Avoid exclusive music deals, administration tells industry

Record companies and music websites are being encouraged to avoid exclusive agreements, as China's top copyright authority attempts to stimulate the online music market.

The National Copyright Administration met with about 20 record companies and associations from China and abroad on Wednesday to talk about online music copyright protection.

The administration asked the music companies to stick to market rules and international practices to widen licensing and spread online music; and it underlined the laws and international conventions on copyright, warning them against any infringement.

The discussion came a day after the administration held a similar meeting with major internet companies whose interests include online music platforms.

"Labels should not sign exclusive agreements with online music providers. The agreements should follow a reasonable and fair rule," Yu Cike, the administration's director of copyright management, said on Wednesday.

"Online music providers are not allowed to push up licensing prices and cause vicious competition," he said, adding that they must also support the work of copyright organizations to protect the rights of copyright holders.

Yu Guofu, a partner at Beijing Shengfeng Law Firm, which specializes in intellectual property law, said: "It is a macro adjustment and control move to adjust the online music industry. Copyright law allows exclusive agreements, but when it harms the public interest, the government can step in and make an adjustment."

On Tuesday, Tencent Holdings and Alibaba Group Holding announced they had reached an agreement to share music licensing.

In a joint statement, Tencent subsidiary Tencent Music Entertainment Group said it will sublicense music from record labels－such as Sony Music, Warner Music, and Universal Music－to Alibaba, while Ali Music Group will give Tencent its exclusive rights purchased from Rock Records, HIM International Music, Bin Music and Media Asia Group.

The pact will allow for the exchange of millions of record labels and global recording stars on their respective streaming platforms, from Alibaba's Xiami to Tencent's QQ Music, Kugou and Kuwo.

Since the administration launched its effort to tackle unauthorized music online in 2015, about 2.2 million unauthorized songs have been removed from music websites, according to the administration.