GEO-BLOCKING:THEMUSICANDBOOKSELLINGINDUSTRIESCALLFORCOPYRIGHTPROTECTEDWORKSTO
BEKEPTOUTSIDETHEREGULATIONONGEO-BLOCKING.
Brussels,7February2017
The European and International Booksellers Federation (EIBF)and theEuropean Association of
Independent Music Companies Association (IMPALA)are pleased to present you with their comments on
theproposalfortheRegulationongeo-blocking.
Ourviewscanbesummarisedasfollows:
- Copyright services should be keptoutsideofthe scope of the Regulation (Recital 6, Recital 19,
Article1&Article4);
- The review clause should set the first evaluation atfive yearsafter the entry into force of the
Regulation(Article9).
YouwillfindattachedourproposedamendmentstotheCommission’sproposal.
Both our organisations support the balance achieved by the Commission’soriginal proposal, which leaves
“services providing access to and use of copyright protected works or other protected subject matter”
outsideofthescopeoftheRegulation.Thiswillhelpsafeguardcross-borderactivityandculturaldiversity,as
explainedfurtherbelow.
This view was shared by theCouncil in its positionadopted on 28 November 2016, which further clarifies
thatthisexclusionshouldapplyto“servicessellingcopyrightprotectedworksandotherprotectedsubject
matterinanintangibleform,suchase-booksoronlinemusic”.
More recently, the European Parliament’s CULT committee adopted anopinionwhich also supports the
exclusionofservicesprovidingaccesstoanduseofcopyrightedworks.
Withregardtothereviewclause(Article9),wesupportafirstevaluation5yearsaftertheentryintoforce
of the Regulation. As explained by MEP Comodini, CULT Rapporteur on the proposal: “Cultural goods and
services – such as e-books and music streaming services – have distinct business models and specific
characteristicsthatrequirefurtherandcarefulexamination”.Afive-yearperiodwouldallowtimeforaclose
examinationofthepotentialimpactofincludingsuchserviceswithinthescopeoftheRegulation.
EuropeanandInternationalBooksellersFederation(EIBF)
ruedelascience10–1000Brussels
Belgium
IndependentMusicCompaniesAssociation(IMPALA)
Coudenberg70-1000Brussels
Belgium
[email protected]
+32(0)22234940
[email protected]
+32(0)25033138
WefirmlybelievethatcopyrightservicesshouldbekeptoutoftheRegulation,forseveralreasons:
Music
- Independent music companies rely on a network of local experts (licensees) to help break artists
acrossborders;however,extendingtheRegulationproposaltocopyrightprotectedworkswouldcut
rightacrossthispractice,andwouldseverelylimittheopportunityofamorediverserepertoire.This
iskeyasindependentsaccountforover80%ofnewmusicreleases.
-
Including such services in the Regulation would curtail the freedom of services to adapt to local
terms and offerings according to local market conditions, and put pressure on services to unify
pricesupwards.
-
In turn, many consumers would be driven to piracy in a market that has fought very hard to
competeagainstillegalservices.
-
Consumerswhowanttotakeadvantageofthelackofgeo-blockingwouldmostlikelyswitchtoUK
versionsofexistingmusicservices,whichwouldsqueezerevenuegoingtoothermarketsandwould
discouragelicenseesinotherterritoriesfromlicensinginnon-nationalrepertoires.
-
Inotherwords,wewouldseeahindrancetocross-borderactivity-thecompleteoppositeofwhat
theEUaimsat.Thiswouldbeaseriousblowforculturaldiversity.
Books
- Thebooksellingindustryisanextremelylow-marginactivity:theaveragenetprofitaftertaxesofa
booksellerisbetween1%and3%.
-
Thee-bookmarketisnascent,uncertain,andnotprofitableforthetimebeing.
-
Yet,inspiteofthislackofprofitability,agrowingnumberofbooksellershavedecidedtobepresent
onthee-bookmarket,forstrategicreasonsandtokeepthoseoftheircustomerswhohaveturned
toe-books:between70%and87%ofbooksellersontheleadinglanguagemarkets(DE,FR,UK,SP)
haveane-bookoffer.
-
Medium-sizedormajorbooksellerswhoinvestmoneyincross-bordere-booksales,makestrategic
decisionsonthebasisofcarefullyworked-outbusinessplans.
-
Themarketisthekey:booksellingisamarket-drivenindustry,wherethereisamarket,thereisan
offer.
-
Contractual freedom is essential for any business, including the bookselling industry: booksellers
maketheirowninvestmentdecisionsonthebasisofpotentialprofitability,basedonfacts,figures
and above all market trends.Every business aims to grow and retailers across the continent are
eagertobuildupbusinessmodelstoexpandtheiractivitiestocross-bordersales,atanappropriate
time,and under the absolutely indispensable condition that this does not damage theireconomic
sustainability.
EuropeanandInternationalBooksellersFederation(EIBF)
ruedelascience10–1000Brussels
Belgium
IndependentMusicCompaniesAssociation(IMPALA)
Coudenberg70-1000Brussels
Belgium
[email protected]
+32(0)22234940
[email protected]
+32(0)25033138
EIBF and IMPALA are also members ofCreativity Works, a coalition of like-minded organisations from the
cultural and creative sectors which issueda statementcommenting on the CULT opinion adopted on 24
January and urging Members of the European Parliament tokeep copyright out of the scope of the
Regulation.
We look forward to your reply and hope that the voice of thousands of music and bookselling companies
acrossEuropewillcarrysomeweightinthisdebate.
Yourssincerely,
HelenSmith FranDubruille
ExecutiveChair,IMPALA
Director,EIBF
IMPALA-IMPALArepresents around 4,000 independent music companies across Europe. 99% of music
companiesaremicro,smallormediumenterprises.Togethertheyaccountforover80%ofallnewreleases,
butalso80%ofthesector'soveralljobsandinvestment.
EIBF- The European & International Booksellers Federation represents the interests of the bookselling
industry. Its Members are National Booksellers Associations in the European Union and beyond. Their
Members,inturn,areallkindsofbooksellers:brickandmortar,onlineretailers,independentsandchains.
EuropeanandInternationalBooksellersFederation(EIBF)
ruedelascience10–1000Brussels
Belgium
IndependentMusicCompaniesAssociation(IMPALA)
Coudenberg70-1000Brussels
Belgium
[email protected]
+32(0)22234940
[email protected]
+32(0)25033138