thereport ISSUE 418 | 11 OCTOBER 2018 Article of faith After Article 13 was approved by the European Parliament, what happens next? in association with SECURE YOUR SandboxSummit TICKETS NOW! CLICK HERE... #MarketMusicBetter AT THE LONDON ART HOUSE | OCTOBER 31 2018 Sandbox Summit LONDON is the only one-day Check out the latest agenda here. Speakers include: conference that is entirely dedicated to music marketing. Callum Caulfield Head of Marketing, Atlantic Records Patrick Ross Director, Digital Strategy, Music Ally Tickets will sell out soon, so be sure to secure your Gemma Reilly Director, UK Marketing, BMG Dan Griffiths Director, Digital Marketing, The Orchard place now to be part of this essential event in the music Sam Hill Director, Digital Marketing, BMG Nikoo Sadr Director of Marketing & Sales, marketing calendar. Rachel Stoewer Head of Digital, Cooking Vinyl Records Nordics, The Orchard Chris Garrett MD, Decimal Kara Mukerjee Head of Digital, RCA Label Group UK Brooke Salisbury Head of Marketing, Domino Hannah Neave Head of Global Marketing & Artist The event includes: Stephen O’Reilly Director, ie: Music Development, TAP Management l Label case study presentations from Atlantic (Callum John Leahy Director, Ignition Records Live McKay Commercial Director, Caulfield) and BMG (Sam Hill and Gemma Reilly) Duncan Byrne Digital Marketing Manager, Universal (Norway and Sweden) Involved Group David Mogendorff Artist Content l Keynote presentation from YouTube’s David Claire Mas Head of Digital, Island Records and Services, YouTube Mogendorff Lars Ettrup CEO & Co-Founder, Linkfire l Panel discussions on the tensions between labels and managers; the pros and pitfalls of using the Be sure to secure your tickets asap here: latest tech in marketing campaigns; the merits of https://SandboxSummit.lnk.to/tickets bringing advertising in house and a special For larger group sales and sponsorship opportunities campaign surgery session please contact [email protected] l Stu Dredge presents Game On: Fortnite, Esports and the Opportunities for Music We look forward to seeing you there. l A chance to vote on the Music Ally Campaign of the Year Award featuring AWAL, Asylum/Atlantic, Polydor, RCA and Republic/Island l Aftershow drinks reception* * Our aftershow drinks reception is kindly supported by The Orchard 1 In this report, we’ll explain what happens next: the ‘trilogue’ process ISSUE 418 11.10.18 REPORT ARTICLE 13 that now takes place to hammer out the text of the final legislation, before another vote in the European Parliament and then implementation by EU member states...” The music industry celebrated Article 13’s s it turned out, the vote wasn’t even cover even short snippets of – for example progress, but what does it mean close. 438 members of the European – newspaper articles.) AParliament (MEPs) voted in favour In this report, we’ll explain what and what happens now? of Article 13 in the proposed new European happens next: the ‘trilogue’ process copyright directive on 12 September, with that now takes place to hammer out 226 voting against and 39 abstaining. the text of the final legislation, before It was a notable victory for the another vote in the European Parliament music-industry bodies that had been and then implementation by EU member lobbying in support of Article 13, which states. will create an obligation for internet music:)ally has also been talking platforms with large amounts of content to some of the music-industry bodies Safe harbour uploaded by their users to strike the that were most involved in the lobbying necessary licences, and use filtering process – the IFPI, IMPALA, BPI and PRS technology to identify and block (if for Music – to get their views on what the required) unlicensed copyrighted content. crucial vote means for this industry; on the Talk to the leaders and policy heads at campaigning that led up to it; and on what evolves those bodies, and you’ll realise that the happens next. vote – and particularly the margin of victory We’re well aware this is one side of the – came as a genuine surprise. They woke story: we’ll be following up soon with a up on the morning of 12 September hopeful report talking to some of the tech-industry that months (or even years) of lobbying bodies and activists who campaigned had persuaded MEPs of their case. against Article 13, to understand what their Yet they also woke up worrying that take is on the situation. This issue focuses Article 13 could get voted down, following on the response from the music trade an equally-passionate lobbying campaign bodies, which were understandably more from tech-industry bodies and activists willing to talk. We have summarised the against it. postvote reactions from the tech industry Passionate, but controversial: an online