EU SIDES WITH MUSIC IN VALUE GAP FIGHT

YouTube is one step closer to having to negotiate licenses to host music after European parliament passed a key vote. Is the music business finally heading to a conclusion over the much-discussed “value gap”?

Article 13 of the Copyright Directive proposes that all information society service providers (aka DSPs) shall ensure the functioning of agreements with rights holders for the use of their works. That takes away YouTube’s ability to hide behind safe harbor rules that sees it exempt from copyright law as a “neutral” hosting service.

European parliament’s legal affairs committee approved the proposal Wednesday. A challenge is expected from those opposed to it and a vote in July will decide whether to proceed with the recent approval. A final vote on the adoption will take place later in the year.

As discussed at length by music business lobbyists, the law could help fix the value gap that sees a big disparity between the relatively low revenue earned from video streaming sites such as YouTube and the high level of consumption that occurs on those services.

IMPALA’s executive chair Helen Smith said, “The EU has made a leap forward and it now has to convert a try. This is part of a wider effort to make online platforms more accountable, where the EU is leading the way. The eyes of the world are on Europe to set a new standard for creators online. This is about ensuring artists and fans can still enjoy the unique relationship that online platforms facilitate.”