Nov 20, 2008 • 1 min read

Collecting societies fail to suspend EU ruling

Five European collecting societies failed to get a suspension of the European Commission's ruling pending appeal, so the rules stay in place during the appeal process.

The battle between European regulators and the publishing collecting societies of the EU continues, with the latest victory being scored by the former. As much previously reported, the European Commission has been moaning for some time about Europe's collecting societies, like the UK's MCPS-PRS, who, they argue, operate a virtual cartel system restricting cross-European Union competition in the music licensing domain. They also want each society to offer more pan-European licenses, which would make life easier for multi-territory digital music services, and in itself introduce more competition to the market.

Despite some collecting societies, like MCPS-PRS, working with some major music publishers to introduce more multi-territory licences, the EC earlier this year passed a ruling forcing societies to become more competitive in terms of the way they work with both songwriters and licensees. The societies object to ruling, arguing the EC's measures threatens the survival of some of the smaller collecting bodies, and, ironically, makes it harder to launch pan-European licences. Or something like that.

22 of Europe's 24 collecting societies are appealing the ruling, but as that process will take sometime, five of the 22 applied to the European Court Of First Instance to have the EC ruling suspended pending the appeal, arguing the rules will damage some collecting societies before the full appeal is even considered. However, said court wasn't convinced, so the rules will stay in place while the appeal goes through the motions.

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