Collecting societies or RROs

This document is based on a report written by Staffan Teste in 1997 of Reproduction Rights Organisations member of IFFRO. It has since been up-dated and largely modified several times. The edited web version is a living document and includes a great deal of new information on collecting societies in general.
We up-date the information regularly. Your comments are welcome and they will help us to make this document better and better.
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Introduction

There is a great number of organisations whose proclaimed function is to defend "the rights and interests of authors". At international level these organisations co-operate within BIEM (International Bureau of Societies Administering the Recording and Mechanical Reproduction Rights), GESAC (European Grouping of Societies of Authors and Composers), IFRRO (International Federation of Reproduction Rights Organisations), EVA (European Grouping of Visual Artists), LAI (International Literary and Artistic Association), CISAC (International Confederation of Societies of  Authors and Composers) and INTERGU (Internationale Gesellschaft für Urhebberrecht e.V.).

What Reproduction Rights Organisations (RROs) Are

IFRRO introduces itself with its own words(www.ifrro.org):

Reproduction Rights Organisations (RROs) began in response to the need to license wide-scale photocopy access to the world’s scientific and cultural printed works. RROs license reproduction of copyright-protected material whenever it is impractical for rightholders to act individually. They work on the basis of centralised management of rights. They derive their authority from national legislation and/or from contracts with rightholders. Each year, national RROs license hundreds of thousands of users to copy from millions of titles published throughout the world.

RRO licences typically grant authorisations to copy a portion of a publication, in limited numbers of copies, for the internal use of institutional users. Some RROs are also authorised to license other copyright uses, such as those related to electronic distribution via networks. Some RROs also function in other areas of collective administration, such as cable retransmission.

In order to collect royalties and convey authorisations internationally, RROs enter into bilateral agreements with each other. Bilateral agreements provide for the exchange of licensing authority (as needed) in national repertoires of works. They also allow for the conveyance of royalties back to the rightholders via their national RROs. These agreements are based upon the principle of national treatment, as found in the Berne and Universal Copyright Conventions. Under national treatment, each RRO collects and distributes photocopy royalties on behalf of foreign rightholders in basically the same way that it does on behalf of its domestic rights- holders. Such distributions to foreign RROs are called cross border payments. IFRRO (International Federation of Reproduction Rights Organisations), an organisation founded in 1980, has adopted a set of principles as well as a model for bilateral agreements between RROs.

The International Federation of Reproduction Rights Organisations links together all RROs as well as national and international associations of rightholders .

IFRRO began in 1980 as a working group of the Copyright Committee of the International Publishers Association and the International Group of Scientific, Technical & Medical Publishers (STM). It was at the May 1984 meeting in Oslo that this working group became an informal consortium called the International Forum for Reproduction Rights Organisations (IFRRO). This change acknowledged the more direct participation of authors and other rightsowners within the group. In April 1988 in Copenhagen, IFRRO became a formal federation eligible to speak on behalf of its constituents before various international bodies such as WIPO, UNESCO, the European Community, and the Council of Europe.

In September 1992, in Helsinki, IFRRO adopted new statutes and guidelines which provided for the establishment of a Board of Directors and a professional secretariat, which is presently based in Munich.

In May 1996, in London, IFRRO adopted a new 3-year plan involving the restructuring and expansion of its activities in many areas. In particular, it was decided to create an IFRRO Development Fund to finance special projects and assist new RROs.

IFRRO AND THE FUTURE

"National RROs have made enormous strides in providing effective photocopy access to users along with equitable remuneration for rightholders. IFRRO's informational and educational programs have increased awareness and respect for copyright by governments, users and rightholders throughout the world. Nevertheless, illegal copying is still widely going on in many countries. The emergence of newer technologies further intensifies the importance of organised and timely responses to the needs of both users and rightholders. For this reason, IFRRO's mission and the growth and solidarity of its members continue to be vital.

