Brussels, 25/07/2001 (Agence Europe) - The Union and the United States have reached a procedural agreement on the handling of compensations in the framework of their dispute regarding the American copyright legislation, regarded as illegal by the World Trade Organisation. "Instead of adopting a confrontational approach, we have started a constructive dialogue with a view to compensating European musicians until such time as the US Copyright Act is amended", Commissioner Pascal Lamy was pleased to announce, recalling the determination of both parties "to manage trade disputes on a professional and efficient manner".
The partners will therefore set about seeking agreement on how to compensate performers and composers for the economic losses due to the "business exemption" that exempts owners of businesses playing music, including most bars, restaurants, hotel lobbies and malls etc., from paying fees normally due for copyrights. Last year, this provision was declared incompatible with those of the Multilateral Agreement on Trade in intellectual Property Rights (TRIPs). The United States has just secured additional time from the WTO to comply with the verdict. The deadline initially set of 27 July has thus been postponed to 31 December 2001 - date at which the current Congressional session ends, so as to facilitate Euro-American talks over compensations. Their exact amount will be decided by an independent arbitration body, sources in Brussels point out.