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31st August 2000

cheap hotel in ArnheimInternet media back UK independents' music solution

The internet industry is united in its support of the interim trial recently ratified by the 400+ UK independent record companies belonging to AIM, the Association of independent Music. The move positions AIM's members - which include Beggars Banquet, Warp, V2, XL, Sanctuary, Gut, Mute, Ministry of Sound and Telstar, accounting for around 26% of retail sales - as key players in the market for the use of music over the internet.

hotels EdinburghStorm Radio, Capital, Carlton Interactive, NME, Music 3W.com, Radio Revolution, iCrunch.com, Ride The Tiger (Chrysalis radio), Food of Love and PlayLouder have already signed up. AIM is also in talks with Virgin Radio, while EMAP, Ministry of Sound, Eunite, mudhut, Trust The DJ, Tornado Productions and a host of others are set to sign imminently.

The trial is of equal importance to internet dedicated companies and traditional broadcasters with a web presence, as well as any company wishing to use music on their web site. It signals an end to months of frustration over the inability to legally use music on the internet.

It means that the use of independents' collective repertoire can be sanctioned in one fell swoop. It also represents the vital first steps towards a collective licensing solution, which the trial's participants will collectively help develop. AIM sees the process as a one-stop-shop on a two-way street'.

The issue of access to music over the internet has been spiralling out of control of late, as witnessed by the recent proceedings against Napster. In contrast to this mele, AIM's trial demonstrates the UK is taking the lead on this global issue.

Alison Wenham, AIM's Chief Executive says: "We want to encourage licensed internet activities and for that to be viable for the user, we have to work together. Proper infrastructures are essential if the UK is to maximise its potential to be the centre of excellence of the knowledge economy. This trial heralds the first tangible move towards that goal, and it's great to see internet companies supporting it so proactively".

Bruno Brookes, Managing Director of stormlive.com, adds "Storm are totally committed to working hand in hand with the record industry to promote music and to protect the interests of copyright in every way. We are delighted with AIM's initiative in this respect and look forward to continuing to develop our relationship with the independent labels".

The trial allows internet businesses to experiment for a limited period of time with certain uses of commercially released sound recordings over the internet such as clips, artwork and some webstreaming, including what is often referred to as "internet radio". It also covers some uses traditionally regarded as taboo such as playlists and archiving.

It is eventually hoped to cover a whole range of uses including on-demand, near on-demand, pay-per-play and subscription models, although it's likely that most labels would prefer to license downloads on an individual basis.

Alison notes "Starting with a trial is important because we all need to determine consumer attitudes, the impact of new transmissions, appropriate business models and of course licensing systems. It was also necessary to confront the administrative difficulties of individual negotiations for both internet businesses and labels."

AIM's legal adviser, Helen Smith, who is responsible for the trial says, "The trial protects labels' collective bargaining power whilst reacting to an increasingly pressing need to meet the immediate requirements of users who want to trade legitimately."

Martin Mills, Chairman of Beggars Group says "The internet should open doors for all. The danger is, however, that the gatekeepers to the consumer in the on-line world are much bigger than any high street chain or radio station. Plus they are already buying their own massive music catalogues - just look at AOL/Warner/EMI and Vivendi/ Universal. For small labels to get the benefit of the opportunities the internet offers, we need to join forces now, so that consumers can hear more new music than they do currently."

The trial is six months long, and users incur a small administration fee. AIM will shortly appoint a consultant to administer the trial and determine the best licensing solutions as soon as possible, which may well set precedents in other areas, both domestically and internationally.

Marbella Resenas de hotelThis would be to the advantage of all concerned. And with 40% of new British Artists whose albums go gold and 30% whose albums go platinum being sourced by independent record companies, the increasingly internet obsessed general public is perhaps the biggest winner of all.

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For further information please see attached FAQ or contact Sam Shemtob at AIM, on 020 8994 5599 or sam@musicindie.com

 

 

 

 
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