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

9.2.3. As regards DALRO's transactional licensing service, application forms are made available to all institutions forcompletion in respect of each item to be copied for students. The forms require full bibliographical informationrelating to the individual items to be copied, as well as:(i) The number of pages making up the extract to be copied from the book;(ii) The number of pages of the entire book (so that the percentage of the book to be copied can becalculated);(iii) The number of pages from a journal article to be copied (magazine and newspaper articles are charged foron a 'copy per article' basis); and(iv) The number of copies of the extract from a book or journal or magazine or newspaper article to be made.(Blanket licensees are required to provide the same information in their usage reports.)The transactional base rate was set in 1993 when reprographic licensing began: it has since been adjusted onlyto allow for inflation. The default rate for public HE institutions is R0,52 (plus VAT) per copy per page for booksand journals. The HE default rate for magazine and newspaper articles (which was introduced more recently) isR5 per copy per article (plus VAT).9.2.4. Blanket licence revenue is distributed (i.e. paid over to DALRO's principals) once a year in May, accounting oncopies made during the previous academic year. Transactional licensing income is distributed twice a year, inFebruary, covering royalty collections during the second half of the previous year, and August, covering thecollections during the first half of the year in question. These three distributions are title-specific. One furtherdistribution is made in tandem with the blanket licence distribution, viz. a supplementary distribution to localrights holders only of income retained from countries with which DALRO has an IFRRO Type B bilateralagreement, which entitles the parties to retain the income collected for each other's repertoires for distribution totheir own rights holders, supplemented by non-title-specific income DALRO receives from certain RROs.9.2.5. In the 2010 calendar year, the total amount collected from licensing was R28 582 389 and the total amountdistributed R21 601 415 (of which R 9 477 661 was distributed to local rights holders).9.2.6. DALRO is permitted to deduct commission from theatrical rights licensing of between 5% and 15%, dependingon the agreement with the rights holder. On the reprographic rights licensing side, the majority of DALRO'sreciprocal agreements with foreign RROs and local rights holders provide for a 25% deduction for commission.9.2.7. DALRO's licensing and royalty revenue for reprographic reproduction for the financial year ending 30 June 2010amounted to R26 842 183.9.2.8. As DALRO's executive chairperson, Mr Gerard Robinson, pointed out to the CRC during the oral presentationby the representatives of DALRO, the licences granted by DALRO relate to two rights covered by the CopyrightAct, which, as he put it, are intertwined; namely:(i) The copyright in the literary work (which vests in the author), which includes the exclusive right toreproduce “the work in any manner or form” (Section 6 (a) of the Act), and(ii) The copyright in the published edition (which vests in the publisher), which is “the exclusive right to makeor authorise the making of a reproduction of the edition in any manner” (Section 11A of the Act), such asby photocopying the typographical arrangement of an already published work.- 69 -