The challenges and opportunities presented by the rapid advance of digital technology are monitored and assessed through IFRRO's New Technologies Committee. In September 1992, IFRRO signed with STM a joint statement on the Electronic storage of STM material which has been widely welcomed as a major advance in determining the role of RROs in the electronic field. The statement outlines several areas for joint future consideration and co-operation. Discussions between IFRRO and an international coalition of writers' groups concerning digital uses are in process. A joint statement was agreed in January 1994."

In October 1996 IFRRO adopted a position paper on the Collective Management of Digital Rights.

A joint statement with SMT on the digitisation of printed materials was negotiated on January 24th, 1998.

The chairman of IFRRO is Tarja Koskinen-Olsson from Kopiosto, Helsinki, Finland and the vicechairman is André Beemsterboer from Stichting Reprorecht (NL). Joseph S Alen from Copyright Clearance Centre, Inc (USA). The directors of the board are from Australia (Copyright Agency Limited), USA (Copyright Clearance Center), Belgium (International Federation of Journalism), the Netherlands, Germany (VG-Wort) and Norway (KOPINOR). The Board is elected for a period of two years. The general secretary is Olav Stokkmo. The professional secretariat is based in Brussels.

RRO members are reproduction rights organisations strictly speaking. Associate members are international or national non-governmental organisations of authors and publishers "having a declared interest" in imposing the respect of the administration of rights .

At the present there are 32 RRO members, among them in Europe : Italy, Sweden, France, Spain, Denmark, UK, Iceland, Ireland , Norway, Finland, Switzerland, Belgium, The Netherlands, Austria and Germany.

In addition IFRRO has 52 Associate Members, five of which are Music RROs.

The Associate Members are from: France, UK, Sweden, Germany, Switzerland, Spain, Belgium, Austria and the Netherlands.
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BELGIUM

Member of IFFRO:

Member of IFRRO is REPROBEL. It was recently founded to recover collective rights in the reprographic area (photocopies) - with the blessing of the Belgian authorities. SOFAM, which is not a direct member, is also a part of this initiative, receiving a part of the receipts, which are not yet distributed.

Other collecting societies are :

• SABAM- Mostly deals with music rights - secondarily with paintings, sculptures and pictures.
• SOFAM- Mostly deals with individual photographers' rights. Press agencies and advertising agencies are "historical" non-influential members. SOFAM is registered with the Belgian authorities. It is authorized to gather collective rights from TV stations (national as well as the spill over in Belgium from French stations).
• PYRAMID-founded some two years ago is administered by SOFAM to handle collective rights on a European basis.

Organisation representing picture agencies:

• COPYRIGHT BELGIUM ASSOCIATION

In principle CBA will receive a share of REPROBEL's collection of revenue for subsequent distribution to represented artists - it is currently in negotiations with SOFAM.

DENMARK

Member of IFRRO

• COPY-DAN (1980) has 24 members. It collected (1995) DM 21,02 million in copy sector and DM 1,85 million in business copies.

Organisation representing picture agencies: None

FINLAND

Member of IFRRO

• Kopiosto R Y (1978): has 44 member organisations representing approximately 26,500 rightsholders. Collected (1995)DM 6,47 million and distributed DM 5,19 million (80.22%).

Organisation representing picture agencies: None

FRANCE

Member of IFRRO

• CFC- Centre Français d'exploitation du droit de Copie.(1984) deals with copying, 1 100 licences. Collected (1995) DM 3,16 million and distributed DM 2,03 million (64.24%).

Associated members

• ADAGP (1953)- has 17,000 members world wide. Purpose is to protect the right of visual artist among them photographers,
• SEM- Société des Editeurs de Musique (1988) has 27 music publishers as members)
• SNE- Syndicat National de l'Edition(1884).Around 500 members mainly publishers of books.

Organisation representing picture agencies

• FNAPPI and SAPHIR for press picture agencies (agences de presse), SNAPIG for stock agencies (agences d'illustration générale).

