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algorithm could be used to determine the music played in a pub in the South West of London or the music played in ahairdressing salon in Hull.PPL always attempts to obtain actual usage data. If this is not possible, then PPL will use a ‘surrogate’ usage profile. Theseare created based on information from similar or associated users who have reported usage. Performers have a statutoryright to equitable remuneration from the owner of the rights in the sound recording embodying their performance underSection 182D of the Act. The obligation to pay equitable remuneration is discharged by way of payments made by PPL to theperformer members.In a report by PricewaterhouseCoopers (Music Collecting Societies. Evolution or Regulation? Assessment of RecentProposals on the Reform and Regulation of Collective Rights Management in the Music Industry (June 2005 page 11)), it isnoted that, in terms of distribution, PPL commits to distributing to the record company, featured and non-featured artists, andendeavours to do this on the basis of actual play (obtaining playlists from all possible parties). The report concludes that PPLincurs costs to ensure that collected revenues are distributed on the most accurate basis. PwC noted:We understand that this approach is not followed Europe-wide, with many societies basing distribution on the playlists of popular radiostations, which results in a less accurate distribution method and lower distribution costs.7.5.1. FREQUENCY OF ROYALTY DISTRIBUTIONS BY THE COLLECTING SOCIETIESPRS distributes its royalties four times a year (in April, July, October and December). The distribution of royalties is done veryprofessionally by UK collecting societies. PRS’s distribution of royalties for public performances is based on the actual datacollected from key users, for example concert halls. PRS enters into agreements with market researchers to establish a baseto determine the use of music where cue sheets are not made available.7.5.1.1. Unclaimed MoneyPPL deploys various research methods to locate members who have relocated without updating their contact details,including Musicians’ Union membership, Internet research, performer representatives and, occasionally, recordcompany contacts. We also conduct information and advertising campaigns to make performers aware of the fact thatwe might have money for them. We then have an online claiming system where a performer can claim against anysound recording they performed upon (supported by evidence).7.5.1.2. Surplus FundsAny surplus funds (being payments due to performers who have not made a claim) that PPL has when distributions areclosed at the end of the statutory six-year period are distributed on a pro-rata basis across the relevant performer andrecord companies from that period pro-rata to their earnings for that period.- 160 -
7.6. PROTECTION OF INDUSTRY AGAINST MUSIC IMPORTSToday, only BBC and ITV for the ITV1 channel have local content for obligations. ITV have been fighting a long campaign forreductions in the statutory requirements on regional content, which are costly for them to produce.On radio, there is a more detailed regulatory regime for licensing. The regulator, OFCOM (http://www.ofcom.org.uk/) awardsfor such licences (in areas where there is not enough spectrum to support all applications) has taken into account the natureof the service to be provided (talk, music etc.). There is also a localness code, which includes requirements for material to beproduced in the area to which it is broadcast.7.7. CORPORATE GOVERNANCEThere are no minimum standards set by the government. Although UK collecting societies are relatively efficient with regardto collections and distributions when compared to some of their counterparts in Europe, the government has been workingclosely with PPL and PRS in particular to encourage them to operate with minimum standards of fairness and transparency.The Hargreaves Review has recommended statutory codes of conduct for collecting societies. The Review hasrecommended that collecting societies should be required by law to adopt codes of practice, approved by the IPO and the UKcompetition authorities, to ensure that they operate in a way that is consistent with the further development of efficient, openmarkets.Some collecting societies have internal complaints procedures. PRS is the only one that has an independent Ombudsman towhom complaints can be referred if they cannot be resolved internally. PPL has been working on a Code of Practice. TheBritish Copyright Council (http://www.britishcopyright.org/) has drafted voluntary codes of conduct that covers all collectingsocieties in the industry.CISAC Statues provide governance rules. Both CISAC and individual societies are able to carry out audits of societies withthe potential removal from CISAC for non-compliance. Any changes to the Memorandum of Articles or Articles of theAssociation of Collecting Societies must be done in terms of the Companies Act 2006, but requires approval where changeaffects members’ rights adversely.Article 7(c)-(g) and Article 9 embodies regulatory restrictions on the duration and scope of assignment that PRS may requireits members to enter into.The UK has around 18 collecting societies, usually one per category. Virtually all composers, lyricists and music publishers inthe UK have assigned their relevant public performance copyrights to the PRS, which thus has an effective de factomonopoly on the grant of licences for copyright music in the UK. Thus, collecting societies in the UK tend to operate as defacto monopolies or quasi monopolies, hence the two MMC Reports (see for example Monopolies and Mergers Commission(‘MMC’), Performing Rights (1996) H.M.S.O. Cm 3147).- 161 -
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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
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15.1.3. The Copyright Tribunal’s
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15.1.20. Local music content requir
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for the selected artists. The outco
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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 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 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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Page 210 and 211: ANNEXURE 6: SARRAL’S AUDIT REPORT
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Page 214 and 215: TERMS OF REFERENCESNO’SREQUIREMEN
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TERMS OF REFERENCESNO’SREQUIREMEN
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