Pan-EU licensing deal for music announced

Buma/Stemra, the Dutch music rights collecting society, and online electronic music retailer, Beatport, have announced the signature of a pan-European licensing agreement for authors’ rights in music..
The Beatport – Buma/Stemra licensing model provides the online music service provider with a one-stop-shop for all authors’ rights for music for 27 European countries.
The issue of multi-territorial licensing of music rights has been very much in the news over the past few days following the European Commission’s decision in the so-called CISAC competition case. The decision requires music collecting societies to end some anti-competitive practices opening the way to more multi-territorial licensing.
Some have charged that the Commission decision in the CISAC case will lead to downward pressure on authors’ incomes, a view not shared by Buma/Stemra. The Beatport –  Buma/Stemra license agreement safeguards the income of authors, composers and music publishers from downward pressure because the royalty rates applied through this multi-territorial license are the tariffs set in the country where the copyright is to be exploited (following the “country of destination principle”). This guarantees that the competition between collecting societies takes place on the basis of their efficiency and not on the royalty rates paid to rightsholders.
 The biggest threat to rightsholders revenues comes not from multi-territorial licensing as such, but rather from the concentration of the most commercially successful music rights in the hands of the three biggest collecting societies at the behest of major music publishers.
 

If you enjoyed this post, make sure you subscribe to my RSS feed!

Leave a Reply

Your email address will not be published. Required fields are marked *