Comment from John Kennedy, Chairman & CEO of IFPI, on the adoption today by the French National Assembly of a draft law implementing the EU Copyright Directive in France

LONDON, UK (IFPI) - - "France's rejection of a global license has removed a major threat to the development of a long term sustainable digital music business in that country. There are other elements in the draft copyright law adopted today, such as on interoperability and sanctions for peer-to-peer exchanges, where the practical impact of the new rules are not certain, and where further clarification will be needed from the French Senate.

"The 'global licence' would have replaced the fast-growing legitimate online market in France by a token payment which would certainly not have remunerated fairly the creation of music and investments made by the recording industry. With its rejection, the recording industry can continue to deliver exciting online music services to the consumer in a competitive marketplace.

"The draft law implementing the EU Copyright Directive in France also addresses the issue of interoperability between digital services and devices. The recording industry fully supports interoperability because it is important to consumers to have the ability to move songs between their various listening devices. Interoperability is crucial to attracting consumers to buy music online, but it should not be at the cost of endangering the technology used to enable legitimate offerings of music and services online.

"In addition, the copyright draft provides for a range of sanctions for unauthorised peer-to-peer exchanges, but how they would be implemented still needs to be clarified. It is crucial that any fines for the illegal exchange of music on unauthorised peer-to-peer services should be genuinely deterrent. "