Dubai: Stopping an individual from illegal downloads might seem an unwinnable task for music companies these days, what with the number of “pirate” servers out there. But music labels hope to strike a much better note against “illegal” streaming services delivered to businesses in the UAE and elsewhere in the region.
These operators, either based locally or outside, provide online access to their music libraries to subscribing businesses, such as hotels which use it for lounge play or restaurants. Where it breaches the law is when these operators do not have the license to offer the services in this market. “What happens is that some provider who might have a licence for a selection of songs in an overseas market offers the same library to clients here,” said Michael Ross, co-founder and president of Groove-Master, a Dubai based streaming service provider in the B2B space. “Public Performance Rights in music is very much seen as a grey area in this region whereby businesses are unsure as to the legal requirements of playing music in public spaces for free.
“The reality is simple: while it has been illegal to have music played in a public space for free, until now there has been neither an infrastructure in the region to enforce a law forbidding it nor means by which businesses could do so ethically. Consequently, people have simply continued to do it.”
UAE’s copyright law
By doing so, they flout the letter and spirt of the UAE’s copyright law. One of the provisions explicitly states that rental of a copyrighted material by third-parties for the “purpose of acquiring direct or indirect commercial revenue” is illegal. So is the “transmission or the making of the same available to the public, in any manner, without previous consent from the right holder”.
“In short, wherever music is broadcast and where there is a large number of people, revenues, direct or indirect, are made from their presence and royalties should be paid form that broadcast,” said Ross. “This takes into consideration stores, restaurants and other media — TV, radio, Internet, etc.
“We are not here to cast doubts upon the business practices of our competitors, but we do know that a few are taking advantage of the absence of enforcement on public performance, while a few are licensed, but only for specific markets that don’t include the GCC.”
So, wherein lies a possible solution? Appealing to the user’s better senses can only help to an extent. It is only when breaking the law comes with sanctions will entities stop the practice.
This has already been seen in the near eradication of illegal software use by businesses and organisations in the UAE. It took several years and sustained action by the authorities working in harness with the software industry to tamp out the practice.
Can music labels — and licensed streaming service providers — put up the good fight and win?
“The Middle East as a market has been a bit of a challenge for the music industry primarily because of the absence of a key element like a collection society,” said Arun Sajjan, head for digital business (Middle East) at Sony Music Entertainment.
“Without a collection society like in the West, it is difficult to collect royalties for artists for their work and hence instances of violation of IP rights have been a constant feature in the region.
“But this market has seen a considerable change of course lately from where we were two years ago; more partners are sensitive about the IP rights and usage of content appropriately before approaching the major labels.”
Sounds like this has the makings of a good duet.