GERMANY

Members of IFRRO

• VG Bild-Kunst Verwertungsgesellschaft Bild-Kunst (1969)acts for the following rightsholders: Visual artists, photographers, graphic designers, publishers, audio-visual authors (such as directors, directors of photography, editors and stenographers, film producers)in total about 20 600 members.

The following rightsusers are served: Publishers, art dealers, cable operators, schools, users and operators of reprographic equipment.

Types of work for which reproduction rights are granted and fees collected: Works of visual art, photographs, works of graphic design.

Revenue received (1995) DM 5,496,000; distributed DM3,651,000. (66.43%)

Areas of activity of VG BILD-KUNST in Germany:

A. Reproduktionsrechte - Reproduction rights for works of visual art in books, newspapers, magazines. Reproduction rights for monographs are only collected through individual contracts between VG Bild-Kunst and the author.

B. Senderechte - Broadcasting and Transmission rights for reproductions derived from existing publications of works of visual art, photography, graphic design and photo agencies for 1st and 2nd German public TV stations. Similar agreements are under discussion with private TV stations and channels.

C. Bibliothekstantieme/Lesezirkelabgabe - Library duty and Lending of magazines: For every rental in libraries or through lending of magazines (e.g. at hairdressing salons) the VG BILD-KUNST collects a small amount which is distributed globally to all members.

D. Zweitverkauf - Secondary rights: Collection of 5% on all sales of works of visual art from galleries and auction houses. This droit de suite is distributed individually to the artists and their heirs.

E. Fotokopiervergutung - Photocopy duty: All manufacturers and importers of photocopiers and all institutions (schools, universities etc.) which produce large numbers of copies have to pay collective amounts to VG BILD-KUNST. These are distributed collectively to visual artists, photographers, graphic designers, and the agents of other visual artists. These duties are included in the selling price of the copying machine etc. or averaged by the institutions after analyses of their usage.

F. Pressespiegel - Quotation from newspapers: Every newspaper and magazine (esp. company magazines etc.) which quotes from public newspapers or magazines has to pay a lump-sum to VG BILD-KUNST which is then distributed collectively amongst its members.

G. Videogeräte/Leerkasettenabgabe - Video and Tape duty:

All manufacturers of video appliances and tapes have to pay a fee to VG BILD-KUNST as private tapes can be produced with these devices. This remuneration is distributed to the members of Berufsgruppe III (Film, TV and Audiovision).

H. Recently a duty on scanners has been imposed which is included in the selling price. Duty on CD's, computers and software is under discussion but has been greeted with mixed feelings because of the opposition a duty on these products might arouse.

VG WORT Verwertungsgesellschaft Wort(1958) works with authors and publishers of literature, 200,000 authors and 5,800 publishers. Collected (1995) DM 54,16 million and distributed 52,07 million.

Associated members

• Börsenverein des Deutschen Buchhandels e. V. (1825) is an Association of publishers and booksellers with 6350 members.
• DIV- Deutscher Journalisten-Verband e.V (1949) is a union of journalists with 28,500 members),
• EWC- European Writers Congress (1977) takes care of the professional interests of authors and has 44 associations in 25 countries, representing more than 40,000 writers and literary translators).
• IG Medien- Industriegewerkschaft Medien (1989) is a union of Media workers with 25,000 journalists out of 205,000 media union members.(see below)

1. In Germany the "market" is divided into the activities of nine collecting societies:

a. GEMA - Gesellschaft für musikalische Auffuhrungs- und mechanische Vervielfältigungsrechte (Music)

b. GVL - Gesellschaft zur Verwertung von Leistungsschutzrechten mbH. (Remuneration for actors,use of videoclips etc. - all works or activities which are based on the creative rights or work of an author)

c. VG WORT - Verwertungsgesellschaft WORT - (Text)(See above)

d. GüFA - Gesellschaft zur übernahme und Wahrnehmung von Filmaufführungsrechten GmbH. (Producers of erotic movies and videos)

