NMPA_International_Survey_12th_Edition

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APPENDIX C SPAIN UPDATE <strong>NMPA</strong> INTERNATIONAL SURVEY TWELTH EDITION APPENDIX C: U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES Sales in Spain were slightly up in 2002, according to IFPI,which reported a 1.6% increase in units to 80.5 million and a corresponding rise in value of 0.9% to i685.1 million ($644.8 million). Authors and publishers society SGAE reported its smallest percentage rise in revenue for a decade during 2002, with collected royalties increasing by a mere 2% to i255.4 million ($273.3 million).Revenue from international rights fell by 15.2% in 2002 to i23.8 million ($25.4 million),while the group pointed out that the average increase in rights collection during the past five years is still 12%. Authors’ royalties collected from live concerts in Spain increased by 25.5% to i13.1 million ($14 million). And for the first time,SGAE published its revenue generated from Internet downloads and ring tones; the two areas generated a total of i1.18 million ($1.26 million), up 62% on the previously unpublished amount in 2001. Meanwhile, the group has attacked a new intellectual-property law being drawn up by Spain's culture ministry, maintaining that the legislation would cost its members up to i10.4 billion ($11.5 billion),along with 25,000 jobs and the closure of 4,000 small and medium companies. SGAE further said the proposed law could lead to the group’s canceling its annual Premios de la Musica awards ceremony, closing its seven international offices, and ending both its system of scholarships and its music dictionary publishing operations and other cultural studies. The new law would in effect cancel the existing royalty on blank CDs and cassettes and exempt bars and hotels from paying the public entertainment tax. The draft bill, purportedly aimed at bringing Spain in line with the European Directive on authors’ rights, seeks to create an Intellectual Property Committee that among other things would set the amount businesses pay for authors’ rights.The bill has also brought strong opposition from artists’ association AIE, music publishers’ body AEDEM, music authors and composers association ACAM, professional music publishers organization OPEM,and symphonic music publishers association AEEMS. Under pressure from the music industry and others, the Spanish government has promised tough new antipiracy measures. The promise came from Justice minister Jose Maria Michavila during a “Fraud Against Intellectual Property” seminar held in Madrid on November 20-21, 2002,organized by SGAE.The society presented a survey during the seminar claiming that nearly 23% of all CDs bought in Spain are pirated (not including domestic downloading), and that 62% of people who buy illegal CDs never buy legal sound-carriers. Michavila told the seminar that, effective April 28, 2003,a modification of Article 282 of Spain’s criminal justice law doing away with the need for a prior complaint to be lodged before acting against street sellers would be enforced,and that the penal code would be changed to include “aggravating circumstances,” such as the use of minors or membership of a criminal organization. SGAE maintains that 40 music-related businesses closed in Spain in 2002 because of piracy, adding that copyright generates i1 billion ($1 billion) a year in Spain, of which SGAE administers 25% in terms of authors’ rights.SGAE’s survey estimates that 20.7 million illegal CDs—or 22.9% of all CDS—are sold in Spain per year.According to the group, 23 million blank CDs were shipped in Spain in 1998,with that number escalating to 138 million in 2001, with most of those used in street piracy or home downloading.The report also found that Spanish-language CDs account for 69.1% of all illegal sales, while English-language repertoire accounts for 28.6%. In the legal sales market, 56.3% of repertoire is in Spanish,32.4% in English,and 11.3% is instrumental. The rampant piracy problem has had noticeable effects on the Spanish music industry landscape. Labels’ organization AFYVE canceled its annual Premios Amigo awards event to protest the high level of piracy, and roughly 85% of Spain’s music radio stations played no music for one hour on June 11,2002 as part of an anti-piracy “Day Without Music” protest organized by AFYVE.AFYVE, SGAE, and artists association AIE have been joined by retail associations and other industry bodies in “Mesa Antipiratería,” a committee to fight Europe’s worst piracy situation. At its May 7, 2002 general assembly, SGAE’s 64,000 members voted 80%-20% to finance a three-year, $5.8 million anti-piracy plan by paying an additional 0.51% from rights due to them in 2002—rising to 0.72% in 2003 and 2004—above the 15.43% they were paying toward SGAE administration costs. The 30-point SGAE plan includes funding public-awareness advertising; lobbying for legislative changes to allow fast-track court cases and heavier penalties; and commissioning academic studies to examine the damage that piracy does to the cultural sector. Meanwhile,members of the Spanish music industry have grown increasingly critical of the government’s lack of commitment to helping sell domestic music abroad. While such countries as France, Belgium and Holland maintain official cultural export offices, Spain has lagged behind. On February 25, 2003, the Director General of the World Intellectual Property Organization (WIPO), Dr. Kamil Idris, and the Spanish Vice-Minister for Education, Culture and Sport, Mariano Zab’a Lasala, signed a memorandum of understanding (MOU) agreeing on the growing economic and cultural importance of copyright and related rights industries and stressing the need to generate greater public awareness of and respect for copyright and related rights. The MOU, which covers training, public outreach and information exchange, adopts a broad approach to copyright by stressing the importance of the development and management of cultural industries as well as public education and outreach and further provides a framework within which to promote copyright and related rights.It also seeks to support efforts to develop the copyright and related rights industries of Latin American and the Caribbean countries. 58
APPENDIX C The Main Organizations of the Spanish Music Industry Are: Sociedad General de Autores y Editores (SGAE) OFFICER: President: Teddy Bautista SGAE is a copyright management society comprised of nearly 68,000 music, audiovisual and dramatic creators. Its main mission is the protection of its members rights for the use of their works throughout the world. These uses include mechanical reproduction, public performance, synchronization and many other forms of musical distribution.This process culminates in the collection and subsequent royalty distribution to its members. The organization operates Fundación Autor as a promotional foundation which covers music, theater, dance and audiovisual media, as well as the annual Rock en N concert tour and a biannual Latin jazz competition. SGAE also operates the non-profit Sello Autor and Factoría Autor record labels as a means of exposing talent to wider audiences, and has published several music reference books. SGAE Fernando VI, 4 Apartado 484 28004 Madrid, SPAIN Tel: 34 91 349 95 50 Fax: 34 91 310 21 20 Website: www.sgae.es E-mail: sgae@sgae.es Asociacion Fonografica y Videografica Espanola (AFYVE) OFFICER: President: Carlos Grande AFYVE is Spain’s record label association, with 62 member companies, which account for about 1,800 label imprints that represent over 90% of the Spanish music market. AFYVE Calle Pintor Juan Gris, 4 2nd Planta 28020 Madrid, SPAIN Tel: 34 91 555 8196 Fax: 34 91 555 9592 E-mail: cgrande@mail.alhsys.es Artistas Interpretes o Ejecutantes (AIE) OFFICER: President: Luis Cobos AIE is Spain’s artists’ association, and has been instrumental in promoting artists of all genres and in the fight against piracy. AIE Principe de Vergara 9 2nd Planta 28001 Madrid, SPAIN Tel: 34 91 781 9855 Fax: 34 91 781 9555 Website: www.aie.es E-mail: aie@aie.es <strong>NMPA</strong> INTERNATIONAL SURVEY TWELTH EDITION APPENDIX C: U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES 59
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12th e d i t i o n NATIONAL MUSIC P
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Preface The National Music Publishe
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Executive Summary This is the NMPA
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Following a solid 14% growth in rev
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