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

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In 1995, ECAD distributed 72% of its revenue nationally and 28% abroad. ECAD distributed $50 million to the 10associations it represented:1. ABRAMUS,2. AMAR,3. ANACIM,4. ASSIM,5. SABEM,6. SADEMBRA,7. SBACEM,8. SICAM,9. SOCINPRO, and10. UBC.The amount paid was a 34% increase from the previous year. This amount has steadily increased over the years to: R$80,1 million (1997), R$89,9 million (1998), R$91,47 million (1999), R$112,5 million, (2000) R$156,8 million (2001), R$176,5 million (2002), and R$200 million (2003).For the associations, this growth is something to be proud of as it happened at a time when the music industry was shrinkingdue to a drop in CD sales and a rise in piracy (www.ecad.org.br).According to information from the Internet, ECAD’s biggest member society in the 1990s has been the Brazilian Composers’Union (UBC), which with 3 800 members had the largest revenues of ECAD’s members. Its administration costs were only5%. However, because such revenue was channelled through ECAD, it cost authors 30% for the collective management oftheir rights. In 1996, the collections of UBC rose 10% to $22,03 million. Of this, 97% was from domestic collections. UBC alsocollected $1,7 million in neighbouring rights (www.ecad.org.br).In 2008, ABRAMUS earned the distinction of being the largest CMO for authors and composers. By the end of 2009, therewere 22,782 members. This association distributes the most rights in Brazil. In 2008, R$104 231 242,62 was passed on tothe domestic members of ABRAMUS (Annual Report, 2009). An amount of R$5 713 385,76 was passed on to theinternational associations it represents (Annual Report, ABRAMUS, 2009).In the 2009 Annual Report of ABRAMUS, the President, Roberto Correa de Mello, indicated the intention of the associationto establish more dynamic work parameters for rights owners, working towards planning and developing tools to improvetheir clients’ productivity. He mentioned their investment in programmes, enabling them to offer online services and workmore closely with rights owners. They were focusing on electronic and innovative means to better meet current demands forswift, simple solutions.- 128 -
From a management point of view, the focus of ABRAMUS is on forging close relationships with rights owners and, afterconsultation, tailoring their services to meet the needs of rights owners. Taking into account the downturn on CD sales andlack of investment of major record companies in new artists and new releases, ABRAMUS identified new growth areas suchas country and gospel music. In addition, live music shows have provided a viable alternative. A number of controlmechanisms have been adopted to allow ECAD to accurately measure the music that has been performed, to enable fair andmore correct distribution. ABRAMUS has further created a space on its website for the author or performer to inform them ofthe performance of a concert, enabling ECAD to collect and distribute that part to which they are entitled. They have alsoidentified television within an author’s rights public performance structure. Authors of theme music for television shows rankthe highest in remuneration, particularly in shows played daily (ABRAMUS Annual Report 2009).Members can move between societies. Small societies are not sustainable because a good infrastructure is required.Associations deal with complaints from members. Offices are there to serve members. Distributions are made every month toensure a monthly income for members.The association offers training, on its own and in partnership with ECAD. ABRAMUS established a web portal for members.They also have a ‘relationship portal’ aimed at building a good relationship with members. A special section of their officespace is dedicated to members, who visit the offices of ABRAMUS (Gustav Gonsales, interview, ABRAMUS Offices, May2011).Due to lack of time, no information was gathered in Brazil regarding the relationship between recording companies andartists.1.9. PROTECTION OF INDUSTRY AGAINST MUSIC IMPORTSIncentives are in place to promote local music. At the national level, Brazil has within the last three decades successfullydeveloped a national music repertoire, which currently allows for about 80% of local music to be played on the airwaves inthat country. This high level of local music played in Brazil was due to government initiatives to develop the national culturalrepertoire. One such initiative was an incentive offered to recording companies to record Brazilian music. Another initiative bythe previous Minister of Culture, Gilberto Gil, was the provision of funding at local government level to promote local cultureand establish independent recording studios, enabling the production of CDs in small quantities and the diffusion of musicthrough the Internet, the training of sound technicians, and professional music training in communities (Gloria Braga, ECADOffices, interview, May 2011).There has not been a need for legislation to protect local music or discourage foreign music. Rather over a period of 30 yearsgovernment had put programmes in place to build a national culture. Record companies were given an incentive to recordBrazilian music. This was during a great time of selling CDs, and radio stations began to play Brazilian music. After theincentive was discontinued, the Brazilian people continued to buy Brazilian music. Currently there are 45 000 radio stationsthat play an average of 79% Brazilian music. Radio licences do not carry an obligation of having to play Brazilian music(Gloria Braga, ECAD Offices, interview, May 2011).In line with government cultural policy, and responding to a market where CDs and DVDs were being replaced with digitalmusic as well as a slump in sales of CDs and DVDs as a result of piracy, associations such as ABRAMUS searched for new- 129 -
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TABLE OF CONTENTSLIST OF ABBREVIATI
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11.8 RECOMMENDATIONS ..............
