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

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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

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200

400

600

800

1000

1200

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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

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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

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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

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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

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Thank you!

Olav.Stokkmo@ifrro.org

www.ifrro.org