U2 Manager: ISPs Strangling Music Industry

From Patrick Frater, Variety:

U2 manager Paul McGuinness launched a blistering attack on the world's Internet providers Wednesday, accusing them of strangling the music industry.

Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to "shoplifters" and accused them of "turning their heads" away from the music industry's troubles and "rigging the market."

"The recorded music industry is in a crisis, and there is crucial help available but not being provided by companies who should be providing that help -- not just because it is morally right, but because it is in their commercial interest," McGuinness said.

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International Labels Push For Baidu Boycott Over Music Piracy

From Dow Jones:

Chinese and international record companies called Tuesday for an advertiser boycott of Baidu.com Inc., the country's leading search engine by search volume, over complaints of music piracy.

The statement was signed by record companies including Universal Music Group, EMI Group PLC, Sony BMG Entertainment, Warner Music Group Corp., and local Chinese companies.

The group of companies and associations has sent a letter to advertising companies asking them "to carefully consider whether they should continue to place advertisements on pirating media," the statement said.

Baidu's search engine provides links to thousands of sites that carry unlicensed copies of music. Record companies have filed a series of lawsuits against the site in
Chinese courts.

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Report: Japan to Strip Internet for Illegal Downloaders

From Yahoo News:

TOKYO (AFP) - Japanese companies plan to cut off the Internet connection of anyone who illegally downloads files in one of the world's toughest measures against online piracy, a report said Saturday.

Faced with mounting complaints from the music, movie and video-game industries, four associations representing Japan's Internet service providers have agreed to take drastic action, the Yomiuri Shimbun said.

The newspaper, quoting unnamed sources, said service providers would send e-mails to people who repeatedly made illegal copies and terminate their connections if they did not stop.

The Internet companies will set up a panel next month involving groups representing copyright holders to draft the new guidelines, the report said.

Company and government officials could not immediately be reached for comment on the report Saturday.

The actions would be among the strictest in fighting online piracy.

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China Companies Sued Over Music Piracy

From BBC:

The trade body representing the global record industry has launched piracy lawsuits against China's biggest internet companies.

Firms targeted in the legal action include Baidu, China's largest Internet business, and Yahoo China, in which US giant Yahoo has a 44% stake.

The International Federation of the Phonographic Industry says the firms offer direct links to pirated music.

It estimates that 99% of all music files in China are pirated.

As a result, the trade body says the annual legal music market in China accounts for just $76m (£38m).

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U.K. Shops Fees Rise to Play Music

From Richard Tyler, Telegraph:

Shop owners face inflation-busting rises in the cost of playing music to entice customers into their stores from Tuesday.

The smallest shops - those up to 100 sq m - will see the royalty payments they have to make each year to play background music increase by 13pc. Those with larger premises face slightly smaller rises, with, for example, a 1,001 sq m shop now paying £495.50 a year to play CDs or the radio, up 6pc.

The Performing Right Society, which represents over 50,000 songwriters, composers and music publishers, said that increased shop opening hours and the growing the importance of music "in creating a brand and attracting customers" justified the price rises. It said it also planned to review the tariffs charged to other workplaces, like offices, pubs and restaurants.

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Spanish Parliament Approves Digital Tax

From Howell Llewellyn, Billboard:

The Spanish music industry received a belated $46 million Christmas present on Thursday when Parliament approved a new digital tax in its last full session before the general elections on March 9.

The so-called "digital canon" will apply to MP3 and MP4 players, mobile phones with MP3 recording capacity, and USB memory cards, and is expected to come into effect Jan. 15. It will apply a small charge to digital gadgets capable of recording music, film, photocopies, or any other form of intellectual property.

The Spanish government estimates that of the €100-115 million ($144-166 million) of "canon" that will be collected per year, some €32 million ($46 million) will go to the music industry. The figure is 100% greater than the current music industry "canon" charged on blank CDs, DVDs, CD and DVD recorders, printers and Xerox machines.

