I.- INTRODUCTION

On 26th February, 2014 the European Parliament and the Council of the European Union adopted the Directive 2014/26/EU regarding the collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market.

To date, eight collective management organizations operate in Spain representing copyrights (SGAE, CEDRO, VEGAP and DAMA), performers (AIE and AISGE), and producers (AGEDI and EGEDA). Once the Directive is transposed into the national law system, said organizations must comply with the guidelines thereof, as well as any other collective management organization operating in a member state of the European Union, for example, the GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte) in Germany.

II.- OBJECTIVES

Through the Directive, the European Union pursues the following objectives:

1. To guarantee a higher level of administration, financial management, transparency and information of the collective management organizations, requiring them, among others, to:

  • Publish an annual transparency report, including all kind of information related to their management.
  • Establish the access to the membership based upon an objective, transparent and non- discriminative criteria.
  • Facilitate any right holder, whose rights are managed under a representation agreement, to participate at the general assembly of members, which shall be convened at least once a year.
  • Guarantee that the managers of collective management organizations are independent and act in the interest of the right holders.
  • Guarantee that the right holders receive an appropriate and proportional remuneration for the management of their rights.
  • Pay the amounts due to right holders as soon as possible, and no later than nine months as from the end of the financial year in which the revenue regarding their rights was collected.

2.   To facilitate the multi-territorial licensing of online rights in musical work in more than one state of the European Union, contributing to the full accomplishment of the Single Digital market

Specifically, those collective management organizations complying with the requirements of the Directive will be able to grant multi-territorial licenses of musical rights, allowing online providers to operate with those rights in more than one State of the European Union, facilitating and promoting cultural interchange.

Notwithstanding the foregoing, and in order to grant access to multi-territorial licenses to any music author, regardless of the collective management organization chosen to represent their copyrights, those collective management organizations not complying with the requirements to grant multi-territorial licenses shall be able to mandate other collective management organization able to grant multi-territorial licenses (passport organization) to manage their musical repertoire on a non-discriminatory basis.

III.- CONCLUSION

The Directive aims to ensure the transparency of the collective management organizations and, with special emphasis, protects the right of the right holder to be duly informed about the management of his rights and to be paid for the revenues obtained as a result of such rights on a regular, diligent and accurate basis. Likewise, the Directive aims to ensure the access to multi-territorial licenses of online rights to any music author, on a non-discriminatory basis and regardless of the collective management organization chosen to represent their rights.

This Directive shall be transposed into the national legal system of any European Member by 10th April, 2016.

 

 

Eduardo Vilá

Vilá Abogados

 

For more information, please contact:

va@vila.es

 

23rd May 2014