1. Member Information

2. What is Merlin? “Merlin is a non-profit organisation, owned by its members and charged with representing and negotiating terms for the commercial exploitation of the collective Intellectual Property copyrights, in regards to certain New Media usages on a global, non-exclusive basis. Merlin has been formed in order to assist Independent Labels and their Trade Associations, who rely on the exposure and licensing of music master copyrights, a simple, one stop solution that covers the majority of the world’s independent labels.”

3. Why do we need Merlin? As the internet comes of age, opportunities for the exploitation of music proliferate as never before. Advances in technological innovation are bringing us new ways to use music on an almost daily basis. The existing framework of licenses and reciprocal relationships is not able to provide a straightforward route to legal access to musical repertoire for the providers of these new services. For independent labels in particular, there is no practical way to make their material available to these services These are the early days of what is potentially enormous business, and the market is highly competitive. There is currently no effective mechanism for Indies to collect their share of this revenue. In most cases this is something no independent label or distributor could do alone. Collectively though, this is licensing and revenue raising that can be done – it is hard to see how such services could justify to competition authorities paying majors, but not Indies Achieving fair and equitable recompense for the use of independent copyrights and facilitating access to that repertoire is in the best interests of all of the businesses who make a living from the independent sector, whether they are artists, labels, distributors or aggregators. WE NEED TO CREATE A GLOBAL ORGANISATION IN WHICH WE ARE THE OWNERS. And that organisation is MERLIN

4. What is Merlin not? Merlin is neither an aggregator nor distributor, its remit is to proactively seek and negotiate new media deals that can’t be easily negotiated locally or individually or are not covered adequately by existing arrangements. Merlin does not operate in the space occupied by Collecting Societies, rather Merlin aims to address the gap between what these societies are able to offer their members and what labels and aggregators can achieve individually. Collection societies are limited by their territorial boundaries. The way the market is developing means or community needs a global solution, and Merlin has been specifically formed to address this need. Merlin is about creating new revenue streams and access to repertoire.

5. How will Merlin work? Many aspects of deal administration will be outsourced, including delivery, reporting, and distribution of monies. Partners will be announced in due course. Many aspects of deal administration will be outsourced, including delivery, reporting, and distribution of monies. Partners will be announced in due course. The ultimate members of Merlin will be the people who own the rights. But, for example, if a label has assigned their digital rights to a distributor then that distributor will enter those rights into Merlin. The ultimate members of Merlin will be the people who own the rights. But, for example, if a label has assigned their digital rights to a distributor then that distributor will enter those rights into Merlin. Merlin’s day-to-day remit and operations are being developed by an interim board, comprised of independent label members of Merlin representing every global sector. A formal board will be appointed in mid-2007. Merlin’s day-to-day remit and operations are being developed by an interim board, comprised of independent label members of Merlin representing every global sector. A formal board will be appointed in mid-2007. Merlin is not there to compete with our members, we are there to enhance their business. Merlin is an inclusive model that seeks to improve the trading environment not only for the rights holders, but also for the key stakeholders in our sector, such as distributors. Merlin is not there to compete with our members, we are there to enhance their business. Merlin is an inclusive model that seeks to improve the trading environment not only for the rights holders, but also for the key stakeholders in our sector, such as distributors. Merlin is a sister organisation to the World Independent Network (WIN). It has been incubated by WIN as its first major global project, but will operate as a stand-alone organisation, independent of WIN. Merlin is a sister organisation to the World Independent Network (WIN). It has been incubated by WIN as its first major global project, but will operate as a stand-alone organisation, independent of WIN.

6. Operational Structure Merlin will be: Non-profit Non-profit Global in its reach, activities and membership Global in its reach, activities and membership Owned entirely by its members Owned entirely by its members Based in London and The Netherlands. Based in London and The Netherlands. Run by an elected board comprising of rights holders from the global independent community. Run by an elected board comprising of rights holders from the global independent community. Financially transparent and independently audited. Financially transparent and independently audited. Mandated to Non-exclusively represent and negotiate terms for the commercial exploitation of its member’s copyrights Mandated to Non-exclusively represent and negotiate terms for the commercial exploitation of its member’s copyrights Protect its members copyrights through lawsuits, actions and proceedings, and in the negotiation of damages and settlement. Protect its members copyrights through lawsuits, actions and proceedings, and in the negotiation of damages and settlement.

