Under the European Union’s copyright overhauling, Web sites such as YouTube, DailyMotion and Pinterest will be asked to seek licences or revenue-sharing deals with artists for content that is uploaded by their users. The issue surfaced because of long complained service received by the music industry like artists are not paid enough for their music by YouTube, that’s why regulators are urged to close the so-called “value gap”.
The music industry just gets the small share of that vast amount of money which is made by Alphabet Inc’s Google from ad-supported services such as YouTube. So, a sort of obligation on hosting user-uploaded content such as YouTube, Vimeo and DailyMotion, is going to be imposed by the EU executive which aimed at seeking agreements with rights-holders that would reflect the economic value of the use made of the protected content.
In addition, the agreement is rolled out to be the form of a copyright licence or a monetization agreement like sharing of revenue, this option which is already in use widely. The Commission intends online sharing platforms to implement appropriate and proportionate measures, such as content identification technologies in order to make sure the functioning of the agreements with rights-holders.
However, the proposal is still under discussion, so the final version will come in late September. According to Google, YouTube alone has generated over $2 billion for rights-holders by striking licencing agreements with music labels and publishing societies around the world. The artist’s content such as to give rights-holders the choice of whether to leave it up, block it or monetise it through a revenue-sharing deal, are automatically identified by YouTube via Content ID.
Similarly, Google also added that over 98 percent of all YouTube copyright removal claims are done through Content ID and the music industry chooses to monetise 95 percent of its Content ID claims. However, rights-holders reasoned that they usually lack bargaining power and are left with an option “take it or leave it” since the online platforms bear no responsibility to negotiate the matter with them.
As per draft paper, proposals would likely increase revenues for rights-holders, but did not estimate by how much, however, a refusal to comment came from Google.