Recording industry welcomes new international copyright treaty

Entry into force of WIPO Copyright Treaty strengthens global legal framework for music on the Internet

London, December, 6, 2001 - IFPI today welcomed the 30th national ratification of the WIPO (World Intellectual Property Organisation) Copyright Treaty (WCT), one of two major international treaties protecting intellectual property rights in the age of electronic commerce.

The WCT, which needed 30 ratifications into order to take effect internationally, will come into force on March 6, 2002 - exactly three months after today's confirmation by Gabon that it has become the copyright Treaty's 30th ratifier. The Treaty protects authors, composers and other creators of literature, art, music, lyrics, films and software.

For the international recording industry, the WCT's companion treaty, the WIPO Performances and Phonograms Treaty (WPPT) deals with the rights of record producers, as well as performers and musicians. With Gabon's accession to this Treaty as well today, the WPPT now has been ratified by 28 countries and also is expected to come into force in early 2002. The WPPT is a critical ingredient in the push to modernize copyright for music in the digital age.

Jay Berman, Chairman and CEO of IFPI, paid tribute to governments that have ratified the Treaty and urged those who have yet to ratify to complete the process.

Berman said: "By ratifying the WIPO Copyright Treaty, governments in 30 countries have shown their commitment to ensuring the future success of the music industry and many other creative sectors in the digital environment. This is an important milestone, showing governments increasingly recognize the critical importance of strong copyright protection on the Internet. But the process is far from complete: a final push is needed to bring into to force the second WIPO Treaty, the WPPT."

Background

Together, the WIPO Treaties reflect the most important updating of international copyright rules in more than 30 years. They provide the legal framework for record companies to develop a thriving online music business. And they help copyright holders fight the growing problem of mass unauthorized digital copying and Internet piracy.

The entry into force of the WCT comes almost exactly five years after the WIPO Treaties were signed by more than 60 countries at the Diplomatic Conference in Geneva in December 1996. Over half of all the signing countries have still to ratify, but many have begun the government processes necessary to join the treaties.

Notable for achieving early ratification are Japan, the USA, and a raft of countries in Eastern Europe, Latin America and CIS. A number of other countries, including the 15 countries of the European Union, are progressing with ratification, and most are expected to ratify both Treaties within the next year or so.

The key elements of the WIPO Treaties are:

• Making clear that copyright applies on the Internet as it did in the off-line world. The Treaties' "making available right" makes clear that authors, performers and record producers determine how their works, phonograms and performances are made available in the online environment. This exclusive "making available" right covers many different types of dissemination of music, from listen-only services to those that allow the download of permanent copies. It provides the basis for record companies to develop different forms of business models, examples of which are currently reflected in ventures such as Music Net (involving BMG, EMI and Warner) and Press Play (involving Sony Music and Universal) and a number of ventures by independent record companies.
  
  
• Protecting the technologies that enable new uses of copyrighted material. The Treaties recognize that copyright holders need to use technical measures, such as encryption, passwords and scrambling, in order to manage the delivery of their works to consumers, as well as to protect them from piracy and unauthorized copying. Examples of technical measures include the use of copy control technologies and the use of rights management information to identify content and channel payments digitally to the appropriate copyright holders. The WIPO Treaties require governments to protect such measures from hacking and circumvention effectively , which should include outlawing the manufacture and distribution of a range of circumvention devices.

IFPI is the international trade organisation of the record industry, with a membership comprising more than 1400 independent and major companies in over 70 countries.

WIPO (The World Intellectual Property Organisation) is one of the 16 specialized agencies of the United Nations system of organizations. Based in Geneva, WIPO administers 21 international treaties dealing with different aspects of intellectual property protection. The Organization counts 177 nations as member states.

A comprehensive IFPI briefing paper on the WIPO Treaties ("Bringing Copyright into the new Millenium") is available on request or at our website www.ifpi.org

Further information is also available at the website of the World Intellectual Property Organisation (www.wipo.org)

Contact for information: Adrian Strain or Fiona Harley, IFPI Secretariat, Tel. 44 20 7878 7900