The EU’s new copyright law could change the entire music industry

Two amended provisions of the much-discussed Copyright Directive, which would force tech platforms to pay media companies more to use their content, have been celebrated by the music industry and (no surprises here) balked at by the tech industry.

The European Parliament has voted to take the current version of the Copyright Directive to the next stage. An Article 13 provision would make YouTube and other similar platforms obtain a license in order to host content such as music videos.

Crucially, it would mean YouTube would face legal repercussions for hosting unlicensed music on their platforms, even if that music had been uploaded via user-generated content (UGC).

The UGC factor has long enabled YouTube to remain the biggest player in the video streaming sector. YouTube, like Daily Motion and other video-hosting sites, has long hid behind safe harbour laws, which protect it from being held accountable for the actions of users.

Thus the Value Gap was born: the mismatch between the value that user upload services extract from music and the revenue returned to creators and investors.

Naturally, the music industry has celebrated the move

Australia’s Independent Record Labels Association (AIR) has told TIO the moves bring balance to the industry.

“It’s quite simple: Article 13 rebalances the licensing framework in Europe and creates a fair and equitable environment for creators who rely on the European economy to sustain their careers and businesses moving forwards,” said Maria Amato, CEO at AIR. “We applaud the work of our colleagues at IMPALA for their sustained efforts on this very important issue.”

Nightlife Music, the Australian background music specialist, has also celebrated the news.

Stuart Watters, Director of Licensing at Nightlife told TIO:

“As a music technology innovator, Nightlife supports any copyright reform that protects the interests of the copyright owners, users and distribution services operating as part of the broader music industry ecosystem. If Aussie artists are doing well at home and then have the same opportunities to continue that overseas then it’s contributing to a sustainable and thriving industry for everyone.

“We’ve seen great inroads by the Australian Government recently with respect to copyright reform and welcome similar moves in other territories,” he added. “Given Nightlife is expanding internationally, competing on a level playing field is paramount.”

Meanwhile, APRA AMCOS has described the vote as a major win for music creators and innovation in the cultural industries:

“This vote shows it is becoming clear to legislators around the world that music and the cultural sector deserve a digital world that is fair and fosters cultural innovation,” said APRA AMCOS CEO Dean Ormston.

IFPI CEO, Frances Moore said: “IFPI joins others in the creative community in thanking the European Parliament for its work on this proposal in the most difficult of circumstances and congratulates Rapporteur Axel Voss MEP on an outstanding performance.

“We now look forward to working with the three institutions in the forthcoming trilogue to ensure the Value Gap is effectively closed.”

IMPALA’s Executive Chair Helen Smith said: “This is a great day for Europe’s creators. The Parliament has sent a clear message that copyright needs to be modernised to clarify obligations of platforms with regard to the creative works they distribute.”

GEMA CEO, Dr. Harald Heker said: “Finally, the foundation for a modern copyright which complies with the digital age has been laid. This step has been long overdue.”

Geoff Taylor, Chief Executive BPI & BRIT Awards, said: “We are grateful to the members of the European Parliament who stood up for the creative community, since this now opens the way for a Copyright Directive that can close the Value Gap and boost investment into new British music and other new content.”

Paul Pacifico, CEO of the UK-based Association of Independent Music (AIM), said: “I would like to thank the MEPs from all parties for their energetic and highly engaged approach to this very sensitive and important legislation that stands to benefit the next generation of music artists and creators online who generate the content we all enjoy.”

The vote amongst European MPs yesterday (September 12) over the Directive also means tech players like Google and Facebook will need to pay news publishers for sharing excerpts of news articles or linking to them on other sites. A move that was met with much complaint from the tech sector.

“Today marks a very sad day for the internet in Europe,” said Mozilla, the company behind Firefox. “The fight is not over yet.”

Meanwhile, Julia Reda, a member of Germany’s Pirate Party called it a “catastrophe.”

The new exclusive right for sports organizers approved by European Parliament by one vote. A catastrophe for sports fans, especially combined with #UploadFilters #SaveYourInternet

— Julia Reda (@Senficon) September 12, 2018

The next step for the Copyright Directive is for Parliament to enter negotiations with the European Council and the European Commission to finalise wording. MBW has suggested the process could be completed by the end of the year.

This article originally appeared on The Industry Observer, which is now part of The Music Network.