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8.2.7 Comparative Study Performed by NAB on TV ChannelsTable 11: Comparative Study Performed by NAB on TV ChannelsSOCAN (Canada) GEM (Germany) SACVEN (Venezuela) SAMRO1,9% of station’sgross Income2,25% of revenue 1,2% of income 2,5% of revenueBased on the comparative study performed by NAB, the average tariffs for television are competitive.8.2.8 Community Radio StationsTable 12: Community Radio Stations TariffsPRS (UK) PPL (UK) TONO (Norway) IPRS (India) SAMRONet RevenueRoyaltiesPayable6% with aminimumLess thanR0,391 millionR0.391 toR7,3 millionR7,3 million toR14,6 millionR 6 8322%3%The greater ofR11 400 orcompensation ofR650 per musichour multiplied by aratio of 00,58Non-profit entity greaterof R23 255 or 5% ofadvertising revenueUniversities greater ofR25 503 or 5% ofadvertising revenueThe greater ofR10 000 or3,25% of the totalrevenueAboveR14,6 million5%Well establishededucational institutiongreater of R7 700 or 5%of the advertising revenueThe community radio tariffs (in Table 12) are unfavourable at an international level, with most of the collecting societiescharging higher tariffs.8.2.9 RingtonesTable 13: Ringtones TariffsPRS (UK) TONO (Norway) IPRS (India) SAMROGreater of 15% of revenue or R1,75 pertransaction or 12% of revenue if licensedwith the record labels12% of revenue 2,5% of revenueNo royalty income is derivedfrom the ringtones.No revenue is generated in respect of performance rights due to the fact the Copyright Act does not deal with digitalcommunication to the public.- 64 -
8.2.10 Music on Hold (for 100 lines)Table 14: Music on Hold Tariffs for 100 LinesPRS (UK) TONO (Norway) IPRS (India) SAMRO PPL (UK) SAMPRAR5 238 R4 121 R31 783 R2 819 R5 093 R4 653The tariffs for IPRS (the Indian Performance Rights Society) are at least 13 times higher than SAMRO’s tariffs and fourtimes higher than PRS tariffs. India is the global market leader for business processing outsourcing and call centrebusinesses and there is high demand for telephone music on hold. This has created room for higher tariffs in India.8.2.11 Background music – Departmental Stores and Warehouses (for 2 000 square metres)Table 15: Tariffs for Departmental Stores for 2 000 Square MetersPRS (UK) TONO (Norway) IPRS (India) SAMRO PPL (UK) SAMPRAR8 789 R15 876 R2 790 R2 262 R7 437 R6 707SAMRO is the lowest entity in this category at R2 262 per 2 000 square metres.8.2.12 Conclusion and RecommendationsThe local tariffs are generally lower than the average tariffs for the countries selected for benchmarking.Collecting societies should be encouraged to review and benchmark the tariffs every five years to ensure that theyremain competitive.8.3 AGREEMENTS BETWEEN BROADCASTERS AND COLLECTING SOCIETIES8.3.1. Broadcasters have agreements with local collecting societies with regard to performance and mechanical rights;they do not have agreements with foreign collecting societies and individual parties such as songwriters,composers, publishers, performers and music producers. With regard to performance rights, the broadcastershave agreements with SAMRO. Most of these agreements are limited to SAMRO’s repertoire (including thesister societies’ repertoire) and others are blanket agreements. Regardless of the terms of the agreements,SAMRO is paid in full for all songs played by broadcasters. It is SAMRO’s responsibility to distribute all royalties(including the non-members’ portions and the foreign parties’ portions). This arrangement is practical, but notnecessarily correct. The number of collecting societies for performance rights is not limited by statute to onlyone, which means that it is possible to have more than one collecting society for performance rights. Based onthe above, SAMRO can only legally issue licences limited to its repertoire. If a second collecting society forperformance rights is created, SAMRO’s ‘blanket gentlemen agreement’ will fall away. If a recommendation of‘one right one collecting society’ is made and legislated, this potential problem would fall away.8.3.2. With regard to the mechanical rights, the situation is different because more than one collecting society isresponsible for the collection, i.e. NORM and SAMRO. In this case, the contract is for the repertoire submitted- 65 -
