ACCC homeACCC invites comment on proposed changes to music-rights licensing
ACCC invites comment on proposed changes to music-rights licensing
The Australian Competition and Consumer Commission invites comment on a proposal to require the Australasian Performing Right Association to streamline processes for composers dealing directly with music users.
APRA collects royalties for songwriters for the public performance of music and most composers in Australia assign their rights to APRA to issue licences and administer on their behalf.
The ACCC proposes to allow APRA continued protection from the Trade Practices Act's competition provisions for another three years for its arrangements for the acquisition and licensing of performing rights, subject to a number of conditions that the ACCC is seeking comment on.
The proposal to streamline processes for composers dealing directly with music users is one of these draft conditions.
APRA controls in Australia virtually the entire worldwide repertoire of performing rights for musical works and generally offers music users 'blanket licences' allowing them to publicly perform any work in APRA's repertoire.
"APRA offers composers and music users significant benefits by providing users with a one-stop shop for licences to play music and ensuring songwriters are rewarded for their efforts through royalties," ACCC chairman Graeme Samuel said.
"However, APRA is also a monopoly – with the power to price accordingly – and has rules that appear to unreasonably restrict direct dealing between composers and music users," Mr Samuel said.
For most users it would not be efficient or practical to negotiate licences to play music directly with individual composers because they do not know far enough in advance and with sufficient certainty which songs they will want to play and when.
However, for some classes of users, who do not require access to APRA's entire repertoire and whose use of music is predictable and planned, direct dealing may be a practical alternative to dealing with APRA for some songs – but for the restrictions on doing so that result from APRA's arrangements.
"Where competition can be injected into the acquisition and supply of performing rights in a way that does not jeopardise the other benefits or efficiencies APRA's arrangements produce, then this should be encouraged," Mr Samuel said.
The ACCC proposes to re-authorise APRA's arrangements subject to conditions:
making it easier for members who want to negotiate licences directly with some users to get permission from APRA to do so
requiring the independent expert appointed to consider disputes under APRA's alternative dispute resolution process to report whether APRA's has offered genuine discounts on licences to accommodate or reflect direct dealing if requested by the licensee, and
requiring APRA to report to the ACCC annually on the outcome of disputes with users considered under the alternative dispute resolution process.
The last significant changes to APRA's arrangements occurred a decade ago when the Australian Competition Tribunal imposed conditions on their authorisation.
"The Tribunal made some first incremental changes to APRA's system to begin addressing these problems," Mr Samuel said. "After 10 years of experience with those changes, the ACCC thinks it's in the interests of APRA members, users and the wider community that further steps are taken to address these concerns."
The ACCC invites further submissions from APRA and other interested parties. In particular the ACCC is interested in views about the draft conditions it is proposing. Submissions should be provided to the ACCC by 26 February 2010. Parties may also request that the ACCC hold a conference to discuss the draft determination.
Authorisation provides protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the conduct's public benefits outweigh any public detriment.
