This document summarizes a presentation on digital licensing in the music industry. It discusses how technological revolutions like the printing press, recordings, films, radio and CDs have enhanced resources and revenues for the music industry over time. It notes that the current digital revolution is faster-paced than previous ones. It also examines issues like rights fragmentation, distribution of collected royalties, and the future role of music publishers in licensing digital rights and collecting streaming revenues. Key challenges include determining who will negotiate deals with digital services and how revenues will be distributed.

1. Digital Exploitation: The impact of Recent Legal Developments in Music Publishing Join presentation Anne-Marie Pecoraro Roland Kluger

2. Theme & speakers ___________________________________________ This year’s IAEL Midem Seminar is on the future of digital licensing. Today, we are going to speak about digital licensing. Speakers: Roland Kluger: CEO of KP and SLF. Independent board member of Master Barter and in the U.S. TMV Louise Ernmark: legal counsel IPR for Sony Ericsson, Sweden Anne-Marie Pecoraro is a partner lawyer specialized in Music, Audiovisual, Intellectual Property and New Technologies law

5. 1. Digital Another Revolution !! 1.1. A revolution really? ________________________________________ This is for example the increase of what PRS (UK) collected for its members since 1997: http://www.prsformusic.com

6. 1. Digital Another Revolution !! 1.1. A revolution really? ________________________________________ This collection comes from: Source: PRS UK 8 608.2 562.1 Total -7 141.6 151.8 Recorded media 14 466.6 410.3 Sub-total performing revenue 10 146.6 133.6 Public performance 15 139.8 121.2 International 16 180.2 155.5 Broadcasting and online % 2008 ( ₤m) 2007 ( ₤m)

7. 1.2. How different a revolution ? 1.2.1. Past revolutions ________________________________________ This is not the first technological revolution… and haven’t the past ones led to an enhancement of ressources and revenues? • Gutenberg’s print • Edison’s recordings • Cinema • Radio ....TV ...... • CD • Digital …..

8. 1.2.2. Faster ________________________________________ What has changed is that the rhythm of appearance of each new kind of media Provided by R. Kluger

9. 1.3. Music Music ________________________________________________________ More medias More bigger concerts More collections …

10. 1.4. The challenge could monetise a cloud ________________________________________ Provided by R. Kluger

11. 1.5. Complex Yes !!! ________________________________________ Copyright and droit d’auteur Publishers and Collecting entities Europe, USA and what about India, China ....Africa ?

12. 2. Collection management companies 2.1. Longevity _______________________________________________ Having faced many technological evolutions, the collection management companies have been showing a noteworthy ability to adapt themselves. This adaptibility to digitizing has been for example made possible with a diversification and reorganisation of the sources of revenues for authors, composers and publishers .

13. 2.2. Questions & practical details 2.2.1. The rights’ fragmentation ________________________________________ Can a beneficiary be a member of a collection company for a type of rights and remain the owner of another type (i.e. digital rights) or give those right to a collection management company from another country? Not easily.

14. 2.2.2. The rights’ distribution & sharing out ________________________________________ After being collected, how are the rights shared out? Members’ statements TV, broadcasts channels, shows, concerts, and discs’ producers programs Surveys

15. 3. Let’s focus on Music Publishing 3.1. The future of publishers ________________________________________ What is the profile of Mr Publisher of 2020 ? What kind of deals with the writers ?

16. Plugging, Promotion nothing – that - new Provided by R. Kluger

17. 3.2. Digital Rights : a “new” -kind of- concept ________________________________________ DIGITAL Rights a mix of performances + mecanicals keepin mind streaming vs downloading collecting sound recording is statutory in the USA Publisher = emergence of a new content

18. 3.3. The 2 major issues for the publishing community ________________________________________ If the source of income will be in a context of the 360° or even better benchmark If the stream of revenue(s) will be made of ties in, kind of soft “plug in”

19. 3.3. The 2 major issues for the publishing community _______________________________________________ Collection will grow but will Publisher be part of negotiating the deals with the users Distribution rules will be decided by ? Based on ? What model? Usa: the market The law ex. France: Hadopi, Zelnick