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LIST OF TABLESTable 1: Cases of Non
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NORMOSPsPOSAPPLPPL (India)ProLitter
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These problems are addressed in the
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xxi.The report considers developmen
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1.3.8. Determine whether all money
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1.4.9. The CRC derived considerable
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2.3 SUBMISSION BY THE DEPARTMENT OF
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Aspects of Intellectual Property Ri
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(1) Subject to the provisions of th
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Copyright Tribunal or an arbitrator
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society, the South African Recordin
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3.2.14. With the liquidation of SAR
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the final rate or rates to be appli
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(a)that payment is to be made to th
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information as to their use to enab
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The WCT and WPPT oblige members to
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Once the handset technology changed
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4.3.16. In 2009, in what was coined
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4.4.6. In exchange for the above li
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operators are licensed by NORM to p
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5.2 FUNCTIONING OF COLLECTING SOCIE
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the grant of licences. Article 17 o
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6.1.3. The CRC’s assessment of th
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6.3.3. SAMPRA should be given one y
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Corporate Governance GapsKing II Re
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King IIIPrincipleKing IIIRequiremen
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King IIIPrincipleKing IIIRequiremen
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8 COLLECTION OF MUSIC ROYALTIES8.1
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8.1.4.2. Needletime royalties are n
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8.1.7.4. For the past five years, V
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PRS (UK)SPRE (FRANCE)SUISA(SWITZERL
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DetailsPerformance RightsSound Reco
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8.2.7 Comparative Study Performed b
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y a collecting society. A rights ho
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agency, its rights being derived fr
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Mr Robinson said DALRO assumed the
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10.1.6. The distribution to publish
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10.4.4. Most of the other collectin
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10.6.3.4. South African English-lis
Page 84 and 85: 10.10 CONTRACTUAL RELATIONSHIPS BET
Page 86 and 87: 10.12.2. The Regulations should rec
Page 88 and 89: licence that the licensee comply wi
Page 90 and 91: 11.4.6. The details of ICASA’s ta
Page 92 and 93: RecommendationsTimelines for Recomm
Page 94 and 95: enterprises. There was a suggestion
Page 96 and 97: Copyright as it relates to copyrigh
Page 98 and 99: 13.4 DEPARTMENT OF ARTS AND CULTURE
Page 100 and 101: Table 28: Comparative Study’s Key
Page 102 and 103: KEY ITEMS BRAZIL FRANCE INDIA NORWA
Page 104 and 105: KEY ITEMS BRAZIL FRANCE INDIA NORWA
Page 106 and 107: about 30%, which is the highest amo
Page 108 and 109: 15.1.3. The Copyright Tribunal’s
Page 110 and 111: 15.1.20. Local music content requir
Page 112 and 113: for the selected artists. The outco
Page 114 and 115: King III Report by Institute of Dir
Page 116 and 117: Paranagua Pedro, “Strategies to I
Page 118 and 119: Copyright Amendment Act of 1984Copy
Page 120 and 121: APPENDIX 1(B): SUMMARY OF ORAL REPR
Page 122 and 123: Due to the fact that the existing c
Page 124 and 125: Mr BrottelProtection of copyright m
Page 126 and 127: 1.1.3. LIST OF ENTITIES VISITED AND
Page 128 and 129: In the 2009 Annual Report of ABRAMU
Page 130 and 131: The implementation of this law led
Page 132 and 133: ecordings. In respect of audio-visu
Page 136 and 137: niches in the market to ensure fair
Page 138 and 139: Proprietary rights allow authors to
Page 140 and 141: International royalty distribution
Page 142 and 143: 3.2. Relevant LegislationsThe prese
Page 144 and 145: IPRS uses the standard tariffs in r
Page 146 and 147: Ad-hoc workshops on copyright are c
Page 148 and 149: meaningful living out of their crea
Page 150 and 151: 4.1.3. LICENSING AND LEGAL REGIMESI
Page 152 and 153: Ballet teachers; Teachers in the fi
Page 154 and 155: It was founded in 1928 by the Norwe
Page 156 and 157: 6.2. STRUCTURE OF COLLECTING SOCIET
Page 158 and 159: 6.5. COLLECTION OF MUSIC ROYALTIEST
Page 160 and 161: 1957, when the Managing Director of
Page 162 and 163: 16.4.14 SWISSPERFORM: CHF4 millionI
Page 164 and 165: Cross-border licensing of digital r
Page 166 and 167: algorithm could be used to determin
Page 168 and 169: Collecting societies in the UK all
Page 170 and 171: APPENDIX 3: RECOMMENDATIONS BY MITT
Page 172 and 173: 1.PREAMBLEThe Music Industry Task T
Page 174 and 175: The environment in which the music
Page 176 and 177: 3.1.3 IMPLEMENTATION AND ACCESSION
Page 178 and 179: In this regard, the Minister should
Page 180 and 181: 3.5.6 OMBUDSMANThe music industry s
Page 182 and 183: RECOMMENDATION 23:The MITT recommen
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The MITT further recommends that DA
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APPENDIX 4A: EXTRACTS FROM COPYRIGH
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(f)(g)doing, in relation to an adap
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(i)requiring notice of any intended
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(b)any organization claiming to be
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PERFORMERS’ PROTECTION ACTNO. 11
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the parties may agree to refer the
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ANNEXURE 5: COPY OF SARRAL’S CONT
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ANNEXURE 6: SARRAL’S AUDIT REPORT
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TERMS OF REFERENCESNO’SREQUIREMEN
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