12.07.2015 Views

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

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TERMS OF REFERENCESNO’SREQUIREMENTS11. Assess if collecting societies in general,nationally <strong>and</strong> internationally, collect onlyfrom their members <strong>and</strong>/or nonmembers.In this regard, assess how areroyalties of non-members treated <strong>and</strong>distributed, including the efforts taken bycollecting societies for tracking nonmemberswhose royalties are in custodyof collecting societies. The CRC shouldassess, advise <strong>and</strong> makerecommendations.THE CRC HIGH LEVEL RESPONSESThe contracts between the collecting societies (SAMPRA <strong>and</strong> SAMRO) <strong>and</strong> theirrespective music users are limited to their repertoire, but they operate as if they haveblanket agreements with their respective users. Although this practice is in conflict withthe contractual terms, it is better because it simplifies the administration levels for theusers. Based on this practice, the collecting societies (SAMPRA <strong>and</strong> SAMRO) collectroyalty income for both members <strong>and</strong> non-members.The non-members’ portion is retained by SAMRO for three years (it is still too early totalk about SAMPRA in this regard) <strong>and</strong> any unclaimed royalty income at the end ofthree years is distributed <strong>and</strong> shared by the known members.SAMRO has an unjustifiably long list of unknown recipients. The CRC is not satisfiedwith SAMRO’s effectiveness in tracking the unknown recipients of the unclaimedroyalties.With regard to the seven countries (Brazil, France, India, Norway, Senegal, Switzerl<strong>and</strong><strong>and</strong> UK) visited by the CRC, the collecting societies collect for both members’ <strong>and</strong> nonmembers’shares of royalties. The non-members’ portion is retained while the rightrecipients are being sought through very effective measures (in most cases).The CRC recommends that collecting societies adopt effective measures to tracemembers <strong>and</strong> non-members alike.REFERENCES TO CRC REPORTParagraph 8.3- 212 -

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