Copyright Review Commission Report - ICT Law and Regulation ...

ecordings. In respect of audio-visual work, only the music is collected for and the money distributed to the same sectors ofbeneficiaries (Gloria Braga, interview, ECAD Offices, May 2011).1.7. TARIFFS FOR ALL MUSIC-RELATED ROYALTIESTariffs follow general guidelines determined by CISAC, but also add criteria within the local context. ECAD charges thefollowing tariffs for the following categories: Radio broadcasts: 2,5% of revenue for radio broadcasts and depending on the size of the antennae, the socioeconomicconditions of the target audience, mobile ringtones and Internet broadcast (non-interactive and interactive). R$287minimum is charged for community radio stations. Airlines: A small amount is paid by airlines, for example, R$18 000 is paid by TAM, Brazil’s national airways. Airports, hospitals and clinics are charged by the size of the area in which music can be heard. Brazil has no satellitebroadcast. 2,5% of the revenue of cable television is charged, although the amount is under dispute. Mobile DJs, karaoke players and use of jukeboxes are not charged. Rather, the venue in which the music is played ischarged according to the size of the area in which the music is played. Hotels are obliged to pay even if they don’t playmusic according to an agreement with owner groups. They are charged according to area. Restaurants, cafes, bars coffee shops and office canteens are charged per month and live events are charged accordingto live fees. Pubs are charged according to area and usage of music. Buses, trains and taxis are not yet charged; buses don’t use music, only television.With regard to the calculation and charge of fees to mobile operators, there is an ongoing discussion with all those involvedwith new technologies, including the Internet. ECAD is investigating ways of obtaining royalties from the archiving of works indeposits and music libraries. ECAD has made attempts to collect from mobile service providers, but has had difficulties.Mobile service providers prefer to pay directly to publishers. Their service is regarded as having reproduction rather thanperforming rights (Gloria Braga, ECAD offices, May, 2011).1.8. DISTRIBUTION OF ROYALTIESIn terms of the nature of the agreements between collecting societies and members, the contractual relationship betweenCMOs and authors and performers are non-exclusive licences with no duration stipulated. There is no assignment of rights.ECAD collects on behalf of the associations, which receive a mandate from members to collect on their behalf. This happensthrough affiliation. A major difference between the UK and Brazilian law is that in the UK the right is transferred to thecollecting society, whereas in Brazil the collecting society does not have propriety of the right. If members are unhappy with asociety, they can change to another, subject to prior notification to the society they intend to leave (Gustav Gonsales,interview, ABRAMUS Offices, May 2011)With regard to the royalty distribution ratio among various parties, of the total 100% collected, 17% goes to ECAD and 7,5%to the associations for administrative costs, while 75,5% goes to the rights owners. Of the amount that goes to the rightsholders, two-thirds go towards copyright (the authors, composers and publishers) and one-third goes towards neighbouringrights (41,7% for recording companies, 41,7% for featured performers, and 16,6% for non-featured performers).- 126 -