July 19, 2007
AX Analysis: What About a Digital License?
Posted by Devin
Japan’s interest in cross-border licensing was pretty apparent from this years International Licensing Show last month in New York. According to LIMA Japan, at least 20 companies from Japan exhibited at the show in addition to Korean and Taiwanese pavilions that each housed a half a dozen organizations or more. No doubt, its now hot to license overseas.
But even with content licensing become much more common, the ‘hidden’ factor is content use and whether it can be used in a digital distribution. The issues related to digitization are not just related to weak government regulation but more than the way content is created and produced in Japan.
Right holders include talent as well as production companies and broadcasters, the search for permissions is frequently cumbersome or, in cases where rights holders have dropped out of the biz — or off the face of the earth — impossible.
Licensees have always had a tough time acquiring digital parts of licenses to use online. Sometime digital licensing for manga or anime for example “is not offered” in initial discussions. Digital distribution is often not a replacement license but an “add-on” costs to DVD or TV licenses. And knowing that, the US companies were quickly about to point out they are now “always asking” for digital rights. More than that, Japanese firms need to adapt licenses that are “multi-platform” or “advertising-based” like the a-la-Youtube model to successfully monetize in the US and European markets.
At the end of the day, Japanese licensing needs to change to meet digital demands. Per Discontent, we’re already seeing opinions change in Japan:
According to a Nikkei BP publication article, Japan’s Keidanren’s chairman Fujio Mitarai and Itochu chairman Uichiro Niwa has put forward a way to both allow for the full utilization of copyrighted content that may otherwise be ‘gathering dust’, and as enabler to fill the ever-expanding distribution channels with ‘much needed’ digital content.“[The government should establish new legislations that include a] more simplified, convenient procedure that could replace pre-authorization by each right owner” in a bid to promote the distribution of digital contents.”
A later article by VarietyAsiaOnline.com was misquoted in suggesting a government panel had formally recommended rule changes to ease TV to webcast licensing woes. Foreign pressure as well as the promise of wealth will only help to alleviate the “uphill battle vis-a-vis opposition from incumbent copyright holders who fear an erosion of their market power.”
Hat tip to PW Beat for the licensing article-
Filed To: Distribution / Over in Asia / Digital / Licensing
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