Today, the European Commission proposed a Directive to modernise collecting societies. Nowadays, online service providers want to test new business models for the online distribution of music, that covers multiple territories and large catalogues of music. However, many collecting societies are not ready for these challenges. As a result, service providers face serious difficulties when trying to obtain the licences necessary to launch online music services across the EU. This results in fewer online music services and a slower incorporation of innovative services.  The proposed Directive will contribute to complete a Single Market for intellectual property.

Michel Berner, Commissioner for Internal Market and Services, says: "We need a European digital Single Market that works for creators, consumers and service providers. More efficient collecting societies would make it easier for service providers to roll out new services available across borders - something that serves both European consumers and cultural diversity." 

The proposed Directive has two complementary objectives:

-To promote greater transparency and improved governance of collecting societies through strengthened reporting obligations and rightholders’ control over their activities, so as to create incentives for more innovative and better quality services.

- To encourage and facilitate multi-territorial and multi-repertoire licensing of authors' rights in musical works for online uses in the EU.

Collecting societies received a lot of negative attention. This Directive may be a step forward to improve their services and reputation.

The text of the proposal can be found here. 

Read more about collecting societies on FutureOfCopyright.com: 

• Brazilian collecting society ECAD faces fraud charges
• Dutch Parliament agrees on strict supervision of collecting societies
• Employees of Spanish collecting society SGAE face fraud charges

Source: European Commission Press Release

By: Marjolein van der Heide