EU may require YouTube, DailyMotion to seek deals with music industry
By Julia Fioretti
BRUSSELS (Reuters) - Websites such as Google's YouTube, DailyMotion and Pinterest could be required by the European Union to seek licenses or revenue-sharing deals with artists for content that is uploaded by their users.
The music industry has long complained that services such as YouTube do not pay artists enough for their music and has urged regulators to close what it calls the "value gap".
They say that Alphabet Inc's Google makes vast sums from ad-supported services such as YouTube, but only a small share of the money goes to the music industry.
The European Commission, the EU executive, is looking at imposing an obligation on platforms hosting user-uploaded content -- such as YouTube, Vimeo and DailyMotion -- to seek agreements with rights holders "reflecting the economic value of the use made of the protected content", according to a draft paper, seen by Reuters, listing the preferred options for the EU's copyright reform.
The agreement could take the form of a copyright license or a monetization agreement such as sharing of revenue, an option that is already widely used.
The Commission also wants online sharing platforms to put in place "appropriate and proportionate measures, such as content identification technologies, to ensure the functioning" of the agreements with rights holders.
The proposal is still being discussed and the final version is expected in late September.
Google says that YouTube alone has generated more than $2 billion for rights holders by striking licensing agreements with music labels and publishing societies around the world. Continued...