Recording industry announces “one-stop” webcast licence

Webcasters – internet radio broadcasters – are increasing in number. According to the IFPI, the international trade association for the recording industry, there are currently 1,250 licensed services in the US alone, while in Europe there are over 30 major webcasters and hundreds of smaller services.

The music industry has been badly hit by music piracy over the last few years and the IFPI is keen to encourage the growth of legitimate webcast services.

Previously, each webcaster had to obtain a licence from a separate recording industry licensing body for each country to which it broadcasted. The new licensing scheme should simplify matters. It is designed to allow webcasters to clear record producers' rights in a number of participating countries by entering into a licence in only one.

Jay Berman, Chairman and CEO of IFPI, said:

"In the past, setting up webcasting licenses in multiple countries, for example across Europe, has been an arduous and time-consuming task. It was important for our collecting societies to set up a system that would remove these hurdles. It will be much easier for these companies to operate across borders, and we expect to see webcasting gain momentum as a result of this agreement."

The webcasting agreement is expected to be signed by national collecting societies in countries including the USA, France, Germany, India, Spain and the UK, said the IFPI. It will come into force as it is signed by these societies over the next few weeks.

However, while the licensing approval process may have been simplified, the old fee structure remains intact. Webcasters will still have to pay each national body a fee for songs broadcast into their applicable country. Webcasters have argued that until the number of licensing fees is reduced they will struggle to compete with traditional radio services.