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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 -
Refs.Details2010Rm’s2009Rm’s2008Rm’se.f.Social and Cultural AllocationsNet revenue for SAMPRA (unavailable fordistributions)(16,3) (14,5) (14,6)(30,5) (20,1) (15,1)g. Undocumented Works and Non-Members RoyaltiesNot yetavailable(33,0) (27,5)h. Transfers from / (to) Reserves and Tax Not relevant (1,2) (21,1)i. SAMRO’s Cash Available for DistributionsNot yetavailable179,2 158,1Table 17: Cash Distributed by SAMRORefs. Details 2009 2008 2007RM’s % RM’s % RM’s %j. Local Composers and Authors 43,2 24,1 39,6 25,1 30,5 24,9k. Beneficiaries 1,4 0,8 1,1 0,7 0,9 0,7l. Publishers 57,4 32,1 49,7 31,4 38,6 31,4m. Foreign Collecting Societies 77,2 43,0 67,7 42,8 52,6 42,9n. Total Distributions (As in Table 16) 179,2 100,0 158,1 100,0 122,6 100,010.1.1. The total collections for music royalties (performance, needletime and mechanical rights) for 2010 amounted toapproximately R357,9 million. Over and above the royalty collections, SAMRO has investments in excess ofR300 million in different classes of assets. Over the last three years, these investments generated income ofbetween R41 million and R66 million per annum. The investment income is eligible for distribution.10.1.2. The administration expenses pertain to the overhead costs for the two collecting societies (SAMRO andSAMPRA).10.1.3. SAMRO is the only local collecting society that sets aside cash for social and cultural activities.10.1.4. Due to the legal case involving SAMPRA, SAMRO and the Registrar, SAMPRA has not yet managed todistribute royalties for sound recordings. The total net amount (excluding investment income) collected bySAMPRA during the last three completed financial periods is R66,2 million (R15,2 million + R20,5 million +R30,5 million).10.1.5. Royalty payments are made after the completion of the financial year in which they were collected from theusers. The distribution details for the 2010 financial year were not available at the time of compiling this reportand so the details for the 2007 financial year were included in Table 17 to compare the three-year trend.- 71 -
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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
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 70 and 71: 8.2.7 Comparative Study Performed b
Page 72 and 73: y a collecting society. A rights ho
Page 74 and 75: agency, its rights being derived fr
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
Page 120 and 121: APPENDIX 1(B): SUMMARY OF ORAL REPR
Page 122 and 123: Due to the fact that the existing c
Page 124 and 125: 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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