Brussels, 20/09/2006 (Agence Europe) - During a hearing on Tuesday, the EPP-ED Group at the European Parliament were made aware of the opinions of various players in the cross-border collective management of copyright for online music services. The European Commission had adopted a recommendation on 12 October 2005 aimed at encouraging Member States to set in place a regulatory environment that is more suitable for Community-scale copyright management. This would consist in a single licence valid on the national territory of all 25 States (and authorising right holders to call on a single company of their choice responsible for management of implementation throughout the EU). Such a system would promote the rise of new online services based in Europe that currently generate very little revenue, the Commission said. The rapporteur for the EP Committee on Culture, Manolis Mavrommatis (EPP-ED, Greece), pointed out that music is not merchandise in the same way as other goods, and stated, on 13 July, that he was above all concerned by the “potentially harmful effect that some of the provisions in the recommendation could have on local music and cultural diversity”. He regretted the lack of broader consultation with the interested parties and the EP.
During the hearing, Adam Singer, General Director for MCPS/PRS (Mechanical Copyright Protection Society, who was part of the panel set up to discuss whether or not a binding system should be set in place, stressed that technological developments have overturned the established order of copyright management and that management companies must adjust and be encouraged to do so. In his view, it is necessary to find a “better model” and it is difficult at present to determine whether a flexible or binding system is needed: “I want an open market but one which does not put a damper on creation”, he stressed. Sylvie Forbin, Vivendi Director for institutional and European affairs, felt the interest of the whole musical chain from creator to consumer lies in seeing legal online offers for music. The current system of licensing is sometimes an obstacle course for the commercial user, she said. Neither is she in favour of binding legislation as the market is still young, she added, considering that, for now, it is of interest to use the existing instruments as a basis (Commission recommendation, competition rules, etc.).
In a panel on the effect that a more competitive system would have on cultural diversity, Doris Pack (CDU) said the Commission's recommendation is beginning to have an impact and that the market is organising itself in consequence. Ms Pack is “not very pleased” with the experts' conclusions which served as a basis for the Commission's recommendation. Only the commercial aspect was taken into account, said Greek singer and former MEP Nana Mouskouri, who believes Europe in heading along the wrong track by establishing a system that is comparable to the American system, which is a threat to cultural diversity and which penalises the lesser known artists with fewer songs to their name. Fruzsina Szép, Director of Music Export Hungary (which is promoting Hungarian music in the world) placed emphasis on the importance of creating links with other partners in Central Europe. For Cees Verwoord, Director of Buma, a Dutch royalties collection company, the Commission's recommendation will lead to bankruptcy, with small publishing houses being squashed by the large Anglo-Saxon music companies. All music must be accessible and cultural diversity must be protected, he stressed, calling on the Parliament to send out a “clear message”. Pia Raug, President of CIAM (Council of Authors and Composers of Music), reacted in the same way, calling on the Parliament to work to prevent the domination of a handful of multinationals. A balance must be struck between large and small royalties managers while ensuring protection against piracy on the internet, Manolis Mavrommatis said by way of conclusion.
The last panel expressed concern about the balance that must be struck between a national or European licensing system. The representative of the German copyright company GEMA, Harald Heker, pointed out that GEMA already grants cross-border licenses. He also welcomed the Commission's recommendation for the collective and cross-border management of legal online music services. Massimo Baldinato of AFI (Associazione dei Fonografici Italiani) said their aim was to make an essential contribution to the development of the European online market. He can very well imagine a pan-European license granted by a European company responsible for collecting royalties in all Member States while ensuring protection of cultural diversity. According to Cornelia Kutterer, from the European Consumers Bureau (BEUC), in order to achieve a European wide market, it is necessary to have European legislation that takes into account all the players, including consumers.