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

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TERMS OF REFERENCESNO’SREQUIREMENTS15. Assess contractual relationship amongartists <strong>and</strong> big recording companies, suchas Sony, EMI, Gallo <strong>and</strong> Universal <strong>and</strong>publishing houses pre <strong>and</strong> post the<strong>Copyright</strong> Amendment Act, 2002 <strong>and</strong>Performers Protection Amendment Act,2002. The CRC should assess, advise<strong>and</strong> make recommendations.16. ' Assess contractual relationship amongstartists <strong>and</strong> independent labels pre <strong>and</strong>post <strong>Copyright</strong> Amendment Act, 2002<strong>and</strong> Performers Protection AmendmentAct, 2002. Assess how distribution isdone flowing from these contractualrelationships. The CRC should assess,advise <strong>and</strong> make recommendations.THE CRC HIGH LEVEL RESPONSESNeither the pre-2002 nor the post-2002 contracts could be examined because therelevant parties did not submit them to the CRC.The pre-2002 contracts could not be examined because the relevant parties could notsubmit them to the CRC. A sample of post-2002 recording contracts for the big fourrecording companies’ contracts were examined. Based on the sample of the contractsexamined, those contracts, which recognise the existence of the needletime rights, allmake provision for an equal split between the performers <strong>and</strong> the recording entities.Other contracts make no reference to the needletime rights even though they wereconcluded after 2002. With regard to the recoupment of the advances, advancecontracts do not make a distinction between different types of royalty sources. Theadvances are repayable against any type of income payable to the artists. In terms ofthese contracts, the needletime royalty income may be set-off against the outst<strong>and</strong>ingadvances <strong>and</strong> all contracts of the big four recording entities were in agreement to this.Almost all contracts examined were exclusive; the artists are not allowed to contractwith more than one recording entity concurrently.The <strong>Commission</strong> has recommended the following:REFERENCES TO CRC REPORTParagraph10.10A st<strong>and</strong>ard template for the performers’ contracts to be drafted by the dti <strong>and</strong>recommended for use by the recording entities.the dtiis to fund the audit of artists’ financial affairs within the recording entities ona sample basis for next couple of years.17. Assess the efficiency of legislation in SAto deal effectively with concerns raisedabove.This aspect is addressed in Chapter 3 & 4. The CRC recommends that the <strong>Copyright</strong>Act <strong>and</strong> the <strong>Copyright</strong> <strong>Regulation</strong>s be amended to address technological advances <strong>and</strong>to provide for an effective regime for the collective management of copyright rights.Chapter 3 & 4- 215 -

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