World’s First Global Licensing Agency

New Zealand Independent Trade Body Helps Set Up World’s First Global Licensing Agency

New Zealand independent record label association Independent Music New Zealand (IMNZ) is one of the key players in the establishment of Merlin, the world’s first global new media music licensing agency, which was launched on January 20 at the MIDEM music trade fair in France with the message: “If you want to deal with the independents – deal with us as one.”

IMNZ represents over 60 New Zealand-owned record labels and distributors who are responsible for artists such as Don McGlashan, the Datsuns, Shapeshifter, SJD, Fly My Pretties, Fat Freddy’s Drop, Scribe, John Psathas and Die! Die! Die! to name but a few. IMNZ has had a crucial role in negotiations, working alongside an international group of independent music trade bodies who represent the likes of The White Stripes, Bright Eyes , Arctic Monkeys and thousands more. IMNZ Chair Mark Kneebone, MD of record label Tardus Music, was on the Merlin steering committee as the sole representative of the smaller nations.

Kneebone says, “The announcement of Merlin and the services it will provide to New Zealand music companies and artists is one of the most significant changes to the New Zealand music industry in a generation. Merlin means that New Zealand music now has a direct and open path to the world’s emerging digital markets that allows our music not only to be heard but also guarantees that NZ copyright holders will be paid and accounted to in a way that was previously out of reach for them.

“This announcement means that kiwi music will be available in all territories across the globe, so that teenagers in their bedrooms in Belgium can download Minuit single, or a school teacher in Brazil can show her class the latest Fat Freddy’s Drop video, all while the bands and companies who are responsible for creating the music are getting paid for the use of their copyrights.

“IMNZ has been at the forefront of these negotiations for the past five months, and we are proud to have been a key player in making sure that the worldwide independent sector has finally unified and shown its collective strength.”

A one-stop licensing shop, Merlin will leverage the independent record sector’s 30% world share* for licensing emerging media. Merlin could be the most important development yet seen within the independent sector. Industry figures show that independents are responsible for at least 80% of the world’s new releases, and Merlin will make it much easier to license this repertoire to digital download sites, mobile content providers and other new media entities, as deals will go through a single point of contact, potentially replacing the need to negotiate thousands of individual deals around the world.

Building on the success of collective negotiations with companies like MTV, Merlin will work to ensure that the independent companies receive the same sorts of new media deals which have been previously offered primarily to the four major record companies (Sony BMG, EMI, Warner Music and Universal).

Newly appointed Merlin CEO Charles Caldas, former CEO of the Shock Entertainment Group (Australia’s largest independent music and entertainment distributor) has already begun talks with new media companies whose very existence was difficult to envisage just 18 months ago.

Said Caldas, “The form of copyright apartheid currently being applied to the value of independent rights is unacceptable. Merlin will enable independents around the world to participate in new licensing and revenue models on competitive terms and give new services more direct access to their repertoire. Together we are bigger than the largest major.”

Martin Mills, Chairman of the Merlin Steering Group, IMPALA and The Beggars Group said, “Merlin will license collectively the individually unlicensable, and aggregate our collective volume as the virtual fifth major. Magic!”

Alison Wenham, President of the World Independent Network (WIN), said “Merlin is the culmination of several years’ work, and will be a unique global vehicle for licensors and licensees alike. Independents will now achieve parity with each other and with the majors in getting a fair share of the revenues now being generated by new business models.

“Without Merlin, the sector ran a huge risk of being cut out of the revenue chain. No more. And in Charles, we know we have secured the services of a highly dedicated music professional, who will steer Merlin to be recognised as the global home of the independents for new media licensing.”

A multi-national initiative in the truest sense, Merlin has already been ratified by the World Independent Network (WIN), a global trade body with trade association members from around the world including New Zealand’s independent label body IMNZ. Others involved are IMPALA (European Independent Music Companies Association which successfully appealed the Sony BMG merger), the national trade bodies of America (A2IM), UK (AIM), France (UPFI), Germany (VUT), Norway, Japan, (ILCJ) Sweden (SOM), Brazil, (Visom) Spain (UFI) and Australia (AIR) as well as marquee labels including Beggars Group, Edel, Epitaph, Ministry of Sound, !K7, PIAS and a string of distributors and aggregators around the globe.

Merlin is a sister organisation to WIN, and has been incubated by WIN as its first major global project. Merlin will operate as a stand-alone non-profit company owned by its members and based in The Netherlands and London.

CEO Caldas will report to a board of rights owners from around the globe to be elected and ratified over the coming days. Merlin will welcome input and participation from all independent labels from around the world.

* Independent sector global market share 2005 is 29.0%, source Music & Copyright, Sep 13 2006. 80% of releases stat based on an amalgamation of Nielsen Soundscan figures (2005: 81.65% of total US releases were independent) and BPI figures (2005: 83% of total UK releases were independent).

ENDS

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