THE Isle of Man has been at the centre of massive media interest this week after proposals were announced which could lead to music lovers having access to 'free' downloads after paying a basic fee.
If such a plan went ahead it would attempt to address the issue of online piracy as the illegal downloading of music remains a massive conundrum for the industry.
But the proposals, unveiled at the
MIDEM music conference in Cannes, in the South of France, have led to confusion with a huge range of websites and media outlets publishing contrasting reports
An initial press release on the issue from the
government's e-business department, headlined 'The Isle of Man unveils innovative proposals for the licensing of music downloads', stated: 'The Isle of Man has presented the idea of licensing telecom companies and internet service providers (ISPs) on the Island to enable their subscribers to access music which is available from a non charging site including P2P (peer to peer) for non-commerical use via fixed line broadband or their mobile devices for a blanket monthly fee.
'Through the ISPs and Telcos there lies the ability to offer an approach that gives the ability to know who is accessing what and therefore creating a fair and more accurate way of sharing the revenue. This would not mean that existing commercial services became free but it might affect their business models.
'In presenting this proposal the Isle of Man is inviting input from rights holders to ensure that this is a long term solution.'
However some reports in the media referred to it being a 'compulsory tax', which is not the government's plan and the revenue created by it would be to benefit the music industry.
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HOW THE WORLD'S MEDIA HAVE REACTED TO THE PROPOSAL:Isle of Man Newspapers is not responsible for the content of external sites>> Manx P2P for 'one Euro a year'?>> The Manx Music Blanket Mystery>> Isle of Man wants legal P2P blanketwww.theregister.co.uk>> Isle of Man gets unlimited music downloads with blanket feewww.arstechnica.com>> The Isle of Man may introduce file-sharing monthly feewww.geek.com>> Isle Of Man residents to get unlimited legal music downloads?www.nme.com>> Why Would A Tax Haven Adopt A Music Tax?www.techdirt.com----------------
Even the government's press release clouded matters as it stated the idea was for a monthly fee but when Isle of Man Newspapers sought clarification on that aspect it was informed no decision had been made.
Following this, Isle of Man Newspapers sought further clarification.
Ian Penman, a UK practising solicitor from New Media Law LLP in Soho, London, one of the consultants providing advice to the Isle of Man on the digital music use initiative, responded to our queries.
He explained: 'The proposal is for a new regime for digital music use, it is not limited to downloads, nor does it provide an automatic licence to consumers to do as they wish with music, without any restrictions.
'Please be aware of the fact that this proposal is at initial discussion stage only, and the Isle of Man Government has been attending MIDEM to engage in initial discussion with music rights holders, in order to try to find out if the Island's unique constitutional position can assist them to address some of the problems that they have been encountering for some years in respect of the consumers' use of digital recorded music.'
Some media had reported there would be a small monthly fee to download unlimited music, while others said it would be anbnual. The figure of as little as one euro had been mentioned as an example.
Mr Penman said: 'For the above reasons, it is early days to examine the precise cost or when it will be billed.'
Again, the term 'compulsory' had been used in the media but Mr Penman explained: 'It is not a "compulsory licence". The proposal, which we should stress again is at an "initial proposal" stage only, is for a licence fee which is optional.
'If the individual user does not wish to download music files, then they will be able to "opt out", and will not have to pay the fee.'
He added: 'The proposal is "platform neutral". Current services, such as i-Tunes and Amazon would be unaffected. Again, it should be stressed that this initial proposal is for a licence for non-commercial (i.e. individual) use only.'
It seems the media coverage has caused some issues – much of the coverage was reporting such a plan would have the support of the BPI (British Phonographic Industry) while a statement was then released which said it didn't support a 'broadband tax'.
Mr Penman replied: 'The BPI were apparently reacting to an article which appeared in the
Telegraph online (and other places), which stated that the "Isle of Man is to impose a broadband tax". This is not true: (a) discussions are at an early stage with rights holders as to what the eventual form of the licence will be and (b) it is not a tax, for the above reasons – and of course, the licence fee would go to the music rights holders, not the Isle of Man Government.
'At present, the initial proposal is for a licensing scheme which would be trialled, and indeed would operate in the Isle of Man only. Obviously, if it is a successful scheme, it is more than likely that other countries would adopt it.'
Asked whether, if the scheme came to fruition, it would be available only through Manx-based ISPs, Mr Penman said: 'Of course, the Isle Of Man ISPs would be able to adopt the scheme in other countries in which they operate.
'The benefit to the Isle of Man is that it is seen to be, as before, a world leader in e-business, and of course that many more e-businesses locate their financial operations on the Isle of Man as a result. The Island would therefore benefit from their additional revenues.'
On how the music industry would receive royalties it was entitled to if there was only a small fee, he said: 'The revenue from this licence would be distributed to the rights owners. It will address the fact that only some 2.5 per cent to 5 per cent of digital downloads - depending on whose figures you believe - are currently legal, paid-for downloads.
'In summary, what is under discussion, and has received the "buy in" from the rights holders that we have engaged with at MIDEM, is a "trial" in the Isle Of Man.
'The trial is designed to bring together the rights holders and the ISP community, both of whom are very keen to try to find a resolution to the current issues which arise in respect of the digital delivery of music.'
WHAT DO YOU THINK?Send your comments to newsviews@newsiom.co.imYOUR COMMENTSThe reason why so many people download illegally is because of the extortionate costs of CD.s, DVD's etc etc. The record companies are greedy and it is their fault that illegal downloads are so high.. Also, on file sharing sites there is a huge choice in remixes , tracks etc that never see the light of day to the general music buying public. CD singles cost a fortune and have maybe 3 tracks / remixes on at the most. DJ's are mailed promo copies of singles with often seven or eight remixes. If these mixes were put onto the CD singles then people would be more likely to buy them. The Isle of Man should have got its facts right before making this huge headline grabbing "newsflash". Trust us to try and get on the band wagon first and then mess it all up. Hopefully this will take years to sort out.
ANON