e. GWFF - Gesellschaft zur Wahrnehmenung von Film- und Fernsehrechten mbH. (TV and Documentaries)

f. VG BILD-KUNST - Verwertungsgesellschaft Bild-Kunst

(Art, Illustration, Film and Photography)(see above)

g. VFF - Verwertungsgesellschaft der Film- und Fernsehproduzenten mbH. (Film and TV producers)

h. VGF - Verwertungsgesellschaft für Nutzungsrechte an Filmwerken mbH. (Compensation for freelance producers whose films are being presented through TV)

i. AGICOA - Urheberrechtsschutzgesellschaft mbH. (Remuneration for distribution of international films on the German market )

Payment is made both through the collection of individual fees for individual members and of collective fees for global agreements as with libraries, TV stations etc. Distribution is made of individual and collective fees to individual members and of individual and global fees to photo agencies.

Organisation representing picture agencies

• BVPA does not receive any payment as an association. All moneys due are given directly to the authors and/or to the photo agencies. There are different levels of payment of the moneys due by VG BILD-KUNST:

a. 100% to authors

b. 30% to agencies which is kept by the agency (this split is the usual one and used by most agencies)

c. 100% to agencies in the case that they can prove that they definitely forward 70% to the relevant photographers

d. Different percentages in case of author and owner in one person. The split then depends on the percentage of own and foreign material. It has to be proven through statements on turnover and invoices issued.

The yearly distribution of fees to agencies and authors is based on the yearly turnover of each within the different areas of activity of VG BILD-KUNST. Depending on these areas the remuneration is forwarded individually or globally.

This turnover of agencies and authors is calculated in two ways:

1. Amount of gross income per year through all public magazines and newspapers. A list of these is issued yearly by VG BILD-KUNST and the individual turnover of agencies and authors has to be verified by an independent bookkeeper upon a certain level.

2. Notification of every publication in books specifying the number of pictures being published and the name of the photographer.

The figures resulting from these two methods of recording are the basis of all individual and collective payments. There are limits on the yearly payments to members in the different areas. These limits and the percentage for the ordained social funds have to be agreed at the Annual General Meeting of the Collecting Society. VG BILD-KUNST has an administrative budget of 10 - 15% of its revenues. The actual yearly budget spent is around 9%.

BVPA is represented within the "Berufsgruppe II" which represents artists, designers, film makers, photographers and agencies. All relevant meetings are attended by the BVPA representative and/or his second-in-command. The BVPA and the other organisations represented have the right to suggest their delegates (2) for the board.

Other photographers'organisations or in which photographers are included:

•AWI - Arbeitskreis Werbe-, Mode-, Industriephotographie e.V.

200 members

• BFF - Bund Freischaffender Foto-Designer e.V. 500 members

• CV - Centralverband Deutscher Berufsfotografen 1.000 members

• DJV - Deutscher Journalisten-Verband e.V. 28.000 members including ca. 2.000 photographers FreeLens - Verein der Fotojournalistinnen und Fotojournalisten e.V. 544 members

• GDT - Gesellschaft Deutscher Tierfotografen e.V. over 300 members

• IG-MEDIEN 197.390 members including ca. 2.500 photographers

• VDS -Verband Deutscher Sportjournalisten 2.800 members including ca. 450 photographers

Represented in the collecting society are DJV, IG-MEDIEN and BVPA.

Other organisation:

CMMV (August 1996)founded by all German collecting societies to serve as a "pool" for information on rights for multimedia productions. At the moment this is the sole purpose as the collecting societies obtain very few rights themselves.

GREECE

There is no RRO member from Greece in IFRRO and no associate member.

Organisation representing picture agencies: None

ICELAND

Member of IFRRO:

Fjölis- Reykjavik,(1985)has around 2760 members. Collected 1994/95 DM 349 123 and distributed DM 312,087(89.39%). They serve schools and education facilities supported by the state.

Organisation representing picture agencies: None.

