Welcome to the first of what will be a regular piece in Antenna focussing on happenings from the Recordings & Online Services department. We hope to bring you background information on the issues that are current to the department and that may either be of general interest or helpful to you in your jobs.

Who are we?
We’ll provide more information about key staff in the department in future editions. But for the time-being here’s a brief reminder of the main areas we are responsible for:

• licensing of category 2 and 3 record labels (the non-majors);
• licensing of online, mobile and download services;
• licensing of other business-to-business music services (e.g. background music and inflight services);
• licensing of mini-blanket licences as approved by the AMCOS Board;
• the Clearance Facility; and
• control claims from the Category 1 (major) record labels.

Online Reference for Digital Music Services
APRA|AMCOS have filed a new scheme for digital music services (commonly called digital download services) in the Copyright Tribunal to provide a combined APRA|AMCOS tariff of 12% of retail price or relevant gross revenue (ex-GST), as the case may be.

APRA|AMCOS have licensed digital service providers for the relevant reproduction and communication rights that are exercised in a digital music service, because the DSPs, rather than the record labels, are liable for those two separate rights under Australian law.

A number of DSPs have filed to be made a party to the reference including Apple and Telstra. The deadline by which interested persons can apply to become parties to the reference has now passed. We do not expect that the Tribunal will hear the matter until some time late in 2008. Licensees will continue to pay at their existing rates until the Tribunal makes its determination.

New Zealand PPA
A new licence scheme, which we have negotiated with RIANZ (Recording Industry Association of New Zealand) and IMNZ (Independent Music New Zealand), covering physical record sales in New Zealand will come into operation from 1 October 2007. Key points of the agreement include:

• standardisation of most terms between Australia and New Zealand including, minimum fees, retentions, audit procedures, format types, exports and the treatment of medleys;
• individual licences with record labels in place of an industry-based agreement;
• licence covers formats previously covered under separate arrangements (i.e. CDs, DVDs, mixed formats such as dual discs and karaoke);
• increase in the royalty rate for audiovisual productions from 5.0% to 6.25% of PPD;
• end of AMCOS post-box service: from their December sales quarter accounting, NZ Category 1 labels will now pay publishers direct; and
• a generally modernised agreement.

Ringtone & Download Campaign Licensing
You may be aware that the Board has previously approved AMCOS to issue a licence for campaigns that giveaway ringtones or digital downloads in certain limited circumstances. These conditions include that a large number of works are available for download and that the works themselves are not used to promote the campaign. The popularity of such campaigns has varied over time – but at the moment seem to have greater currency. Of course, in any event, most of these campaigns will require an APRA licence for the separate communication right.

Suggestions for future news topics would be welcome.
Until next time …
Richard Mallett
Director, Recordings & Online