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French finance minister Francis Mer is expected to put the European music industry's case for a lower value-added tax (VAT, or sales tax) rate on recorded music on the agenda of a meeting of the European Union finance ministers June 3 in Brussels. The International Federation of the Phonographic Industry has frequently pushed for the VAT on music—currently set at between 15% and 25% across the EU—to be brought closer to the 5% minimum rate carried by other cultural products. The French government has been particularly aggressive in the push to reduce the VAT on music. François Léotard, the French government's envoy to the EU, has held a series of meetings recently aimed at convincing other member states to endorse the initiative. French Minister of Culture and Communications Jean-Jacques Aillagon says finance ministers from Spain, Greece, Italy, Luxembourg, and Belgium have assured Léotard of their support. Emmanuel Legrand



Two fixtures on the European album sales charts underline their immense popularity with new Platinum Europe Awards for March from the International Federation of the Phonographic Industry. Eminem's The Eminem Show (Interscope) advances to 4 million shipments, adding the latest 1 million in only three months. Norah Jones' Come Away With Me (Blue Note/Parlophone) is progressing even more swiftly, rising to 3 million shipments only a month after hitting 2 million. Queen's The Platinum Collection, comprising its three greatest-hits volumes (previously individually released in 1981, 1991, and 1999), crests the 2 million European total. Virgin act Manu Chao, who became the first French artist ever to top the Music & Media European Top 100 Albums list in June 2001 with Proxima Estacion: Esperanza (Next Station: Hope), sees the set reach European shipments of 2 million. PAUL SEXTON



Singapore-based digital-music service provider Soundbuzz is to create and maintain a new Web site for Warner Music Asia at warnermusic.com. The site, which will be customized for individual countries or markets within Asia, will initially be launched in May in Japan and South Korea. Singapore, Malaysia, Indonesia, Hong Kong, the Philippines, Thailand, and China will follow by the end of the year. The site will offer audio samples of new releases, music downloads for sale, reviews, and updates of the label's artists. Warner Music Asia Pacific confirms Soundbuzz was the only bidder for the contract. Under the undisclosed terms of the investment and services contract, Warner Music International now becomes a minority shareholder in Soundbuzz. Soundbuzz also provides digital-music services to Nokia, the Times of India Group, and Channel V in Asia-Pacific. STEVEN PATRICK



Italy has become the third European Union nation, after Greece and Denmark, to adopt the EU Copyright Directive into domestic law, effective March 28. The Italian cabinet has rubber-stamped legislation, prior to it becoming law within the next few weeks, which incorporates key parts of the directive. The new legislation introduces limitations on private copying and outlaws peer-to-peer file sharing. FIMI director general Enzo Mazza says, "We are extremely satisfied, not only with the fact that the Italian government has approved the EU Directive, but also with the way it has introduced legislation that closely adheres to it." The measure in the new legislation that has attracted the most attention, however, is an increase in the copyright levy on blank CD-Rs. Despite stiff resistance from hardware manufacturers and telecommunications companies, the levy on a 60-minute CD-R will be raised from the existing 0.005 euros ($0.0054) to 0.29 euros ($0.31). MARK WORDEN



Industry veteran Beh Suat Pheng retired from the Malaysian music industry March 31. She was managing director of EMI Malaysia from 1981 to 1998 before serving as chairman of EMI Malaysia and senior VP of EMI Music Asia for four years until 2002; after that she served as a consultant to EMI in Malaysia, Singapore, and the Philippines. Confirming her retirement, Beh comments that "the challenges that are [currently] facing the music industry are unprecedented. Besides the piracy problem, there are so many alternative forms of entertainment. The industry will have to reinvent itself." STEVEN PATRICK



Tommy Boy has signed a marketing, licensing, and distribution agreement for the U.K. and Ireland with London-based Gut Recordings. The functions were previously handled via a now-defunct Tommy Boy U.K. affiliate. Gut is distributed in the U.K. and Ireland by Pinnacle. New York-headquartered Tommy Boy's centralized European manufacturing is handled by Optimal, based in the town of Röbel/Müritz, Germany. The label is expected to announce new marketing and distribution pacts in other European markets soon. Lars Brandle