ITALY

Member of IFRRO:

• AIDRO- Associazione Italiana per i Diritti di Riproduzione delle Opere dell'íngegno.(1989) handles author and publishers rights, app. 70 members. Gives rights for books and sheet music for e g copy shops. Collected (1995) DM 17 874 and distributed nothing (0%).

Other organisations not member of  IFRRO .

There is only one collecting society which State owned and is called SIAE. They collect money on any use of music and any artistic production including public domain. SIAE is a compulsory tax and you people get fined for not paying this tax. It is good to bargain the price with SIAE because, although there are fixed rates apparently, the subject is so complex that one can save money by discussing the rate which is applied. SIAE is stronger in dealing with music than other artistic productions such as photography.

Organisation representing picture agencies: GADEF represents press and stock picture agencies in Italy.

THE NETHERLANDS

Member of IFRRO:

• SR- Stichting Reprorecht. (1974)Authors and publishers' organisation. Domestic reprographic collections (1995) DM 8 546 010 and distributed DM 8 552 610.

Associated members

• STM- International Association of Scientific Technical & Medical Publishers (1969) has 280 members, says it is "focusing on the digital environment". Works with everybody and has subsidiaries and imprints in 26 countries
• Stichting Beeldrecht(1977) deals with visual works. 2 650 members.
• BURAFO- Stichting tot bescherming en handhaving van fotoauteursrechten (1956) deals with photographic works. Members 1500 professional Dutch photographers and press and stock agencies members of BFN, NVF,Gkf. NVJ and HPA.

It deals with both single photographers and agencies. Copying in schools, lending books in libraries and copying newspapers in companies.

• BURAFO is a part of the other collecting societies concerning writers and others
• Stichting LIRA-.(1986) for writers, Has 900 members

Organisation representing picture agencies

Holland Photo Agencies’ does not receive payments. When an individual photographer makes a claim he will receive approx. 75% of the original amount ( Approx. 25% costs for the collecting society). Collecting Societies will pay an agency direct on production of a proof of first sale, and that it will share the 75% due with the photographer.

Included in the 25% costs is an amount for the unions of photographers.

Holland Photo Agencies has a seat on the Board of BURAFO, where all the photographers unions are also represented.

There are single members of HPA who have made contracts with photographers to collect all the money from first and secondary rights.

SPAIN

Member of IFRRO:

• CEDRO- Centro Espanol de Derechos Reprográficos.(1988) deals with reproduction rights in printed works from 400 publishers and 1800 authors. Among other things they have licences from 37 copy shops. CEDRO collects remuneration derived from private copying.

Collected DM 10,88 million and distributed the same year DM 7,64 million (70.22%).

Associated members

• Federation de Gremio de Editores de Espana (1979) protects the general interests of the Spanish Publishing industry, it has 685 members
• VEGAP - Visual Entidad de Gestión de Artistas Plásticos (1991)has 770 members. It collects payments for rights for visual artists among them photographers painters and graphic artists,and deals with copying and exhibitions through CEDRO

Other Collecting Societies in Spain:

• SGAE- writers and singers
• AIE- singers
• AISGE- actors, actress
• EGEDA- movie-films and video
• AGEDI- music, records and tapes.

Payments are based both on individual and collective payment.

Public libraries are free of copyright payment. There are no collecting societies dealing with Electronic publications yet.

'Reprografia' is the payment made by companies that sell copiers and payment is also made by companies that rent video tapes.

Organisation representing picture agencies: Associacion Empresarial de agencias de prensa y archivos fotograficos has become a member of VEGAP in 1999. After numerous meetings and investigations on both sides the Spanish Association of stock picture agencies, AEAPAF, and the Spanish association for visual authors, VEGAP, have finally made an agreement allowing the latter under certain circumstances to administer the intellectual rights owned by the members of AEAPAF. The framework agreement allows the member agencies of the Spanish Association to subscribe representation agreement with the collecting society. In case of copyright infringement (piracy, non authorized used on a digital support or in a different language than previously agreed etc.) the collecting society will step in in place of the agency and defend its rights in its name. AEAPAF describes this possibility as a "follow-up" of reproduction rights via a collecting society.

