New proposals outlined for copyright protection in Europe

Proposals aimed at improving music licensing and increasing protection for rights holders have been agreed by European officials.

According to a draft report, services which provide music through the Internet should be helped to get pan European licences and the system for royalty payments for rights holders should be improved.

The recommendations, agreed on November 4, are part of a provisional deal struck between negotiators at the European Parliament (EP) and European Council.

According to the EP, the proposals will “stimulate the creation of EU-wide online music services” and ensure that rights holders are paid promptly for the use of their work.

Adam Rendle, associate in the media and entertainment office at Taylor Wessing LLP in London, said it was “good news” that an agreement had been reached following negotiations which started last summer.

Adding that the UK was home to a number of successful well-run societies already, Rendle said the proposals were about “making sure that collecting societies across Europe are run to an acceptable high level.”

“This will ultimately benefit other collecting societies, music publishers and creators,” Rendle said.

As part of the drafts, music service providers will also be able to obtain licenses from authors' management organisations to operate across EU borders instead of having to deal with separate organisations in each member state.

“The directive will effectively protect the interests of European creators and make it possible for end users to have access to copyright-protected content throughout Europe,” said EP rapporteur, Marielle Gallo.

“This new piece of legislation clearly demonstrates that copyright can be easily adapted to the digital era.”

Rendle added: “I think what we may see as a consequence of this directive is a concentration of multi-territorial licensing and a gravitation to smaller number of collecting societies which are best able to provide services to rights holders and willing to grant licences.”

The agreed text also recommends royalties are paid no later than nine months from the end of the financial year in which revenue is collected.

According to the EP, the importance of protecting authors’ rights was “highlighted throughout” negotiations and that authors should have a say in decisions regarding the management of their rights.

“From a UK point of view this has not been much of a concern, but smaller member states have occasionally been seen as not being as transparent or speedy as others in the paying of royalties,” said Rendle.

Pedar Oxhammar, head of IP at the Stockholm office of Baker & McKenzie LLP, said the proposals should be welcomed in the “fast changing digital world.”

“However, it should be noted that the new directive does not apply to collecting societies managing the rights of music performers and record labels in sound recordings in which musical works are embodied,” Oxhammar added.

The agreed text needs to be adopted formally by Parliament and EU ministers with a full parliament vote scheduled for February 2014.