A coalition of platform operators and content providers has asked the European Union to reject an offer by national royalty collection bodies in their attempt to resolve a long running competition dispute. Cisac said it would offer multi-territorial licences covering performing rights for the internet, satellite and cable. Mechanical rights, recordings archived to tape or more likely some form of digital storage, would be covered under a separate agreement.
The royalty agencies collect performance and broadcast fees on behalf of artists and composers. Under the proposals the agencies have offered to drop some of the restrictions imposed on licences sold.
Bloomberg reported the 27 companies including Liberty Global, Deutsche Telekom and RTL said in a letter to European Commission President Jose Barroso and Competition Commissioner Neelie Kroes that the settlement would lead to a “costly, inefficient and fragmented licensing system for music rights”. The group has called for an “economically meaningful licensing system”.