There are many associations in Spain and some of them take part in collecting societies already.

SWEDEN

Member of IFFRO:

• BONUS- an organisation dealing with copying in schools and for educational purposes. Every year it collects over £ 6 million (about DM 14 million) and distributes 95 % of it. The picture-part of it (photos, art, drawings and so on) amounts to about £ 600 000 and the photographers' organisations receive £120 000, equal to 2 %. BONUS makes payments to collective organisations.

Associate Members:

• BUS -an organisation for art, also dealing with foreign rights and photographers and droit de suite.
• SBF- Svenska Bokförläggareföreningen: the organisation for book publishers

Non Members:

Copyswede -(www.copyswede.se) an organisation dealing with rights for retransmission in cable-TV of the regular TV in other countries. This organisations also tries to license first rights in video sales of ordinary TV, TV in hospitals and hotels among others for its own members. It is done in such a way that, in effect, nobody apart from its members receives any money.

CopySwede is using individual payment. For many years no picture agency has received any money. Copyswede blames the television companies but was also influenced by the photographers' organisation to believe that the agencies did not hold   any copyright. In 1996 BLF members received a great deal of money for pictures they had sold to TV in 1994 and are also going to receive money for the years 1989-1993.

Presskopia- an organisation that collects money from companies and workplaces where copies are made from newspapers and magazines. It pays money to organisations but is not able to find out what has been copied.

Besides this there are collective revenues derived from the lending of books in public libraries, exhibitions of works of art and photography and since a few years also from the reselling of art and photographs at exhibitions or galleries (droit de suite).

• ALIS- a new society, works with the electronic distribution of mostly written material (articles and so on).

Organisation representing picture agencies:

• BLF- is a member of BONUS and Presskopia, but was not elected to Copyswede because BLF " was a producer" (some of BLF's members are owned by newspapers).BLF receives money every year from BONUS but in total all photographers organisations receive very little of the money allocated to photos and other pictures (art drawings and so on). BLF has been active in forcing the organisation to do new research into what is copied and believe that the photographers share could be bigger than it is said to be at present.
• SBF is not a member of any organisation.

Organ isations representing photographers

The Swedish Photographers Union is a member of all collecting societies.

SWITZERLAND

IFRRO member

• Pro Litteris (1974)deals with reproduction rights in literary and artistic works. Members are 4 000 Swiss authors and 300 Swiss publishers. Pro Litteris gives legal annual licences to commercial and industrial corporations, governments, administration, schools, universities, libraries, copy-shops. (app. number 120 000).

Collected DM 7,29 million and distributed 4,86 million (66.67%).

Associated members

• EWC-European Writers´ Congress
• IPA-International Publishers Association (1896) upholding and defending the right of publishers to publish and distribute the works of the mind in complete freedom provided that they respect all legal rights attached to these rights. 62 members.

Organisation representing picture agencies:

SAB is not a member of any collecting socety.

United Kingdom:

Member of IFFRO:

• CLA-The Copyright Licensing Agency Ltd(1982) has 50,000 authors and 15 publishers within UK and abroad. It distributed  £ 20 million to publishers in 1997.

Associated members

• ALCS-Authors Licensing & Collecting Society UK,

• DACS-Design and Artists Copyright Society collects individually for fine artists but collectively for others. Their commitment is to distribute to individual artist where possible.DACS is the only society representing visual artists and photography

• ICOGRADA- International Council of Graphic Design Association (1963)is the representative international non-governmental organisation for graphic design and visual communication. 57 full members n 39 countries , 12 corresponding members in 12 countries. There is educational membership and friends in 44 countries.

• FIPP- International Federation of the Periodical Press Ltd. (1925)works with formal and informal alliances between publishers of magazines. 34 national associations and 75 Publishing companies and associate members.

• NUJ, National Union of Journalists of Great Britain and Ireland (1907) trade union for 25 000 journalists.

