News & Event Updates

COMPASS and Music Publishers Sign Joint Licensing Agreement for Telecommunications and Digital Downloads

January 11, 2006

We are pleased to announce that COMPASS and eight major music publisher-members of MPS (Music Publishers (Singapore) Ltd) have jointly set up a one-stop centre within COMPASS to license music works for digital distribution. The eight publishers are BMG Music Publishing, EMI Music Publishing, Forward Music Publishers, Music & Melody, Peermusic Pacific, Sony Music Publishing, Universal Music Publishing and Warner/Chappell Music Publishing.

Previously, a content provider (for example a telecommunications company) that wanted to operate a music download store or sell ‘true tones’ (a ring tone that contains an actual recording of a song) had to obtain a number of licences.

Depending on the repertoire used, a content provider had to obtain separate licences from COMPASS, the music publishers, and the record companies.

Three separate and distinct copyrights are required.

Firstly, the right to communicate musical works to the public via any wired or wireless telecommunication systems including through the Internet.

Secondly, the right to reproduce (make one or more copies of) the musical works used in the sound recordings for sale.

Thirdly, the right to reproduce (make one or more copies of) the sound recordings for sale.

In providing music download services, a content provider has to seek and obtain the following rights from different agencies, namely:-

Public communication rights have to be obtained from COMPASS.
Reproduction rights of the musical works have to be obtained from the respective music publishers or COMPASS (which administers for a number of local independent publishers).
The sound recording rights from the record companies that produced or owned the recordings.

Technology has advanced. COMPASS and the music publishers believe that we have to keep up with the pace to license music.

This one-stop joint licensing scheme will make it easier for content providers to clear copyright for musical works. The scheme will be operated openly and transparently.

The tariff to be charged for the usage of musical works for digital downloads, true tones and connecting tones (both public communication and reproduction rights of the musical compositions) will be 12% of the retail price of the downloads or services. There will be a minimum annual fee for each content provider depending on the scope and nature of its services.

The one-stop licensing service has commenced on 1st January 2006.

The joint licensing scheme, however, does not apply to normal polyphonic tones and monophonic tones which do not use original sound recordings.

Specifically, it does not supersede and affect existing licences issued respectively by music publishers and COMPASS for such services.

The online distribution of music is taking shape in Singapore with the continued proliferation of various digital devices (example Creative Zen, iPod).

The joint licensing scheme will make it more efficient for content providers to clear copyright and at the same time serves the interest of right-holders who want their musical content disseminated as widely as possible.

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