Change at top signals little change in policy for record label association

There will likely be little shift in the anti-piracy efforts undertaken by the Canadian Recording Industry Association (CRIA) as longtime industry executive and lawyer Graham Henderson takes over the helm from outgoing president Brian Robertson. Both Henderson and Robertson share the view that litigation must move ahead at the same time as continued education efforts to halt the precipitous decline in music sales experienced by the industry over the last four years. Both men also say the switch at the top has nothing to do with ongoing efforts to win court cases and influence legislation. Robertson, who has served the association since 1974, says his decision to leave was made two years ago, and CRIA’s board has been actively searching for a replacement since. He says the decision was not one based on challenges faced by the trade lobby group, but out of a desire to pursue other projects. He has, for example, produced the Governor General’s Performing Arts Awards for the past 10 years, and says he has been approached with other offers, including the possibility of writing a book. Despite public antipathy to CRIA’s causes, which is acknowledged by both men, Robertson says that when Henderson takes over the reins in mid-November, he will be inheriting a healthy organization with a successful track record of late in pursuing copyright reforms and a strong chance of winning an appeal of the Von Finckenstein decision in the case of BMG et. al. v. John Doe (CNM, July 23/04). Says Robertson: "(Henderson) is coming in in a period when - certainly from a sales point of view - we seem to have arrested the decline. There’s some stability in the sales picture now. There’s a bit more optimism in Ottawa with legislation, where they seem to be holding fairly closely to the (Standing Committee on Canadian Heritage) dates. We’ve filed a very strong appeal in the Von Finckenstein decision, and we’re anticipating a positive outcome when that’s heard, which I assume will be early in the new year." But, says Robertson, Henderson - currently a VP with Universal Music Canada - will inherit a number of challenges when he takes over the association. "You’re dealing with ISPs who seem to - not all of them - but a lot of them seem to endorse copyright infringement…It’s the ISPs who have taken us stumbling through this whole process this year for whatever reason - self-interest. They’re all rights owners, and there’s got to be some understanding of finding some balance in the process, because you just can’t have this sort of outlawed process on the Internet continuing. There’s got to be some responsibility taken." Despite the problems faced currently by CRIA, Henderson says the past two years have shown cause for optimism as CD sales show a small turnaround (see box on next page) and the number of online music download services such as Puretracks.com available to Canadians increases. As outreach efforts, such as the keepmusiccoming.com initiative continue (CNM, March 6/03), the association nevertheless feels litigation efforts must go on, says Robertson. "When the (Recording Industry Association of America) was first litigating, you know, it was a huge step for us not to go in that direction. We specifically took some time out to do research and background and decide that we were going to go with an education campaign and not litigation. We put the brakes on and we took six months to research and do focus groups and all the other stuff to get feedback. That’s when we decided we were going to make the investment in education, and it’s still going on. It’s not a short-term issue, I realize that. But, we also realized late last year that, by spending that money and observing, we had to do some litigation. We thought it was part of the education program. But, we did limit it to high-value uploaders and it was a limited number of individuals and the point we were making was that it’s illegal, because there was some doubt in a lot of people’s minds that it was illegal. And, in order to get their attention they have to be aware there are consequences to actions, and that’s why we took the limited amount of litigation that we did…We think we’re being extremely prudent and careful and cautious in how we proceeded." Though CRIA sees the litigation as limited in scope, the lobby has nonetheless been hammered with negative criticism in the media. Incoming president Henderson recognizes the challenge, but says it’s in his nature to try to convince record industry foes of its case. "I really think it’s just a question of outreach. It’s in my nature to - when I see a situation like that - to want to fix it. I don’t necessarily want to fight people. I want to convert them. And, you know, even our most vociferous enemies out there - fugitive enemies - I tend to think of them as people who just don’t understand us." Henderson approaches his new job with a long background in the music industry, and is seen generally as a passionate defender of its position. He is widely credited with the creation of Puretracks.com while an executive with Universal Music Canada, and has also been seen as the driving force behind a spate of recording contract reforms that were undertaken by the major music labels, starting with Universal, in the early part of the decade (CNM, Nov. 28/02 and Oct. 30/02). He also served as a defender of artists’ rights while a practicing lawyer before joining the recording behemoth. Observers note that his background will likely help diffuse some of the criticism leveled at the music industry over the apparent slowness and hamfistedness with which it has dealt with the digital piracy threat. While at Universal, Henderson defended the label’s positions, but as head of the recording industry association, he says he looks forward to acting as an industry spokesperson. "(I’ll) carry a powerful, empowering message that we are open for business, that we are trying to address technology. If I have to read one more article that says we’ve got our heads in the sand and we’re simply ignoring it, I’m going to scream. It could not be farther from the truth. We just may not be addressing it the way everybody else wants us to address it. And, like you say, we’ve actually been successful in terms of the enactment of the WPPT and WIPO treaties. That’s progressing very nicely. But, we still seem to have some people out there who confuse photocopiers with the Internet. And, as long as there are people who confuse photocopiers with the Internet, who have a say over how our industry develops, then, we’ve got a cause for education." As head of the industry association, Henderson concedes he’ll no longer have as much freedom to sign cheques for initiatives such as Puretracks, but he says he will continue to push for technological innovation. "Even though, yes, I won’t be able to control the pursestrings directly, I think that my understanding of the digital marketplace and the technologies is one of the pluses. That’s one of the reasons why they want me in this job, and I certainly intend to bring that to bear. You know, at Universal, we don’t control what other record companies do, but I do think that we’ve been able to achieve a consensus. I think all the labels see the value of a Puretracks now. Maybe it wasn’t apparent at the outset, but now everybody sees that, and everybody wants iTunes, and iPod to come. Everybody wants there to be a healthy digital marketplace, which unfortunately there just isn’t now." Henderson’s comments hint at the dissension that has occasionally arisen within the association over digital piracy efforts and other issues. He agrees that one of the new challenges he will have to face is brokering deals between the association’s many members - a task that has recently brought other trade groups into the spotlight as members of the Canadian Wireless Telecommunications and Canadian Cable Telecommunications Association have left those organizations in frustration in recent years. But, says an industry insider and friend of Henderson, Stephen Stohn, Henderson’s background likely leaves him in a position to negotiate truces and keep CRIA’s members rowing in unison. "In the past when he was a private counsel, a lot of the time he and I were acting for recording artists and songwriters, but a lot of the time we were acting for record labels. And, both of us a long time ago really came to realize that being able to put yourself in the other person’s shoes, is one of the most valuable things you can do as a lawyer. You’re sort of forced into it when some days you’re acting for a manager and some days for the artist, some days for the record company, some days for the artist. You rapidly get to the sense of what you feel is fair…Graham has always operated really, really comfortably in that and when he went to Universal, he was then, of course, virtually always acting for the record company. What he brought to that job is, you know, love and his point of view of where the artist is coming from, which is going to be incredibly helpful in his job at CRIA. He won’t be seen as just - or at least he is not, whether he’s seen one way or not - someone who just brings a record company perspective. He brings an overall industry perspective." Henderson will likely also bring a greater emphasis on international cooperation to the association. Observers see him as not just a big fish in the Canadian pond, but as a big fish in the North American pond, too, enjoying significant influence within Universal’s American parent.

Change at top signals little change in policy for record label association

News | 10/06/2004 4:00 am EDT

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