• PA-Publishers Association (1896) Publishing trade association, for UK publishers.

• PLS Publishers Licensing Society Ltd.(1981) to exercise and enforce on behalf of publishers the rights of copyright and similar rights in their works and in the exercise of enforcement of these rights and remedies to grant licences, including those for reprographic copying of works. 1450 members.

Non-members

• NLA Newspapers Licensing Agency,NLA deals with copying of newspapers but has no mandate from Visual Artists or authors.

• ERA Educational recording Agency - off air recording and

• PLR Public Lending Right Agency.with lending books in libraries

BAPLA says that there are at least 20 collecting societies

CLAA, ERA and DACS all deal with copying in schools etc., for educational and research purpose.

There is no Droit de Suite yet and no collecting societies dealing with Electronic rights.

Organisation representing picture agencies:

BAPLA is in negotiation with DACS to look at systems for distributing to photographers and libraries but has not become a member yet. It has also been talking to CLA about collecting money on behalf of rightsholders. Negotiations are still underway.

If and how much money other photographic organisations receive from collecting societies is not known.

By the law of copyright BAPLA members are entitled to receive money from secondary sales.

Organisations representing photographers

• AOP Association of Photographers,(AOP is involved with Pyramid
• BIPP British Institute of Professional photographers,
• MPA master Photographers Association..
• NUJ National Union of Journalists
• RPS Royal Photographic Society

These photographic organisations are all members of DACS except for BAPLA.

[...An Essay about Scandinavia ...]

In Sweden there are laws giving collecting societies rights to take in money from school copying and retransmission of broadcasts. Copying in workplaces and the lending of library books are also treated as secondary rights but there are up to now no laws in these fields. A new law was recently adopted concerning droit de suite and another law is under preparation about taxes on cassettes and other copying material.

The RROs in Scandinavia are very strong and they are pushing the questions of making new laws which could give them new licences to collect money for "secondary rights". The brochure describes in their own words:

"EXTENDED COLLECTIVE LICENCE

THE NORDIC SOLUTION TO COMPLEX COPYRIGHT QUESTIONS

Technological progress has in recent decades revolutionized the use of products protected by copyright. Photocopiers and various audio and video recorders have become common. Dozens of television channels are transmitted via satellites and distributed in cable networks. These are examples of the mass use of works.

Traditionally, authors and other rightowners have exercised their rights individually. In situations of mass use, however, the right owner has no practical way to control the use of his works. On the other hand, the user can only with great difficulty, if at all, obtain the innumerable licences he may need. Collective administration of rights is needed.

Collective administration is, however, not as such a sufficient solution. Organizations representing rightowners do not have the powers to grant, with complete coverage, licences for use. Non-represented rightowners, i.e. outsiders, constitute a problem which has to be solved through some legal technique. The solution adopted in the Nordic countries is the extended collective licence, here called extended licence.

 Elements of extended licence

In general, an extended licence system contains the following elements:

1. The organization and the user conclude an agreement on the basis of free negotiations.

2. The organization has to be nationally representative in its field.

3. The agreement is by law made binding on non-represented right owners.

4. The user may legally use all materials, without needing to meet individual claims by third parties and criminal sanctions.

5. Non-represented rightowners have a right to individual remuneration.

6. Non-represented right owners have in most cases a right to prohibit the use of their works.

The Nordic group find the following areas of application good for an extended licence system:

• terrestrial and satellite broadcasting

• retransmission by cable or rebroadcasting of radio and television programmes

• recording of radio and television programmes for educational use

• reprographic reproduction of printed material

In some of the laws in Scandinavia you can find this extended licence. Here an example from Finland:

THE FINNISH COPYRIGHT ACT Article 11 a

Anyone who has received authorization from an organization representing a large number of Finnish authors in a certain field to reproduce published works by photocopying or analogous methods of reproduction shall also have the right to reproduce by the same methods published works in the same field the author of which is not represented by the organization. The conditions determined in the authorization shall be observed in the case of such reproduction.

