Royalty Collection Agency SABAM Sued By Belgian Government Over 'Piracy License' Plans

from the getting-a-clue dept

Back in May, we wrote about how the Belgian music royalty collection agency SABAM was taking ISPs there to court over its demand for 3.4% of Internet subscriber fees as "compensation" for online piracy in Belgium. In yet another slapdown for SABAM -- it had previously failed in its attempt to turn ISPs into copyright cops -- the Belgian regulator says SABAM's plan falls foul of the EU's e-commerce directive, as IT World reports:

the Belgian government's FPS Economy (Federal Public Service Economy) agency, which has regulatory power, believes that Sabam is wrongly asking providers for compensation, said Chantal De Pauw, an agency spokeswoman.

While the FPS opposes any kind of illegal downloading, Sabam's solution penalizes Internet users and this is against the E.U.'s e-commerce directive, according to the authority. Providing Internet access is not the same as publishing protected works, the FPS said in a news release, adding that there are other ways to fight illegal downloads than posing levies on ISPs.

Even more dramatically, FPS is taking legal action against SABAM to stop it proceeding with its own lawsuit:

The FPS has ordered Sabam to stop its lawsuit, but the association has argued that they are operating within the bounds of the law, said De Pauw. FPS has therefore decided to sue Sabam in October to force it to stop its legal procedures against the ISPs, De Pauw said. If FPS wins the suit, Sabam faces penalties of up to €100,000 (US$137,600) per day if it continues its quest, she added.

SABAM has always been frustratingly out-of-touch with reality in its demands, but now that it is being sued by its own government, perhaps it will finally take the hint and drop its ridiculous and unjustified scheme.

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Filed Under: belgium, isps, piracy license, secondary liability
Companies: sabam

Royalty Collection Agency SABAM Sues Belgian ISPs In Pursuit Of Its Fantasy 'Piracy License'

from the clutching-at-straws dept

Back in November 2011, we wrote about the Belgian music royalty collection agency SABAM's demand for 3.4% of Internet subscriber fees as "compensation" for online piracy in Belgium. As Tim Cushing explained back then, this was ridiculous on just about every level. But SABAM doesn't let little things like that get in the way of its desperate attempt to avoid moving with the times and coming up with new business models. So after failing dismally to convince Europe's highest court that it could force ISPs to spy on their customers, SABAM has now moved on to suing ISPs instead, as TorrentFreak reports:

This week SABAM sued the Belgian ISPs Belgacom, Telenet and Voo, claiming a 3.4 percent cut of Internet subscriber fees as compensation for the rampant piracy they enable through their networks.

SABAM argues that authors should be paid for any "public broadcast" of a song. Pirated downloads and streams on the Internet are such public broadcasts according to the group, and they are therefore entitled to proper compensation.

One of the ISPs being sued, Belgacom, has a better analogy for what's going on here:

"A postman doesn't open letters he delivers. We are also just transporting data, and we are not responsible for the contents," Belgacom says.

That's the "mere conduit" principle, and as TorrentFreak points out, if that defense is overturned here, and the "piracy license" is imposed, the cost will inevitably be passed on to users, which means that people who buy music legally will be paying twice for the privilege. And of course, it wouldn't just be SABAM: the other copyright industries -- films, books, photos, software, games -- will doubtless all line up for their free handout, making online access prohibitively expensive in Belgium.

But along with all the other problems mentioned by Tim back in his 2011 post, there's another major flaw in SABAM's logic. According to recent work carried out by the European Commission's Joint Research Centre, it's not even clear that the recorded music industry is being hurt by unauthorized downloads:

Perhaps surprisingly, our results present no evidence of digital music sales displacement. While we find important cross country differences in the effects of downloading on music purchases, our findings suggest a rather small complementarity between these two music consumption channels. It seems that the majority of the music that is consumed illegally by the individuals in our sample would not have been purchased if illegal downloading websites were not available to them. The complementarity effect of online streaming is found to be somewhat larger, suggesting a stimulating effect of this activity on the sales of digital music.

That is, streaming sites might even promote digital music sales; so maybe SABAM should be giving money to the ISPs, not asking for it....

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Filed Under: belgium, copyright, isps, lawsuit, piracy license, royalties
Companies: belgacom, sabam, telenet, voo

Royalty Collection Agency SABAM Demands 3.4% 'Piracy License' From Belgian ISPs

from the this-still-looks-more-like-'rent'-than-a-'license' dept

It's been a rather quiet few months for SABAM, the Belgian music royalty collection agency perhaps best known (around here, anyway) for its outlandish tactics, including attempting to charge truck drivers a licensing fee for listening to the radio in their cabs and collecting fees for completely fictional bands.

SABAM has thrust itself back into the news today with a return to form, having issued an announcement stating that it will be charging internet service providers for what is, in essence, a "piracy license:"

The music group is claiming 3.4 percent of Internet subscriber fees as compensation for the rampant piracy that they enable through their networks.

SABAM pulls this 3.4% figure from an interesting source:

Sabam base their claim on a provision in the Copyright Act of 1994, which states that authors should be paid for any "public broadcast" of a song. According to Sabam, downloads and streams on the Internet are such public broadcasts, and they are therefore entitled to proper compensation. This 3.4 percent share is the same amount as the copyright fees on cable television.

Of course, this just means that all internet users, whether they infringe or not, will be charged extra for their internet service. Not only that, but a 3.4% flat rate assumes every transmission over the internet involves copyrighted material under SABAM's control. And SABAM has made it clear that, although it is using this fee as some sort of "piracy license," it is by no means saying that all users are now free to start (or resume) pirating content.

But even in the event they begin to receive payments, Sabam stresses that any compensation would by no means legalize piracy. The license fee is only meant to legitimize the ISPs part in transferring these unauthorized files.

Of course, this sort of action, if approved, would open the doors for nearly every other group of rights holders to pile on, turning the Belgian internet service into an incredibly expensive luxury, one that punishes the entirety of the population for that actions of a minority.

Even worse, it appears that SABAM is only pushing this "license" forward because it would rather just collect money than explore new options:

The decision of the music rights group to claim a share of subscriber fees comes after they were unable to reach a workable solution in direct talks with ISPs. The ISPs say they would rather focus on offering legal alternatives than quibble over piracy, a point also noted by Minister of Economy Vincent Van Quickenborne.

“The timing is unfortunate, just as Belgacom and others come to the market with a range of legal streaming services,” a spokesman for the Minister said, adding that his department would look into the legal issues.

This is just another example of the "take it out on the ISPs" thinking that tends to rise to the surface way too often with certain rights holders. Ultimately the costs will be passed on to the end user, which turns this from "us vs. the ISPs" into "us vs. our customers," and is that any way to build a relationship?

Filed Under: belgium, collection agency, piracy license
Companies: sabam