The absence of pan-European copyright licenses makes it
difficult for new European-based online services to take off, says
the Commission. It has published a 60-page study on how copyright
for musical works is licensed for use on the internet.
It concludes that the main obstacle to the growth of legitimate
online content services in the EU is the difficulty in securing
attractive content for online exploitation.
In particular, the present structures for cross-border
collective management of music copyright – which were developed for
the analogue environment – prevent music from fulfilling its unique
potential as a driver for online content services.
The Commission proposes options to remedy this situation,
believing that only music has the real potential to kick-start
online content services in Europe.
Internal Market and Services Commissioner Charlie McCreevy said:
“Central clearance is not about making content available on the
cheap. It offers a model whereby Europe’s creative community will
get the lion’s share in revenues achieved online.”
Online music services targeted by the analysis include services
provided on the internet – such as simulcasting (a simultaneous
broadcast of programs or events across more than one medium),
webcasting (where a broadcast is uploaded by the sender and
downloaded by the receiver), streaming (which enables
'just-in-time' delivery of multimedia information), downloading, or
an online “on-demand” service – and also music services provided to
mobile telephones.
The study focuses on these services because all of them can be
enjoyed across Europe and, in consequence, their copyright needs to
be cleared throughout Europe.
It concludes that entirely new structures for cross-border
collective management of copyright are required, and that the most
effective model for achieving this is to enable right-holders to
authorise a collecting society of their choice to manage their
works across the entire EU.
This, says the Commission, would create a competitive
environment for cross-border management of copyright and
considerably enhance right-holders’ earning potential.
In addition, the right-holder’s freedom to choose any collecting
society in the EU would create a powerful incentive for these
societies to provide optimal services to all their right-holders,
irrespective of their location – thereby enhancing cross-border
royalty payments.
The study therefore proposes a series of principles that Member
States would have to adhere to in order to develop the above
system.
