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TERMS OF REFERENCESNO’SREQUIREMENTS7. Assess all licensing agreements thatuniversities, other institutions of higherlearning and training institutions havewith collecting societies, relating toroyalties (in relation to copyrightwork/literary work that are distributed tocollecting societies, and further to artists,composers, authors and/or publishersfrom the collecting societies. The CRCshould assess, advise and makerecommendations.8. Assess if all the collected money isdistributed and assess the remainingmoney, if any, that is not distributed bycollecting societies, e.g. foradministration, social pension or for anyother purposes. The CRC should assess,advise and make recommendations.THE CRC HIGH LEVEL RESPONSESThe matter is addressed in Chapter 9. The CRC has determined that effective licenceagreements are in place between DALRO and institutions of higher learning andtraining institutions. The collection of royalties is done efficiently. However, neitherDALRO nor the publishers have the authority of all authors to collect royalties on theirbehalf (i.e. in cases where authors did not assign their rights to published works to thepublishers). DALRO distributes all the royalties to the publishers without any recourse tothe authors of the works’ right to remuneration.The CRC recommends that DALRO obtain the right to collect royalties for thereproduction of works from authors. DALRO should also ensure that authors receivetheir share of royalties of past payments erroneously made to publishers only.The CRC analysed the amounts collected. Thereafter distributed the amounts whichcould not be distributed, because the persons entitled thereto could not be identifiedand the efficacy of the attempts made to trace such persons.The cost- to- royalty income ratio (administration costs as percentage of totalcollections) for the collecting societies selected for international benchmarking variesbetween 10% and 24%, bearing in mind that the maximum allowable ratio is 20% interms of the current local regulations for needletime collecting societies (which the CRCregards as appropriate).The CRC believes that SAMRO’s current ratio of approximately30% is excessive in relation to the international average. The CRC recommends thatSAMRO should be given three years to resolve this matter.SAMRO is the only collecting society in the country which sets aside monies for socialand cultural activities.REFERENCES TO CRC REPORTChapter 9Chapter 10 with specific reference toparagraph10.8Paragraph 10.11.6.- 210 -
TERMS OF REFERENCESNO’SREQUIREMENTS9. Assess a sample of contractualrelationship amongst collecting societiesin the music industry and other userssuch as hoteliers and places ofemployment. Determine how thesecontracts are structured and royaltiesflowing to artists. The CRC shouldassess, advise and makerecommendations.10. Assess, for the purposes of the needletime royalty, if all accredited collectingsocieties are complying with theCopyright Regulations regulating theadministration and distribution of theneedle time royalty. Recommend acompliance model for good corporategovernance of the regime. The CRCshould assess, advise and makerecommendations.THE CRC HIGH LEVEL RESPONSESThe contracts between the collecting societies and the general users are based on theflat fixed amount based on the size of the place (e.g. no. of seats, square meters, no. oftelephone lines and the others) payable once a year in advance. With regard to theorganisations with multiple sites (like retailers and banks), such organisations aregranted one licence which covers all the relevant sites. The lists of sites are normallyattached to the contracts, since the payment is based on the total size of all sites. Mostof the background music users do not keep the playlists (music usage information) andthis is based on the costs versus benefits. All monies collected from these users aredistributed on an analogous basis reflecting the usage trends in broadcast (includingregional and community stations) and other usage data (when available).The CRC recommends that the collecting societies adopt an appropriate formula basedon regional statistical sampling surveys (taking into account the music that is beingused by the relevant users).There are only two accredited collecting societies for needletime, namely SAMRO andSAMPRA. SAMRO has not yet commenced with the distribution activities. The areas ofnon-compliance by SAMPRA include the failure to submit the audited financialstatements for the last two financial years, failure to invite the Registrar to the AGM andfailure to submit the relevant documents in accordance with the timelines prescribed bythe Regulations.REFERENCES TO CRC REPORTParagraphs 8.1.6 & 8.4Chapter 6- 211 -
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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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Cross-border licensing of digital r
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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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