BPI welcomes the first round of US-UK trade talks but rejects any 'harmonisation' of copyright frameworks

By Emmanuel Legrand

British trade body the BPI has welcomed the completion of the first round of trade negotiations between UK and US governments, but rejected the idea that there should be a "harmonisation" of the two country's copyright systems. 

  The negotiations, involving the UK's Department for International Trade and the United States Trade Representative (USTR), were conducted by video conferencing due to the coronavirus pandemic. In a position paper published before the negotiations started, the government outlined its framework for the creative sector.

  "The UK’s world-leading creative industries sector will benefit and be supported by copyright provisions that link to an effective and balanced global system," reads the document. "We will establish frameworks for the industries of the future, with a focus on agreeing advanced digital trade provisions that promote an eco-system for businesses of all sizes across the UK to thrive."

Need for a strong copyright regime

  Details of the state of negotiations were not unveiled but the BPI stated that with regards to IP-related issues, "there should be a clear recognition that a strong copyright regime, that protects and encourages creators, will result in the greater creativity and economic growth that will strengthen the UK’s music sector as a whole."

  But the organisation representing the British major record companies and indie labels added that "it is important to recognise that the US and UK have distinct legal and rights frameworks which should be respected for the way in which they are – by and large – suited to the characteristics of the markets in each territory."

  The statement continued: "As such, while there are potential areas for reciprocated changes to be made, the starting point should not be to seek harmonisation. The UK copyright regime fundamentally functions well for the music industry – and the US recorded music industry accordingly looks more to the UK as a model to follow than the reverse.It is the BPI’s firm view that the UK’s existing rights and enforcement framework should be protected and strengthened in the course of trade negotiations – a view shared by our counterparts in the US."

Respecting differences

  Geoff Taylor, Chief Executive BPI (pictured, below), suggested that British policy makers "should be rightly proud of the UK’s outstanding copyright framework which is referred to internationally as a gold standard of copyright." He said this framework was one of the key drivers of the success of the UK’s creative industries, contributing £111 billion annually in GVA.

  "As trade talks continue, the ambition should be to work with our partners in the US to ensure there is no dilution of that framework, respecting the differences between the UK and US markets, and learning from best practice where relevant," said Taylor. "Given how hard the global Covid-19 emergency has hit the UK music sector, it’s vital our government ensures we have the strongest possible IP regime to underpin our economic recovery. We look forward to engaging further with government as the talks progress into the second round.”

National treatment for US performers

  One of the issues that is on the agenda is the request from US neighbouring rights society SoundExchange to obtain "national treatment" for US performers and owners of recordings in the UK for the collection and distribution of performance rights for sound recordings. At the moment, noted SoundExchange in February filing with the USTR, American performers "are denied full national treatment in the UK. They are only paid for certain digital streaming services but denied traditional broadcast and public performance royalties (e.g., uses in bars and restaurants), unless their recordings were made in the UK or other Rome Convention territories."

  The UK's neighbouring rights society PPL said the foundation for the payment of royalties was based on "reciprocity," and since the US did not ratify the Rome Convention and does not have performance rights for sound recordings played by terrestrial radio or TV, US-based performers claiming equitable remuneration from PPL for recordings made in the US only receive royalties for certain simulcasting and webcasting services.

  SoundExchange asked the USTR to "prioritise this issue in trade agreement discussions, and make compliance with full national treatment principles an essential element of US trade policy regarding intellectual property rights." 

  Recently, Canada agreed to give "national treatment" to US performers and copyright holders as part of the US-Mexico-Canada Agreement (USMCA).