Italy's Fimi To Give Indies Equal Voting Status

MILAN‹A restructuring of Italy's major-labels' group, FIMI, is being heralded as a "revolution" by its executive committee, which implemented a series of radical changes to the body's statutes at FIMI's annual general assembly June 30 here.
The changes come in the wake of last October's ruling by Italy's anti-trust authority that the majors' local affiliates operated a price-fixing cartel (Billboard, Nov. 8, 1997). Echoing moves at French sister body SNEP (Billboard, July 4), the new structure at FIMI gives indie members equal voting rights to the majors on FIMI's executive board. The major labels here are hoping that it will lead to mending the rift in the industry that was instigated when the major labels left the local music industry association AFI six years ago to form FIMI.
The main changes agreed upon June 30 reform FIMI's executive committee. Previously made up of representatives from the five major labels, two medium-sized labels, and three small labels, the body will now comprise representatives from the five major labels (BMG Ricordi, EMI, PolyGram, Sony, and Warner), two medium labels (RTI Music and Universal), and five smaller, independent labels (to be elected).
"This now means that the independent labels can make a proposal and have it accepted with the support of just one of the other labels, medium or major," says FIMI president Gerolamo Caccia Dominioni. "I am very happy with the changes, although it was not an easy motion to pass, requiring a lot of debate."
Caccia Dominioni, also president of Warner Music here, was re-elected at the meeting for an undetermined period, likely until December, to oversee the changes. Caccia Dominioni, who was first appointed president of FIMI in 1994, has already served two consecutive two-year terms. The general assembly also rubber-stamped the appointment of Enzo Mazza as FIMI's new director general, replacing Ernesto Magnani, who retired in April.
"I am very happy to stay on and oversee the completion of this project, which will create a FIMI better-equipped to take on the challenges of the future by being open to smaller companies," comments Caccia Dominioni, who adds that the structural changes open the way for a reunification with AFI, though he adds, "We have now created an ample opportunity for more independent labels to participate in FIMI on an equal basis."
In addition to the changes in FIMI's voting structure, membership costs for smaller companies are being reduced. The thorny issue of the division of mechanical and parallel rights is also being tackled. AFI has been lobbying for an independent body to collect and distribute all of these royalties, until now managed by FIMI and AFI for their respective members. FIMI has announced that it will support the establishment of an independent body to manage these rights, a measure proposed by Italy's antitrust authority in its ruling against the majors.