COPYRIGHT SOCIETIES

 INTRODUCTION

Collective Management Organisations, better known as Copyright Societies, are such systems within the realm of copyright that allow for the collective management and administration of rights of member copyright holders. The primary principle behind the creation of such a body remains the practical inadequacy of a singular copyright holder to manage and oversee the protection of her/his interests in said copyright at all times.

Such societies have witnessed a global surge ever since the advent of copyright laws, with the first recorded copyright society dating back to 1851 France, wherein the Society of Authors, Composers and Publishers of Music (SACEM)[1], a non-profit, non-trading organisation, was formed with the intention of collecting royalties and payments of artists’ rights and distributing said collection to the rightful owners of said copyrights.

But is collecting royalties all a copyright society good for? Or does such an establishment create a larger impact on the economy and the society at large owing to the cultural development via artistic encouragement? This Article has been an attempt at delving into the world of copyright societies and at trying to comprehend and analyse the bigger picture such societies paint with respect to both, the law and the economy.

WHAT IS A COPYRIGHT SOCIETY?

In a nutshell, a Copyright Collective is a society or an association of not less than seven members concerned with carrying out the business of granting licenses, collecting and distributing fairly the remuneration earned by copyright owners/ authors in the forms of royalties in a transparent and fair manner and with the intention of not becoming detrimental to the interests of said member authors and copyright owners.

As has been stated in Phonographic Performance Ltd. v. Lizard Lounge[2], “We have no doubt in our mind that the very object of providing for such a Copyright Society was not only to administer the license regime and recovery of fee in a better manner but also to prosecute claims for infringement. To hold otherwise would be a half job done. Individual owners of Copyright find it difficult to enter into multiple license agreements and recover fee or enforce their rights. The creation of a Copyright Society is to serve all the three objectives without denuding the author of its own individual rights.”

KEY ASPECTS OF A COPYRIGHT SOCIETY

For a copyright society to function optimally and achieve its desired objective, it becomes necessary for certain factors to be present and serviceable in such an association. The primary components that make up a Copyright Collective are further explained:

  1. Organisational Structure: Structurally speaking, a copyright society consists of a governing body, an administrative staff deployed to handle the day-to-day requirements and management as well as the members, i.e., the copyright owners.
  1. Membership services: The membership in such a society is open to artists engaged in the creation of literary works and includes, inter alia, authors, composers and musicians. The copyright society is thus concerned with representing such persons, along with protecting the interests thereof.
  1. Functional Aspects: As has been covered above, mainly the functional aspects of these societies include the management of rights so authorised by the members by way of collecting and distributing royalties, licensing and the enforcement of rights of the members by way of supervision, monitoring and reporting against unauthorised usage of copyrighted works belonging to the members concerned.
  1. Resource availability and outreach: Copyright Societies are equipped with the infrastructure and resources that generally remain out of reach for most copyright holders. Due to the same, they create a benefitting market, connecting both users and creators who may otherwise normally not cross paths.
  1. Policy encouragement and Advocacy: In the grand scheme of things, a Copyright Society promotes the economic freedom of artists to a considerable extent. Due to the same, the society in turn benefits from cultural and economic development that occurs as a by-product of artistic encouragement. It is worth mentioning that the American Society of Composers, Authors and Publishers (ASCAP) delivered a record-breaking $1.737 billion in revenue in the 2023 calendar year with $1.592 billion available for royalty distributions to its songwriter, composer, lyricist and music publisher members, the highest revenue and royalty distributions reported by any U.S. PRO![3]
  1. Classification: a Copyright Society may be concerned with only a particular kind of literary work and thus better manage rights due to specialisation and mainstream resource connectivity.

Some examples include, inter alia, Performing Rights Organisations (PROs), Mechanical Rights Organisations (MROs), Reproduction Rights Organisations (RROs), Visual Arts Organisations and Audio-Visual Organisations.

Some well-known societies in India include the Indian Performing Rights Society (IPRS), the Phonographic Performance Limited (PPL), the Copyright Society of India and the Indian Reproductive Rights Organisation (IRRO).

