Music cuts threat in copyright case
27Mar08

Source: Lara Sinclair, The Australian

THE
commercial TV networks are expected to cut back the amount of
Australian music they broadcast if steep increases in copyright
payments to recording artists are awarded against them in the federal
court.

Commercial
TV networks could cut back their use of Australian music if steep
increases in copyright payments to recording artists are awarded
against them in the federal court. Cartoon: Kudelka

The
Phonographic Performance Company of Australia has taken Free TV
Australia to the Copyright Tribunal in an action that could lead to an
increase in the broadcasters’ annual copyright payments to the PPCA.

Under the previous five-year agreement between the parties, which
expired in June last year, the networks paid the PPCA an annual license
fee of $700,000 for the copyright that exists in sound recordings.

The PPCA has asked for that payment to be increased to equal an
undisclosed amount the networks pay to another copyright collection
body, the Australasian Performing Right Association.

Industry sources said the payment to APRA was worth "many millions of dollars".

Last year the PPCA won a 15-fold rise in a similar copyright action,
with the rate nightclubs were required to pay increased from 7c to
$1.05 a person.

Dance party rates rose from 20c to $3.07 a person.

While APRA grants copyright licenses on behalf of the authors and
publishers of music for the copyright in songs and compositions, PPCA
acts for performers and record labels to license the copyright in the
performance.

PPCA spokeswoman Felicity Moffatt confirmed the PPCA had asked the networks for the same tariff they paid APRA.

"We understand it’s hugely greater," she said.

Commercial TV industry group Free TV Australia, which is representing the networks, declined to comment.

However, a source close to the networks said they would threaten to
cut the amount of Australian sound recordings they used in local TV
dramas and as background to sports programs if costs rose markedly.

There is a precedent, according to PPCA board member (and former drummer of the Go-Betweens) Lindy Morrison.

"In the early ’70s the radio industry refused to play Australian music for 10 months," Ms Morrison said.

Media understands confidential talks between the PPCA and Free TV
(whose members earn about $4 billion in annual advertising revenue)
during the past six months have faltered.

"We’re in the early stages of what we expect will be quite a long process, in excess of two years," Ms Moffatt said.

"We’ll be seeking (for it to be) back paid retrospective to July 1. They’re obviously fighting us every step of the way."

Ms Morrison said artists valued the copyright payments they received.

"What we’re trying to do is get some equity with the other
collection agency, APRA, which distributes (copyright) license fees to
the songwriters," Ms Morrison said.

"There is a huge disparity between the license fees APRA collects and the PPCA collects."

In December, the PPCA referred the matter to the Copyright Tribunal,
which will determine any increases to be paid under the commercial TV
licensing agreement.

Court documents show the PPCA has issued a summons to APRA to find out how much the networks pay it.

Last month, Justice Arthur Emmett dismissed an application by Free TV to set aside that summons.

The PPCA will argue the rate should take into account increases in
the amount of music played on new digital TV channels. "During the
period for which the new license will apply, PPCA anticipates that
television licensees will utilise new broadcasting methods made
possible by the use of digital technology," says its amended statement
of points supporting its case in the Copyright Tribunal.

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