Neighbouring Rights and Your Orchestra: A Webinar for Managers October 1, Presented by AVLA and MROC for Orchestras Canada

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1 Neighbouring Rights and Your Orchestra: A Webinar for Managers October 1, 2013 Presented by AVLA and MROC for Orchestras Canada

2 If you are a musician or vocalist who has performed on a sound recording released during the last 50 years, MROC may have money for you! If you are own the master recording, AVLA may have money for you! Who are MROC and AVLA?

3 MROC pays musicians and vocalists neighbouring rights and private copying royalties related to their sound recordings. AVLA pays labels (master rights owners) their share of neighbouring rights and private copying royalties. SOCAN pays songwriters and music publishers royalties for performances of their songs. Musician, Label, Songwriter

4 How it works

5 Royalties are collected from CBC radio, commercial radio stations, pay audio stations and satellite radio stations for the broadcast of sound recordings. Royalties are also collected from businesses for the public performance of sound recordings. For more information: Neighbouring Rights Royalties

6 1.A Commercial Radio 1.B Non Commercial Radio (Proposed) 1.C CBC Radio 2 Pay Audio 3 Background Music 4 Satellite Radio 5 Live Events 6 Dance and Fitness 8.A Simulcasting & Webcasting (Proposed ) 8.B Semi Interactive Webcasting (Proposed ) Re:Sound Tariffs

7 A sound recording must have been recorded in Canada or a Rome convention country or by a company/ independent artist from one of these countries. Every musician/vocalist that played on that recording is eligible to receive royalties regardless of nationality. The current owner of the master recording is also eligible to receive royalties. Neighbouring Rights Royalties - Eligibility

8 A sound recording must have been recorded in Canada or a Rome convention country or by a company/ independent artist from one of these countries. Every musician/vocalist that played on that recording is eligible to receive royalties regardless of nationality. Neighbouring Rights Royalties - Eligibility

9 Royalties are collected on blank audio media sold in Canada (blank CDs and MiniDiscs). The royalty distribution is based on a mix of radio airplay and album sales. Eligibility: If you are the label or musician/vocalist, you must be Canadian or a permanent resident of Canada. The sound recording must be made in Canada. Private Copying Royalties

10 The Musicians Rights Organization Canada (MROC) is a not-for-profit organization that distributes neighbouring rights and private copying royalties to musicians and vocalists. Today MROC is the only collective in Canada for musicians that is governed by musicians. Musicians Working for Musicians

11 MROC works for you beyond Canada. MROC has agreements with collective management organizations from around the world - including the UK and the United States - for the collection and distribution of your royalties. New agreements just signed with Sweden, UK, Denmark and The Netherlands. MROC and the World

12 The Delegates to the 2013 Organization of Canadian Symphony Musicians (OCSM) Conference passed a motion urging the professional members of their respective orchestras to register with MROC at the earliest opportunity. OCSM Action Plan

13 Appoint an MROC contact at each OCSM orchestra. Jointly create a process to encourage all players to sign up with MROC in September. MROC will review classical distribution rules with OCSM. OCSM Action Plan

14 You can sign up for MROC in two easy steps: 1. Visit and fill out our online Appointment and Authorization form. 2. Tell us about the sound recordings you played on. How do I Sign Up?

15 Original master is the recording made at the time of the original recorded performance. Owned by either record label that paid for production of song/album, or the self-produced artist/band (makers of sound recordings). Master Recordings

16 Reproduction of sound recordings Reproduction and performance of music videos Neighbouring rights Private Copying Makers Rights

17 AVLA represents over 1,600 master rights holders, including all of the multi-nationals. AVLA s members own or control the copyright in 95% of the sound recordings and music videos available in Canada. AVLA licenses music videos on behalf of the French producers collective SOPROQ. About AVLA: Members

18 AVLA licenses the reproduction of music videos for certain uses: Broadcast on television Performance to the public Inclusion in radio station TV commercials Licensing: Music Videos

19 AVLA licenses the reproduction of sound recordings for certain uses: Background music in commercial enterprises Public performance by DJs Inclusion in radio station TV commercials Non-interactive and semi-interactive webcasting Licensing: Sound Recordings

20 AVLA s collective licence fees are set by its Rates Committee, while tariff rates are set by the Copyright Board. The Rates Committee is appointed annually by AVLA s Board and consists of representatives from its membership. Licensing: Royalty Rates

21 As AVLA is a non-exclusive licensing agency, members can continue to enter into direct deals and these supersede any AVLA agreement. Members have the right to waive AVLA fees if they desire. Members have the right to withdraw the grant of licence for content. Licensing

22 Licensees provide monthly reporting including names of subscribers and title, artist and record label of each sound recording/music video and number of copies made. Distributions are made to AVLA members each quarter (over 120 million titles processed last year). AVLAs licensees provide music to over 32,000 commercial establishments. Licensing: Administration

23 There are a number of common licensing scenarios that AVLA will refer directly to the labels as they fall outside of our mandate: Permanent disposal (e.g. itunes) Synchronization (e.g. sound recording in commercial) Interactive online uses (e.g. on demand streams) Licensing: Direct with Master Rights Holders

24 Copyright in musical composition acquired from music publishers Give you the right to record, manufacture and distribute musical works Administered by CMRRA/SODRAC Not covered by an AVLA licence Licensing: Mechanical Rights

25 AVLA and SOPROQ mandated Re:Sound to enter into international reciprocal agreements for the benefit of indie members. Agreements concluded with PPL (UK) SoundExchange and SENA (Netherlands). Ongoing negotiations with PPCA (Australia), Gramex (Denmark) and GVL (Germany). International Reciprocal Agreements

26 In July 2010, the Copyright Board of Canada certified the inaugural AVLA/SOPROQ Commercial Radio Tariff for the years This tariff licenses the reproduction of sound recordings made by radio stations in their broadcast operations Publishers have a similar tariff to license musical works. Tariff for the years filed with the Board on March 31, 2011; hearing in October Broadcast Mechanical Tariff

27 12 character identification/tracking number assigned to sound and music video recordings by the master rights owner. Used to digital services and retailers to track the sales/play of recordings. Used by master rights owners to identify particular recordings. ISRC (International Standard Recording Code)

28 ISRC Structure

29 ISRCs are embedded into CD data, not the individual song files. Only some digital file types have the ability to include the ISRC. Having ISRCs assigned/embedded does not funnel or direct royalties to the master owner. Once assigned, an ISRC should stay with that recording indefinitely. ISRC Clarifications

30 Licensing Questions: ISRC General Questions: AVLA Contact Information

31 Questions??? Contact Us!

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