In this piece I provide a brief 
history of copyright in Australia seen through the lens of an Australian
 High Court ruling made in 2012. The case is Phonographic Performance 
Company [PPCA] of Australia Limited v Commonwealth of Australia [2012] 
HCA 8 (hereafter, HCA 8, 2012). The case encapsulates the history of 
copyright law in Australia, with the judicial decision drawing 
substantive parts of its rationale from the centuries old Statute of 
Anne (8 Anne, c. 19, 1710), as well as copyright acts that regulated the
 Australian markets prior to 1968 and beyond. 
Context and terms
Royalty caps regulate the amount that 
can be claimed by collection societies for performance royalties on 
musical works. The one percent cap on the broadcast of recorded 
performances was first legislated as part of the Australian Copyright Act
 (1968), the Commonwealth statute that has since governed intellectual 
property rights in Australia. The basis of capping arrangements (from 
the perspective of radio) is that: the Australian royalty collection 
societies (APRA, AMCOS, CAL, Screenrights, and PPCA) have historically 
been seen as monopolies, that broadcasters fall under a compulsory 
licensing arrangement, and that royalty caps are necessary to protect 
the commercial radio industry from extortionate claims against their 
revenues by publishing and recording companies (Atkinson, 2007).
CRA’s public position on the cap and 
role of radio is that commercial radio champions local musicians, 
invests billions in airtime to promote artists, and defends against the 
profiteering of ‘multinational record companies’, adding that their 
efforts add up ‘to billions of dollars in airtime and promotion’ (CRA, 
2012a).
Platemakers, common good, and the one percent cap 
Any historical view of copyright law in 
Australia inevitably leads to the Statute of Anne, a mercantile era law 
passed in 1710 that was premissed on a common good associated with the 
relationship between publishing and public learning. The High Court’s 
decision on the one percent cap was made in the context of the 1968 Act.
 Here is part of the High Court’s response to the challenge:
speaking generally 
the 1911 Act, like the Statute of Anne, took into account and balanced 
the interests of authors, entrepreneurs and the public. The public’s 
interest lay in the dissemination of copyright works, including 
dissemination on reasonable terms. Any detailed consideration of the 
historical context of the Statute of Anne supports this construction of 
its intent and its provisions. (HCA, 2012)
Anne is unambiguous on the public 
pedagogical function of copyright law. Its title declares it to be ‘An 
act for the encouragement of learning, by vesting the copies of printed 
books in the authors or purchasers of such copies …’ (8 Anne, c 19). It 
is also clearly anti-monopolistic.
The intention of Anne was to assert 
protections for authors against the market dominance of monopolies which
 had historically been held in Britain by the printing guilds (Ochoa and
 Rose, 2002). Its rationale was the common good derived from the 
publication of new works and the public learning associated with that 
dissemination. That the High Court draws on Anne for its historical 
force is ironic because the bulk of copyrights in Australia (as 
elsewhere) are controlled by an oligopoly of large international 
corporations. That fact is also noted by the High Court in its decision:
The second to fifth 
plaintiffs [Sony Music, Warner Music, EMI Music, and Universal Music PG]
 are the owners or exclusive licensees of copyright in numerous sound 
recordings, including sound recordings made prior to 1 May 1969. They 
collectively control (as owners or controllers) the majority of sound 
recordings which have been commercially released in Australia in the 
last 70 years. (HCA, 2012)
So on one side of the 2012 decision 
there are global oligopolies in recorded music copyrights; on the other,
 oligopolies in local, state, and national media properties. Australia 
is known for its intense level of media ownership concentration. CRA 
purports to represent 99 per cent of Australia’s 260 commercial radio 
licensees. It also notes recent consolidation of 80 percent of all 
stations into 12 networks (CRA 2012b).
The unintended irony of the High Court 
decision can be understood as good law only if, as Attali (1985) argues,
 a music recording has been seen historically as ‘a special kind of 
writing’ by lawmakers (1985, p. 98). That appears to be the case in the 
current decision which reasserts the validity of separating 
compositional copyrights from those that subsist in recorded works. The 
decision refers to the Australian copyright Act of 1911 (which was 
replaced by the 1968 Act), noting that ‘the 1911 Act granted a copyright
 to record manufacturers, which was expressly conflated with the 
copyright of authors and composers of original musical works’ (HCA, 
2012). Following the Westminster Act of 1956, which ‘distinguished 
between copyright in works, including musical works, and copyright in 
subject matter other than works’ and ‘which included separate 
identification of the nature of copyright in sound recordings’, the 1968
 act clearly distinguishes between the rights pertaining to composition 
and those that pertain to recording (HCA, 2012). The net result of this 
was to give the corporate “person” making the recording a separate but 
similar status to that of the person who composed the work. The central 
analogy drawn in the decision in respect of record duplication is the 
notion of the “plate maker”, a technical concept that has its origins in
 printed media.
