SPPF calls for a European solution to the situation created by ECJ's ruling

By Emmanuel Legrand 

France's neighbouring rights society SPPF, which represents independent labels, has called on the French Government to find a solution at European level to answer the situation created by the recent ruling by the European Court of Justice (ECJ), stating that performers should be able to collect royalties from the use of their music regardless of their origin.

  The ECJ decision has left French neighbouring rights societies in disarray, as the non-distributable royalties make the bulk of the organisation's cultural funds, and are based mostly on repertoire from the US. French societies do not pay neighbouring rights royalties to the US on the basis that there is no equitable remuneration (performance rights for recordings on radio) in the United States and therefore no reciprocity. Non-distributable sums represent more than €25 million per year for all collective management organisations in France. Per law, they are allocated to cultural funds. For SPPF only, the shutdown should lead to a reduction of nearly 50% of its support budget, which averages €8m a year.

A considerable financial risk

  During SPPF's annual General Assembly, the Sept. 8 ruling took center stage. SPPF noted that it was the wording of the 2006 European Directive on neighboring rights that had not introduced reserve in the form of a reciprocity criterion. "This decision has serious consequences for French producers and artists because it makes it illegal to allocate 100% of non-distributable sums to aid for creation and musical production," noted SPPF in a statement. French societies are also worried that if the ECJ ruling is applied retroactively, it would "pose a considerable risk to the financial situation of neighboring rights societies."

  Following the AGM, SPPF urged the Ministry of Culture and the French Government to take "the necessary and urgent initiatives at European level to repair the consequences of this coming shock for independent production." It added: "The Government has a particular responsibility in this matter because collective management organisations have pursued a policy of support for musical creation in application of a legislative obligation."

  > During the AGM, SPPF members approved the society's accounts for 2019. During the year, SPPF collections amounted to €33.9m, down 4.8% compared to 2018, due to a dispute with another society, SCPP, related to the split of the non-distributable sums from equitable remuneration. "In the absence of a dispute with SCPP, collections would have reached €36.28m," said SPPF. Distribution to members reached €26.83m in 2019, up 11.5% from 2018. Financial advances amounted to €15m, up 22% over 2018. SPPF allocated €8.67 in aid to support 1,110 musical projects, from 305 independent labels.

 

  > During the SPPF AGM, five members have been re-elected to the Board: Nicole Schluss (Derrière Les Planches), Stephan Bourdoiseau (Wagram Music), Vincent Frèrebeau (VF Musiques/Tot Ou Tard), Vivien Gouery (Yotanka), and Julien Godin (Play Two).