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Apple iTunes May Extend Reach Further Into EU

By Brian Kraemer, CRN May 27, 2009
Apple's iTunes store may be one step closer to expanding its already considerable reach into more European countries.

SACEM, the France-based group tasked with collecting artist royalties, has agreed to allow counterparts around the European Union (EU) to collect royalties. SACEM is responsible for collection royalties for about 128,000 artists and plans to drop its concerns over territory by allowing other national agencies to collect money for artists, according to European antitrust regulators, Reuters reports.

The move may bring dollar -- or euro -- signs to Apple's eyes, with the iPod maker considering broadening the reach of its music distribution store.

"If iTunes was readily able to license rights on a multi-territorial basis from publishers and collecting societies, it would consider making its content available to all European consumers, including those in EU countries where iTunes is currently not available," Neelie Kroes, European Competition Commissioner, said in a statement.

The Apple iTunes store, which has sold over 6 billion songs, currently does not allow residents of the EU to purchase music from outside their home country.

According to Reuters, the executive European Commission acknowledged that the licensing structure and current copyright laws are limiting customers in the choices they have when purchasing from online stores.

"We have received complaints from Polish consumers that they can't buy music from iTunes," said Jonathan Todd, commission spokesman, told Reuters.

Parties who may have an interest in pan-European music licensing will have until June 30 to make their thoughts known on the issue.

While SACEM's decision opens the door for Apple's iTunes store to potentially begin distributing music to each country in the European Economic Area, the onus of the operation will fall on individual companies to deliver on their promise -- i.e., paying royalties -- as well as engage in continuous dialogue about music licensing in the EU.


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