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IPRS uses the standard tariffs in respect of public performances for all users. The tariffs are determined by IPRS based oninternational benchmarking and taking into account local business activities. They are adjusted each year, taking into accountthe CPIX for the country. Users who are unhappy with the tariffs are able to refer the matter to the Copyright Board forreview.With regard to broadcasters (communication to public), the sliding scales tariffs are based on the music usage by therespective broadcasters – for example, a broadcaster that dedicates 90% of the available time to music pays 9% of the totaladvertising revenue; for 80% usage, 8% is payable; and for 70% usage, 7% is payable; and the ratio is the same for theother utilisation levels (60%, 50%, 40%, 30%, 20%, 10%). With regard to the sound recordings, the Copyright Board recentlycompleted a case where it was decided that the broadcasters should pay a flat rate of 2% (of the total advertising revenue)for sound recording. The maximum fees payable by the Indian radio broadcasters (excluding mechanical rights) is 12% (10%+ 2%) and the minimum fees amount to 2% (0% + 2%), assuming that the radio station does not play music.All broadcasters are required to keep cue sheets, which are submitted to the relevant collecting societies on a monthly basis.The non-broadcasting users do not use the cue sheets and most pay their annual royalty fees in advance.The collecting societies do not collect royalties on behalf of non-members. With regard to non-broadcasters, it is not possibleto distinguish between the members and non-members because there are no cue sheets and, by default, the money for thenon-members is collected and distributed to the members.3.5. DISTRIBUTION OF ROYALTIESRoyalties are distributed to members twice a year, in September and February. The money collected may not be used foranything other than royalty distribution and administration, without the approval of the members. This can be evidencedthrough the audited financial statements of IPRS. There are no investments, other than the cash on hand (waiting fordistribution) and fixed assets (for operational requirements).The royalty distributions (from broadcasting and non-broadcasting users) are based on the broadcasting usage information.Any unclaimed royalties are retained by the collecting societies and written back after three years. The beneficiaries ofunclaimed royalties are not traced by the collecting societies.The administration cost (IPRS) as a percentage of the collections was 15,4% for 2009 and 13,3% for 2010.IPRS was not able to provide a split between local and foreign distributions because of the fact that most foreign artists haverepresentations in India.Interest earned from the cash on hand is distributed with royalties on the same ratio.For public performances (including mechanical rights), the distribution ratio is as follows: Authors = 20%, Composers = 30%, and- 138 -
Publishers = 50%.For sound recording, the recording labels get 100% of the distributions and they, in turn, distribute the performers’ sharebased on the agreement between the parties.3.6. RELATIONSHIP BETWEEN RECORDING ENTITIES AND PERFORMERSDue to the lack of strong unions for the artists, in most cases the partnership relationship between the recording entities andtheir respective artists is not place.In most cases, the performers have session agreements with recording artists whereby they are paid once-off and upfrontand in return relinquish all their rights. The basis for determining the upfront payments are ad-hoc and unscientific.The industry is entirely dominated by the recording entities.3.7. PROTECTION OF MUSIC INDUSTRY AGAINST MUSIC IMPORTSThere are no legislations (or practices) in place to protect the local artists.3.8. CORPORATE GOVERNANCEThere are no recognised practices in place to guide organisations with regard to acceptable corporate governance practices,and the corporate governance is weaker than the international standards.With regard to corporate governance, the following matters were noted with regard to the IPRS: The directors are voted by the members during the Annual General Meeting (AGM); All members are invited to the AGM; The approval of the members is sought if the society wants to use the cash for anything other than the distributions; The annual report is limited to the abbreviated income statement, balance sheet and the directors’ report. TheChairman’s report is not part of the annual report; The published annual financial statements do not comply with the International Financial Reporting Standards (IFRS)and, accordingly, the level of disclosure is limited; The directors’ pay is not disclosed by the published accounts; The qualifications, skills and experience for the senior management and directors are not disclosed to the members;and There is no evidence that the Board sub-committees such as audit and risk committees are in place.3.9. TRAINING OF PROSPECTIVE PERFORMERSThe school and college training is limited to the technical aspects of music and, accordingly, most prospective musicians areignorant about their rights with regard to copyright issues.- 139 -
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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
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10.10 CONTRACTUAL RELATIONSHIPS BET
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10.12.2. The Regulations should rec
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licence that the licensee comply wi
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11.4.6. The details of ICASA’s ta
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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 134 and 135: In 1995, ECAD distributed 72% of it
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 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
Page 184 and 185: The MITT further recommends that DA
Page 186 and 187: APPENDIX 4A: EXTRACTS FROM COPYRIGH
Page 188 and 189: (f)(g)doing, in relation to an adap
Page 190 and 191: (i)requiring notice of any intended
Page 192 and 193: (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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