Music copyright groups must stop practices which created artificial
barriers to the provision of music across borders, the European Commission said
yesterday.
The Commission's antitrust decision required 24 music copyright groups, or
the collecting societies, across Europe to end the infringements by modifying
their agreements and practices, but did not impose fines.
The prohibited practices consisted of clauses in the reciprocal
representation agreements as well as other concerted practices between those
collecting societies.
As a usual practice, music authors sign over to collecting societies the
rights to manage on their behalf, worldwide, the copyright of their musical
works.
However, the membership clause, currently applied by 23 collecting societies,
prevents an author from choosing or moving to another collecting society.
Meanwhile, the collecting societies also agreed to territorial restrictions
that prevent a collecting society from offering licenses to commercial users
outside their domestic territory
These territorial restrictions include an exclusivity clause by which a
collecting society authorizes another collecting society to administer its
repertoire on a given territory on an exclusive basis.
The Commission said the concerted practice among all collecting societies
resulted in a strict segmentation of the market on a national basis, making it
difficult for a commercial user to offera pan-European media service since it
has to obtain a license in each member state.
"The removal of these restrictions will allow authors to choosewhich
collecting society manages their copyright. It will also make it easier for
users to obtain licenses for broadcasting music over the internet, by cable and
by satellite in several countries from a single collection society of their
choice," the Commission said.
The European Union (EU) antitrust watchdog said it opened an investigation
following complaints from broadcasting group RTL and Music Choice, a British
online music provider.