Economic and Social Justice Perspectives
Edited by Anne Flanagan and Maria Lillà Montagnani
Chapter 7: The Changing Market for Music Licences: A Redefinition of Collective Interests and Competitive Dynamics
7. The changing market for music licenses: a redefinition of collective interests and competitive dynamics Maria Mercedes Frabboni INTRODUCTION 1. Collective administration of copyright and related rights is of particular significance to their enforcement. Collecting societies have emerged as the solution to the impracticality for authors to administer their rights directly. In the face of a large number of potential users, it makes economic sense to appoint intermediaries entrusted with the duty of managing the relevant entitlements vis-à-vis commercial users of protected contents. Such management consists in issuing licenses to users, monitoring uses, collecting fees from licensees and distributing royalties to right holders.1 The economic literature concerning collective management of rights emphasizes the economies of scale and scope that can be realized through aggregation of the administrative functions with a single intermediary. In particular, an important advantage lies in the representativeness of collecting societies for a multitude of right holders and in their accessibility for commercial users. This emerges, for example, in the field of music exploitation and dissemination, where collecting societies’ activities have developed and expanded to allow content to be disseminated through various technologies and to different audiences.2 This particular and universal nature of collecting societies’ action is the 1 Mihály Ficsor, ‘Collective Management of Copyright and Related Rights’ (2002) WIPO Publication No 855(E) 17; Ruth Towse, ‘Copyright and Economic Incentives: an Application to Performers’ Rights in the Music Industry’ (1999) 52 Kyklos 382. 2 This chapter focuses on music collecting societies (and performing rights...
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