Entertainment Services with Special Reference to MUSIC, MAS, AND THE FILM AND VIDEO SEGMENTS Submitted to: MR. HENRY S. GILL Communications Director/Team Leader CARICOM Trade Project Caribbean Regional Negotiating Machinery (RNM) "Windmark", First Avenue, Harts Gap Hastings, Christ Church Barbados Submitted by: MS. ALLISON DEMAS AND DR. RALPH HENRY December 2001 Entertainment Services with Special Reference to Music, Mas, and the Film & Video Segments i Contents EXECUTIVE SUMMARY........................................................................................................VI SECTION I 1.0 INTRODUCTION .......................................................................................................... 1 1.1 Objectives of Study........................................................................................................ 2 1.2 Delimitations and Limitations....................................................................................... 2 1.3 Outline of Study............................................................................................................. 3 1.4 Intellectual Property Rights.......................................................................................... 4 1.5 Industrial Organisation ................................................................................................ 7 1.6 Music........................................................................................................................... 11 1.7 Street Festivals............................................................................................................ 15 1.8 Film and Video............................................................................................................ 17 1.9 The International Trade In Services Agreements....................................................... 18 1.9.1 WTO Agreements ................................................................................................. 18 1.9.2 FTAA.................................................................................................................... 22 1.9.3 ACP-Cotonou Agreement..................................................................................... 23 1.9.4 The Florence Agreement and its Nairobi Protocol............................................... 24 1.10 Cultural Diversity ....................................................................................................... 25 SECTION II 2.0 INTRODUCTION .............................................................................................................. 27 2.1 Commercial Production.............................................................................................. 27 2.2 Production and Modes of Supply of Music Products and Services ............................ 28 2.3 Modes of Supply – Music Industry.............................................................................. 31 2.3.1 Sound Recordings and Live Performances ........................................................... 31 2.3.2 Broadcasts and Commercial Jingles ..................................................................... 34 2.3.3 Recorded Background Music................................................................................ 34 2.3.4 Musical Instruments.............................................................................................. 34 2.3.5 Sheet Music........................................................................................................... 35 2.3.6 Internet.................................................................................................................. 35 2.3.7 Impact on Profitability.......................................................................................... 36 2.3.8 Impact on Performance ......................................................................................... 37 2.3.9 Impact on Marketing............................................................................................. 37 2.3.10 Impact on SME’s .................................................................................................. 37 2.4 Modes of Supply – Trade in Services.......................................................................... 38 2.5 Production and Modes of Supply of Festival Products and Services......................... 39 2.6 Production and Modes of Supply of Film and Video Services.................................... 40 2.7 Industry Regulation..................................................................................................... 42 2.8 Local Content Quotas................................................................................................. 44 2.9 Local Programming and New Media.......................................................................... 46 SECTION III 3.0 INTRODUCTION .............................................................................................................. 49 Entertainment Services with Special Reference to Music, Mas, and the Film & Video Segments ii 3.1 English Speaking Metropole and the Caribbean Presence ........................................ 50 3.1.1 USA....................................................................................................................... 50 3.1.2 Canada................................................................................................................... 53 3.1.3 Britain.................................................................................................................... 54 3.1.4 Australia................................................................................................................ 55 3.1.5 Other English Speaking ........................................................................................ 55 3.1.6 Non-English Speaking Metropole......................................................................... 56 3.1.7 Caribbean Region.................................................................................................. 56 3.1.8 Rest of the World .................................................................................................. 57 3.2 Other Influences on Market Demand.......................................................................... 57 3.3 Trade Barriers and Facilitation Measures ................................................................. 61 3.3.1 Customs................................................................................................................. 61 3.3.2 Non-Tariff Measures............................................................................................. 62 3.3.3 Investment Barriers............................................................................................... 63 3.4 Facilitation Measures ................................................................................................. 64 3.5 Markets Prospects....................................................................................................... 66 SECTION IV 4.0 INTRODUCTION .............................................................................................................. 70 4.1 Folk and the Entertainment Infrastructure................................................................. 71 4.2 State Support of Culture.............................................................................................. 73 4.3 Corporate Sponsorship ............................................................................................... 77 4.4 Promotion of Trade and Commerce in Culture and Entertainment........................... 78 4.5 Internal Sector Organisation ...................................................................................... 80 SECTION V 5.0 INTRODUCTION .............................................................................................................. 82 5.1 What is Copyright?..................................................................................................... 83 5.2 What are Related Rights ............................................................................................. 85 5.3 The Objection of Protection........................................................................................ 85 5.4 International Protection.............................................................................................. 86 5.5 Collective Management and Services......................................................................... 86 5.5.1 Individual Exercise of Rights................................................................................ 86 5.5.2 Need for Collective Management of Certain Rights............................................. 87 5.5.3 Definition.............................................................................................................. 87 5.5.4 Advantages............................................................................................................ 88 5.5.5 Disadvantages ....................................................................................................... 88 5.5.6 Services Provided.................................................................................................. 88 5.5.7 Operations ............................................................................................................. 89 5.5.8 History................................................................................................................... 90 5.5.9 Collective Management and International Trade.................................................