Would allow sale, pricing without composers' OK

Music industry representatives have expressed outrage over draft revisions to the nation's copyright law that would permit recorded works to be sold and licensed by management companies without authorization from composers.

Released on the National Copyright Administration's website at the end of March, the draft says musical works can be reproduced without direct authorization from copyright owners at prices decided by the administration itself.

Musicians and record company executives are outspoken in their opposition to the proposed changes.

"Why compose good songs if you are not in a position to price your work and anyone can use it without authorization?" Song Ke, vice-chairman of the record committee at the China Audio-Video Association, told the China Youth Daily.

"If this draft is passed, songwriters will lose motivation for creation," Song said. "Lacking that motivation, the foundation of the music industry will collapse."

Well-known musician Ke Zhaolei wrote on his micro blog that the provision "is equivalent to taking away core assets of music production firms and copyright agencies, which will in the end result in an industry monopoly".

Composer Gao Xiaosong added his opposition to the chorus, remarking that the revised draft damages the personal interests of creators.

Under the new rules, copyright owners and distributors would be required to share revenues with collective management groups that will take a big cut of royalty payments, said Gao Dongxu, a senior researcher in the digital entertainment industry.

Zhou Yaping, CEO of New Run Entertainment, said collective management organizations are the largest beneficiary of the proposed changes, "having taken over some of copyright owners' rights".

But Liu Ping, vice-secretary of the Music Copyright Society of China, told China National Radio that payment through collective management organizations is common worldwide and helps enforce copyrights.

Buyers can be hard pressed to find individual songwriters, Liu said, which creates a need for collective management groups.

Yet Li Shunde, deputy director of the Intellectual Property Center at the China Academy of Social Sciences, told China Daily that domestic collective management groups differ from overseas peers that have lower fees and mature operations.

Industry insiders said major criticisms of China's music management collectives include a lack of transparency, high costs, monopolistic tendencies and a cozy relationship with regulators.

There are now just two major collective management organizations in the domestic music industry - the Music Copyright Society of China and China Audio-Video Copyright Association.

There should be more such groups to provide additional options, Li said, adding that "competition helps improve services".

He noted a tendency to increase the power of government departments in the latest round of intellectual property law revisions, but said "it is better to resort to market mechanisms if government involvement is not necessary".

NCA officials said the draft was released to solicit opinions, which they will respond to publicly in the last half of the month.

Yan Xiaohong, deputy general-director of the NCA, said it is good to attract attention and receive suggestions from various sides.

"We will weigh them all to see what can be put into the new law in a bid to conform to the interests of the public and our nation," he said.

wangxin@chinadaily.com.cn

(China Daily 04/11/2012 page17)