UNIÓN FONOGRÁFICA INDEPENDIENTE

Popular Music has long been a reflection of our culture, a soundtrack to the socio-political currents that have shaped our collective experience. The tireless work of the Independent labels has played a vital role - we have provided impetus, created employment and stimulated revenue. We have promoted Spanish music and language internationally. But times are changing and our industry is now under threat.

The oppressive weight of the multinationals has increased to such a point that the Independents are in danger of being marginalized. We have lost access to the media , our efforts to sponsor artistic originality go unnoticed and industry decisions are made without us. We must now unite and make our voice heard.

For this reason we have formed the UFI (Unión Fonográfica Independiente). A single association representing the interests of independent record companies from all over Spain at both national and international level, to ensure that our rights are protected, our work recognised and our legacy preserved.

We hereby propose the following 10 objectives:

 

The headquarters of the UFI will be in Madrid. But our members will also group at local level.

We shall seek funding from both public and private institutions.

Government departments, such as the Ministry of Culture and the Institute of Foreign Trade, will be argeted.

Meanwhile delegates of the affiliated labels throughout the country will deal directly with their respective regional authorities, media organizations etc.

In the best interests of all our members we must coordinate our efforts successfully. Our sector may be small, but with the right organization we will achieve our aims.

 

Challenging the monopoly of the major labels must be our priority. The control of the Big Five – Warner, Sony, EMI, BMG and Universal - permeates every area of our industry. The situation is the same all over Europe - independents are finding it impossible to distribute product, and promote their artists. There are no venues, media coverage, or room for competition and development. Meanwhile the musical panorama is being impoverished as innovation is rejected in favour of tried and tested formulas and fast returns.

The UFI are determined to fight back……. And the news is not all bad. Our counterparts in France, the UPFI, were influential in the intervention of the European Commission, in 1999, preventing the merger of Time Warner and EMI Virgin - proving that independent labels can make ourselves heard.

And, of course, we shall continue to exploit our traditional advantages and contacts at the grass roots level of the music scene.

We must carry the struggle directly to the communications corporations and demand our share of air time. (It remains to be seen whether the predominance of major label artists on Radio and Television is due to a lack of imagination on the part of programmers or more insidious reasons.)

The problem with the retail outlets is not so much the conglomeration of big stores (who are actually struggling as much as the smaller shops). but rather record sales in general - and the independent labels are the first to lose out as retailers cut back on the selection of product available to the public.

.

 

Piracy is now a serious threat to the Music Industry in general. The UFI is committed to the fight and persuading the relevant authorities to take a firm hand.

 

The payment of bribes for airplay is part of the modus operandi in Spain (and built into recording budgets). Chart Rigging and the buying of favourable press are equally widespread, as is the unannounced insertion of musical segments into programmes for advertising purposes.

The UFI opposes such practices. We must take the lead from the USA where legislation has been introduced to rectify these abuses. Let programme selections be made on the basis of taste and artistic merit!

 

The UFI seeks representation and an active role in legislative changes that affect the rights and interests of our members. Two issues are a priority:

•  Taxation: At present recorded music is subject to a tax (IVA) of 16% compared with 4% for books and magazines. The UFI will protest against this iniquity.

•  Quotas. In the interests of cultural diversity (and also the promotion of the various Spanish languages,) the UFI recommends legislation to stipulate guaranteed programme space for independent/non mainstream artists on National Radio and Television.

 

The UFI will provide the Independent labels with a unified voice with which to publicize our activity and objectives, raise our concerns at the state of the industry and appeal for funding and support. Organizations we must now approach include the following:

•  The Ministries of Culture, Taxation and Foreign Trade.

•  Radio and television channels.

•  Funding Agencies.

•  Independent Associations from other countries (e.g. Impala).

•  Creative Arts associations of all kinds.

•  Artists' unions and publishing and copyright organizations.

 

 

Relations between Independent labels and artists copyright associations have traditionally been difficult - largely because agreements have always been tailored to suit the needs of the majors, whilst costs to our sector have been excessive in proportion. We must discuss a new and more flexible structure with the SGAE. Areas to address include:

 

•  Royalty payments on units sold vs. payments on units manufactured

•  Fixed rate charges

•  Eliminating payments in respect to promotional copies and material made freely available on the Net.

•  Licensing

•  The possibility of direct dealing with artists.

 

The UFI can present a united front for the independent sector, bringing more weight to the table in such negotiations.

 

 

Opportunities for the legitimate and illegal exploitation of music on the internet are growing every day.

•  A legislative framework now needs to be established in which we must have our say.

•  The UFI must reach agreements with relevant organizations (SGAE, AGEDI) to clarify revenue in respect to the new formats.

•  Contact should be made with IT development companies and internet providers to discuss key technical issues, storage, bandwidth etc.

In short, Independent labels will need to be at the cutting edge of internet development if we are to safeguard our future and ensure our fair share of the benefits.

 

•  The UFI Website and Bulletin will offer up to date information on all topics of interest - industry news, release info, tours, new legislation, funding availability etc. We will also provide legal assistance and business advice.

•  A Central Data Base will have details of our members and our “Friends Network” throughout the independent music sector – Artists, Venues, Promoters, Shops, Publishers, Press etc. Entry into our data systems will range from restricted sectors to open worldwide internet access.

•  An Internet Monitoring Service

 

Negotiation and debate are not enough. Concrete action is needed to generate public and industry awareness. The following initiatives are proposed:

•  A high profile at organised Music Industry events - Midem, Popkomm, Semana de la Música etc. With a stand for the use of our members.

•  Independent Music Awards and Lists – The value of such events has been proven – Ours, significantly, will be free of manipulation!

•  Festivals and Tours – Indispensable as showcases for our artists. An Independent label space within existing festivals and our own events in major towns across the country.

•  An Independents Biennial Convention.

•  The Creation of the “Friends Network.”

•  A permanent headquarters is planned for the future.