The 2012 High Court decision sidesteps 
impacts upon composers, performers, and individuals (ie. non-corporate) 
record producers that may extend from its decision, and this too is a 
function of history. The unspoken economic argument that underpins the 
decision runs like this: there is significant capital investment 
involved in the plant and equipment required to make an original 
recording and its subsequent copies. It is in the common good that these
 services continue because they contribute to public learning. They 
cannot continue without statutory copyright protection that allows them 
to profit from their authorship and protects investment in production of
 the “plate”. However, privileging the corporate “plate maker” in 
current circumstances ignores the dramatically lowered cost of producing
 and disseminating recorded musical works brought about by the 
widespread availability of digital production technologies and the fact 
that every digital recording is now the equivalent of a “plate” in terms
 of its potential to generate infinite high fidelity copies.
The compulsory license
A major difference between the 1911 Act 
and the 1968 Act is the 1968 introduction of a compulsory broadcast 
license and an associated blanket protection against copyright 
infringement. While the Imperial Act of 1911 included a blanket 
compulsory recording license for published works, it also provided the 
right for any copyright controller to refuse public performance of a 
work, regardless of whether it was recorded or not. This resulted in a 
need for broadcasters to seek and negotiate individual rights for every 
recorded work. It was this discretionary power, held by both composers 
and record manufacturers, that broadcasters spent the following decades 
trying to undo.
The right to refuse caused havoc for 
broadcasters in 1931 when record manufacturers withdrew the right to 
broadcast any music whatsoever because the record companies (at the 
height of the Great Depression) believed that airplay had killed off 
record sales (Atkinson, 2007, ch. 6). It was during the ensuing 
copyright wars that the framing of copyright collection societies as 
voracious monopolies became entrenched in the construction of national 
and international copyright legislation ever since (2007; cf. Attorney 
General, 2005).
Atkinson (2007) summarises the 
Government’s views on the dispute at the time as follows: “APRA, a 
virtual monopolist backed by the law, had too much negotiating power. 
Thus the problem [the Federal Government] tried to solve was how to 
ameliorate the bargaining position of the commercial users of music” (p.
 169). Negotiations between broadcasters and manufacturers followed the 
airplay ban and the manufacturers settled with the broadcasters on 
somewhat cumbersome terms:
They required the B.
 Class stations to discontinue request items, announce the maker of the 
record and full particulars of the record, state that copyright was 
reserved, broadcast only records of the associated manufacturers, limit 
the number of times a record was broadcast, limit broadcasts of records 
issued prior to the ban to once a week, and pay a broadcast fee. (2007, 
p. 176).
Broadcasters also continued to do battle
 with APRA over its fees and conditions. Atkinson (2007) points to the 
report on APRA delivered to the Federal government by the Association 
for the Development of  Wireless in Australia (ADWA) (ch 4). The 
government’s ear was finely tuned to hearing criticism against APRA 
because it had especially targeted the publicly funded (A-Class) 
licensees and had, variously,
claimed up to 21 per
 cent of the broadcasters’ net revenue in license fees, withdrawn 
consent for the playing of popular works, prevented the broadcast of 
more than two numbers from an opera in a single radio program, 
restricted to four the number of times per week that popular items could
 be played, claimed twice for the same performance and claimed fees for 
the performance of works out of copyright. (2007, p. 132)
It is in this context of ongoing 
industrial warfare against APRA and the record manufacturers that the 
broadcasters first recommended a legislated broadcast royalty cap: 
“Australia should advocate, at the 1928 Rome Conference to revise the 
Berne Convention … to permit members to limit the amount of royalty 
payable by broadcasters” (Atkinson, 2007, p. 134).
The development of the 1968 Act took 
decades. According to Atkinson (2007), only at rare and exceptional 
times during those decades did debate turn towards the effects of the 
legislation upon composers and other artists (2007, ch 11). Labor Party 
figures, Gilbert Duthie and Rex Connor, were notable in their efforts to
 promote the rights of artists and composers while decrying the new 
legislation for its almost singular concern with balancing the rights of
 corporate parties, with some thought being given to the library and 
education sectors and none to the consuming public (2007, pp. 316-319).
Under the 1968 Act, as soon as a new 
recording is made in Australia it becomes a limited property right for 
any and all Australian broadcasters. While the broadcast attracts a 
royalty, the payment for it is automatically collected by a national 
system of monopolies whose function it is to redistribute those payments
 to copyright owners and controllers, neither of which are copyright 
originators, at least where the bulk of royalty distributions are 
concerned (HCA, 2012). The rights of the composer are merely a 
by-product of Commonwealth legislation: “copyright does not subsist 
otherwise than by virtue of this Act” (Australian Copyright Act, 1968).
Australia’s copyright law was historically constructed in the context of a copyright using market.
