Brussels:
Three of Europe's biggest groups collecting royalties for songwriters and performers secured EU regulatory approval today to set up a cross-border online music licensing venture after agreeing to concessions allowing rivals to compete.
Britain's PRS for Music Limited (PRSfM), Sweden's Foreningen Svenska Tonsattares Internationella Musikbyra (STIM) and Germany's Gesellschaft fur musikalische Auffuehrungs- und mechanische Vervielfaeltigungsrechte (GEMA) grant licenses on behalf of authors and performers to users such as online platforms iTunes, Spotify, YouTube and Deezer.
The proposed joint venture will provide licenses for their combined repertoire which can then be used in several countries, in contrast with the current system where online platforms have to get separate permits from each of the societies.
The European Commission said the concessions, which allow competitors to enter the market and users to switch to another society, allayed concerns that the joint venture could result in price hikes.
Britain's PRS for Music Limited (PRSfM), Sweden's Foreningen Svenska Tonsattares Internationella Musikbyra (STIM) and Germany's Gesellschaft fur musikalische Auffuehrungs- und mechanische Vervielfaeltigungsrechte (GEMA) grant licenses on behalf of authors and performers to users such as online platforms iTunes, Spotify, YouTube and Deezer.
The proposed joint venture will provide licenses for their combined repertoire which can then be used in several countries, in contrast with the current system where online platforms have to get separate permits from each of the societies.
The European Commission said the concessions, which allow competitors to enter the market and users to switch to another society, allayed concerns that the joint venture could result in price hikes.
© Thomson Reuters 2015
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