BUMA/STEMRA ISSUES BEATPORT.COM A PAN-EUROPEAN LICENSE

Cees Vervoord, CEO of Buma/Stemra, is excited about this latest agreement: “The license agreement with Beatport, which many international music users and right holders are watching with great interest, puts Buma/Stemra in a leading position internationally with respect to the rollout and implementation of competitive new licensing models in line with the needs of today’s market. This allows Buma/Stemra to continue to represent the interests of all music authors and publishers in the Dance scene (both Dutch and international), in an effective manner.”

The Pan-European agreements Buma/Stemra has signed with Beatport and eMusic are in line with the European Commission’s intentions to end the traditional system of territorially restricted collective management in which the music copyright organisations each hold a monopoly in their own country and online licences are issued separately for each EU member state. Without the approach offered by Buma/Stemra, music retailers need to make 27 stops, one in each country, to take care of the music copyrights.

This results in endless administrative and fiscal complications. Buma/Stemra acknowledges the need for competition between the various European music copyright organisations and has, in keeping with the requirements of both the European Commission and the online music market, developed and fully stands behind a one-stop-shop model that allows music users to obtain a single licence to exploit authors’ rights in all the European Union.

The licensing model is based on retaining the world’s music repertoire for every European music copyright organisation. The royalty rates applied through this multi-territorial license are the tariffs set in the country where the copyright is to be exploited (sometimes called the “country of destination” principle or the “country of usage”). In other words, music used in, say, Germany will be accounted for on the basis of the tariffs in use in Germany; music used in Spain will be subject to royalty payments on the basis of the tariff in use there.

The advantage of this model is that competition between collecting societies offering multi-territorial licenses takes place on the basis of the costs and services of the music copyright organisations and not on the royalty rates paid to rightsholders. The income of authors, composers and music publishers is thus safeguarded from any downward pressure which might occur in the case of unbridled competition. This model for a one-stop-shop is a highly efficient way for both the music user and the rights holder to make licensing arrangements across Europe.

  Beatport.com

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