No music accompaniment for the dinner

Representatives of Ukrainian music industry – soloists and musicians, producers, directors of the sound recording companies – are concerned with the fact that the Ukrainian League of Music Rights (ULMP) has been deprived of the status of an organization empowered to collectively manage collecting royalties for the use of sound records and music videos.

It will be reminded that for 10 years the ULMP has been a mediator between the right holders and the public places using their intellectual property. This decision has been approved by the State Service of Intellectual Property.

On this occasion, a press conference has taken place recently. It was attended by Senior International Trade Adviser of the International Federation of the Phonographic Industry (IFPI) Xenia Iwaszko, Mad Heads XL front man Vadym Krasnooky, producer and host Ihor Kondratiuk, director of Mamamusic Yurii Nikitin, director of the Polish association of Sound Recording Industry Boguslaw Pluta. Head of the Performers and Producers Coalition Dmytro Prykordonny. Everyone considers the new scheme of royalties distribution proposed by the State Service of Intellectual Property to be unpractical, therefore it is not used anywhere in the world. Moreover, it allows for creation of broad space for abuse and corruption and enables to “manually” influence the list of sound recordings, mentioned in the reports of the users, because (unlike the TV broadcasters reports), the credibility of the provided information will be impossible to check.

“The Ukrainian League of Music Rights was the only organization empowered by musicians and other music right holders concerning royalties for the intellectual property,” says Vadym KRASNOOKY, “We have been satisfied with the state of affairs for all this years. Therefore I think the deprival by state officials of its powers is a desire to feather their nest.”

“The money paid by the cafes, bars, restaurants is currently a scheduled profit for the musicians,” Dmytro PRYKORDONNY added. “I mean you can plan it, unlike the tours for a year, which are hard to plan, out of various reasons. Since Ukraine is located in the pirate zone (free Internet, the carriers are hardly sold, and the ones that are sold are mostly pirate), the activity of the ULMP is especially important. The Ukrainian League of Music Rights includes 80 percent of the right holders, representing Ukrainian and foreign performers and bands. Incidentally, there have been no disagreements or lawsuits against ULMP. This is quite a serious argument, especially for a country which is located in a piracy zone. And now this body has been deprived of the status of an organization empowered to implement collective management of royalties. We are bringing an action. If it cancels the decision, good. If not, the league will have to close down in a matter of a few days. Then legally the users (cafes, bars, restaurants, and supermarkets) will have no institution to pay the tax, thus becoming violators of law. This will practically ruin the market.”