In this update we have news on the Copyright Tribunal reference, some changes in procedures for licensing one-off audiovisual releases, a quick snapshot on the B2B licensing area, an update on recently approved mini-blanket licences and online lyric licensing.
Online Reference for Digital Music Services
APRA|AMCOS have filed a new scheme for digital music services (commonly called digital download services) in the Copyright Tribunal to provide a combined APRA|AMCOS tariff of 12% of retail price or relevant gross revenue (ex-GST), as the case may be. The respondents in the case (Apple, Destra, Hutchison, RCS (Musicpoint), SonyBMG & Universal, Telstra and the ACCC) have now all filed their statement of points in reply.
Since the last Antenna, the Copyright Board of Canada has handed down its decision on the value of the communication right (the “APRA right”) in download services. Its decision, at 3.4% of the retail price, places a combined valuation for the mechanical and communication right in a download service at 12.2% of retail.
Our next return date in the Tribunal is on 7 December although we do not expect that the Tribunal will hear the matter until some time late in 2008 at the earliest. As previously mentioned, licensees will continue to pay at their existing rates until the Tribunal makes its determination.
Licensing of one-off (Category 3) Audiovisual Productions
AMCOS licenses one-off recordings under its Category 3 tariff. The tariff is the same as under the PPA, but the rate is applied to the units manufactured, rather than sales volumes.
From time to time we receive applications for audiovisual productions for which we always seek synch approval from the relevant copyright owners. We receive about 1,500 Category 3 licence applications each year, of which around 30 are for audiovisual productions. The average mechanicals for each production is around $300 (say $20 per work).
The relative value of these requests means that:
- commercial recordings staff spend a hugely disproportionate time on these requests;
- our clearance requests have to compete with high value clearances;
- licensees can become frustrated if they have to wait several weeks or months for approval to be granted.
At the recent Board Conference it was approved that we implement a new policy working on a standard turnaround for these requests of three weeks. We will send a single request to each relevant copyright owner and follow that up with a reminder two weeks later. If we do not receive approval within the three-week period, we will advise the client that a synch licence has not been given.
We believe adoption of these procedures will:
- save time for APRA|AMCOS staff (and allow them to focus on more important areas);
- appropriately permit you to prioritise these requests within your resources; and
- provide licensees with a clear template, reduce their waiting time and allow them to select (if possible) a different song for the recording.
Obviously if we receive an application that is for a substantial number of units, we would vary these above procedures accordingly (although I note there has been only one such application in the last three years).
We will implement this new policy for all applications received from the beginning of the New Year.
B2B Licensing
Part of Commercial Recordings reporting to Leanne Walton is our B2B licensing area. The team consists of Mostyn Rischmueller and Jessie Emmanouilidis, who administer a wide range of licence schemes including: TV mini-blankets, music suppliers (e.g. background music, inflight entertainment, radio syndication and jukebox suppliers), joint licences with ARIA for domestic-use videos and dance schools and casual licences.
Particularly in the area of background music suppliers, the area has increased its revenue base in recent years. As businesses and premises understand better the value of music to their bottom line, they have moved from simply turning on the radio to buying tailored music from professional suppliers. Such services require an AMCOS licence and are generally licensed at 6% of their revenue.
Recently Approved Mini-Blanket Licences
The AMCOS Board has approved the grant a mini-blanket licence to the follow shows:
- Hitz Blitz (regional programme on WIN network);
- Sunrise Presents: Your Song (Seven Network);
- New Year’s Eve Party Zone (Nine Network);
- So You Think You Can Dance (local version of US show – Ten Network);
- Rock Eisteddfod Challenge (Community TV – note the show will also be seen on Network Nine but is covered for that broadcast under their existing blanket licence); and
- Australia Day 2008 Concert (Network Nine).
Online Lyric Licensing
Most online lyric sites are unauthorised and unlicensed, although there is a move in the US to grant blanket licences for such sites (some of you may be aware of the Gracenote deal). The AMCOS Board has approved the establishment of a working party next year to consider the issue. We hope to provide more details in the first issue of Antenna in 2008.
Remember, if there were any areas you would like us to canvas in future updates, please let us know.
Until next time …
Richard Mallett
Director, Recordings & Online
