Commission Objects To Collecting Societies

A Europa press liberate reports that the European Commission has sent a tilt of objections to CISAC (the International Confederation of Societies of Authors as well as Composers) as well as the private national collecting societies inwards the EEA that are members of CISAC. H5N1 tilt of objections is a formal pace inwards European Union antitrust proceedings, which triggers a two-month menses inwards which the recipient tin defend itself inwards writing or asking an oral hearing earlier the Commission.

The Commission feels that CISAC as well as the collecting societies may hold upwards inwards breach of Art.81 of the EC Treaty, which outlaws anticompetitive agreements. In particular, the Commission alleged that provisions of the CISAC model contract, as well as the contracts implemented at national grade past times its members may hold upwards inwards breach when inwards comes to internet, satellite transmission as well as cable retransmission of music. Three fundamental problems are identified:

1. authors tin solely transfer their rights to the collecting gild inwards their abode country, as well as non to the societies inwards other Member States;

2. those seeking a licence must utilization hence solely from the collecting gild inwards the province inwards which they are based, as well as fifty-fifty then, the licence volition solely comprehend that jurisdictions;

3. the run a jeopardy of “network effects” i.e. a spider web of anticompetitive contracts that self-perpetuates, as well as makes is impossible for novel collecting societies to instruct into the market.

wonders if maybe in that place is a conflict betwixt objection one as well as objection 2. He has problem envisaging a province of affairs inwards which interests of authors as well as the interests would-be licensees would converge when it comes to the number of determining as well as collecting royalties.