Cd Protection Debate Escalates In Europe

The debate surrounding the use of copy-protection technology on CDs in Europe is escalating.

The European arm of trade group Global Entertainment Retail Assn. (GERA Europe) is calling for a series of meetings with record companies to urge them to undertake a greater level of consultation and transparency about the use of copy-protection systems on CD recordings.

The move follows a recent meeting by Brussels-based GERA Europe's council, at which the concerns of the region's retailers were expressed (Billboard Bulletin, April 10).

"We're now trying to set up links with the manufacturers so that they inform us of what technology they're introducing," U.K.-based GERA Europe VP Bob Lewis tells Billboard. Taking one recent example, he says, "They never told anybody about Natalie Imbruglia's CD." Consumers complained to retailers about BMG Entertainment's copy-protected version of Imbruglia's White Lilies Island album last year.

Lewis, who is also director general of U.K. entertainment merchants body the British Assn. of Record Dealers, adds, "We'd also need discussions on how to address the technology issue in the future. Is it a question of just putting a code on the CD or something on the PC? We would like to be involved in what's happening and know what systems are being used."

With the price of blank CD-Rs plummeting to as little as 35 cents each, the International Federation of the Phonographic Industry (IFPI) forecasts that the global growth rate of CD burning could soar as high as 35% annually during the next few years and continue to hurt legitimate sales. Meanwhile, despite the high-profile Napster copyright-infringement court case in the U.S., unauthorized online file sharing continues to grow.

Record companies are incorporating such systems as Midbar's Cactus Data Shield or Sony Electronic's Key2audio on CDs to stop illegal digital copying. Yet European music retailers state customers still complain about the lack of information on secure CDs and playability problems on home computers. Some report that PCs crashed while playing the secure CD. Moreover, the retailers argue, the different secure-CD technologies are incompatible.

GERA Europe president Njara Zafimehy complains, "Many won't play on certain hardware, even though they are legitimately bought. There are not always clear indications as to whether any given CD has technological restrictions. This causes great concern for retailers and the music-buying public."

Jay Berman, chairman/CEO of the IFPI, says his organization is taking retailers and consumers' concerns very seriously. "We've instructed our companies that if they were going to use copy-protection technology, they should notify the public."

In the near future, Berman adds, "we're going to issue another set of guidelines regarding playability and compatibility. As soon as we do that, we shall be in discussion with the retailers, and that would be a function that takes place within the national territories."