The European Parliament has adopted pan-European rules aiming to improve the governance and transparency of collective rights management organisations (CMOs).  

The new Directive on collective rights management and the multi-territorial licensing of musical works for online use marks a step forward towards adapting copyright licensing to the digital age and is expected to increase the availability of online music services in the EU.

Commissioner for the Internal Market Michel Barnier, who made the initial proposal, congratulated MEP Mariellle Gallo (France, EPP) for steering the draft law through Parliament and obtaining a quasi-unanimous agreement on a sensitive, copyright-related subject.

EBU Head of European Affairs Nicola Frank said: “CMOs are important interlocutors for broadcasters because they offer one single entry point to clear all the necessary musical rights – which are needed for up to 200,000 musical works in a week - for use in television, radio and online programmes. The new rules are likely to improve the way CMOs function and offer both broadcasters and rightholders more transparency about how the rights are managed. The Directive maintains efficient licensing regimes enacted at national level, such as extended collective licensing.”

She added: “The EBU can only welcome the adoption of this Directive, even though it hardly resolves licensing issues faced by broadcasters.”

The new Directive has indeed failed to fully address the licensing needs of broadcasters, who need to be able to simultaneously clear rights for offline and online programmes. The Directive introduces a multi-territory licensing system for online music use which, while conceived to support the activities of online-only music services, such as Spotify, does not bring any effective solution to music licensing for broadcasters’ own online services.

The EBU will thus continue making the case for streamlined copyright licensing rules adapted in the digital age as the European Commission pursues its ongoing review of the copyright licensing framework in the EU.