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RIDA 203 | 01-2005

Doctrine

Agreements of reciprocal representation of collecting societies in the internal market - The related rights of phonogram producers as a test case (simulcasting)

MESTMÄCKER, Ersnt-Joachim

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The EC Commission claims far reaching implications of its decision on simulcasting for both the legal position of collecting societies in the internal market and for competition law in general. For collecting societies the case highlights issues of licensing of copyrights and related rights on the internet. For competition law in general the case concerns the commission's power, when applying Art. 81 clause 3, to impose conditions and requirements. The decision's precedential weight is however limited because it relies heavily on the specific interests of the phonographic industries' collecting societies and on stipulated facts. The rationale of the decision is therefore not applicable to other collecting societies in the internal market. The requirement, accepted by the parties to the case, to separate a copyright royalties from management fees and to reveal allocated management costs to their potential licensees would be incompatible with competition law if imposed without the consent of the parties.