7. The Early Phase At Popkomm ’05 a meeting of leading independent labels from around the world decided to build a business case for a new global rights licensing organisation. At Popkomm ’05 a meeting of leading independent labels from around the world decided to build a business case for a new global rights licensing organisation. AT Popkomm ‘06, a steering committee was elected to undertake a consultancy process which examined the possible structure and operating model for such an agency. AT Popkomm ‘06, a steering committee was elected to undertake a consultancy process which examined the possible structure and operating model for such an agency. During the consultancy phase, it became clear that there was a great desire from the global community for an agency such as Merlin to be formed. After 18 months of development and work, in December ’06 the boards of AIM, WIN and Impala ratified the plan to move forward with the formal incorporation of Merlin. During the consultancy phase, it became clear that there was a great desire from the global community for an agency such as Merlin to be formed. After 18 months of development and work, in December ’06 the boards of AIM, WIN and Impala ratified the plan to move forward with the formal incorporation of Merlin.

8. Launch Merlin was officially announced at Midem ’07 to an overwhelmingly positive response from the independent community and massive press coverage around the globe. Merlin was officially announced at Midem ’07 to an overwhelmingly positive response from the independent community and massive press coverage around the globe. Charles Caldas, the former head of Shock Entertainment in Australia was appointed as CEO of the organisation. He will relocate to London in Mid-April. Charles Caldas, the former head of Shock Entertainment in Australia was appointed as CEO of the organisation. He will relocate to London in Mid-April.

9. Target Deals Win has already secured a mandate from a number of international territories that allowed Merlin to commence discussions with a number of services. Win has already secured a mandate from a number of international territories that allowed Merlin to commence discussions with a number of services. As a result, we have had a range of initial meetings with a number of companies including YouTube and Microsoft in order to introduce Merlin, and to commence the process of a collective negotiation on behalf of the labels and companies that have given us a mandate. As a result, we have had a range of initial meetings with a number of companies including YouTube and Microsoft in order to introduce Merlin, and to commence the process of a collective negotiation on behalf of the labels and companies that have given us a mandate. We also announced the first Merlin deal at Midem with the Snocap/MyStore partnership, which is currently being rolled out. We also announced the first Merlin deal at Midem with the Snocap/MyStore partnership, which is currently being rolled out. A list of future targets for negotiation has been compiled and includes services such as Yahoo and AOL. A list of future targets for negotiation has been compiled and includes services such as Yahoo and AOL.

10. The road forward Charles Caldas commences full-time work on behalf of Merlin in London on April 23, 2007. Charles Caldas commences full-time work on behalf of Merlin in London on April 23, 2007. An interim board has been elected by the heads of A2IM, IMPALA and WIN representing a broad section of the global independent community. An interim board has been elected by the heads of A2IM, IMPALA and WIN representing a broad section of the global independent community. The board comprises of: The board comprises of: 2 x US delegates, Tom Silverman (Tommy Boy) and Glen Barros (Concord)2 x US delegates, Tom Silverman (Tommy Boy) and Glen Barros (Concord) 3 x European Delegates, Martin Mills (Beggars), Michel Lambot (PIAS) and Horst Weidenmueller (!k7)3 x European Delegates, Martin Mills (Beggars), Michel Lambot (PIAS) and Horst Weidenmueller (!k7) 2 x2 x The WIN president (Alison Wenham)The WIN president (Alison Wenham) The Merlin CEO (Charles)The Merlin CEO (Charles) This interim board will be responsible for taking Merlin to formal incorporation, at which point a process for the election of the long-term Merlin board will take place This interim board will be responsible for taking Merlin to formal incorporation, at which point a process for the election of the long-term Merlin board will take place The aim is to have the organisation fully incorporated and ratified by the end of June 2007. The aim is to have the organisation fully incorporated and ratified by the end of June 2007.

11. Communication Communication The global community will be kept regularly updated on the activity of the interim board. The global community will be kept regularly updated on the activity of the interim board. A process of consultation with the global community will take place prior to the formal incorporation. A process of consultation with the global community will take place prior to the formal incorporation. The process of incorporation, the setting of the corporate structure, the election the board and the financial model of Merlin's operation will be fully transparent. The process of incorporation, the setting of the corporate structure, the election the board and the financial model of Merlin's operation will be fully transparent.

12. Website We are in the process of finalising the establishment of the Merlin Website, which will be at: We are in the process of finalising the establishment of the Merlin Website, which will be at: www.merlinnetwork.org www.merlinnetwork.org www.merlinnetwork.org

13. Contact us For more information on Merlin For more information on Merlin Please contact Charles Caldas on: Please contact Charles Caldas on: caldascm@ozemail.com.au caldascm@ozemail.com.au caldascm@ozemail.com.au