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

Mr Robinson said DALRO assumed the publishers that gave it the mandate to license the reproduction of theirpublications were permitted by the holders of the copyrights in the literary works to authorise DALRO in turn tolicense the reproduction of the literary works as well as the typographical arrangement thereof. In a subsequentconversation with the chairperson of the CRC, Mr Robinson stated that DALRO assumed that the publisherspaid over to the authors such portions of the royalties received as they were entitled to. The documentationaccompanying the payment by DALRO clearly identified each author and how much of his or her work had beencopied. He added that if requested to do so, and given the address or banking details of the authors, DALROwould be able and willing to make the necessary payments to the authors.9.2.9. The tariffs, subject to which both blanket and transactional licences are issued, and the commissions payable toDALRO appear acceptable. They are the product of negotiation between the parties. The blanket licence tariffwas negotiated in collaboration with the Department of Education. The CRC, however, has a problem withlicences that permit Section 6 (a) rights to be exercised. From information received by the CRC, it appears thatsome of the authors of articles (of which the authors hold the copyright in the literary work) published in SouthAfrican journals and reproduced under licences issued by DALRO, have neither authorised the reproduction ofthe articles nor received any portion of the royalties paid to the publishers by DALRO.9.3 RECOMMENDATIONS9.3.1. While the CRC accepts that the assumptions made by DALRO, to which Mr Robinson referred, were made ingood faith, it strongly recommends that DALRO take urgent steps to satisfy itself that the local publishers thatmandate it to license articles are entitled to give such mandates, not only in respect of Section 11A rights, butalso in respect of rights arising under Section 6 (a) and, furthermore, where articles have been copied underlicences issued, that the persons who hold the Section 6 (a) rights receive the royalties to which they areentitled.10 DISTRIBUTIONS OF MUSIC ROYALTIES10.1 OVERVIEW OF ROYALTY DISTRIBUTIONSTable 16: Utilisation of Royalty CollectionsRefs.Details2010Rm’s2009Rm’s2008Rm’sa.b.c.d.Total Royalty Income Collected (as per Table 4)Unclaimed Royalties Written BackNORM’s CollectionsAdministration Expenses357,9 322,4 293,725,5 40,4 29,4(17,8) (20,6) (11,4)(103,2) (94,2) (75,3)- 70 -