EC Says Rights Are in the Hand of the Holder

Michael Hedges July 13, 2005

The European Commission sent media people off on summer holidays this week with a little light beach reading

First to hit the news-stands (July 7) was the study, with recommendations, commissioned by DG Internal Markets of music rights and the internet. The study showed European music rights holders making too little money from the internet because each of the 25 Member States have separate rights collecting agencies. Music rights holders include musicians, composers, performers and publishers. Any broadcast or performance of music is subject to rights fees.

“We don’t make any money from the Internet in Europe,” said Tilman Lueder, DG Internal Markets copyright chief, quoted by Reuters. The study cited the huge gap between what collecting agencies in the US and Europe exact from all users: €207 million in the US in 2004 and €27 million in Europe.

The study reports that separate rights collecting agencies slows down the industry because an internet service provider (ISP) wanting to offer a music downloading service must wade through 25 different sets of copyright laws, not to forget negotiate with 25, or more, collecting agencies. The proposal recommends a single pan-European copyright mechanism, essentially allowing rights holders to license to the highest bidder.

"Central clearance is not about making content available on the cheap," said Internal Markets Commissioner Charles McCreevy, quoted in ElectricNews. "It offers a model whereby Europe's creative community will get the lion's share in revenues achieved online." The “lion’s share” of collected rights fees go to music publishing companies.

Next on the shelf came the six reports from DG Info Society (July 11) based on public consultation covering different aspects of the slowly progressing revamp of the Television With Frontiers (TVWF) directive. More and more, the Commission is focused on the Internet’s effect on media rules and it is clear they have come to realize that in the digital world, all content passes across all borders. TVWF, now more than 15 years old, is certain to move beyond terrestrial television.

Generally keeping within a media-neutral theme, DG Info Society now separates media into linear – that is, scheduled, like television and radio – and non-linear media – everything else, but mostly new media. Reducing uncertainty for producers and distributors has become a theme common in Commission communication on media. 

DG Info Society Commissioner Vivaine Reding has repeatedly voiced the view that a revision of TVWF would not include radio. The recent documents suggest that as the Commission moves closer to viewing all media distribution equally, radio also might be considered a cross-border medium, and therefore subject to the directives. Satellite radio distributors favor inclusion while private, commercial radio broadcasters do not, preferring to abide by strictly national rules.

The report on media pluralism, dealing with audiences, circulations and ownership, admits that regulation harmony among the Member States is close to impossible. The Commission, echoing the view of the European Parliament, laments that European media companies are miniscule in comparison to US giants - Google, Viacom, Time Warner and Walt Disney  - and that further consolidation among private sector media companies would be a competitive advantage. At the same time, the report asks, but does not answer, what effects consolidated media might have on local media.

Each of the issues papers are subject to further public consultation during the summer months. A major conference for MEPs on the audiovisual sector will be held in Liverpool, UK in September.

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