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Image header Agence Europe
Europe Daily Bulletin No. 9705
Contents Publication in full By article 21 / 36
GENERAL NEWS / (eu) eu/competition

Ruling against royalties management companies

Brussels, 16/07/2008 (Agence Europe) - On Wednesday 16 July, the European Commission made a decision against the geographic restrictions that several companies apply to their music copyright management services. These illegal practices restrict the activities of these companies to their respective national territories and through the reciprocal bilateral representation agreements between members of the International Confederation of Authors and Composers Societies (CISAC). The Commission believes that these practices are not in compliance with Article 81 of the treaty on free competition and demands that they cease. No fines are envisaged, however. Jonathan Todd, spokesperson for Competition Commissioner Neelie Kroes, explained to the press that “the effect of this decision will be that broadcasters will be able to go to one collecting society and get the rights to more than one country”. He emphasised that the Commission was not questioning the principle of collective management of copyright at all, and that the decision would improve competition between service providers, produce greater efficiency and should “also be beneficial for authors” as well as consumers. The European Composer and Songwriter Alliance (ECSA) criticised the decision and said that fiercer competition could see the smallest companies no longer being able to make profits and market access disappearing for the independent publishers. ECSA clients include Charles Aznavour, Robin Gibb (Bee Gees), David Gilmour (Pink Floyd), Mark Knopfler (Dire Straits) and Sir Paul McCartney (EUROPE 9697). In a press release, CISAC explained that the Commission decision will “lead to a calamitous decline in artistic creation, cultural diversity and creators' income”. (C.D./transl.rh)

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