IEF 16066

Wat is 'the value gap' in het auteursrecht?

The value gap concept is mainly used by the business community to refer to “the unexploited potential of a business division to increase the value of the overall organization” [cacm.acm], in IT business) or to describe “weakened links of ownership in an established value chain”. Applied to copyright, the concept aims to tackle the limited appetite of some internet intermediaries, such as search engines and social networks, to properly or sufficiently remunerate rightsholders for copyright-protected content online. This concerns the overarching issue of “digital revenues” and the need for rightsholders to receive a fair share of the revenues generated by the dissemination of protected content online. [ICMP, The value gap]

The effect on wholesale wellie prices is dramatic.(...) The latest figures from IFPI are $18 to $1. The gap between $18 and $1 is called the “value gap.” It doesn’t mean every YouTube view would be worth 18 times as much overnight, of course, if the legal loophole disappeared. But it shows how effectively an illegal supply chain can depress prices across the entire wholesale market – and drive suppliers to strike desperate deals they wouldn’t otherwise contemplate. [The Register, How the illegal supply chain distorts the price of music]

The transfer of value is the mismatch between the value that certain digital platforms extract from music, and the value that is returned to rightsholders. It has skyrocketed in recent years due to the EU’s lax regime towards online platforms, which shields YouTube and others from liability when users upload copyrighted material without permission. [ICMP, MEPs call on European Commission to address transfer of value; Many online platforms pay little or no royalties to rightsholders]

Executive Chair Helen Smith called for an end to the “so-called ‘value gap’” in which some of the biggest online music distributors are under-licenced or not licenced at all. Independents also want the EU to tackle the “power gap” between online platforms and small actors, she said. [IP Watch, European Commission Unveils First Copyright Reform Proposals To Mixed Review ]

While music has never been more consumed or important to online businesses than it is today, there is an inverse correlation in the perceived value of that music. How do we fix that? Step one: better understand the factors that produce this value gap in the first place. [Forbes, Valuing Music In A Digital World]

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