Labels Open To Global Licensing Fee?
January 25, 2007 at 8:18 AM (PT)
THE NEW YORK TIMES reporting that record labels may now be open to a FRENCH government proposal to impose a global license fee that would stand in for royalty payments on the purchases of digital music over the Internet. The fee could be collected by Internet service providers through their customers' monthly subscription charges.
"It's a model worth looking at," INTERNATIONAL FEDERATION FOR THE PHONOGRAPHIC INDUSTRY (IFPI) head JOHN KENNEDY said at a press briefing last weekend in CANNES at MIDEM. "If the ISPs want to come to us and look for a blanket license for an amount per month, let's engage in that discussion...."
But the RIAA's MITCH BAINWOL interjected: "...on a voluntary, commercial basis."
Key changes have taken place in the past year that make the environment a bit friendlier to such a proposal, at least from the point of view of the major recording companies, which IFPI represents. One in particular is that such a fee is precisely the way that MICROSOFT structured a deal with UNIVERSAL MUSIC GROUP over its ZUNE player.
The full article can be read here.