Pressure from indie labels forces MTV back to table: negotiations resume via VPL to resolve collective licensing dispute.(Companies)

MTV performed a dramatic U-turn last week, returning to the negotiating table over their long-running collective licensing dispute.

The surprising move followed an Aim/Impala press conference last Wednesday morning to denounce the broadcaster's "high handed" attempt to bypass VPL, which had negotiated for indie labels and push for direct deals in return for screening videos.

By the end of the day, MTV Networks Europe president and chief executive Brent Hansen, fearing his company's relationship with the indies was in jeopardy, agreed to return to talk to VPL. Swiping aside the months of threats, counter threats and "inflammatory" statements, the collective licensing table in good faith. He says, "I hear the general call from indies and it is important for both parties."

As Music Week went to press last Friday, the independent labels were still considering a new offer by MTV. Although the organisation declined to comment on the nature of the oilier, Aim chief executive Alison Wenham says she is "very pleased" with MTV's decision to resume negotiations. She adds, "I think we can be confident that collective licensing is alive and well."

PPL/VPL chairman and CEO Fran Nevrkla says, "Provided there is a sufficient degree of genuine goodwill on both sides, I am confident that the negotiating process can succeed in producing a satisfactory conclusion which is acceptable to both parties."

The indies and MTV have been at loggerheads since January, when MTV informed indie labels that unless they bypassed VPL and signed bespoke, direct deals by March 31 the broadcaster would stop screening their videos.

The indies also suggest MTV is proposing to reduce the 1.6m [pounds sterling] royalties pot by hale But the indie trade bodies acted one week before this deadline by dashing off an open letter signed by more than 280 indie labels throughout Europe--including Edel, Independiente, Ministry of Sound and Sanctuary--to Hansen in "protest" at MTV's stance. They also fielded a team (of indie heavyweight executives, including Pias chief Michel Lambot and Beggars chief Martin Mills, at the central London media conference to demonstrate the strength of solidarity.