Enterprise and Regulatory Reform Bill

Memorandum submitted by UK Music (ERR 32)

About UK Music

UK Music is the umbrella body representing the collective interests of the UK’s commercial music industry, from songwriters and composers to artists and musicians, studio producers, music managers, music publishers, major and independent record labels, music licensing companies and the live music sector.

UK Music exists to represent the UK’s commercial music sector in order to help drive economic growth and to promote the benefits of music on British society. The members of UK Music are listed as an annex.

The Enterprise & Regulatory Reform Bill and copyright reform

1. The Enterprise & Regulatory Reform Bill currently contains two clauses which relate to copyright. Our interest in this Bill relates to copyright provision and so we restrict our comments to this issue.

2. The inclusion of copyright clauses in this Bill came as a surprise to many copyright stakeholders. We widely anticipated copyright legislation, but we did not anticipate that the copyright legislation would be attached to this particular bill. This ‘surprise’ generated a degree of confusion and alarm amongst our community. This was needless. Better communication between the Government and its key stakeholders would have prevented this.

Clause 56

3. UK Music supports Clause 56 providing that additional safeguards are added to ensure that this potentially broad power conferred on the Secretary of State does not have unintended consequences.

4. UK Music calls on the Government to amend section 56 so as to ensure that the scope of the power is sufficiently narrowed to cover only exceptions to rights harmonised by the relevant EU Directives.

Other provision relating to copyright

5. The text of the Enterprise & Regulatory Reform Bill as laid in Parliament currently includes only two clauses relating to copyright (C. 55 and 56).

6. During the Second Reading of the Bill, the Secretary of State announced that Government may use the Enterprise & Regulatory Reform Bill as the vehicle for a raft of new reforms relating to copyright. (Ref: Hansard 11 June column 74) In particular, the Secretary of State referred to proposals for extended collective licensing, orphan works, and a code of conduct for copyright collecting societies.

7. Baroness Wilcox’s written statement on 2nd July 2012 (Lords Hansard 2.7.12 WS30) has since reinforced that the Committee Stage of the Enterprise and Regulatory Reform Bill will be used to bring forward these additional measures as amendments to the Bill, as well as a further provision to allow the Government to implement the EU Directive 2011/77/EU on the term of protection for sound recordings and works of co-authorship whilst maintaining the current level and scale of criminal penalties for infringement activity applicable under UK law. Enabling clauses to this effect have now been tabled by the Government (NC11, NC12 and NC13)

8. We support that the long title of the Bill presents an opportunity to bring forward these measures, but we are disappointed that a piecemeal approach to legislating on copyright is being taken by Government in order to achieve reform. There is a danger that the Enterprise and Regulatory Reform Bill could now become a "Christmas tree" Bill, attracting unanticipated amendments on wider copyright related issues.

9. Government consulted on proposals relating to these specific issues in the recent Copyright Consultation. The proposals were wide-ranging and potentially contentious, posing many questions as to how the reforms should be worded and what safeguards were needed.

10. As the Government are now minded to use the Enterprise & Regulatory Reform Bill as a vehicle for primary legislation relating to wide-ranging and potentially contentious copyright reform, it should have alerted key stakeholders in advance, included the clauses in the text of the Bill at the outset when it was first laid, and invited stakeholders to study the text carefully and communicate with Parliamentarians engaged in scrutiny.

11. It had been our understanding that Government would consult further on the proposals in the copyright consultation, once proposals were more advanced. The Foreword to the Copyright Consultation states that "Government’s intention is to respond to this consultation and make formal proposals for legislation or other action in an IP and Growth White Paper in Spring 2012." No such White Paper has been published.

12. NC11, NC12 and NC13 as tabled to the Commons committee stage are enabling clauses and so create a requirement for secondary legislation. UK Music asks Government to provide drafts of the secondary legislation to be made available to Parliamentarians, as well as sectors and interest groups with an interest in copyright, before the Bill completes its passage through Parliament.

13. Such drafts would enable Parliamentarians, as well as sectors and interest groups with an interest in copyright, to have an understanding of how the Government plans to use the reserve power for secondary legislation and whether the level of Parliamentary scrutiny any secondary legislation may have is set at an appropriate level.

Annex

UK Music’s membership comprises of:

· AIM – Association of Independent Music - representing over 850 small and medium sized independent music companies

· BASCA - British Academy of Songwriters, Composers and Authors – with over 2,000 members, BASCA is the professional association for music writers and exists to support and protect the artistic, professional, commercial and copyright interests of songwriters, lyricists and composers of all genres of music and to celebrate and encourage excellence in British music writing

· The BPI representing over 440 record company members

· MMF - Music Managers Forum - representing 425 managers throughout the music industry

· MPG - Music Producers Guild - representing and promoting the interests of all those involved in the production of recorded music – including producers, engineers, mixers, re-mixers, programmers and mastering engineers

· MPA - Music Publishers Association - with 260 major and independent music publishers in membership, representing close to 4,000 catalogues across all genres of music

· Musicians’ Union representing 30,000 musicians

· PPL is the music licensing company which, on behalf of 50,000 performers and 6,500 record companies, licences the use of recorded music in the UK

· PRS for Music is responsible for the collective licensing of rights in the musical works of 85,000 composers, songwriters and publishers and an international repertoire of 10 million songs

· UK Live Music Group, representing the main trade associations and representative bodies of the live music sector

July 2012

Prepared 10th July 2012