Global Briefing Edition 2/12
“There is an urgent and commercial imperative for rightsholders to build a Global Repertoire Database (GRD) for their writers; ICMP publisher members commit therefore to building a GRD and to populating it with their repertoire. Furthermore ICMP sees the need for a single authoritative database with accurate and transparent information on music author’s rights as one of the essential tools for the growth of Digital Europe.”
New ICMP Board and Bureau following General Assembly
ICMP held its Annual General Assembly (GA) in Cannes on January 29th in the presence of some 65 publishers with all of the Confederation’s 53 worldwide members represented. At the GA Nicolas Galibert (CSDEM, France), Stephen Navin (MPA UK), Ralph Peer II (NMPA, US), Catharine Saxberg (CMPA, Canada), Hajime Taniguchi (MPAJ, Japan), Chris Butler (MPA UK), Paolo Franchini (FEM, Italy), Lauren Keiser (MPA US), Pekka Sipilä (FMPA, Finland), Heinz Stroh (DMV, Germany), Neil Gaffney (EMI Music Publishing), Guy Henderson (SonyATV), Andrew Jenkins (Universal Music Publishing), Jane Dyball (Warner Chappell) and James Fitzherbert (IMPA) were elected to the Confederation's Board of Directors. The Executive Bureau was appointed by the newly elected Board with unanimous approval for Andrew Jenkins to serve as Chair, Nicolas Galibert and Lauren Keiser as Vice Chairs and Ralph Peer as Treasurer.
Among other business at the GA were the elections to the Bureaux of the Confederation – the Popular Music Bureau and the Serious Music Bureau. Paolo Franchini (FEM, Italy), Nicolas Galibert (CSDEM, France), Lars Karlsson (SMFF, Sweden), Stephen Navin (MPA UK), Ralph Peer II (NMPA, US), Catharine Saxberg (CMPA, Canada), Hajime Taniguchi (MPAJ, Japan), Anja Wester (VMN, Netherlands), Antal Boronkay (HMPA, Hungary), Chris Butler (MPA UK), Bèr Deuss (VMN, Netherlands), Claude Duvivier (CEMF, France), Lauren Keiser (MPA US), Ken Ohtake (MPAJ, Japan), Pekka Sipilä (FMPA, Finland) and Heinz Stroh (DMV, Germany) will all serve for a two year term.
ICMP thanks all of its members for a successful General Assembly and welcomes the new Board and Bureaux. We are looking forward to a successful governance of the Confederation from 2012 to 2014.
IFPI on digital music 2011
On 23 January, The international trade group representing recorded music companies, the IFPI, published its annual report on digital music. According to the report, the digital music business saw unprecedented global expansion in 2011, while key steps forward were taken in several markets to help tackle digital piracy.
With rapid expansion into new markets by services such as iTunes, Spotify and Deezer, the major international digital music services are now present in 58 countries, compared to only 23 at the start of 2011.
Consumers are benefitting from a widening choice of services for experiencing digital music. In 2011, subscription services expanded and linked with new partners to reach new audiences. Meanwhile cloud technology is helping transform the way fans manage and store their music.
The report also states that global revenues to record companies grew by an estimated 8 per cent to US$5.2 billion in 2011 - a faster rate than 2010. And the number of users paying to subscribe to a music service increased by 65 per cent in 2011 to 13.4 million worldwide.
In the US, the world’s largest music market, digital channels have overtaken physical formats to become the primary source of revenues for record companies. Globally, 32 per cent of music industry revenues now come from digital sources.
Piracy remains an enormous barrier to sustainable growth in digital music. Globally, one in four internet users (28%) regularly access unlicensed services, according to IFPI/Nielsen. Nevertheless, there has been positive results in the fight against piracy in 2011.
In France, the introduction of the new Hadopi graduated response law has seen peer-to-peer (P2P) piracy levels decline by 26 per cent. In the US, a groundbreaking ISP cooperation deal was signed in 2011 and a graduated response programme will be implemented in 2012, with most major ISPs signing up to a “copyright alert system”. In New Zealand, a new graduated response law took effect in September 2011, with early indications of impact. And in Europe, a string of court judgments has helped reduce copyright infringing activity on major sites like The Pirate Bay.
