(Warning- long)

Have just recieved this from the PPL (a licensing authority in the uk)
I know my thoughts on it, but would be interested to hear your views as this is very likely to happen in the not too distant future...

prepare to be shafted by paying for something which- according to a friend who practices and has a degree in music copyright- is not actualyl illegal in the first place.

Obviously wont affect the bedroom/hobby dj- but anyone who plays out ir is intending to play out and use cds will need to know this

Thoughts please

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PPL CONSULTATION PAPER

THE MAKING OF DIGITAL COPIES OF SOUND RECORDINGS
FOR USE AS SPECIALLY FEATURED ENTERTAINMENT

1. INTRODUCTION

To facilitate the lawful making of digital copies of sound recordings by DJs for public performance as specially featured entertainment (i.e. not as background music), PPL has developed a draft licensing arrangement, the key terms and conditions of which are summarised below. The purpose of this Consultation Paper is to obtain the views of interested parties on this arrangement before it is implemented and therefore to ensure that PPL is meeting the needs of the relevant industries.

2. BACKGROUND

The provision of sound recordings for public performance as specially featured entertainment has evolved alongside developments in technology, moving from vinyl to CD and more recently to the use of digital copies of sound recordings (for example, stored on laptop computers or other portable devices).

However, making a digital copy of a sound recording – whether by copying the original vinyl or CD releases, by downloading a track from an illegal internet site or file sharer, or otherwise – is a violation of UK copyright law. In consequence, a significant proportion of those involved in the provision of specially featured entertainment by creating and using such digital copies are regularly committing breaches of UK copyright law.

The position is similar across Europe. In a recent legal case in Italy, a DJ was fined 1.4 million Euros for the unlawful creation and use of digital copies of sound recordings.

3. THE ROLE OF PPL

PPL, the UK record industry collecting society, licenses the public performance and broadcast of millions of sound recordings on behalf of its members. For many years PPL has played a central role in providing collective licensing solutions for the legitimate use of sound recordings as specially featured entertainment. As well as providing venues with licences for the public performance of sound recordings, PPL licenses the production of compilation discs for supply to DJs on a subscription basis.

PPL is now seeking to offer a solution to the problem posed by the unlawful creation of digital copies of sound recordings by DJs for public performance as specially featured entertainment, by providing a practical, legitimate alternative. As noted above, once this legitimate alternative is in place, PPL will then take action against those who continue to make unlawful copies.

Hence PPL is intending to launch a licensing arrangement that will enable DJs to make legitimate digital copies of PPL members’ sound recordings for public performance as specially featured entertainment. The draft licensing arrangement outlined below represents our initial ideas. The purpose of this Consultation Paper is to seek the views and opinions of key operators involved in the provision of specially featured entertainment on the issue of the making and playing of illegal digital copies of sound recordings, and on PPL’s suggested solution.

4. THE DRAFT LICENSING ARRANGEMENT

Under the draft licensing arrangement, bona-fide DJs will register with PPL and be licensed to make and keep digital copies of sound recordings from the PPL repertoire for public performance as specially featured entertainment. Please note that the draft arrangement relates to the exercise of the sound recording copyright only.

PPL’s current intention is that the new arrangement would be non-precedential and would initially operate for a year. Towards the end of that initial year of operation, PPL will consider how the arrangement is working and would be willing to consider requests for a further review of this issue.

Key terms and conditions of the draft arrangement will include the following:

The making of digital copies
(1) The DJ will only be licensed to make digital copies of legitimately-sourced sound recordings owned by the DJ – e.g. vinyl, CDs, digital downloads from legitimate websites. Copies cannot be made from illegitimate sources such as bootleg CDs or unauthorised download sites, or from CDs or digital files borrowed from e.g. another DJ. The DJ will not be permitted to make digital copies of unauthorised “mixes” of sound recordings.

(2) The DJ will be authorised to create and keep (for the duration of their licence) a single database of the digital copies of sound recordings they create under the licensing arrangement.

