2001 Copyright Amendment Bill Presentation by: 10 October 2001 to The Southern African Music Rights Organisation The Parliamentary Trade and Industry Portfolio Committee

Table of Contents The “Good Law” Principle ReciprocityReciprocity Cultivating South Africa’s Repertoire SAMRO’s Perspective Operational Overview BackgroundBackground The Rights SAMRO Administers

BackgroundBackground

Background Established 1 January 1962 Non-profit organisation Represents composers / lyricists and 400 music publishers Database of over 1 million composers Ownership details of nearly 4 million musical works Established 1 January 1962 Non-profit organisation Represents composers / lyricists and 400 music publishers Database of over 1 million composers Ownership details of nearly 4 million musical works

The Rights SAMRO Administers

Collecting / Administration Societies Administers- “Performing rights” in MUSICAL WORKS Broadcasting, performance in public and diffusion / transmission rights Administers- “Performing rights” in MUSICAL WORKS Broadcasting, performance in public and diffusion / transmission rights SAMROSAMRO Southern African Music Rights Organisation

Collecting / Administration Societies SARRALSARRAL South African Recording Rights Association Limited RISARISA Society of Record Companies in South Africa NORMNORM Association of SA Music Publishers “Musical Works” “Sound Recordings” SAMROSAMRO Southern African Music Rights Organisation Administers Performing rights Administers Mechanical rights

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 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 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” 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 should be budgeted separately 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 should be budgeted separately

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 “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 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 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 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 Braamfontein 2017 Johannesburg South Africa Phone: Fax: