A great day for the music ‘Industry’ yesterday. The proof that lobbying works has been born out by the announcement from the European Commission that it will push ahead with plans to extend the term of protection for recorded performances and the record itself from 50 to 95 years - to help make things fairer. It is proposing an amendment to Directive 2006/116/EC.
The extended term would benefit performers who could continue earning money over an additional period. A 95-year term would bridge the income gap that performers face when they turn 70, just as their early performances recorded in their 20s would lose protection. I know I sound like a broken record on this one, but copyright protection / related rights protection is not a pension plan, nor was it intended to be.
They will continue to be eligible for broadcast remuneration, remuneration for performances in public places, such as bars and discotheques, and compensation payments for private copying of their performances.
The extended term would also benefit the record producers. It would generate additional revenue from the sale of records in shops and on the Internet. This should allow producers to adapt to the rapidly changing business environment which is characterised by a fast decline in physical sales (- 30% over the past five yeas) and the comparatively slow growth of online sales revenue. This will allow the industry to adapt to the rapidly changing business environment? Ah, so 50yr protection didn’t allow them to do that but 95yr protection will. Got ya. The recent payola scandals in the US clearly also Cleary show where that potential enhanced investment can go.
In the one moment of sanity a ‘use it or lose it’ clause will also be introduced at the current 50yr mark and if the record producer doesn’t make the work available that would otherwise fall into the public domain then the rights will revert to the performers. Likewise ‘orphan works’ may benefit and be ‘released’ into the Public Domain, rather than bundled into the extended period of protection. If this works as it could it will at least provide some limited benefit
There is some added protection for co-written material. According to the proposed rule the term of protection of a musical composition shall expire 70 years after the death of the last surviving author, be it the author of the lyrics or the composer of the music. I will concede that there may be some logic in this, but as the Impact review even realises this does increase the legislative and administrative burden on Member States and create legal uncertainty, because the term of protection to the term of protection would no longer be linked to a certain and uniform date. This also muddies the waters on authors rights.
The proposals will also see record companies set aside at least 20% of the revenue that accrues during the extended term for session musicians.
I just had to read what the impact assessment said to find out how we got here.
In trying to decide on the best way forward the commission assessed all their options against six operational objectives: (1) gradually align authors’ and performers’ protection; (2) incrementally increase the remuneration of performers; (3) diminish the discrepancies in protection between the EU and US; (4) incrementally increase A&R resources, i.e., the development of new talent; (5) ensure availability of music at reasonable prices; and (6) encourage digitisation of back catalogue.
The options were:
a) Do Nothing
b) Extend the term of performers to ‘life or 50 years’, whichever is longer.
c) Extend current term of protection to 95 years for performers and record companies.
d) Leave term alone, and create an ‘unwaivable’ right to remuneration to which performers would remain entitled even after having transferred their making available right to a record producer.
e) Leave term alone, and strengthen performers’ moral rights. The scope of their moral rights could be harmonised to include a right to restrict derogatory uses of their performances
f) Leave term alone, and ensure that ‘use it or lose it’ clauses are included in agreements between performers and record labels. This means that, if a record company is unwilling to re-release a performance during the extended term, the performer can move to another record company or exploit the record himself.
g) Extend term and create a fund for session musicians with 20% contributions from record companies for the ‘extended period’ from their increased revenues.
So, things we need to consider:
We hear of the poor session musician who has only be able to eat over the last 50yrs because of the money he/she has been receiving, but under the current 50yr regime will suddenly “find it more difficult to devote time to their artistic career, as they generally respond to small increase in revenues, such as provided by the income flows mentioned above, by devoting more time to their creative activities. They will also lose protection just when online retailing promises a new source of revenue.” What a load of old bollocks. As highlighted by the excellent article Never Forever: Why Extending the Term of Protection for Sound Recordings is a Bad Idea [2008] E.I.P.R Issue 5 - as most recordings have no commercial value after 50 years, the number of performers this would actually benefit is, at best, questionable.
“Once protection has ended, performers no longer receive any income from these sound recordings. For session musicians and lesser known artists that means that income from those sound recordings stops when performers are at the most vulnerable period of their lives (retirement).” Again, related rights protection is NOT a pension/retirement fund. Try saving some money like the rest of us, and take your state pension. Also as the case above the number of performers/musicians genuinely affected by this will be very small.
You’ll all be pleased to learn that the term extension does no harm to consumers because: “Empirical studies show that the price of sound recordings that are out of copyright is not lower than that of sound recordings in copyright.” Indeed, one of my favourite sections of the IA is where they talk about why the ‘do thing’ option is a non-starter:
“The only beneficiary of the ‘do nothing’ scenario would be ‘public domain’ record companies who could progressively re-issue sound recordings from the period between 1957 and 1967 without paying royalties to performers. As there is little evidence that records in which the rights of performers and producers have expired are cheaper than those still protected, the ‘do nothing’ option would lead to a shift in economic income from performers to “public domain” companies.”
‘Public Domain’ companies are obviously not loved by the Commission. How dare they come in and make money off the backs of performers without making their prices cheaper. Also the IA also seems to think if Public Domain companies can’t make any money, there is no incentive to digitise these out of copyright works. Conversely the main beneficiary of the proposed approach will be the ‘traditional’ record companies, Remember, the rights we are talking about are supposed to act as an incentive to produce new recordings by allowing those producing the sound recordings to recoup the investment. Apparently the best incentive is to give the producers almost 100 years to recoup that investment. Ever get the idea you are in the wrong business?
Of course the US protects performers for longer - thanks to Sonny Bono - so now we have to otherwise our artists are at a disadvantage and EU artists will just stop making music.
“Record companies argue that their main problem is a decrease in revenues following large scale piracy over the internet (Haven’t heard that one before). They also point out that record producers in the USA and other countries in the world enjoy a much longer term of protection. This, they argue, will divert creative efforts away from Europe and toward those markets that grant longer periods of protection and thus income. They point to a tendency for record producers to orient their productions to cater to the taste of those jurisdictions where most revenue could be achieved.” They point to, and we accept because they wouldn’t lie to us now would they. You heard it here first, unless we have a term extension people will make records for the American market.
The UK government, who have still been saying that the Gowers Review was right and we don’t need to extend the term - whilst really wanting to go throw most of Gower’s findings out of a window, will love that they can now say, Europe made us do it.
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