Jul 20, 2007 • 2 min read

CISAC hit back at criticism of licensing reform proposals

CISAC has rejected criticism from media and telecoms firms of its proposed European licensing reforms, accusing them of trying to push down royalty rates.

CISAC, the association that represents composers, songwriters, publishers and their collecting societies from across the world, has hit back at criticism of its proposed reforms for the way its members licence music across Europe.

As previously reported, CISAC recently made proposals for changes to the way publishing collecting societies in Europe work in a bid to overcome concerns expressed by the European Commission that the collecting society sector was essentially a cartel of organisations operating territorial monopolies. But a consortium of large media and telecoms companies, who need to licence music off CISAC's members, say the proposals are costly and inefficient, won't solve any of the problems the EC originally raised, and will make the licensing of music across Europe even more difficult. They also claimed that the proposals were not in the interests of songwriters and composers either, and would hinder cultural diversity across Europe by making it harder for media firms to licence music from local artists.

But responding to those accusations CISAC has said that the media firms are simply trying to force down the price they must pay to use music, and that they are faking concerns for creators and copyright-holders in their criticism of the proposals.

In a statement the creator body said: "CISAC was naturally delighted to read the statements in the user's letter 'vehemently supporting' the cause of the individual creator and espousing concerns about cultural diversity. Nevertheless, coming from the conglomerates in question, the arguments sounded rather like the fox asking to guard the hen coop. One must not forget the avowed aim of certain powerful music users which have openly and without the slightest hint of embarrassment signalled their wish to provoke a 'race to the bottom' on the royalties due to creators (the vast majority of whom struggle to make ends meet)".

Said media firms were very quick on the offensive once CISAC's statement was out, and issued their own rebuttal almost immediately, saying: "It is neither an avowed nor hidden aim of any of the companies that subscribed to the letter to provoke a race to the bottom for copyright royalties. On the contrary, broadcasters and other media companies are reliant on diverse and vibrant music offering. It is because this cultural diversity is endangered, and because the competition concerns have not been addressed, that the companies commented on the commitments".

CISAC are yet to respond to the media firm's response to CISAC's response to the media firm's response to CISAC's proposals. Meanwhile, it remains to be seen what the EC make of CISAC's proposals in light of the media firm's opposition and the public argument between the two sides of the debate.

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