MUSIC INDUSTRY : ITALY AND FRANCE HELD UP AS EXAMPLES BY INDEPENDENT LABELS.

• Position: Brief article

Europe's independent record companies are urging the EU's member states to follow the example of Italy and France, which have passed new legislation in favour of independent labels.

Italy approved, in its law on the 2007 budget, a 10% tax break for certain companies. The tax credit is meant to support the "production, development, digitisation and sales promotion of music and video recordings of the first or second works of new artists," reports Impala, the association that represents independent labels in the EU.

To qualify for the tax break, record companies have to meet two conditions. Their turnover may not exceed 15 million, meaning the special treatment is basically limited to small and medium-sized enterprises (SMEs). They must also be independent from radio or television operators. That provision basically excludes the labels owned by Mediaset, the property of...