12 July 2012

Authors’ societies move to voluntarily improve transparency and governance

Now is a crucial time for authors’ societies.

The proposal for a directive on collective rights management has been published – after much anticipation – and we embrace the changes this new legislation promises to bring about. Europe needs an up-to-date set of laws that takes into account the challenges of today’s changing world and reinforces the benefits authors’ societies provide, both to rights holders and to users.

Although harmonised European legislation is crucial, no-one is more invested in the good governance and transparency of authors’ societies than authors’ societies themselves. We already strive tirelessly to keep ourselves in check. Just last month CISAC, the international representative body of collective rights management societies, launched an in-depth review of the Professional Rules governing authors’ societies worldwide.

Update of authors’ societies professional rules – what are the aims?

Make royalty distributions more frequent. Already we’re heading in the right direction on this. Last month the principle of quarterly distributions of royalties between musical rights societies was enshrined , meaning members are given fair payment for their works faster.

More transparency through rigorous yearly reporting obligations on all societies

Oversight and sanctions. CISAC will make sure that societies are keeping in line with its Professional Rules and take action in cases of non-compliance.

CISAC‘s Professional Rules have been in place for some time. They are crucial for our credibility, efficiency and transparency – and we welcome them.

Every member society that is represented on this platform, authorsocieties.eu, must respect these standards.

What’s more, 6 years ago GESAC – the European Grouping of authors societies representing 34 Europe-based societies –adopted common rules on governance and transparency. They were conceived together with the global trade association for music publishers, ICMP, to improve the management of on-line rights in music works.

Updating voluntary governance rules demonstrates authors societies pro-active commitment to the professional well-being and livelihoods of creators everywhere.

Policies

Artificial intelligence

Artificial intelligence brings about many new opportunities for our lives, including in the field of culture and creativity, but its applications also raise a number of ethical and legal questions due to their wide-spread uncontrolled and unchecked usage.

Policies

Music Streaming

Music streaming has unquestionably become the predominant means of enjoying music, replacing traditional physical media and expanded far beyond the live sector by providing user-friendly, high quality, and affordable access to the largest possible repertoire anytime, anywhere, online, or offline.

Songs and compositions are at the heart of this thriving market, which counts 524 million users on subscription-based music services globally, reaches more than 2 billion users including the streaming on UGC platforms, and offers more than 70 million tracks from approximately 8 million artists.

Yet, the authors and composers cannot benefit adequately from this success, and the debate over unfairness of this market is gaining traction across Europe and around the world.

There is a need to look more closely at how songwriters and composers are connected to this thriving economy and what can be done to improve their currently neglected situation.

Read below to find out more about the Music Streaming market.

Policies

Buy-out contracts: a dangerous threat to European creators

European music creators (composers, lyricists etc.) are being forced to forsake thousands of euros in future earnings by draconian ‘work made for hire’ (WMH) and buy-out contracts.

Online audiovisual services and broadcasters that are mainly US-based are forcing music creators to accept such contracts, which enforce a one-time payment in exchange for their rights.

Given the worldwide popularity of shows and series on platforms like Netflix, Amazon, Disney etc., and their replay value, the audiovisual market represents an important revenue stream for creators. Soundtracks alone are part and parcel of series and often attract a similar amount of popularity, massively boosting sales, streams and the worldwide fanbase of their authors.

Read below to find out how video on demand (VOD) platforms and broadcasters are circumventing EU law and what can be done about it.

Policies

Authors’ societies & the collective management model

Authors’ societies are hugely beneficial to both authors (creators), users (platforms and services), and the broader public.

Beyond benefiting these different groups, authors’ societies also support the broader cultural ecosystem by funding and promoting cultural and creative initiatives.

Below are five key benefits to authors’ societies and the collective management model.

Policies

The Copyright Directive

In April 2019, the Directive on Copyright in the Digital Single Market was formally adopted, a change that will positively transform authors’ rights throughout the EU. Each member state now has until 7 June 2021 to transpose the Directive into their respective national law.

This reform is an opportunity to address pressing issues for authors in the Digital Single Market and will promote the growth of Europe’s creative and cultural industries (CCIs) – a major driver of Europe’s economy.

One of the biggest achievements of this new piece of legislation was to address the
‘Transfer of Value’ problem, a priority issue for all European creators.

Below are some of the Directive’s key areas that will affect creators and those who profit from their work.