(3) The DJ will not be able to make or keep multiple digital copies of any sound recording, whether in the database or separately.

(4) The maximum number of digital copies that can be kept on the database at any one time will be 10,000 tracks. Please note that it will not be permissible to evade this limit by deleting excess tracks and saving them on separate disks.

Protection
(5) The making and keeping of copies will not initially be subject to DRM protection but PPL will reserve the right to impose such a condition in the future.

A standard condition of other digital copying licenses issued by PPL is that the resultant digital copies are protected by Digital Rights Management (“DRM”) (i.e. software technologies such as encryption) to restrict the extent of permitted copying and use.

PPL understands that the software and hardware currently used by DJs to publicly perform digital copies of sound recordings are incompatible with DRM protected files. Accordingly, to ensure that the draft licensing arrangement is workable, PPL is initially prepared to waive any DRM requirement.

PPL wishes to emphasise to DJs, and to the specially featured entertainment industry as a whole, that it is only prepared to waive the DRM requirement in light of the current incompatibility issue. At a point in the future (depending upon the development of software/hardware technology and the use of digital copies of sound recordings by DJs) DRM will become a mandatory requirement of any PPL licensing arrangement concerning the making and keeping of digital copies of sound recordings by DJs.

Mixing
(6) Copies must be unaltered from the music contained on the original sound recordings. Please note that this prohibition will not prevent a DJ from mixing sound recordings whilst playing live at a gig, but will prevent them from making any recordings of such mixes).

Use of the digital copies
(7) Copies will be for the sole use of the registered DJ for the purpose of public performance by the DJ as specially featured entertainment. They can only be performed in venues licensed for public performance by PPL under its Specially Featured Entertainment Tariff. Other uses of the digital files, such as the provision of background music, jukebox type services, or aerobics classes or the supply of digital copies of sound recordings to other DJs will not be licensed.

Payment terms
(8) Each registered DJ must pay a licence fee of £200 annually and in advance. The fee will be subject to adjustment each year to take account of inflation.

(9) As with other PPL licences, once the licensing arrangement is up and running there will be a surcharge of 50% (i.e. £100) for DJs who fail to obtain a licence from PPL before they commence making digital copies of PPL’s sound recordings.

Termination or expiry of the licence
(10) Should the licence not be renewed by the DJ, or terminated by PPL e.g. for breach of its terms and conditions, all copies of sound recordings made and retained under the licence will have to be deleted.

Policing the use of digital copies
(11) DJs will be required to report where they play (so that PPL can confirm the venues hold public performance licences under PPL’s Specially Featured Entertainment Tariff).

(12) PPL will be entitled to inspect the DJ’s computer (or other storage device) to make sure that the DJ is complying with the terms of the licence.

(13) DJs will have to provide a list of tracks copied onto their computer (or other storage device). This information will be required to enable PPL to distribute the licence fee income generated under the draft licensing arrangement.

In addition to the policing requirements imposed on the DJ by the draft licensing arrangement, PPL also intends to require that venues assist PPL in this regard:

· PPL’s public performance licences for Specially Featured Entertainment will require that digital copies of sound recordings only be performed by DJs registered with and licensed by PPL under the draft licensing arrangement.

· Venues will also need to record and report to PPL the registration details of their DJs.

5. CONSULTATION

PPL is seeking the views of a cross-section of those involved in the making and use of digital copies of sound recordings by DJs on the draft licensing arrangement summarised in this Consultation Paper.

PPL would welcome any and all comments, but in particular would be interested in your views on the following:

5.1 Do you support the underlying approach of licensing DJs to make digital copies of sound recordings for public performance as specially featured entertainment? If not do you have any alternative suggestions?

5.2 What are your views on the suggested terms and conditions set out above?

5.3 What are your views on the suggested licence fee?

5.4 By what means should PPL publicise the availability of the draft licensing arrangement to DJs?

Please let us have your comments by email to ******@****.com no later than 30 June 2005.

Please note that PPL may disclose your views to third parties. However, please let us know if you would like your views to be made known on an anonymous basis only.