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

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 -