U.k. Biz Gets Gov't Support On Copyright

LONDON‹The British government is united in trying to secure better copyright protections for the U.K. record industry in the European arena.
Fears that the telecommunications companies and Internet access providers would be a louder voice in U.K. politicians' ears than the music business are not founded, says Chris Smith, secretary of state for Culture, Media and Sport.
Smith, whose department oversees the music industry, told the annual general meeting of the British Phonographic Industry (BPI), held July 8 here, that the government is acutely aware of both the new business potential and the piracy threat raised by the digital revolution. He added that his department took seriously its role in facilitating the copyright protections that the music industry needs in the online environment.
Smith noted that the main thrust of those copyright protections is coming via the Copyright Directive now passing through the European Union's political arena. He said he shares the record industry view that the document in its present form is deeply flawed (Billboard, July 11). The Copyright Directive is intended to bring into EU law the provisions of the World Intellectual Property Organization (WIPO) treaties.
Smith also revealed that the British government's case for reforming the draft Directive is being made by the Department of Trade and Industry (DTI). The telecommunications industry, one of the largest industries under the DTI's aegis, is the music industry's main opponent in the debate over the final form of the Directive. As such, the telecom companies have been lobbying hard for the DTI to make changes in their favor. The telecom industry is far bigger than music‹the main telecom company here, BT, has profits equivalent to three times the record companies' wholesale revenues‹but Smith says the DTI is not being swayed by its arguments.
Speaking exclusively to Billboard after the meeting, Smith says both his culture department and the DTI are on the same side. "There is no distance between us," he says. "The position of wanting the Directive to ratify the [WIPO] treaties is a common one between my department and the DTI."
The provisions of the WIPO treaties give labels many of the protections they require in the digital environment. However, record companies feel that the Directive as it stands fails to meet all the requirements of the WIPO documents.
The BPI annual meeting marked 25 years since the organization was incorporated, according to director general John Deacon. He noted that the body had grown from 63 members at the outset to more than 200 today, the overwhelming majority of which are indies.
Returning to a theme initiated by chairman Rob Dickins at last year's annual meeting (Billboard, July 12, 1997), Deacon said the indies were essential to the health of the BPI. "It is the diversity of the indie members which adds so much strength," said Deacon. "We could not continue our work without them."
Dickins resounded the theme in his speech at this year's meeting, pointing out that the BPI had specifically addressed the indies' largest area of concern, their trading relationship with publishers' body the Mechanical Copyright Protection Society, and had set up a liaison committee between labels and publishers' representatives to address the issue. The first meeting is due later in the summer.
It is believed that Deacon and Dickins have pursued the indies theme because of their desire to avert a split in the BPI ranks. Sources say that leading figures in the indie sector have been discussing the possibility of founding an organization for indie labels. It is understood that they have considered a complete split from the majors and a compromise arrangement whereby the new grouping would be an arm of the BPI.
Neither side in the issue has made any public comment on the matter.