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CMO are consulted by persons or companies
interested in obtaining a license for their use.
To enable the copyright or neighbouring rights
owners to be represented internationally,
CMOs enter into reciprocal agreements with
other CMOs throughout the world. The CMOs
then grant licenses on behalf of their members,
collect the payments, and redistribute the
amount collected, based on an agreed formula,
to the copyright owners.
The practical advantages of collective
management are as follows:
•
Collective licensing has many benefits
for users and rights-holders. A one-stop
shopping greatly reduces administrative
burden for users and rights-holders; not
only does collective management provide
right-owners access to economies of scale
with respect to administration costs but
also in making investments in research and
development for creating digital systems that
allow a more effective fight against piracy.
Further, collective licensing is a great equalizer;
without a collective system in which all market
operators participate, small and medium-sized
right-holders and small and medium-sized users
would be simply locked out of the market.
•
It also allows owners of protected works
to use the power of collective bargaining to
obtain better terms and conditions for the use
of their works as a CMO is able to negotiate
on a more balanced basis with numerous, more
powerful and often dispersed and distant user
groups.
•
Businesses that want to use others’
copyright or neighbouring rights are able to
deal with only one organization and may be
able to get a blanket license. A blanket licence
allows the licensee to use any item in the
CMO’s catalogue or repertoire for a specified
period of time, without the need to negotiate
the terms and conditions for the rights of each
individual work.
•
Many CMOs also play an important role
outside of their immediate licensing business.
For example, they are involved in enforcement
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(anti-piracy); provide education and information
dissemination
services;
interface
with
legislators; stimulate and promote the growth
of new works in different cultures through
cultural initiatives; and contribute to social and
legal welfare of their members.
•
Details of the relevant CMOs in a
country may be obtained from an international
federation of CMOs (see Annex I), from a national
copyright administration/office (see Annex II),
from the relevant industry association or from
one of the international non-governmental
organizations listed in Annex I.
Managing Copyright and Neighbouring
Rights
The rights granted by copyright and neighbouring
rights may be managed by:
•
The owner of the rights;
•
An intermediary, such as a publisher,
producer or distributor; or
•
A collective management organization
(CMO). In some cases, management by a CMO
may even be mandated by law.
Collective Management in the Music
Industry
Collective management of rights plays a central
role in the music business due to the different
types of rights in the music business chain.
Mechanical rights collected on behalf of authors,
composers and publishers; performance rights
collected on behalf of authors, composers and
publishers; and performance rights collected on
behalf of performers and phonogram producers.
No wonder, thousands of small and medium-
sized record companies, music publishers and
artists in their respective countries rely on local
and/or distant collective licensing organizations
to represent their interests and negotiate with
powerful users of music (large communication
groups, radio, TV, telecom groups or cable-
operators) to ensure an adequate reward for
their creative activities. At the same time, all
licensees, regardless of size, have access to all
repertoires without having to negotiate with a
large number of individual right holders.
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CMOs of performers (music and audiovisual)
have been managing rights on the Internet
since the beginning, mainly simulcasting and
webcasting, and from now on, will address the
“making available right”.
In Nigeria, a broadcasting corporation must
pay for the right to broadcast music. The
payment is made to the copyright owner, but
generally in an indirect way. In practice, the
copyright owner assigns his or her rights to an
organization (CMO), which negotiates with all
those interested in publicly performing music.
The CMO, representing a membership of a large
number of copyright owners, pays royalties to
its members in accordance with the number of
times a particular work is performed in public.
Broadcasting organizations negotiate an overall
annual payment to the CMO and provide the
CMO with sample returns from individual
stations, which allow the calculation, for the
purpose of paying royalties to composers, of
the number of times a record has been played.
In Nigeria, the CMO responsible for all types
of rights associated with musical works and
sound recording is the Copyright Society of
Nigeria (COSON) (see page Annex I).
A public performance license is necessary for
any broadcast of a television program that
contains music. The performance right must
be licensed from the copyright owners or
publishers of the composition and the sound
recording used. A blanket license is traditionally
secured, usually from a performing rights
society.
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