Labels' body Promusicae president Antonio Guisasola says, "this is a victory for the music industry, it is justice in the making. The [intellectual property] law forces us to live with private copying [of music by consumers], but without being compensated for loss of income [through non-purchase of music]. Now this will change."

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French Labels Gets Tough On Piracy

From Aymeric Pichevin, Billboard:

French independent labels collecting society SPPF has warned it would no longer tolerate Internet firms using the music of its members without authorization.

In a statement issued Dec. 17, the organization stated, "For years, SPPF has been observing that online music services are launched prior to any negotiation to get right holders' authorizations."

This strategy, acknowledges SPPF director general Jérôme Roger, complements the groundbreaking agreement signed by French government, right holders and ISPs in November to prevent online piracy. "This agreement is designed to fight individual infringements," explains Roger. "Here we fight illicit reproduction from professional services."

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PlayBOX to Acquire Leading UK Music & Entertainment Distributor, Delta Leisure Group

From CNN Money:

PlayBOX (US) Inc. (OTCBB: PYBX) is pleased to announce the signing of a letter of intent dated December 14, 2007 for the proposed acquisition of 100% of the issued capital of U.K based Delta Leisure Group Plc ("Delta") an established distributor of an extensive catalogue of major music CD's, DVD's and video's throughout the UK and Europe. Playbox is also pleased to announce the appointment of Mr Harry Maloney to its Board of Directors from December 14, 2007.

Delta, whose registered office is in Orpington, UK, holds 75% of the shares in Delta Music Limited. Delta Music Limited, has two subsidiaries: Delta Home Entertainment Ltd., and Delta Music Merchandising Ltd. Since its inception in 1993, the Delta group of companies (the "Group") has become one of the most recognized manufacturers and distributors of entertainment products in the UK with client distribution outlets including Universal, Asda, Tesco, Aldi, Sit-Up TV, TK Maxx, Toys-R-Us and Sainsbury's. In addition, Delta Music Limited was an early mover in the growing on-line digital download industry.

PlayBOX is a UK based technology company with over three years experience at offering online shop facilities to the music industry. We specifically target emerging artists and small-to-medium sized record labels who have not got the present knowledge or resource to set-up and manage their own online shop/distribution channel PlayBOX offers this to them pool services like hosting, streaming, e-commerce and digital rights management (DRM) together with the online experience and know-how to offer a cost-effective and professional platform on which to sell and promote their music products from.

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IFPI Wants EU-Wide ISP Piracy Controls

Another indicator that momentum appears to be building both in the U.S. and abroad for ISP intervention.

From Alexandra Osorio, Digital Music News:

If music fans are always stealing online, then why not simply block illegal destinations and yank offending accounts? The idea seems like heresy to most - including ISPs - though major content holders are pushing for more stringent controls. Just recently, label trade group IFPI advocated strict, ISP-based controls in a memo to European lawmakers leaked by the Electronic Frontier Foundation (EFF).

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Global 360: Warner Buys Finland's HMC

From Lars Brandle, Billboard:

Warner Music Nordic has acquired the multi-faceted Helsinki Music Company, a Finnish firm with operations in recorded music, merchandising, music publishing and touring.

With immediate effect, HMC becomes a wholly-owned division of Warner Music Finland. Financial details were not disclosed.

The deal, unveiled today, follows the appointments of HMC founders Niko Nordström and Asko Kallonen as GM and A&R director of Warner Music Finland, respectively, in October. At that time, Warner Music Nordic president Jonas Siljemark claimed the two executive appointments ushered-in the company's shift toward a 360-degree business model.

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International

BBC:

Iran targets 'obscene' rap music

The Iranian government has announced a campaign against rap music which it considers obscene.

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Indian music labels gear-up for online sales

Business Standard:

Music industry bigwigs like Sony BMG, Saregama India, T-Series have made a total of over 5 million tracks available on their own websites and other portals for full song downloads in a bid to monetise their content through the internet,
and fight piracy.

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