New Fair Royalty Payments Schedule for private radio stations
October 15th, 2007
The commission on article L.214-4 of the Intellectual Property Code adopted on 15 October 2007 a new schedule for fair royalty payments due by private radio broadcasters to artists and producers of phonograms for radio broadcasts of these artists (7 votes for, 1 abstention, 3 votes against).
A revaluation of this schedule had been requested in 2003 by the artists and the producers, but the commission only started its work in May 2006. The schedule adopted was proposed by the Chairman of the Commission, Gilles ANDREANI, representing the state. This new schedule is half-way between the last proposal made by the copyright owners and the highest proposal formulated by the representatives of the radio broadcasters.
While the previous schedule, dating from 1987, had fixed a uniform royalty payment of 4.25% of their revenues for all private radio stations, the new schedule takes into account the large differences in the economic situation of the different operators by adopting progressive packages for the small local radios whose economy is fragile, representing a significant reduction in the royalty payments due from these small radios, and progressive rates of 4 to 7% according to the turnover of these radios, for all the other private radio stations, the largest of which frequently generate above-average profitability rates.
The new schedule will take effect on 1 January 2008 and its full application on 1 January 2011. It corresponds to an average increase in the value of the schedule by nearly 38% on this date. The coming into effect of the schedule will in fact involve a scaled introduction with an increase of 18% for 2008, 12% for 2009 and 6% for 2010.
Although the increase of the schedule is significant, it still does not approach the minimum level of royalty payments regarded as fair by the copyright owners, since the total royalty payments due as of 2011 are lower than the royalty payments made by private radio broadcasters to authors and are lower than the average royalty payments made to artists and producers in the leading European countries. That is why SCPP, which voted for this new schedule, considers that it constitutes an important but still insufficient step forward towards a really fair level of royalty payments, which will need to be renegotiated in a few years' time.
The SCPP (société civile des producteurs phonographiques), is a company that collects and redistributes royalty payments on behalf of its members from users of phonograms and music videos. Over 900 producers are now members of SCPP including numerous independent producers and international companies like Sony BMG, EMI, Universal and Warner. The SCPP defends the rights of its members, fights against piracy and supports musical creation. 14, Boulevard du Général Leclerc – 92527 Neuilly-sur-Seine Cedex - Tel: 01 41 43 03 03 www.scpp.fr
Anouchka Roggeman, Communication Department Manager
Tel: 01 41 43 03 07