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

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6.5. COLLECTION OF MUSIC ROYALTIESThe collection of royalties in Switzerland is very effective. In 2009, the average amount of royalties collected perSWISSPERFORM employee (in monetary terms) was 3,8 million CHF. In 2010, the amount of royalties collected peremployee was 3,15 million CHF.Reception of broadcasts is regulated under media law – all users pay a licence fee for the reception of the broadcasts.Collection of radio and television licence fees has been entrusted to the private company Billag SA, which is the official Swissbody for the collection of licence fees for radio and television reception. Billag SA, which is based in Fribourg, is supervisedby the Federal Office for Communications (OFCOM) in Bienne.Users such as café and restaurant owners pay their broadcast licence together with their copyright licence. Where retailersdo play radio broadcasts to their customers, they pay directly to Billag SA. Currently 65 000 pay Billag SA (broadcasting).Retail stores often pay directly to SUISSE because they only use CDs and do not play radio broadcasts to their customers.Currently 3 000 clients pay directly to SUISSE.The collecting societies make use of inspectors to enforce payment. Billag SA has its own inspectors and SUISSE has threeinspectors who regularly go to theatres to monitor that the repertoire used is reported for all performances.Year ProLitteris SSA SUISA SUISSIMAGE SWISSPERFORM2007 28'723'000 17'986'000 132'276'000 46'390'000 35'559'0002008 29'885'000 18'301'000 141'270'000 52'445'000 42'402'0002009 29'330'000 19'816'000 136'859'000 49'409'000 43'031'000Source: http://www.swisscopyright.ch/en/income-and-distribution/money-flows/market-development.html6.6. DISTRIBUTION OF ROYALTIESArticle 48 of the Copyright Act regulates the distribution of royalties. Collecting societies must draw up distribution regulationsand submit them to the supervisory authority for approval (see Article 52(1)). Section 49(4) provides that where contractualagreements exist between the original owners and third parties, such contractual provisions shall take precedence over therules of distribution.Users must provide the collecting societies with all the information they require to devise and apply the tariffs and to distributethe proceeds. Suissa noted that users must provide it with list of works played in terms of Article 51 of the Copyright Act.Broadcasters and concert organisers provide SUISA online with a list of the works used. Swiss musicians provide the data onhandwritten forms.- 152 -
Before the royalties can be distributed among the members, the royalties received from the joint tariffs are apportionedamong the societies involved. Each society then distributes its share to its members. Detailed examples can be found on thepage money flows (at http://www.swisscopyright.ch/en/income-and-distribution/money-flows/key-figures.html).Article 49 of the Copyright Act provides that the collecting societies must distribute the royalties in proportion to the revenue itreceived from the individual exploitation of works and performances. They must take reasonable steps and appropriate stepsto identify the copyright owners who should be remunerated. SWISSPERFORM has a division of 50% / 50% betweenperforming artists and producers (see overview on distribution on page 18 of the 2010 Annual Report:http://www.swisscopyright.ch/fileadmin/user_upload/news/Publikationen/2010_SWISSPERFORM_Jahresbericht.pdfSUISA distribution is done through the use of data from several sources, such as works played on radio stations (80%), CDsales, and cinema and television performances. SUISA does 25 distributions per year. SWISSIMAGE’s distribution ofroyalties is complicated as there are various different factors to weigh. SWISSIMAGE strives to be as precise as possible, butit must also take efficiency requirements into consideration and thus has to make certain assumptions. It makes use ofmarket research to determine which cable operator offers which channels and viewing patterns of users. Market researchersregularly contact 2 000 households.SWISSPERFORM has developed weight factors to determine the type of programmes that users tape on DVDs etc.Experience has shown that these are not the same in the areas of distribution. Unclaimed royalties are reserved for fiveyears. If they are not claimed, the money goes into another distribution,The administrative costs are kept below 20% and some collecting societies’ costs are below 10%.16.4.10 Administrative costs 20106.7. PROTECTION OF INDUSTRY AGAINST MUSIC IMPORTSThe performance of music is decidedly local in Switzerland. SWISSPERFORM has noted that the average ratio betweenlocal and foreign distributions of royalties is as follows (percentages exclude record producers and broadcasters): Local (Switzerland / Liechtenstein): 9,2 million CHF (71%); and Foreign: 3,8 million CHF (29%).Article 48(2) of the Swiss Copyright Act provides that a portion of the proceeds may be used for social welfare purposes andfor appropriate furtherance of culture, subject to approval by members. The roots of this provision can be traced back to- 153 -
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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
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enterprises. There was a suggestion
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Copyright as it relates to copyrigh
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13.4 DEPARTMENT OF ARTS AND CULTURE
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Table 28: Comparative Study’s Key
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KEY ITEMS BRAZIL FRANCE INDIA NORWA
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KEY ITEMS BRAZIL FRANCE INDIA NORWA
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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 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 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
Page 194 and 195: PERFORMERS’ PROTECTION ACTNO. 11
Page 196 and 197: the parties may agree to refer the
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Page 206 and 207: 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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