 Australia’s early copyright laws were written by Imperial Britain in 
order to protect British rights (Atkinson, 2007, ch 10). That assumption
 carried over into the 1968 Act with US and British companies dominating
 negotiations on the side of the record companies. The status of 
Australia as a ‘net importer’ of copyrights, a situation decried by the 
framers of the 1911 Act, was either ignored or not understood by the 
framers of the 1968 Act (Atkinson, 2007). The 1968 Act can be seen as 
being made, at least in large measure, on behalf of foreign interests, 
namely the foreign dominated record companies who, at the time of the 
Act’s framing, were responsible for 80 per cent of all recorded music 
broadcast in Australia (2007, p. 325).
The 2012 decision and some conclusions   
PPCA challenged the one percent cap on 
the grounds that it was unconstitutional. It claimed that the 1968 Act 
exceeded the grasp of the Australian Constitution by acquiring new 
property rights without “just terms” (HCA, 2012). However, ‘just terms’ 
were never addressed in the decision because of the 1968 Act which 
extinguished the Imperial Act of 1911: “copyright does not subsist 
otherwise than by virtue of this Act”. Having decided that all 
copyrights prior to 1968 had been extinguished the question of just 
terms never arose (HCA, 2012).
Paradoxically, despite adverse 
legislative conditions for recorded music professionals almost 
everywhere, production of music has increased exponentially, with an 
estimated 97 million songs listed in the Gracenote database by 2011 
(Resnikoff, 2011). Public access to these has also increased 
logarithmically through the proliferation of internet technologies and 
social media. These two facts not only challenge the idea that current 
copyright arrangements are useful in the promotion,  production, and 
dissemination of new ideas and sources of cultural expression; combined 
with rapidly declining incomes, they entirely challenge the notion that 
copyright has the effect of protecting composers against the might of 
industrial monopolies (see also, Atkinson, 2007, ch1). In other words, 
the aims and rationale of the Statute of Anne, which endures as the 
basis of Australian copyright law, are no longer relevant under current 
conditions. Instead, [pullquote]the livelihood of composers seems 
steadily to be disappearing, at least according to official statistics, 
while monopoly is bolstered by copyright at every level.[/pullquote]
The question of a common law right to 
own and exploit one’s own creations may yet again be addressed, but 
perhaps next time it will not be publishers leading the charge. The 
legislative recognition of a common law copyright would fundamentally 
change the nature of composers’ negotiations with broadcasters, ISPs, 
publishers, recording companies, and film makers, especially where 
remuneration and copyright periods are concerned. The idea that anything
 other than a blanket license could function in mass societies is nearly
 impossible to justify or even imagine. However the terms on which such 
licenses are given are quite possibly open to a challenge on the basis 
of restraint of trade, just terms, and price-fixing issues.
The various paradoxes and ironies of the
 HCA 2012 decision that I have highlighted here suggest that the current
 Australian copyright regime has a limited life. Australian music 
producers are protected to the extent that they are a) part of one or 
more of the monopolies involved in the history of Australian copyright; 
and b) close enough to the centre of the recording industries that they 
can acquire a steady flow of paid work. This is not to suggest throwing 
the baby out with the bathwater. It is, however, essential for the 
cultural and economic health of the nation to increase the ability to 
Australian musicians to earn a living, and to the extent that copyright 
legislation is a barrier to that, it must inevitably be changed.
References
Atkinson, B. (2007). The true history of copyright 1905-2005: the Australian experience. Sydney: Sydney University Press.
Attali, J. (1985). Noise: The political economy of music. (Trans. B. Masumi). Minneapolis: University of Minnesota Press.
Attorney General of Australia. (2005). Review of one per cent cap on licence fees paid to copyright owners for playing sound recordings on the radio [discussion paper]. Canberra: Commonwealth of Australia.
Commercial Radio Australia (CRA). (2012a). Commercial Radio Australia Annual Report 2011-12. Sydney: Commercial Radio Australia.
CRA (2012b). What is commercial radio Australia? Available online at:  http://www.commercialradio.com.au/index.cfm?page_id=1002. Accessed November, 2012.
High Court of Australia (2012). Phonographic Performance Company of Australia Limited v Commonwealth of Australia [2012] HCA 8. Available online at: http://www.austlii.edu.au/au/cases/cth/HCA/2012/8.html. Accessed June 12, 2012.
Ochoa, T. & Rose, M. (2002). The Anti-Monopoly Origins of the Patent and Copyright Clause Journal of the Patent and Trademark Office Society, 84 (909): 675-706.
Resnikoff, P. (2011). There Are 97,000,000 Songs In This World… Digital Music News (October 7, 2011). Available online at: http://www.digitalmusicnews.com/stories/100611supersaturation. Access November, 2011.
Smythe, D. (1981). Dependency Road: Communications, Capitalism, Consciousness, and Canada. New York: Ablex Publishing.
This is an edited version of a longer article: Graham P (2013) Australian Copyright Regimes and the Political Economy of Music, published in Music Business and the Experience Economy, Springer.
Source: musicaustralia.org.au