later in this Report. campaign that battered MEPs’ inboxes with We’ve also dug in to one of the key emails of protest wasn’t matched by large unsettled questions with the copyright crowds at physical-world protests, leading directive: the question of how small a to accusations of spamming. company has to be to qualify for exemption As it turned out, the online campaign from Article 13’s requirements – and how may have steeled MEPs to vote in favour ‘small’ should be defined. of Article 13 (and the directive’s equally- And – brace yourselves, British readers – controversial Article 11, which focused on we’ve asked what the upcoming exit of the report requiring internet services to pay ‘press UK from the European Union means for the publishers’ for reproducing their content – likelihood of the copyright directive being the so-called ‘link tax’ that was predicted to implemented there, post-Brexit. :) the 2 ISSUE 418 11.10.18 REPORT ARTICLE 13 They have to go away, mix it all together, and work out what recipe they like best. These type of discussions can go fast or they can go slow: it depends how far Next step: the ‘Trilogue’ apart everyone is...” – Helen Smith, IMPALA The 12 September vote was just a EU member countries. And the third is the “Really, their mandate is to negotiate European Parliament, which is the 751 MEPs some way between the texts that are there, step in a longer legislative process elected in those member states, from a not to come up with a new direction or a variety of parties. new set of texts,” he says. As with other legislation, the European “User uploads? Liable for copyright copyright directive is essentially three draft and take a licence. All three texts are very texts (or ‘negotiating mandates’) – one from similar, so we can’t be in the situation now each institution. The vote on 12 September where that’s not dealt with,” says Frances was for the European Parliament to Moore, chief executive of IFPI. approve its negotiating position, with the Once the trilogue is concluded, there will Commission and Council having previously be another vote in the European Parliament set out theirs. to approve the final, agreed text. That’s The trilogue, which kicked off earlier this unlikely to happen until 2019, which month, is when the three institutions come introduces an element of tension, since together to nail down the final version of there will be elections for the European legislation. Parliament in May. “They have to go away, mix it all together, “We have a time limit to get this through and work out what recipe they like best. in,” says Moore, suggesting that one risk is These type of discussions can go fast or of delays to the vote which push it beyond they can go slow: it depends how far apart the lifespan of this Parliament. “The risk we everyone is,” says Helen Smith, executive run is that somebody tries to run this out chair of independent body IMPALA. of time. There are already those suggesting An important thing to understand they’re going to try to postpone,” she adds. about this process as it relates to the Another risk from the perspective of the copyright directive and its Article 13 – the music bodies is that MEPs fretting about three institutions are already broadly their re-election chances feel pressured n the immediate aftermath of the know about if you weren’t embedded in in agreement about the need for UUC to change their vote, although it would be European Parliament vote, you’d have the world of European policymaking. New (user-uploaded content) services to require highly unusual for the European Parliament Ibeen forgiven for thinking that Article laws in Europe are the result of work by licences, and to put technology in place to reject legislation that had been through 13 – and the wider copyright directive – had three institutions. The first is the European (filters) to identify copyrighted content that the trilogue process. been passed in to law. It was being hailed Commission, which is the EU’s politically- is uploaded. Once approved, that’s not the end of as a victory for the creative industries, after independent executive arm, responsible “On this matter, they’re probably the story: it will then be the job of the EU’s all. Yet the vote was merely approval by the for drawing up the initial proposals for new going to find some common ground, member states to implement the copyright report Parliament for the legislation to move on to legislation. I would think, fairly quickly,” says Smith. directive, which (again, like other European its next stage: the ‘trilogue’. The second is the European Council, Ian Moss, director of public policy at the legislation) they have some ability to It’s not a concept you’d necessarily which consists of the heads of state of the BPI, agrees.