Whatever the organization referred to in the first paragraph may have stipulated regarding the distribution of compensation to be paid for the reproduction to authors represented by the organization, or regarding the use of such compensations for the joint purposes of the said authors, shall also be applied to authors who are not represented by the organization.

If the stipulations issued by the organization and referred to in the second paragraph do not provide for the authors represented by the organization, the right to individual compensation, an author not represented by the organization shall, however, have the right to demand such compensation. The compensation shall be paid by the organization which has given the authorization referred to in the first paragraph. The right to individual compensation shall, however, have expired if a claim concerning it cannot be proved to have been presented within two years from the end of the calendar year during which the reproduction has occurred.

(In Sweden there is a right to claim compensation within three years)

The Nordic RROs see different solutions for the problem of outsiders:

• One alternative is to incorporate into an agreement an indemnity clause by which the organization assumes the liability for the payment of remuneration to non-represented right owners. This alternative, however, does not make the use of non-represented works permissible but only eliminates financial liability under civil law. Agreements cannot transfer liability under criminal law; the user is always responsible for any infringements he has committed. This alternative does not therefore safeguard the position of the user.

• Another alternative is to incorporate into the law provisions by which a copyright organisation is given a general authorization to represent rightowners or by which it is presumed that the organization has such a right. The practical effects of this alternative hardly differ from those of extended licence, which, however does not give the organization a general right of representation but only extends an agreement concluded by the organization also to cover non-represented right owners.

• A third alternative is to incorporate into the law provisions of non-voluntary licence (e.g. statutory or legal licence) whenever permitted by international conventions. In this case the consent of rightowners for the use of protected materials is not needed at all. They have only a right to remuneration. Non-voluntary licence is a considerably farther-reaching limitation on rights than is extended licence, and it significantly weakens the negotiating position of right owners.

Right of veto

By exercising his right of veto a right owner may prohibit the use of his work. The right of veto may be prescribed in law. It is also possible to incorporate the right of veto into an agreement concluded between a copyright organisation and a user. Both methods give to the right owner an effective possibility to prohibit the use of a work or of all his works

For example, in the extended licence provisions relating to broadcasting it is stated specifically that the provisions shall not be applied to works the use of which has been prohibited by the author.

A right owner may issue a prohibition to a specific user either directly or through the mediation of the organisation which has concluded the agreement. In the Nordic countries there are no requirements set on the form of a prohibition.

Distribution of remunerations

A copyright organisation distributes to the right owners the remuneration’s it has collected. In certain cases, individual distributions are not in practice possible. In these cases the remuneration may be distributed collectively, for joint purposes of the right owners.

ln some extended licence provisions the possibility for distribution for joint purposes has explicitly been accepted for practical reasons. The number of transactions may be so high, and the total amount of remuneration paid so small that individual distribution of remuneration is not feasible.

The legislator has placed non-represented right owners in the same position as the represented ones; discrimination is prohibited if an organisation decides to use the collected funds for the joint purposes of right owners, the decision concerns also non-represented right owners. However regardless of any decisions made by the organisation, outsiders always have the right to demand individual remuneration: In this respect authors who are outsiders are in an even better position than the authors represented by the organisation.

The remuneration is paid to an outsider by either the user or the organisation, depending on which alternative has been adopted in the law concerned or on what has been agreed upon.

The right of non-represented right owners to individual remuneration will expire if a claim is not presented to the organisation within a prescribed period of time. In general this period is two or three years but it may be as long as ten years.

The following RROs in Scandinavia deral with extended licences:

• Sweden STIM (broadcasting) BONUS (reprography) COPYSWEDE (cable)
• Denmark KODA (broadcasting) COPY-DAN (reprography and cable)
• Finland TEOSTO (broadcasting) KOPIOSTO (reprography and cable)
• Norway TONO ( broadcasting) KOPINOR (reprography and cable

THE END
05.02.2001