MP3 - Online music Bills and legislations

The Web, music distributors and the music industry have still not come to terms with distribution of music over the World Wide Web. The US congress has passed a legislation, which will prevent music companies from undercutting their rivals when dealing with music distribution.

The MOCA (The Music Online Competition Act) is to prevent major record companies or labels from controlling the distribution of music on the Web by giving special deals to certain online services they are affiliated with.

“This bill has something for everyone. And it also has provisions that will give various members of the music industry heartburn” says Chris Cannon.

This news comes in time as two major Web sites prepare to launch their music subscription services in the next few months. AOL Time Warner, Bertelsmann and EMI back Musicnet. Vivendi Universal and Sony back Pressplay.

Chris Cannon, one of the backers of the MOCA legislation, told Variety: "There are troubling signs that the recording industry - as a group - may have chosen not to license music content for tactical reasons in an attempt to stifle competition."

Some objections were bought forward from the music industry, recording industry RIAA (Industry Association of America) and several smaller companies from the proposal.

RIAA president Hilary Rosen told Variety that online music services should be allowed to develop according to market forces and not be pre-regulated by Congress. Napster, meanwhile, welcomed the new bill. Its vice president Manus Cooney, said: "We hope that MOCA will be the shot of coffee this nascent industry needs."

“We hope that MOCA will be the shot of coffee this nascent industry needs” said Manus Cooney Napster Vice President It is believed that the bill will be heard in September.

Bill to ensure Online Music Industry is Competitive

Smaller online music business on the Net will be ensured license songs under the same terms and conditions as the larger media distributors, thanks to two members of Congress and a bill they propose to legislate.

This legislation is to stop the five largest music companies from licensing songs to each other at favourable rates, while imposing higher rates to other companies. The five large companies include, Warner Music Group, Bertelsmann AG and EMI Group PLC. These companies control 80% of the world's most popular music. These five companies have split into two groups. MusicNet is made of Warner, Bertelsmann and EMI and the other group is known as Pressplay, consists of Sony Music Entertainment and Vivendi-Universal. Each one of these groups is working on their own plans to sell music on online. This bill comes in time as music companies preparing to launch new online song services later this summer.

Go To Page: 1 2