2001 Copyright Amendment Bill2001 Copyright Amendment Bill

Presentation by:

10 October 2001

to

The Southern African Music Rights Organisation

The Parliamentary Trade and IndustryPortfolio Committee

Table of Contents

The “Good Law” PrincipleThe “Good Law” Principle

ReciprocityReciprocity

Cultivating South Africa’s RepertoireCultivating South Africa’s Repertoire

SAMRO’s PerspectiveSAMRO’s Perspective

Operational OverviewOperational Overview

BackgroundBackground

The Rights SAMRO AdministersThe Rights SAMRO Administers

BackgroundBackground

Background• Established 1 January 1962

• Non-profit organisation

• Represents 4 300 composers / lyricists and 400 music publishers

• Database of over 1 million composers

• Ownership details of nearly 4 million musical works

The Rights SAMRO AdministersThe Rights SAMRO Administers

Collecting / Administration Societies

• Administers- “Performing rights” inMUSICAL WORKS

• Broadcasting, performance in public and diffusion / transmission rights

SAMROSAMROSouthern African Music Rights Organisation

Collecting / Administration Societies

SARRALSARRALSouth African Recording Rights

Association Limited

RISARISASociety of Record Companies in South Africa

NORMNORMAssociation of SA Music Publishers

““Musical Works”Musical Works” ““Sound Recordings”Sound Recordings”

SAMROSAMROSouthern African Music Rights Organisation

Administers Performing rights

Administers Mechanical rights

Administers Mechanical rights

Operational OverviewOperational Overview

Operational Overview• SAMRO analyses programmes performed daily by

licensed “users” throughout its operational territory

• Sophisticated technology and processes used to calculate and distribute royalties to composers, whose music has been performed

• 4 Million plays occur on terrestrial radio annually

• 60 Million seconds of music cues broadcast on TV

• Of all existing performing rights royalties generated on the African continent, in excess of 75% are collected and processed locally

SAMRO’s PerspectiveSAMRO’s Perspective

SAMRO’s Perspective

• Proposed changes to the 1978 Copyright Act

• Sections 2 and 3 of the 2001 Copyright Amendment Bill

• Re-introduce concept of a performing right in sound recordings – “needle time”

SAMRO’s Perspective

• Producers of sound recordings should receive remuneration for the use of their product

• BUT how are producers going to be paid?

• Not from the income of composers(approx. 2.25%) – their remuneration shouldbe budgeted separately

The “Good Law” PrincipleThe “Good Law” Principle

The “Good Law” Principle• “Good Law” = compliance with the

non-derogation rule

• The lawmaker cannot confer a right on one party, whilst diminishing the quality of someone else’s right

• Potential negative risk to composers’ incomes – could forfeit as much as 50% of earnings

• Possible Constitutional Court action in future

• Consider Canadian copyright model

ReciprocityReciprocity

Reciprocity

• Governed by WIPO Treaty and Rome Convention

• Means “interchange of privileges”

• “Limited ‘needle time’ is recognised in the USA”

• Some countries limit right of remuneration for “needle time” to nationals and creative artists residing in Rome Convention countries

• South Africa should consider applying the same or similar principle

Cultivating SA’s RepertoireCultivating SA’s Repertoire

Cultivating SA’s Repertoire• Approximately 70% of music played in

South Africa is composed abroad

• Industry needs to be structured to encourage young people to pursue careers as creative artists

• Unqualified amendments, without due regard for existing rights, threaten to drive local talent abroad

• Incentive diminished

• To enhance our music heritage, the rights of composers must be upheld and safeguarded

The Southern African Music Rights Organisation

PO Box 31609Braamfontein

2017JohannesburgSouth Africa

Phone: +27 11 489 5000 Fax: + 27 11 403 1934