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Technology
Screen - The Business of entertainment

Record labels push EU to tighten digital copyrights

Music companies will lobby the European Parliament to strengthen protection against illegal digital copying, saying current proposals have too many loopholes.

Representatives of the 15 European Union governments sent a new copyright law to the parliament for approval today. Industry groups say the definition of private copying is too broad, permitting millions of perfect copies to be traded or distributed free on the Internet. “Most people would not dream of stealing a compact disc from their local record store,” said Jim Corr, a member of the Irish rock band The Corrs, at a press conference in July. “In the same way, we don’t think it’s cool to go cyber-shoplifting.”

EU representatives have discussed tighter laws to stem digital piracy for three years as copying technologies proliferate. European music sales totaled $11.5 billion (13 billion euros) in 1999, while the industry lost $1.2 billion through copying on CDs, according to the International Federation of the Phonographic Industry (IFPI).

Music companies want a common EU law on technologies such as “digital watermarks”—codes that prevent products from being copied more than a specified number of times. The new law would allow companies to use such technology. However, countries will be able to grant exceptions for libraries or schools for educational and noncommercial uses.

Industry groups said that will create a patchwork of regulations, making it difficult to do business in the EU. Consumer representatives, however, say the rules could allow electronic equipment makers and rights holders to make copying technically impossible, even where the rules permit copy making. Manufacturers could also unfairly force consumers to sign agreements restricting them from copying downloaded material at all, they say. “In the shift to the digital environment, we feel that there’s a real pressure to inhibit any kind of private copying,” said Ursula Pachl, legal adviser to the European Consumers Association.

While the music industry has organized publicity events with musicians such as Jean Michel Jarre, “unfortunately, we don’t sing and dance — maybe that’s our major problem.” Rock group The Offspring will release its new single, Original Prankster, for free downloading on the Internet.

It will later release the whole of its new album, supported by a prize draw of $1 million for fans who download free tracks. The band will also encode access information on its CDs for a “super fan club” via its Web site. “We figure that since we make our music available to everyone for free, this will act as a special acknowledgment to our fans who go to the trouble to buy our CD,” said singer Dexter Holland in a press release issued by the band, which is under contract to Sony’s Columbia Records Group.

Music industry representatives said freebies are only an option for established bands. “The Offspring is big enough to do that — we’d never be able to establish new acts in that way,” said Frances Moore, a director of IFPI. “It’s easy enough to call us dinosaurs, but the recording industry is first and foremost in the business of finding the artist and working with the artist to produce the music.”

Software companies are also watching the proposal closely, concerned that allowing local variations could endanger current laws protecting software and databases. “If this directive were to come out substantially different from what’s already in other areas, you could see a push to change those directives to make them consistent with this one,” said Marie-Therese Huppertz, a corporate attorney for Microsoft.

The parliament will examine and possibly amend the proposal before sending it back to governments for final approval, probably next year, said the IFPI’s Moore.


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