26 Music Week 28.06.13 REPORT NEIGHBOURING RIGHTS
the money may go to the label.” Off Limits’ Giordano Pignagnoli points to another far simpler complication of labels taking on Neighbouring Rights directly, saying: “Artists often change label, and the current systems are artist oriented, not track oriented. It’s not possible for a label to collect part of the repertoire of a specific artist and for another label to collect another part.” Premier Muzik’s Olivieri adds to the case for
rights agencies rather than relying on a label without a dedicated collection operation or going it alone entirely: “It’s in our best interest to turn over every rock to find every penny,” he says. “Everyone is always concerned with the big boulders, the thousands of dollars and they keep forgetting the pennies. At the end of the day it’s very important for us to not only look for the boulders but also the sand.”
examples territories like Australia and India where some labels collect the full 100% of available Neighbouring Rights monies and fail to pass even a portion through to performers. This problem can be combatted with tight
administrative procedures, copyright databases and track by track reconciliation along with the necessary legal knowlege. Teves warns that, if those are not in place, “there may be an inherent conflict between a label and artists because if, for example, the wrong country of recording is listed, the artist may not qualify [for Neighbouring Rights] and all
ABOVE
Brit power: Adele is among the names that PPL collects Neighbouring Rights for
All Right CEO Piot adds: “The expertise in
working together [with a collection agency] earns [performers] more income in the end. Just like an artist requires a business manager, a finance manager or a road manager - they are all there for a purpose - to do the work while the artist performs.” PPL’s Leathem says while artists going after
Neighbouring Rights directly is possible, as with all business decisions, a cost/benefit analysis has to be made. “It’s a matter of choice,” he tells Music Week. “The major companies have their own internal matrix agreements and redistribute their money through their own affiliate system, so they don’t take
advantage of any international collection service, that’s something they do themselves. “Some of the larger indies like Beggars have decided to go and invest the effort of going to and collecting from each territory directly. “Outside of the larger organisations it’s probably
not going to make sense to set up the whole collection mechanism and manage the multiplicity of different countries, building relationships and knowledge of how their systems work compared to tapping into PPL. “You can join PPL for free and, if your
recordings are used overseas, we will collect that money for you and deduct our actual costs of collecting that money,” Leathem explains. “For example, if we’re collecting from Holland, we will deduct 2% of those collections.” Regardless of the approach performers and
master rights-owners take, the hope is that, over time, Neighbouring Rights systems will become more efficient and more integrated across the globe with more and more territories opening up to payment and co-operation. “On the recording side there’s been enormous
work put into this by record companies and the IFPI,” says PPL’s Leathem. “They’ve done a really good job of realising the importance of this sector and trying to get as many countries to have rights and collections in place - trying to grow the market. “The projections I’ve seen for the next few years show healthy growth anticipated around the world.”
www.musicweek.com
Established in 1986, Fintage House is now market leader in developing and implementing tailor-made, transparent and pro-active solutions for international entertainment industries.
Fintage has central offices in the Netherlands, Hungary and London with representative offices in the UK, USA, Canada, Australia, Spain, France, Italy and Japan.
Our music division specialises in the collection and management of Music Publishing Rights and Neighbouring Rights for Record Labels & Artists.
Our music clients range from iconic stars from all areas of the business to up and coming artists, singers and songwriters as well as owners of film/tv music rights.
‘As a global independent company, Fintage House is committed to giving clients fast, transparent and ac curate rights collections worldwide’
www.fintagehouse.com Committed to Rights Ernst Jacob Bakker
Executive Vice President Neighbouring & Digital Rights Email:
ernstjacob.bakker@
fintagehouse.com
Maria Forte
UK Representative Email:
maria@m40music.com
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