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Role of Collective Management & RROs in sustaining the publishing industry
Olav Stokkmo, CEO of IFRRO
Moscow Book Fair 2013
6 September 2013 Moscow
Provider of reliable information on copyright-led solutions in the text and image based sector
IFRROInternational Federation of Reproduction Rights Organisations
The global network140 members in 78 countries
IFRRO Key Activities
• Communications / Information
• Business Approaches
• Regional Development
Cooperates with• WIPO• UNESCO
• EU• OAPI, ARIPO,
LAS APEC, CERLALC
• CISAC, SAA, etc.• IFLA, EBLIDA
4
ABDR | Access Copyright | AGECOP | AIDRO| AMCOS | AUTOR | B-COPY| BBDA | BECLA Bonus Presskopia CADRA | CCC| CDR | CEDRO| CeMPro| CFC| CLA| CLASS| CLNZ| CMA| COPIBEC| Copydan Writing| CopyGhana | Copyright Agency | CopyRo – Romania | CopyRus| COSOMA| CWWCS| DALRO| DHK/CWA| DILIA ECCLA| EDISAM| FILCOLS| Fjölís| FJÖLRIT| GCA| HARR| HKRRRLS| ICLA| IPRO| IRRO| JAC| JAMCOPY| JRRC| Kopiken| Kopinor| KOPIOSTO| KOPIPOL| KOPITAN| KORRA| LATGA-A| LIBRIUS| LITA| Literar-Mechana | Luxorr| MASA| NLA| NLI| NSRR| OSDEL|
POLSKA KSIAZKA| ProLitteris| REPROBEL| REPRONIG| SADEL| Sámikopiija | TTRRO| VG Bild-Kunst | VG MUSIKEDITION | VG WORT | VIETRRO| YAYBİR| YRCI| ZANA| ZARRSO| ZIMCOPY
86 RROs in 77 countriesAround the world – on all continents
IFRRO. RRO-members, total members and collected fees
RROs and total members 27.8.2013; Collected fees 1989-2012
020406080
100120140160
1989 1994 2000 2008 2012/13
Mem
ber
s
0
200
400
600
800
1000
1200
1400
Co
llect
ed f
ees
in U
SD
RROs Total members Collected fees
Creative Industries fuel the Digital Economy
Copyright is fundamental to Cultural Diversity and Economic Growth
Copyright and creative sectorsFuel the digital economy
• Knowledge economy
• National IP industry
• Flourishing environment
• Unique cultural material
• Educational material
• World place
• Cultural valueo National identityo Fiction, non fiction (science, technology, education),
poetry, drawings, photographs... And more!
• Economic valueo Incentive to create and publisho Textbooks often engine of national publishing industry
Valuing copyright allows investmentin creativity, knowledge and culture
WIPO studies: Creative industries important to economy
Contribution to GDP %
Contribution to employment %
Contribution to GDP %
Contribution to employment %
Australia 10.30 8.00 Mexico 4.77 11.01Bulgaria 2.81 4.30 Netherlands 5.90 8.80Canada 4.70 5.40 Philippines 4.82 11.10Colombia 3.30 5.80 Romania 5.55 4.19Croatia 4.27 4.64 Russia 6.06 7.30Hungary 6.66 7.10 Singapore 5.67 5.80Jamaica 4.81 3.03 Ukraine 2.85 1.90Latvia 5.05 5.59 USA 11.09 8.53Lebanon 4.75 4.49
http://www.wipo.int/export/sites/www/ip-development/en/creative_industry/pdf/eco_table.pdfhttp://www.wipo.int/ip-development/en/creative_industry/economic_contribution.html
Creative sectors fundamental to Wealth, knowledge & Digital Society
http://www.wipo.int/ip-development/en/creative_industry/pdf/economic_contribution_analysis_2012.pdf,
Positive relation between investment inCopyright and GDP per capita
Positive relation between investment inCopyright and Competitiveness
Positive relation between investment inCopyright and Innovation
44%
10%12%
9%
6%
3%6%
1%9%
press and literature
software
radio and tv
Music, theatrical productions and opera
motion pidcture and video
visual and graphic arts
Photography
cr collecting societies
advertising
Core copyright industriesMain contributor to GDP: press & literature
Income from secondary usesFundamental to the author & development
Studies in the UK(PwC and ALCS)
Authors• 10% decline in RRO income for creators would result
in 20% less output;
• 20% decline would mean a drop of 29% in output or the equivalent of 2,870 works per year.
PublishersSecondary copyright payments play an important role in
incentivising investment in new products
Provision of easy legal access to copyright works
Protects both content creators and consumers
Seamless Access to © works – Addressing primary and secondary markets
Provision of easy, legal access to © works protects users and R/Hs
ACCESSFINDING
RETRIEVING
USING
SHARING
WorksWorks RightsholdersRightsholders
PaidPaidFreely availableFreely available
Personal usePersonal use
Classroom useClassroom use
Research/CollaborationResearch/Collaboration
RepublicationRepublication
New WorkNew Work
TranslationTranslation
Print-disabled versionPrint-disabled version
PhotocopyingPhotocopying
InternalInternal ExternalExternal
E-mailingE-mailing
InternalInternal ExternalExternal
PostingPosting
IntranetIntranet InternetInternet
StoringStoring
Text & Data MiningText & Data Mining
The educational publishing ecosystem
15
Valuing copyright allows investmentin creativity, knowledge and culture
exceptions are important; unremunerated exceptions should be limited to instances where primary and secondary markets cannot fulfil a market need efficiently
RRO Collective Administration Contributes to seamless access to © works
• Individual licensing when one to many
• Collective management when many to many; when individual licensing is
– Impossible
• Typically Orphan works
– Impracticable or Insufficient
• Typically Multiple copying & Out-of-Print works
RROs complements individual administration
RROs act as intermediaries betweenrightholder and users
RROs
Make Copyright Work
for Everybody
Operate on the basis of mandates from; governed jointly by• Authors and Publishers
Writers including translators; Visual artists; Composers
Publishers (Book, journal, newspaper, magazine, music)
• Legislation
Key facets of RRO activities Awareness raising Copyright enforcement Licence, collect and distribute revenues
RROs Make Copyright Work!
