New Licensing Scheme Could Boost Music Services in Europe

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Friday, April 27, 2007

New Licensing Scheme Could Boost Music Services in Europe

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Online music services should find it easier from today to gain licenses to stream music across several territories, thanks to an arrangement put in place between IFPI and record company collecting societies.

Two new licensing agreements will create the framework for collective licensing of producers? rights for certain streaming and podcast services across several markets.

In practice, the participating collecting societies will be able to license rights in each others? territories and repertoire for certain internet and mobile streaming services and for the making available of previously broadcast programmes such as streams or podcasts. Broadcasters and online music services will also continue to be able to approach the record companies directly for a license for these uses.

Until now, obtaining cross-border online rights licenses for these services has involved dealing with each territory separately or approaching the right holders directly. This new framework will offer users the alternative to obtain a license for broad repertoire and for all the participating territories from a single collecting society.

Online music services and broadcasters established within the European Economic Area will be able to approach any European society for a license, which will enable them to approach and choose the society they consider provides the best service for their needs.

It is expected that more than 40 collecting societies, covering most of the key music markets worldwide, will sign up to these two agreements.