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The NFMI opposed compulsory licensing
11.05.2022

According to "Kommersant", music major labels are asking the Russian authorities not to rush into adopting draft amendments to the Civil Code on compulsory licensing, which would allow companies in Russia to use new media products despite sanctions. Market participants call the measure "disproportionate," noting that old song catalogs are not withdrawn from streaming services, while new ones account for only up to 10%. Experts agree that the measure is "extraordinary" and the authorities will not hurry with its adoption, but rights holders can't avoid illegal use of their songs in Russia anyway.

"Kommersant" has read the April 27 letter from the National Federation of Music Industry (NFMI, which unites Sony Music, Universal Music, Warner Music, and other companies) to the Presidential Administration. In it, the NFMI spoke out against compulsory music licensing. According to "Kommersant", the Association sent similar letters to Deputy Prime Minister Dmitry Chernyshenko, the Ministry of Culture, the Ministry of Digital Development and the Ministry of Economy.

Initiatives aimed at weakening the protection of intellectual property with regard to foreign rights holders are "cause for concern," the NFMI said in a letter. In particular, the introduction of a compulsory license for objects of copyright and related rights is discussed.

The draft suggests that if a right holder from a "unfriendly" state refuses a Russian licensee the right to distribute its works, the latter can go to court to sue for it.

New releases by foreign artists account for only 5-10% of the total music streaming market, and the rest is taken up by the existing catalog, which has not been revoked, so the introduction of a compulsory license is a "disproportionate measure," the NFMI insists. This could lead to "mirror measures" against Russian music abroad, the exclusion of streaming services from app stores and the development of piracy, the NFMI warned.

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