Brussels, 19/12/2001 (Agence Europe) - As reported in brief yesterday (p.6), the European Union and the United States have agreed on a temporary solution of their dispute over music copyright, following the disputes procedure at the WTO in the summer (see EUROPE of 26 July 2001). The compromise reached by the European Trade Commissioner, Pascal Lamy, and his US counterpart, Robert Zoellick, involves the payment of "temporary" royalties to European musicians and composers for the economic losses incurred by the "free" broadcasting of music in public arenas in the US. The US government, however, still has to seek authorisation and funding from Congress and will have to bring its legislation in line with the World Trade Organisation ruling on the "commercial exemption" whereby commercial establishments such as bars, shops, restaurants, hotel lobbies, etc can play radio and TV music without paying any royalty fees to collecting societies. The commitment of principle covers an allocation of $3.3 million that is to support the activities and projects of artists who have suffered injury over a three year period, the time to rectify the legislative "errors" of the past.
Mr Lamy, who was speaking at the joint press conference with Mr Zoellick, said this should bring Ireland's smile back over Christmas. He also saw it as a good example of how problems can be managed in a cooperative way, while bearing the international obligations and commitments in mind. Given the risk of veto from Congress, the parties agreed on a procedure that should "facilitate the rapid conclusion of a mutually acceptable solution". Which does not prevent the Commission from recalling that the EU can still go back to Geneva to safeguard its rights.