Crucially, the recorded music industry is now working directly with advertisers, payment providers, search engines and website hosts to tackle digital piracy. Better cooperation is being sought with search engines, which are a major channel for consumers to access music.
United States: Obama tackles piracy in State of the Union address
On 21 January, US President Barack Obama proposed the establishment of a Trade Enforcement Unit to investigate piracy and trade in counterfeit goods from foreign countries in his State of the Union address.
The President said the new enforcement bureau will be "charged with investigating unfair trade practices in countries like China. There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders."
Kroes calls for cloud partnership
At the World Economic Forum in Davos, Switzerland Commissioner Nellie Kroes, who is in charge of the Digital Agenda called for action to support speedy uptake of cloud computing in Europe. She said said the main obstacles to cloud adoption like standards, certification, data protection, interoperability, lock-in, and legal certainty need to be addressed.
“These issues are particularly troublesome for smaller companies, which stand to benefit the most from the Cloud, but do not have a lot of spending power, nor resources for individual negotiations with Cloud suppliers,” said Kroes. “Where these barriers exist, I am determined to overcome them,” she said.
The Commission will launch the European Cloud Partnership with an initial investment of €10m. “I expect good progress in setting it up in 2012 and first results in 2013,” said Kroes.
Commission proposes new data protection laws
On 25 January, the European Commission published a new set of proposals tailored to provide added protection and privacy for users and boost Europe's digital economy. The Commission is suggesting that the EU do away with the previous data protection rules, implemented in 1995, and instead replace them with a single law. The proposals aim at eliminating the fragmentation that has come as a result of the 27 EU member states implementing the 1995 rules in different ways.
The proposals include a Communication setting out the Commission's objectives and two legislative proposals: a Regulation setting out a general EU framework for data protection and a Directive on protecting personal data processed for the purposes of prevention, detection, investigation or prosecution of criminal offences and related judicial activities.
Of particular importance to the creative industries is the increased responsibility and accountability for those processing personal data. In addition, EU rules must apply if personal data is handled abroad by companies that are active in the EU and offer their services to EU citizens. Crucially, a new Directive will apply general data protection principles and rules for police and judicial cooperation in criminal matters. These rules will apply to both domestic and cross-border transfer of data.
The Commission's proposals will be passed on to the European Parliament and EU Member States for discussion. They will then come into effect two years after they have been adopted.
National and member news
France: Study examines “Hadopi effect” on music sales
A study published on 21 January indicates that France’s Hadopi law has had a positive effect on iTunes music sales in the country, with increases of more than 20%. The study also suggests that the law increased music industry revenues from French iTunes sales by at least €13.8 million annually.
Lithuania: Parliament approves increase in private copying levies
On 23 January, the Lithuanian Parliament approved new legislation to update the country’s private copying levies. Under the new scheme, devices purchased for professional use will no longer be subject to the levy. It is also expected to generate approximately €800,000 annually.
Scandinavia: Streaming services “gaining ground”
A Scandinavian survey conducted by Norstat for WiMP music service in January has revealed that the number of Scandinavians who are engaged in illegal downloading is decreasing, that more young Scandinavians are willing to pay for music, and that most of them believe that streaming will be the most popular way to consume music in the next few years.
"We have always believed that the best way to prevent illegal downloading is through providing legal services that are easier to use. The decline in illegal downloading, must largely be attributed to the tremendous growth we've seen in music streaming," said WiMP's Per Einar Dybvik.
Russia: Court rules in favour of Gala Records in copyright dispute
St. Petersburg’s Arbitration Court ruled on 30 January that Mail.ru Group Ltd.'s social networking website Vkontakte.ru should compensate two Russian artists for copyright infringement. The court ruled in favour of Gala Records, the copyright holder, which had said Vkontatke.ru, and not the users who uploaded the content, should be held responsible.
