1. SGEUR12-0508 Mitko CHATALBASHEV (CISAC) WIPO/CISAC National Seminar Tashkent, 03/04/2012 – 04/04/2012 Original language : English Collective management of authors’ rights. The Role of CISAC Mitko Chatalbashev (CISAC)

2. 2 Raison d’être of Collective Management Practical (economic) arguments Difficulty for authors to monitor their works’ usage Impossibility for users to obtain individual licenses Inequality of bargaining power Authors entrust their rights to CMO One stop shop Enforcing the entrusted rights Cultural arguments (cultural diversity) Social arguments (social security)

3. Collective Management: Step-by-Step Legal framework (international & national) Membership (contracts between authors’ societies & creators/publishers) Registration & Documentation Reciprocal agreements Licensing Collection Distribution 3

4. Licensing Licensing is the process of dealing with the authorization of the use of the author's work. If a user meets the conditions set by the CMO, he will be licensed to use society’s repertoire: To provide the economic incentive for the creation of more original and creative works To increase legitimate exploitation/ usage of copyrighted works To provide one-stop, convenient service centre for copyright licenses To provide Total and Quality service (marketing approach) 4

5. Licensing CMO as trustees of the authors National repertoire World repertoire/Reciprocal agreements National treatment Tariffs Negotiations with users Blanket licenses Monopoly/No discrimination/Supervision 5

6. Collection Collection is the process of dealing with collecting the royalties, which the user has agreed to pay In parallel a society has to collect market information maintain licence records and files control and administer license agreement have information about works used 6

7. Collection Litigation Non-payment Illegal use Piracy Procedural legitimacy Representation Substitution (Extraodrinary) collective legitimacy 7

8. Distribution Distribution is the process of allocating the net collected licence fees to the copyright owners of the works performed or otherwise exploited during an accounting period To ensure that the royalties collected reach the correct copyright owners To be done with efficiency and transparency for members and affiliated societies 8

9. Distribution Documentation From society From CIS Net Usage data Merging Distributing Revenue analysis 9

10. Global View of the Main Processes Rights holdersAuthors’ SocietiesUsers Registration Documentation Licensing CollectionDistribution 10

11. 11 Role of CISAC Non-governmental, non-profit organisation Created in 1926, headquarters in Paris Regional offices: Budapest, Johannesburg, Santiago de Chile and Singapore 232 authors’ societies from 121 countries (3 million creators from all repertoires) €7.5 billion (2010) Role and main activities Strengthen and develop the international network of copyright societies - Good Governance Rules - Technical standards and Data bases (CIS) - Development support Promoting the importance of collective management

12. TERRITORIES COVERED BY CISAC MEMBER SOCIETIES 232 societies from 121 countries 12

13. RESPECTIVE SHARES OF THE REGIONS 2010 – World – % of collections 13

14. TREND IN COLLECTIONS BY REPERTOIRE World – Millions of € +6.3% +0.7% +5.5% 7 545 7 152 86% of collections 14% of collections 7 035 +1.7% 14

15. ANNUAL COLLECTIONS PER HEAD OF POPULATION 2010 - € - By country (>€1/per head) 36 countries exceed the global average 29 European countries (68%) in this Top 41 Note: Denmark actually covers NCB’s total collections from the 8 Nordic & Baltic countries. If they were split, Denmark would be ranked no.2 behind Switzerland (with approx. €16.8) 15

16. 16 Challenges before Collective Management Dramatic changes in copyright uses’ nature Methods of exploitations Consumers’ expectations Role of Governments Implementation of equitable laws Enforcement of copyright laws Regulation of the collective management mechanism Efficiency Professional standards Technical standards

17. 17 Future of Collective Management The rationale behind collective management remains as valid today as ever Collective management has always adapted to consumers’ changing needs and new business models