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TERMS OF REFERENCESNO’SREQUIREMENTS2. Assess the relationship of collectingsocieties that exist in South Africa todetermine the extent and access inroyalties from public and privatebroadcasters, and how the distribution isdone to artists. The CRC should assess,advise and make recommendations.3. Assess the nature of private and publicagreements that the radio and TVstations have with local and internationalcollecting societies and access howroyalties are distributed and the pattern ofperceiving for local vis a vis internationalrights owners. The CRC should assess,advise and make recommendations.THE CRC HIGH LEVEL RESPONSESWith regard to the performance rights, SAMRO has concluded agreements with almostall public and commercial broadcasters (except DMX). SAMRO is paid monthly and thecue sheets are also submitted monthly. The distributions to the songwriters, composers,publishers, sister collecting societies and agencies of the international recording labelslike EMI are done once a year based on the cue sheets submitted by the respectivebroadcasters.With regard to mechanical rights, there are no agreements between the SABC and therelevant collecting organisations (SAMRO and NORM).NORM has appropriate agreements with private television stations and the relevantmobile communications networks, but the situation with SAMRO is unsatisfactory. Theagreements are not in place due to the confusion around SAMRO’s repertoire versusNORM’s repertoire. Therefore no collection has been made by SAMRO from theseentities. Refer to the CRC’s recommendation on a merger of some of the collectingsocieties’ operations under 1 above.There are no agreements between the local broadcasters and the internationalcollecting societies.The agreements between the broadcasters and SAMRO allow the broadcasters to useSAMRO’s repertoire, which includes all SAMRO’s members’ songs and the members ofall foreign collecting societies with reciprocal agreements with SAMRO. In practice, thesituation is different because the full performance rights liability is paid to SAMRO. Evenif a rights holder is not a member of SAMRO, his or her share of the royalty is paid toSAMRO.Based on the cue sheets, the shares of the royalty fees belonging to known recipientsare distributed to them. In the case of foreign parties, the distribution is made to therespective foreign collecting societies and to the local agents of the multinationalpublishers. The amounts payable to non-members are not distributed until the rightowners are identified. If the right owners are not identified within three years, theunclaimed amounts are distributed to known members proportionately.The CRC’s recommendations are: The retention period for the unclaimed funds should be increased from three to fiveyears. Any unclaimed funds after five years should be taken into the social / cultural /pension fund for the benefit of local artists.REFERENCES TO CRC REPORTParagraph 8.3Paragraph 8.1.7Paragraph 8.1.7Paragraphs10.5 & 10.8Paragraph 10.9- 208 -
TERMS OF REFERENCESNO’SREQUIREMENTS4. Assess the nature and extent of use ofmusic by Mobile Telephony Companiesand whether they are paying copyrightroyalties to rightful owners. The CRCshould assess, advise and makerecommendations.5. Assess the extent of distribution ofroyalties and determine the percentagesdistributed nationally vis a vis outsideSouth Africa. The CRC should assess,advise and make recommendations.6. Assess tariffs associated with licensingagreements. The CRC should assess,advise and make recommendations.THE CRC HIGH LEVEL RESPONSESMobile operators have been selling ringtones since 2000 and no payments were evermade for performance and needletime rights. This is due to the fact that the SouthAfrican copyright law lags behind the digital era. The right to communicate a work to thepublic at a time and place chosen by the user adequately addresses the transmission ofworks on networks, as well as the streaming of content. This ‘new’ right has beenadopted in most other jurisdictions and collecting societies are able to licence users fora wide variety of on-line music offerings. In order to deal with this, the CRCrecommends amendments to the Copyright Act by adopting the right to communicatethe work to the public as one of the exclusive rights of copyright owners.For further details, kindly refer to Chapter 4.With regard to mechanical rights, as reported in 2 above, some of the mobile operatorshonour their payment commitments in respect of NORM’s repertoire, but situation isdifferent with SAMRO and SARRAL.Foreign distributions for 2009 were: Local composers and authors: 24,1%; Beneficiaries: 0,8%; Publishers: 32,1%; and Foreign collecting societies: 43%.These percentages were calculated with reference to SAMRO’s distribution records. Wecould not determine the specific figures, because a significant portion of the foreigndistributions are distributed via local agents, as opposed to foreign collecting societies.In order to improve the situation, the CRC recommends an increase inlocal musiccontent: For private radio, from 25% to 50% over a five year period. For public radio, from 40% to 80% with immediate effect. For community radio stations, from 40% to 80% with immediate effect.The CRC compared the tariffs charged in South Africa with those charged in othercountries and discovered that most of the tariffs applied are significantly lower thanthose charged in the countries visited by members of the CRC. It has beenrecommended that the tariffs should be benchmarked and reviewed every five years bythe respective collecting societies.REFERENCES TO CRC REPORTChapter 4Chapter 10 with specific reference toparagraphs 10.1 & 10.6Table 26 (b)Table 26 (a)Table 26 (c)Paragraph 8.2.- 209 -
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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
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Paranagua Pedro, “Strategies to I
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Copyright Amendment Act of 1984Copy
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APPENDIX 1(B): SUMMARY OF ORAL REPR
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Due to the fact that the existing c
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Mr BrottelProtection of copyright m
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1.1.3. LIST OF ENTITIES VISITED AND
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In the 2009 Annual Report of ABRAMU
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The implementation of this law led
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ecordings. In respect of audio-visu
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In 1995, ECAD distributed 72% of it
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niches in the market to ensure fair
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Proprietary rights allow authors to
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International royalty distribution
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3.2. Relevant LegislationsThe prese
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IPRS uses the standard tariffs in r
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Ad-hoc workshops on copyright are c
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meaningful living out of their crea
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4.1.3. LICENSING AND LEGAL REGIMESI
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Ballet teachers; Teachers in the fi
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It was founded in 1928 by the Norwe
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6.2. STRUCTURE OF COLLECTING SOCIET
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6.5. COLLECTION OF MUSIC ROYALTIEST
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1957, when the Managing Director of
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16.4.14 SWISSPERFORM: CHF4 millionI
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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
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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 216 and 217: TERMS OF REFERENCESNO’SREQUIREMEN
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