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Digital Exploitation: The impact of Recent Legal Developments in Music

Publishing

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Anne-Marie Pecoraro Roland Kluger

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Theme & speakers___________________________________________

• This year’s IAEL Midem Seminar is on the future of digital licensing.

• Today, we are going to speak about digital licensing.• Speakers:

– Roland Kluger: CEO of KP and SLF. Independent board member of Master Barter and in the U.S. TMV

– Louise Ernmark: legal counsel IPR for Sony Ericsson, Sweden

– Anne-Marie Pecoraro is a partner lawyer specialized in Music, Audiovisual, Intellectual Property and New Technologies law

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Confidential

Challenges in Digital Licensing

•Advances•Flexibility•Innovation•MFN•Repertoire•Reporting•Resources•Rights•Speed•Tariff

Presentation information here

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1. Digital Another Revolution !!1.1. A revolution really?

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• This is for example the increase of what PRS (UK) collected for its members since 1997:

• http://www.prsformusic.com

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1. Digital Another Revolution !!1.1. A revolution really?

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• This collection comes from:

8608.2562.1Total

-7141.6151.8Recorded media

14466.6410.3Sub-total performing revenue

10146.6133.6Public performance

15139.8121.2International

16180.2155.5Broadcasting and online

%2008 (₤m)2007 (₤m)

Source: PRS UK

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1.2. How different a revolution ?1.2.1. Past revolutions

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• This is not the first technological revolution… and haven’t the past ones led to an enhancement of ressources and revenues?

• Gutenberg’s print• Edison’s recordings• Cinema• Radio ....TV ......• CD• Digital …..

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1.2.2. Faster________________________________________

• What has changed is that the rhythm of appearance of each new kind of media

Provided by R. Kluger

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1.3. Music Music________________________________________________________

• More medias

• More bigger concerts

• More collections …

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1.4. The challenge could monetise a cloud________________________________________

Provided by R. Kluger

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1.5. Complex Yes !!!________________________________________

• Copyright and droit d’auteur• Publishers and Collecting entities• Europe, USA and what about India,

China ....Africa ?

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2. Collection management companies2.1. Longevity

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• Having faced many technological evolutions, the collection management companies have been showing a noteworthy ability to adapt themselves.

• This adaptibility to digitizing has been for example made possible with a diversification and reorganisation of the sources of revenues for authors, composers and publishers .

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2.2. Questions & practical details 2.2.1. The rights’ fragmentation

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• Can a beneficiary be a member of a collection company for a type of rights and remain the owner of another type (i.e. digital rights) or give those right to a collection management company from another country? Not easily.

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2.2.2. The rights’ distribution & sharing out ________________________________________

• After being collected, how are the rights shared out?

• Members’ statements• TV, broadcasts channels, shows, concerts, and

discs’ producers programs • Surveys

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3. Let’s focus on Music Publishing3.1. The future of publishers

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• What is the profile of Mr Publisher of 2020 ?

• What kind of deals with the writers ?

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Plugging, Promotionnothing – that - new

Provided by R. Kluger

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3.2. Digital Rights : a “new” -kind of- concept________________________________________

• DIGITAL Rights a mix of performances + mecanicals– keepin mind

• streaming vs downloading• collecting sound recording is statutory in

the USA

• Publisher = emergence of a new content

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3.3. The 2 major issues for the publishing community

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• If the source of income will be in a context of the 360° or even better benchmark

• If the stream of revenue(s) will be made of ties in, kind of soft “plug in”

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3.3. The 2 major issues for the publishing community

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• Collection will grow but will Publisher be part of negotiating the deals with the users

• Distribution rules will be decided by ? Based on ?

• What model?

– Usa: the market– The law ex. France: Hadopi, Zelnick