RROs -Reproduction Rights OrganisationsCollective Rights Managers in text & image sector
Content of RRO repertoire licence
• Limited extracts• 5-15%; chapter; article
• Personal and Internal use
• Permitted uses• Photocopying and scanning
• Download, store, print, internal dissemination, external dissemination
• Authorised users
• Terms
• Fees
• Usage reporting requirements
• Compliance awareness
Digital sources and applications
• Sources
• Applications and uses
o Scan o PPTo Printout o Whiteboardo Intranet oView
o Virtual Learning Environmento Document delivery
o Store o Redirect to contento Email o RRO content database
o Analogue o Onlineo Electronic carrier o Internet download
RROsAreas licensed by RROs
• Education at all levels– Schools; Universities; Further education; Distance Education
• Public Administration– Government; Regional; Local
• Trade and Industry
• Religious bodies
• Public and Research libraries
• Cultural institutions
• Copy shops
• Press Cutting Agencies
Income from secondary uses is indispensible to creation and investment in new works
Supporting collective management is
supporting economy, knowledge, culture
Kopinor (Norway) – extended collective licence
• 22 member associations, 5 publisher, 17 author• Council of Representatives• Executive Board and Board of Distribution• Mandates via member bodies• ECLs approved by Ministry of Culture• Rightholder set splits• Individual distribution via r/h bodies• Revenue collection 2012: € 37 million
REPROGRAPHIC REPRODUCTION RIGHTS MANAGEMENT• Compulsory collective management system: CFC represents all rights holders by effect of the law
• CFC licence Education, businesses and government
• CFC collected 45M€ in 2012
• Royalties allocated to works reproduced according to reports from users and distributed to rights holders
DIGITAL RIGHTS MANAGEMENT IN THE EDUCATION SECTOR• Legal exception introduced in French law in 2006
• CFC negotiated an agreement with Ministry of education, who pays a lump sum (1.45M€ per year) to remunerate the uses
• CFC receive mandates from publishers to distribute the royalties
• Publisher’s mandates allow CFC
• to authorize digital reproduction of works, which are excluded from the legal exception, as for example school books
• To authorize educational establishments, which are not covered by the agreement with the Ministry of Education
DIGITAL RIGHTS MANAGEMENT IN THE BUSINESS SECTOR• Voluntary collective management: CFC receives mandate from publishers
• CFC represents only the publications from the publishers, who gave a mandate
• CFC licenses digital internal uses for professional purposes
• CFC collected 10 M€ in 2010, with a 30% growth in revenues
24
ProLitteris (Switzerland) – legal licence
• Cooperative society: 8,000-plus creators, 600-plus publishers
• General Assembly• Board of 12: 7 creators, 5 publishers• Federal Intellectual Property Office• Remuneration mandate includes digital• Mandate may include voluntary licensing• Title-specific distribution to individuals• Revenue collection 2011: € 14 million
Levy – text and image based works – Examples Germany and Hungary
GermanyLaw authorises reproduction
Single copies for Private useCopies of single works for Own scientific or archival use; Copies of out-of-print worksCopies of small parts of works other than text books for teaching
Copies may be in analogue or digital formats
Equipment and Operator levy collected in 2012: € 73.5 million
HungaryIndividual allowed to copy for private purposesMay copy for others: Educational and cultural institutions; retail,
copy shops and others charging for copiesEquipment and Operator levy collected in 2012: € 1 million
RRO rights administrationNew areas
• Digital Libraries– Orphan Works
– Works out of Commerce• Model Licences – Secure and Open Networks• Rights Clearance• Databases
• People with print disabilities• Trusted Intermediaries (TI) pilot project
• WIPO Stakeholder Platform - TIGAR
• EC Stakeholder Dialogue – MoU - ETIN
FRANCE• Out-of-Commerce Books published in France < 2001• Compulsory Collective Management by RRO
– Right of withdrawal
GERMANY• Out-of-Commerce Books published in Germany < 1966• Licensing by RROs (VG Wort and VG Bildkunst)
– Legal Presumption– Right of withdrawal
Library Digitising project Examples
28
Helps create wealth, employment and economic growth
Strengthening copyright &
collective management
Copyright A Fundamental Human Right!
• Fundamental problem: Web being free obscures the fact that people created all this data
• Much of the danger to middle-class professionals stems from Internet’s hostility to ownership of knowledge
• Restore the value of data( Jaron Lanier: Who owns the future)
Jaron Lanier virtual reality
A world that values knowledge values its creators!
Economic growth
Cannot be created by giving all away for free
Al Gore
We are nearing a threshold beyond which so many jobs are lost that the level of consumer demand falls below the level necessary to sustain healthy economic growth
(Al Gore in The Future)
The Copyright Sectors Fuel the Digital Society!
RRO rights administration Sustaining local creative industries
Collective ManagementSeamless access to copyright works
Safe
Simple
Fast
Innovative
Convenient
Cost effective