REGULATION OF COPYRIGHT SOCIETIES IN INDIA

Chapter VII of the Copyright Act, 1957 (herein referred to as ‘the Act’) and Chapter X1 of the Copyright Rules, 2013 govern the provisions entailing copyright societies in India. Accordingly, the mandatory requisites revolving around the same are below mentioned;

  1. Registration: A copyright Society has to be registered under the Act so as to be able to grant or issue licenses in any such wherein a copyright subsists. The registration so granted continues for a period of 5 years and can be renewed from time to time, though within 3 months before the expiration of its registration, through Form IX before the Registrar of Copyrights. Furthermore, such registration is subject to cancellation or suspension by the central government in case it is found that the society under consideration has been managing the said copyrights in a manner detrimental to the interest of the holder-members.
  1. Administration of rights of owner: A copyright society may exclusively administer the rights of authors or copyright owners as per the terms of the membership contract, further, the rights may be administered by way of issue of license, collection of license fees or both, with the owners of said rights having the vested right in themselves to withdraw from such authorisation.Such societies are further permitted to administer the copyrights of members globally via contracts with foreign societies or organisations responsible for such administration in particular jurisdictions (respective foreign countries). It is mentioned however, that same shall remain intact so long as the terms of license or distribution of fees collected remain unchanged and fair to the members of the copyright society under question.
  1. Collective control by copyright owners and authors: The authors and owners of rights administered by such societies remain in collective control over the procedural aspects as well as the financial management underway, equal membership rights as well as a governing body for the society, consisting of persons elected from amongst said society members.
  1. Tariff Scheme: Furthermore, a copyright society is legally entitled to publish its tariff scheme, as per the guidelines issued by the competent authority, within 3 months from the date of due commencement of copyright business to be displayed on the society’s website.

CHALLENGES AND CRITICISMS OF COPYRIGHT SOCIETIES

Although the importance of Copyright Societies has been mentioned in the Article time and again, the concept is not wholly unblemished. Some of the major criticism and challenges facing Copyright Societies as a whole are as follows:

  1. Transparency in Financial Practices: It is not particularly uncomplicated to manage and ensure a fair distribution of royalties when speaking of a large membership base. An adequate and functional accounting system as well as honest administration is requisite for a society to maintain errorless and honest accounts and reporting systems.
  1. Global Coordination and Compliance Issues: As art-works increasingly transcend borders and nations, the jurisdictional problems vis-à-vis copyright regulation and fair pay become so much the harder to adapt and apply. The global collaboration the Act calls for in case of copyright societies is agreement based and it thus becomes the duty of Copyright Society directly concerned with the member to ensure compliance and enforce proper mechanisms in case of breach. Although it is important to mention that various organisations, such as CISAC – the International Confederation of Societies of Authors and Composers, are engaged in managing copyright societies all over the world, with CISAC alone overseeing over 227 member societies in more than 116 countries, and representing more than 5 million creators from all geographic areas and all artistic repertoires; music, audio-visual, drama, literature and visual arts.[4]
  1. Technological Advancements: With the ever increasing pathways of material distribution comes a greater risk of unchecked copyright infringement. Unless a Copyright Society has well-equipped itself to match today’s digitisation, the monitoring and reporting of copyright infringement becomes next to unfeasible and half the purpose of such an organisation stands defeated.

CONCLUSION

A Copyright Society is an intermediary that links creators and users of copyrights in such a manner that promotes an equitable and profitable environment for holistic growth by way of providing the management of royalties and licensing facilities to the former and a diverse market to the latter.

The Indian Copyright Act, 1957 covers the regulation of Copyright Societies in a clear and concise manner and further establishes that it is foremost the copyright owners and authors, who benefit from the membership in said associations.

Despite the ever present challenges and the increasing technological requirements to keep these societies functional, the need of the same still remains indispensible with its significant contribution to the global economy and the cultural development. In cessation thus, it is pertinent to recognise and applaud their ever-present role in the growth and development of both, art and artists over the years, providing aid and resources out of reach of individuals otherwise.

Author: Archi Jain

[1] The Sacem – Society of Authors, Composers and Music Publishers

[2] Phonographic Performance Ltd. v. Lizard Lounge, 2008 SCC OnLine Del 1191

[3] ASCAP Delivers Record-Breaking Financial Results With $1.737 Billion In Revenues, Up 14.1% From The Prior Year | CISAC

[4] About | CISAC