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TERMS OF REFERENCESNO’SREQUIREMENTS18. Assess how the playing of South Africanmusic, for those artists and composersthat do not belong to collecting societiesand as such no reciprocal agreementsexist, is treated by foreign broadcasters.Determine if any royalty is payable and towho exactly is it payable and how is suchroyalty is treated by the laws of variouscountries where such royalty is collected.The CRC should assess, advise andmake recommendations.THE CRC HIGH LEVEL RESPONSESSAMRO’s authority to collect royalties is limited to its members’ repertoire, but itoperates as if it has authority to collect for all repertoire (also that of the non-members)in South Africa. The foreign broadcaster will pay royalties to the foreign collectionsociety for the use of the non-members’ works. The foreign collection society will collecton behalf of the South African non-members. The royalty will be paid to SAMRO. Theroyalty is then payable to the non-members provided SAMRO has effective measures inplace to trace the non-members. Refer to the CRC’s recommendations in 10 above.REFERENCES TO CRC REPORTParagraph 10.5.5- 216 -
TERMS OF REFERENCESNO’SREQUIREMENTS19. Assess if all collecting societies complywith the general rules of corporategovernance in terms of relevantlegislation and the Copyright Regulations2006 that regulates the administration ofthe needle time royalty. CRC shouldassess, advise and makerecommendations.THE CRC HIGH LEVEL RESPONSESThe CRC noted the fact that SARRAL’s collapse was preceded by the corporategovernance failure. The highlights of this failure include the breakdowns or significantweaknesses in: The internal controls. For three consecutive years (2003, 2004 & 2005) the entityreceived a qualified audit report for the failure to verify receipts from theSABC andmembers’ distributions. Conflict between internal rules and the constitutive document and the fact that themanaging director was also the chairman of the organisation. The out-dated constitutive documents which were also in conflict with theCompanies Act of 1973. The change in accounting policies which were adopted in breach of its contractualobligations to its members.It is clear that the internal control and the audit functions were not overseen by aneffective audit committee.With regard to SAMRO, the following gaps were identified within their corporategovernance structure: Constitutive documents are out-dated and are in conflict with the Companies Act. There are no independent directors. An internal audit function is not in place. The disclosure of the executive directors’ remuneration is limited (in contraventionof the Companies Act of 2008 and the King III), The members’ rights are disempowered by these out-dated constitutive documents. There is a lack of transparency with regard to the categorisation of membership.The CRC recommends that the regulation of the collecting societies include theadherence to the good principles of corporate governance.REFERENCES TO CRC REPORTChapter 7- 217 -
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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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algorithm could be used to determin
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Collecting societies in the UK all
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APPENDIX 3: RECOMMENDATIONS BY MITT
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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
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Page 188 and 189: (f)(g)doing, in relation to an adap
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Page 192 and 193: (b)any organization claiming to be
Page 194 and 195: PERFORMERS’ PROTECTION ACTNO. 11
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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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