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ABU 16ABU 16thth Copyright CommitteeCopyright Committee
SeminarSeminarJakarta, IndonesiaJakarta, Indonesia
15 April 201015 April 2010
Music Licensing in a Digital EnvironmentMusic Licensing in a Digital Environment
byby
Ms Tina Lee, LawyerMs Tina Lee, Lawyer
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ContentsContents
Differences in the analogue and digitalDifferences in the analogue and digitalenvironment in respect of use of musicenvironment in respect of use of music
Impact on broadcasting businessImpact on broadcasting business
Trend in digital music licensingTrend in digital music licensing What advantages can broadcasters exploreWhat advantages can broadcasters explore
Music licenses required and their principalMusic licenses required and their principaltermsterms
Negotiate for the best termsNegotiate for the best terms Factors to be considered for fee structureFactors to be considered for fee structure
ConclusionConclusion
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Differences in the analogue andDifferences in the analogue and
digital environmentdigital environment
HardwareHardware -- technical, equipment,technical, equipment,infrastructureinfrastructure
Software (content)Software (content) -- quality, multiplequality, multipleapplicationsapplications
Music as part of the content componentMusic as part of the content component
can be separately exploitedcan be separately exploited
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Impact on broadcasting businessImpact on broadcasting business
Broadcast is still the most efficient andBroadcast is still the most efficient andpowerful mediapowerful media
Need to explore new business models toNeed to explore new business models to
remain competitiveremain competitive Convergence of media distribution platformsConvergence of media distribution platforms Simultaneous Web and TV broadcast, catchSimultaneous Web and TV broadcast, catch--
up servicesup services
Reassess the usage of music in new contextReassess the usage of music in new context Adequacy of existing music licensesAdequacy of existing music licenses
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Trend in digital music licensingTrend in digital music licensing
Licensing in new formats and channelsLicensing in new formats and channels
More comprehensive services andMore comprehensive services and
flexibility to consumersflexibility to consumers
Digital music revenues increased byDigital music revenues increased bydouble digit percentagesdouble digit percentages
(see chart)(see chart)
Scope of rights are expandedScope of rights are expanded
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Digital Music RevenuesDigital Music Revenues
.
.
.
3
3.
4
4.
4 6 7 8 9
U$
billin
D igital M usic Revenues U$ bill i ns
u c e : P
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Advantages that broadcastersAdvantages that broadcasters
can explorecan explore
Online availability to consumersOnline availability to consumers
Deeper connection with consumersDeeper connection with consumers Digital song taggingDigital song tagging
Added value to consumersAdded value to consumers
New business opportunitiesNew business opportunities
Mobile TVMobile TV
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Music licenses requiredMusic licenses required
How will music be used? Any new usage?How will music be used? Any new usage?
What are the scope of existing licenses?What are the scope of existing licenses?
ublic performance rightsublic performance rights
Reproduction rightsReproduction rights
Own produced programmesOwn produced programmes
New mediaNew media new licenses and additionalnew licenses and additional
costs?costs? Who are responsible?Who are responsible?
AllAll--Media LicenseMedia License
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Principal terms in music licensesPrincipal terms in music licenses
Scope of rightsScope of rights Operating platformsOperating platforms
Geographical limitationGeographical limitation DurationDuration Fee structureFee structure fixed, variablesfixed, variables Reporting obligationsReporting obligations IndemnitiesIndemnities Any other restrictionsAny other restrictions
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Negotiate for the best termsNegotiate for the best terms
Understand yourbusiness requirementsUnderstand yourbusiness requirements
Know your counterpartsKnow your counterparts Joint/industry negotiationJoint/industry negotiation
CollaborationCollaboration
Mediation, Copyright Board/TribunalMediation, Copyright Board/Tribunal
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Factors to be consideredFactors to be considered
for fee structurefor fee structure
Nature and volume of music contentNature and volume of music content
RatingRating RevenuesRevenues
Reporting obligationsReporting obligations
other precedents in relevant jurisdictionsother precedents in relevant jurisdictions
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ConclusionConclusion
Meet consumers demand and remainMeet consumers demand and remain
competitivecompetitive Music licenses should be all embraciveMusic licenses should be all embracive
Balancing of power, interests andBalancing of power, interests andneedsneeds
Mutual benefits for creative industriesMutual benefits for creative industries
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THANK YOU !THANK YOU !