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The European Commission has now mandated a system of pan-European, competitive music licensing, a long-awaited shift. The order ends a rather arcane, country-by-country licensing process that stymied entrants like the iTunes Store in the region. In its decision, the Commission determined that 24 licensing bodies had acted anti-competitively by constructing territorial agreements and collusive restrictions, though fines were not imposed.
That sounds like an improvement for all parties, especially in a border-blurring digital landscape. But the mandate stretches beyond paid download stores, and ultimately smooths licensing for other forms of media, including streaming audio, video, and television.
But not everyone is so thrilled with the plan, including the European Composer and Songwriter Alliance (ECSA). Just recently, Bee Gees brother Robin Gibb, on behalf of ECSA, spoke against the measure, fearing lower royalties to musicians.
Addressing that issue, Competition commissioner Neelie Kroes noted that fees, not royalties to artists, would be affected. "The Commission has been careful to ensure that the benefits of the collective rights management system are not put into question in terms of levels of royalties for authors and available music repertoire," Kroes assured.
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