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EU Activities Update: Milestones in Legislation for Artists’ Working Conditions and Authors in the Streaming Market

November 22, 2023

Legislative initiative on the working conditions of artists adopted in the European Parliament (EP)

On November 21st 2023, the EP adopted a draft legislative initiative on an “EU framework for the social and professional situation of artists and workers in the cultural and creative sectors”, which highlights the precarious working conditions and uncertain legal status for artists and other professionals in the cultural and creative sectors in several European countries, and requests legislative tools to address the issue. The initiative flags several growing problems in the creative industry, including buy-out contracts, which, according to the text, can lead to “an abusive and coercive practice circumventing EU rules on fair remuneration” and confirm “deep power imbalances between contracting parties” and requests the Commission to assess the situation. The initiative also underlines the critical role of CMOs and “their global system” in “enabling creators to be remunerated fairly, including through the negotiation of tariffs with users, and in contributing to the promotion of cultural diversity and expression”.

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European Parliament Culture Committee report on authors in the European streaming market

The European Parliament’s Culture Committee’s vote on “Cultural diversity and the conditions for authors in the European streaming market” a draft report led by MEP Ibán García del Blanco, has been adopted on Nov 26th. The Report defends the need for a sustainable ecosystem for authors, emphasising greater visibility and a more balanced distribution of royalties in the streaming market. It calls on the European Commission to propose a legal framework to ensure the visibility of European works, including the possibility of imposing quotas on European works on music streaming platforms and legal obligations to ensure the transparency of algorithms and content systems to prevent fraudulent and unfair streaming. The Report also refers to AI issues impacting the cultural industries, advocating for ethical use of AI in the music sector, maximum transparency in every step of the development, the need for setting an AI-generated label for AI-generated music, and the importance of ensuring that authors whose works have been used to train AI models are fairly remunerated.  More action has been taken by EU policymakers regarding the discoverability of European works, with the European Commission’s Directorate General for Education and Culture has launched a call for tender in August for a study on the discoverability of European works, with results expected by the end of 2024. The study will focus on the availability and accessibility of cultural content online and how content prioritisation practices, algorithm recommendations, and curation strategies influence exposure to cultural and linguistic diversity.

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