The Commission has presented a proposal for a new directive to regulate collecting societies

The European Commission presented today proposal for a new Directive on collective management of copyright and related rights and multi-territorial licensing of musical works for online use in the internal market (Directive on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online uses in the internal market ). Its wording and justification is currently only available in French, German and English.

The aim of the proposed directive is to make the operation of collecting societies more efficient and transparent, as well as to allow for the multi-territorial licensing of musical works on the Internet. The Directive was planned to be completed in 2003. The new Copyright Act will now have to significantly take into account its obvious future bonds to the Slovak Republic. Of course, if it is accepted.

According to a press release: „New digital technologies bring great opportunities for creators, consumers as well as businesses. The increased demand for online access to cultural content (eg music, films, books …) knows no borders or national restrictions. This is not the case with online services for accessing them. It is here that collecting societies enter the scene, especially in the music sector, where they collectively manage the licensing for the online use of copyrighted music recordings on behalf of composers and lyricists, for which they collect and redistribute the relevant rewards.

However, for some collecting societies, it is difficult to adapt to the rights management requirements for the use of musical works online, especially in cross-border situations. Under today’s proposal, those collecting societies that are willing to engage in multi-territorial licensing for their repertoire will have to comply with European standards. This would make it easier for service providers to obtain the necessary licenses for music to be distributed online throughout the EU, and would ensure that revenue is properly collected and distributed fairly between composers and lyricists.

In general, collecting societies operating in all sectors would have to comply with new European standards, which require better governance and greater transparency in the performance of their activities. The need to change certain practices has been highlighted by recent cases where remuneration collected on behalf of rightholders has been lost as a result of poor investment policy, but also by evidence of a significant delay in the payment of remuneration to rightholders.