European Commission decision on the collective administration of rights across Europe
The European Commission has issued its Decision in the long-running case regarding reciprocal agreements between European collecting societies.
The EC has ruled that for online, satellite and cable exploitation there has been unlawful co-ordination between the societies leading to the result that all the contracts between all societies in the EEA are territorially limited. They claim that this co-ordination infringes competition rules and they require societies to bring the infringement to an end. They confirm however that a territorially limited contract is not prohibited per se.
The EC has also required the collecting societies to bring to an end (i) any restrictions on the movement of members between societies; and (ii) any exclusivity in the reciprocal contracts. (Although PRS has long since removed any such restrictions from our contracts.)
PRS shares the Commission’s more general objective of improving collective rights management across Europe. We welcome the clear message that creators should have freedom to choose a society to represent them. However, we are disappointed that it has chosen this route to further its objectives for multi-territorial licensing, as in our view this is better left to market developments.
PRS’ key objectives are to ensure stability for licensees and to provide the most effective and efficient rights management to its members. We will take steps to ensure that the usual flow our members' royalties is not disrupted.
PRS has over the last few years been developing multi-territory solutions for the online and mobile markets with music users, rightsowners and other societies and we continue to believe strongly that a market-led approach will deliver the best solutions.
The collective rights management systems across Europe deliver immense benefits to both music users and rightsowners and we welcome the Commission’s endorsement of that. Our immediate concern, therefore, is to ensure, given the complex underlying issues involved, that the Decision is not misinterpreted so as to cause market disruption or other unintended consequences.
PRS will make a full assessment of the Decision including whether or not to appeal.
In the meantime, we will be working with our licensees, members and other societies to prevent market disruption.
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