The cases, brought by SBA Publishing and SBA Production, members of the Gala Music Group in Russia were based on vKontakte making Gala’s compositions and sound recordings available without licensing agreements.
Netherlands: Dutch crack down on file sharing ISPs
The Netherlands plans to crack down on Internet service providers that allow access to file-sharing sites such as Pirate Bay. However, it will not make it an offence for individuals to download from these sites.
A spokesperson for the Ministry of Justice on 30 January said the law would be amended to reflect a recent court ruling, but would not criminalise the downloaders, as is the case in most European countries.
Irish Republic: “Internet piracy law will be balanced”, says Minister
On 25 January, Minister for Research and Innovation Seán Sherlock published a Statutory Instrument which allows copyright holders to take infringement proceedings against third parties where copyrighted material is being unlawfully transmitted on their networks.
According to the Minister, the new legislation will “balance the rights of copyright holders and individual internet users.”
Report: International Publishing Summit
ICMP once again co-hosted the International Publishing Summit (IPS) at MIDEM, which has established itself, in a short few years, in the top tier of annual meetings for the global music publishing industry. This year’s summit took place on January 31, and featured informative discussions among a wide variety of industry representatives.
The IPS started with an interview between Dr. Peter Hanser-Strekker, Chairman of Schott Music, and Michael Sukin, Chairman of Sukin Law Group, who was referred to in the interview as “the father of the EU Directive on Term”. They discussed the elements of the Directive, and highlighted the significance of its provisions for the harmonisation of term for co-written works. Michael Sukin pointed out that this was the first EU directive to address this issue, and that it created legal certainty and clarity on a pan-European level. Dr. Hanser-Strekker stressed the need for collecting societies to update their administration systems and their databases accordingly.
Following this interview, Stephen Navin, CEO of the MPA UK, chaired a panel discussion on the Global Repertoire Database. The diverse panel, consisting of Jane Dyball, Senior Vice President of International Legal and Business Affairs at Warner Chappell Music, Ralph Peer, Chairman and CEO of peermusic, Jez Bell, Director of Licensing at Omnifone, Sami Valkonen, Head of International Music Licensing at Google, Michel Allain, Deputy Director of SACEM, and Karen Buse, Director of International at PRS for Music, outlined the strengths of the GRD project, focusing on its ability to increase accuracy in records and lower administration costs, as well as level the playing field for all stakeholders involved. All panellists concurred that the level of success of the GRD would depend on the commitment of all parties, and stressed the dedication of the industries they represented to this project.
In the final session, chaired by Helen Gammons, Head of Business Studies at the Academy of Contemporary Music, panellists Matt Pincus, CEO of Songs Music Publishing, Hajime Taniguchi, President of Avex Music Publishing Inc., Jodie Ferneyhough, President of the Canadian MPA, Fabien Bonnin, European Creative Director, peermusic, Marcus Johnson, Composer and Producer at Marimelj Entertainment Group, and DJ Kore, Producer, Composer and CEO of Artop Records, examined the changing relationship between publishers and artists. They agreed that it was natural for publishers to take on the role of seeking and developing new talent, as well as become more closely involved in promotion and production, and that this trend would develop further in the future.
U2 Manager at MIDEM
U2 manager Paul McGuinness criticised Google's role in undermining the proposed SOPA anti-piracy project at MIDEM last week. "Though there is some improvement in the digital environment in terms of people getting paid , the vast majority of content distributed through their pipes is not paid for. That's, in my view, utterly, utterly wrong,” he said.
McGuinness also spoke about Spotify, which he called "ultimately a good thing," but said it is more a "promotional medium" than a genuine business opportunity for artists.
Upcoming meetings and events
- 8 -10 February 2012 – transmission: GLOBAL SUMMIT 2012 Victoria, British Columbia
- 12 February 2012 - 54th annual Grammy Awards, Staples Center, Los Angeles
- 21 – 24 March – Frankfurt Musikmesse 2012