Legislation allowing cross-border licensing of music for online...

Legislation allowing cross-border licensing of music for online uses won enthusiastic backing (640-18 votes) from the European Parliament Tuesday, and now moves to formal approval by EU governments. The directive on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online uses in the internal market (FAQ here: http://bit.ly/1nMP44F) is a “cornerstone for the digital single market,” said Internal Market and Services Commissioner Michel Barnier during the European Parliament’s plenary debate. It will make it easier for smaller, innovative services to offer music-streaming services, he said. Parliament’s response to the European Commission-proposed measure was supported across party lines, said its author, Marielle Gallo, of the European People’s Party and France. The measure also sets EU-wide rules on collective management societies (CMOs), some of which have been accused of non-transparent accounting, embezzlement, failure to pay royalties within a reasonable time and other “unfortunate lacks in efficiency,” said Gallo and other Parliament members (MEPs). CMOs will now play a role in the single digital market by requiring online music providers and platforms to deal with only a limited number of rights organizations, Gallo said. Debate on the draft was “lively” but everyone from the U.K Conservative Party to Sweden’s Pirate Party agreed on it, she said. All MEPs who spoke at the plenary debate praised the Gallo report, and only a few raised concerns. One issue is that the legislation leaves it up to EU governments to decide whether large American music platforms and providers are covered, said MEP Helmut Scholz, of the Confederal Group of the European United Left-Nordic Green Left and Germany. If U.S. companies don’t have to follow the same rules as European firms, music services could end up being offshored, he said. The EC is taking additional steps to modernize European copyright, Barnier said. There’s an ongoing dialogue on “licensing Europe,” and the EC is making an in-depth study of EU copyright law. Its extensive consultation has sparked so much interest from all stakeholders that the comment period was extended to March 5, said Barnier. The outcome of the inquiry will feed into a potential revamp of EU copyright law, with a discussion paper possible in June, he said. The issue of modernizing copyright will be for the next European Parliament and commission to move forward, he said. The next commission may also delve into notice and take-down of pirated content, he said. Such content must be removed, but there must be a transparent, balanced procedure for doing so, he said. It’s a “sensitive subject matter” that has to do with fundamental rights, so it’s important that Parliament is on board, he said. Separately, the Independent Music Companies Association (IMPALA) Tuesday urged the “whole music sector to speak up on copyright in Europe.” With four weeks to go on the EC consultation on copyright reform in the digital age, Europe must “reinforce creators’ fundamental freedoms, instead of seeking to unpick copyright as requested by powerful lobby groups,” IMPALA said. U.K. collecting society PRS for Music said it supported the principles and objectives of the directive all along, because it will deliver high standards for governance and transparency, along with a voluntary framework for aggregation of repertoire for online multi-territory licensing underpinned by agreed-upon standards. It said this will help CMOs “play a role in a more integrated, efficient and valuable single market in Europe.”