Music Royalty and Broadcasting Market Throughout Europe
The European Commission recently ruled on a landmark copyright case involving music royalties and broadcast licenses throughout the continent. Its decision will free up options for how European musicians may collect their royalties, and gives media companies more choices in how they obtain licenses for broadcasting music by satellite, cable, or internet.
The ruling states that the actions of 24 so-called copyright collecting societies, in the business of collecting and then distributing royalties when an artist’s music is broadcast, were in violation of European anti-trust law.
The Commission’s ruling says that musicians may now sign with the society of their choosing, and must be permitted to move from one to another. They were previously required to contract with a society within their national borders, which offered little freedom to choose which society to work with. The situation was then exacerbated by a common contract clause, insisted on by societies, that forbid musicians from moving from one society to another. Such clauses and border restrictions are now to be phased out throughout the Union.
The ruling also stipulates that societies must offer broadcasters the ability to obtain multi-territorial licenses in any one of the 27 European nations. The new pan-European licenses are to be available for every broadcast medium.
Finally, this decision has extended copyrights on live musical performances from 50 years to a lifespan of 95.
The ruling comes five years after broadcaster RTL and internet group Music Choice first filed a complaint against the anti-competitive behavior of the societies. The societies have until mid-October to revise their policies.
The Commission sees this verdict as a positive step towards reducing monopolistic behavior in the European music business. Musicians will now have greater flexibility in choosing which society it chooses to contract with, which is likely to increase competition within the market. Competition is expected to stimulate specialized services that differ in quality, efficiency, and cost. It may also lead to an increase in specialized services for broadcasters seeking licenses.
The Commission’s competition commissioner, Neeliei Kroes, said: “This decision will benefit cultural diversity by encouraging collecting societies to offer composers and lyricists a better deal in terms of collecting the money to which they are entitled.”
Several organizations representing musicians have rallied against the Commission’s decision, saying that it will result in less creative output, diversity, and income for musicians. Because smaller and medium sized societies may no longer rely on the rule requiring artists to contract with societies in their own country, it is likely that much of their market share will be attacked by large societies which are expected move quickly to dominate the pan-European market. This, in turn, may affect the way in which new artists enter the scene, as larger societies may prefer more established and profitable artists.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
The ruling states that the actions of 24 so-called copyright collecting societies, in the business of collecting and then distributing royalties when an artist’s music is broadcast, were in violation of European anti-trust law.
The Commission’s ruling says that musicians may now sign with the society of their choosing, and must be permitted to move from one to another. They were previously required to contract with a society within their national borders, which offered little freedom to choose which society to work with. The situation was then exacerbated by a common contract clause, insisted on by societies, that forbid musicians from moving from one society to another. Such clauses and border restrictions are now to be phased out throughout the Union.
The ruling also stipulates that societies must offer broadcasters the ability to obtain multi-territorial licenses in any one of the 27 European nations. The new pan-European licenses are to be available for every broadcast medium.
Finally, this decision has extended copyrights on live musical performances from 50 years to a lifespan of 95.
The ruling comes five years after broadcaster RTL and internet group Music Choice first filed a complaint against the anti-competitive behavior of the societies. The societies have until mid-October to revise their policies.
The Commission sees this verdict as a positive step towards reducing monopolistic behavior in the European music business. Musicians will now have greater flexibility in choosing which society it chooses to contract with, which is likely to increase competition within the market. Competition is expected to stimulate specialized services that differ in quality, efficiency, and cost. It may also lead to an increase in specialized services for broadcasters seeking licenses.
The Commission’s competition commissioner, Neeliei Kroes, said: “This decision will benefit cultural diversity by encouraging collecting societies to offer composers and lyricists a better deal in terms of collecting the money to which they are entitled.”
Several organizations representing musicians have rallied against the Commission’s decision, saying that it will result in less creative output, diversity, and income for musicians. Because smaller and medium sized societies may no longer rely on the rule requiring artists to contract with societies in their own country, it is likely that much of their market share will be attacked by large societies which are expected move quickly to dominate the pan-European market. This, in turn, may affect the way in which new artists enter the scene, as larger societies may prefer more established and profitable artists.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
Labels: eu competition law, eu law, european antitrust lawsuits
posted by European Antitrust Law at
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