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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
Page 20 and 21: Aspects of Intellectual Property Ri
Page 22 and 23: (1) Subject to the provisions of th
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Page 26 and 27: society, the South African Recordin
Page 28 and 29: 3.2.14. With the liquidation of SAR
Page 30 and 31: the final rate or rates to be appli
Page 32 and 33: (a)that payment is to be made to th
Page 34 and 35: information as to their use to enab
Page 36 and 37: The WCT and WPPT oblige members to
Page 38 and 39: Once the handset technology changed
Page 40 and 41: 4.3.16. In 2009, in what was coined
Page 42 and 43: 4.4.6. In exchange for the above li
Page 44 and 45: operators are licensed by NORM to p
Page 46 and 47: 5.2 FUNCTIONING OF COLLECTING SOCIE
Page 48 and 49: the grant of licences. Article 17 o
Page 50 and 51: 6.1.3. The CRC’s assessment of th
Page 52 and 53: 6.3.3. SAMPRA should be given one y
Page 54 and 55: Corporate Governance GapsKing II Re
Page 56 and 57: King IIIPrincipleKing IIIRequiremen
Page 58 and 59: King IIIPrincipleKing IIIRequiremen
Page 60 and 61: 8 COLLECTION OF MUSIC ROYALTIES8.1
Page 62 and 63: 8.1.4.2. Needletime royalties are n
Page 64 and 65: 8.1.7.4. For the past five years, V
Page 66 and 67: PRS (UK)SPRE (FRANCE)SUISA(SWITZERL
Page 68 and 69: DetailsPerformance RightsSound Reco
Page 72 and 73: y a collecting society. A rights ho
Page 74 and 75: agency, its rights being derived fr
Page 76 and 77: Mr Robinson said DALRO assumed the
Page 78 and 79: 10.1.6. The distribution to publish
Page 80 and 81: 10.4.4. Most of the other collectin
Page 82 and 83: 10.6.3.4. South African English-lis
Page 84 and 85: 10.10 CONTRACTUAL RELATIONSHIPS BET
Page 86 and 87: 10.12.2. The Regulations should rec
Page 88 and 89: licence that the licensee comply wi
Page 90 and 91: 11.4.6. The details of ICASA’s ta
Page 92 and 93: RecommendationsTimelines for Recomm
Page 94 and 95: enterprises. There was a suggestion
Page 96 and 97: Copyright as it relates to copyrigh
Page 98 and 99: 13.4 DEPARTMENT OF ARTS AND CULTURE
Page 100 and 101: Table 28: Comparative Study’s Key
Page 102 and 103: KEY ITEMS BRAZIL FRANCE INDIA NORWA
Page 104 and 105: KEY ITEMS BRAZIL FRANCE INDIA NORWA
Page 106 and 107: about 30%, which is the highest amo
Page 108 and 109: 15.1.3. The Copyright Tribunal’s
Page 110 and 111: 15.1.20. Local music content requir
Page 112 and 113: for the selected artists. The outco
Page 114 and 115: King III Report by Institute of Dir
Page 116 and 117: Paranagua Pedro, “Strategies to I
Page 118 and 119: 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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1.PREAMBLEThe Music Industry Task T
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The environment in which the music
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3.1.3 IMPLEMENTATION AND ACCESSION
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In this regard, the Minister should
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3.5.6 OMBUDSMANThe music industry s
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RECOMMENDATION 23:The MITT recommen
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The MITT further recommends that DA
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APPENDIX 4A: EXTRACTS FROM COPYRIGH
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(f)(g)doing, in relation to an adap
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(i)requiring notice of any intended
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(b)any organization claiming to be
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PERFORMERS’ PROTECTION ACTNO. 11
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the parties may agree to refer the
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ANNEXURE 5: COPY OF SARRAL’S CONT
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ANNEXURE 6: SARRAL’S AUDIT REPORT
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TERMS OF REFERENCESNO’SREQUIREMEN
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