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Report on Collecting Schemes Europe

Reguera, Lucía; Muñoz, Bruno; Planas, Noemí; Pozo, Nerea

This document is the second of two dealing with the legal regulation and the management of the Intellectual Property (IP) rights involved in audio branding processes and is complemented by document D7.2. There are no reports or compendia dealing with the management of IP rights from the point of view of audio branding. Thus, we have conducted surveys among the Collective Management Organizations (CMOs) with competences in in-store music, with the objective to clarify the rights management process. The current document compiles details on how CMOs collect tariffs, identify owners and distribute the revenues originated by the usage of musical works in audio branding processes. We carried out a survey among 91 CMOs in the Europe; however, in spite of in spite of great and long-lasting (16 months) efforts by our side, in the end just 34 were willing to answer our questionnaire. The information we gathered points to a lack of communication and coordination between CMOs both at European and local levels. Answers to very simple questions that should have borne a resemblance to each other, have in fact turned out to be diverse and contradictory. We find that this places users and music providers at a disadvantage and it does not help to improve the in-store music field. Monitoring of usage is deficient and the remuneration to right holders through COMs is not accurate. However, there are some good news too, as some CMOs are moving forward in several countries in order to develop innovative solutions. For instance, some are sharing collecting bodies in order to simplify payments; this is known as a “one-stop shop”. In the case of mechanicals rights, at least one CMO has signed a deal with a background music provider that covers all European countries, which could turn out be a very useful model for other providers in the future. This document constitutes a starting point for the upcoming deliverable D7.5, in which we will devise suggestions to ease the administrative process and will try to lobby with producer’s associations and CMOs within Europe.