The Association of European Radios (AER) is a Europe-wide trade body representing the interests of over 4,500 commercially-funded radio stations across the EU27 and in Switzerland.

AER has answered to the previous consultation related to “Creative Content Online”: “Content Online in the Single Market”, on October 13th, 2006. Commercially-funded radio broadcasters are primarily concerned by the development of creative content online: as important content providers, broadcasters need to deliver their programmes on the internet in order to reach their complete audience in modern information society. AER therefore welcomes the opportunity to submit its views on this subject.

Digital Rights Management

1) Do you agree that fostering the adoption of interoperable DRM systems should support the development of online creative content services in the Internal Market?
 
DRM systems have the potential to solve a number of problems, as well as the potential to create a number of new ones. Market developments show major drops in the use of DRM systems. This area should be left to the market to decide.

What are the main obstacles to fully interoperable DRM systems? Which commendable practices do you identify as regards DRM interoperability?

2) Do you agree that consumer information with regard to interoperability and personal data protection features of DRM systems should be improved? What could be, in your opinion, the most appropriate means and procedures to improve consumers' information in respect of DRM systems? Which commendable practices would you identify as regards labelling of digital products and services?

3) Do you agree that reducing the complexity and enhancing the legibility of end-user licence agreements (EULAs) would support the development of online creative content services in the Internal Market? Which recommendable practices do you identify as regards EULAs? Do you identify any particular issue related to EULAs that needs to be addressed?

4) Do you agree that alternative dispute resolution mechanisms in relation to the application and administration of DRM systems would enhance consumers' confidence in new products and services? Which commendable practices do you identify in that respect?

5) Do you agree that ensuring a non-discriminatory access (for instance for SMEs) to DRM solutions is needed to preserve and foster competition on the market for digital content distribution?

Multi-territory rights licensing

AER has previously answered European Commission public consultations on questions related to “multi-territorial licensing”:

• “AER Submission to the Communication from the Commission on the management of copyright and related rights in the Internal market” (on June 21st, 2004)
  
• “AER Submission to the Commission staff working document study on a Community initiative on the collective cross-border management of copyright” (on August 30th, 2005)
  
• “AER Submission to the call for comments on the Commission recommendation of October 18th, 2005 on collective cross-border management of copyright and related rights for legitimate online music services” (on July 7th, 2007)

Commercially-funded radio broadcasters pay over €325 million per year for music rights. As copyright clearance still constitutes one of the main expenses broadcasters have to face, the points made in the abovementioned submissions remain valid. The first two are enclosed in annex to this submission.

6) Do you agree that the issue of multi-territory rights licensing must be addressed by means of a Recommendation of the European Parliament and the Council?

No, the adoption of a directive on the issue of multi-territory rights licensing seems even more appropriate. Its scope should encompass online and offline rights.

Radio broadcasters should be able to clear the usage of rights through one-stop-shops, delivering access to EU global repertoire, if not to worldwide repertoire. Furthermore, a user should be allowed to purchase whatever rights he requires for whatever purpose wherever he wishes to exercise them from any Collecting Society in the EU against clear, published, comparable tariffs. The latter should fulfill similar transparency requirements; i.e., any organization providing access to music rights should publish its tariffs (including split costs of both rights usage and administration induced), the licensing conditions, administrative requirements and the destination of the monies received. Finally, dispute resolution mechanisms should be enabled as appropriate in every Member State in order to prevent abuse of a dominant position by any organization providing access to music rights.

7) What is in your view the most efficient way of fostering multi-territory rights licensing in the area of audiovisual works?

Competition between organizations providing access to music rights, in the case that each of these organizations provide access to all (relevant) music rights.

Do you agree that a model of online licences based on the distinction between a primary and a secondary multi-territory market can facilitate EU-wide or multi-territory licensing for the creative content you deal with?

Any multi-territory licence for online RELATED rights, but limited to the EU-Member States, will not facilitate online activities, unless the user clears all related rights for all 160+ other global territories outside the EU (or finds a way to technically prevent users from outside the EU to access to his offer).

8) Do you agree that business models based on the idea of selling less of more, as illustrated by the so-called "Long tail" theory, benefit from multi-territory rights licences for back-catalogue works (for instance works more than two years old)?

If it is about SALES, there is no need for any licencing, be it multi- or single-territory, as the seller will decide autonomously on price and conditions, and the consumer market will decide on the offer’s success. If it is about USE of content: Still a little too early to judge. It seems this could be applicable to podcasts of certain radio programs; e.g., a one-year agreement has been concluded in the UK; the results are still to be assessed.

Legal offers and piracy

9) How can increased, effective stakeholder cooperation improve respect of copyright in the online environment?

By ensuring that the individual or corporate rights user is treated in a fair way, i.e. one payment / fee / remuneration for any one use of a copyright or a related right, and not a multitude of them – from levy to remuneration to sales price to licence fee to subscription etc.

10) Do you consider the Memorandum of Understanding, recently adopted in France, as an example to follow?

11) Do you consider that applying filtering measures would be an effective way to prevent online copyright infringements?

ENDS
29/02/2008

Contact details:   

Vincent Sneed
AER Association Coordinator
76, av. d’Auderghem, B-1040 Brussels, Belgium
tel. 32 2 736 9131
fax. 32 2 732 8990
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