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Role of Collective Management & RROs in sustaining the publishing industry Olav Stokkmo, CEO Role of Collective Management & RROs in sustaining the publishing industry Olav Stokkmo, CEO of IFRRO Moscow Book Fair 2013 6 September 2013 Moscow

IFRRO International Federation of Reproduction Rights Organisations PROVIDER OF RELIABLE INFORMATION ON COPYRIGHT-LED SOLUTIONS IFRRO International Federation of Reproduction Rights Organisations PROVIDER OF RELIABLE INFORMATION ON COPYRIGHT-LED SOLUTIONS IN THE TEXT AND IMAGE BASED SECTOR

The global network 140 members in 78 countries International Federation of Reproduction Rights Organisations The global network 140 members in 78 countries International Federation of Reproduction Rights Organisations 87 RROs IFRRO Key Activities • Communications / Information • Business Approaches • Regional Development 53 Creator & Publisher bodies Cooperates with • WIPO • UNESCO • • EU OAPI, ARIPO, LAS APEC, CERLALC • • CISAC, SAA, etc. IFLA, EBLIDA

86 RROs in 77 countries Around the world – on all continents ABDR | 86 RROs in 77 countries Around the world – on all continents ABDR | Access Copyright | AGECOP | AIDRO| AMCOS | AUTOR | B-COPY| BBDA | BECLA Bonus Presskopia CADRA | CCC| CDR | CEDRO| Ce. MPro| CFC| CLASS| CLNZ| CMA| COPIBEC| Copydan Writing| Copy. Ghana | Copyright Agency | Copy. Ro – Romania | Copy. Rus| 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| NLI| NSRR| OSDEL| POLSKA KSIAZKA| Pro. Litteris| REPROBEL| REPRONIG| SADEL| Sámikopiija | TTRRO| VG Bild-Kunst | VG 4 MUSIKEDITION | VG WORT | VIETRRO| YAYBİR| YRCI| ZANA| ZARRSO| ZIMCOPY

IFRRO. RRO-members, total members and collected fees IFRRO. RRO-members, total members and collected fees

Copyright is fundamental to Cultural Diversity and Economic Growth CREATIVE INDUSTRIES FUEL THE DIGITAL Copyright is fundamental to Cultural Diversity and Economic Growth CREATIVE INDUSTRIES FUEL THE DIGITAL ECONOMY

Copyright and creative sectors Fuel the digital economy • • • Knowledge economy National Copyright and creative sectors Fuel the digital economy • • • Knowledge economy National IP industry Flourishing environment Unique cultural material Educational material World place

Valuing copyright allows investment in creativity, knowledge and culture • Cultural value o National Valuing copyright allows investment in creativity, knowledge and culture • Cultural value o National identity o Fiction, non fiction (science, technology, education), poetry, drawings, photographs. . . And more! • Economic value o Incentive to create and publish o Textbooks often engine of national publishing industry

WIPO studies: Creative industries important to economy http: //www. wipo. int/export/sites/www/ip-development/en/creative_industry/pdf/eco_table. pdf http: //www. WIPO studies: Creative industries important to economy http: //www. wipo. int/export/sites/www/ip-development/en/creative_industry/pdf/eco_table. pdf http: //www. wipo. int/ip-development/en/creative_industry/economic_contribution. html

Creative sectors fundamental to Wealth, knowledge & Digital Society Positive relation between investment in Creative sectors fundamental to Wealth, knowledge & Digital Society Positive relation between investment in Copyright and GDP per capita Positive relation between investment in Copyright and Competitiveness Positive relation between investment in Copyright and Innovation http: //www. wipo. int/ip-development/en/creative_industry/pdf/economic_contribution_analysis_2012. pdf,

Core copyright industries Main contributor to GDP: press & literature Core copyright industries Main contributor to GDP: press & literature

Income from secondary uses Fundamental to the author & development Studies in the UK(Pw. Income from secondary uses Fundamental to the author & development Studies in the UK(Pw. C 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. Publishers Secondary 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

Provision of easy, legal access to © works protects users and R/Hs SEAMLESS ACCESS Provision of easy, legal access to © works protects users and R/Hs SEAMLESS ACCESS TO © WORKS – ADDRESSING PRIMARY AND SECONDARY MARKETS

Paid Freely available RETRIEVING Personal use ACCESS FINDING Works USING Classroom use Research/Collaboration Rightsholders Paid Freely available RETRIEVING Personal use ACCESS FINDING Works USING Classroom use Research/Collaboration Rightsholders SHARING Photocopying Internal External E-mailing Internal External Posting Intranet Storing Internet Text & Data Mining Republication New Work Print-disabled version Translation

Valuing copyright allows investment in creativity, knowledge and culture The educational publishing ecosystem Primary Valuing copyright allows investment in creativity, knowledge and culture The educational publishing ecosystem Primary market Secondary market Exceptions exceptions are important; unremunerated exceptions should be limited to instances 15 where primary and secondary markets cannot fulfil a market need efficiently

RRO Collective Administration Contributes to seamless access to © works • Individual licensing when 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 Make Copyright Work for Everybody RROS ACT AS INTERMEDIARIES BETWEEN RIGHTHOLDER AND USERS RROs Make Copyright Work for Everybody RROS ACT AS INTERMEDIARIES BETWEEN RIGHTHOLDER AND USERS

RROs -Reproduction Rights Organisations Collective Rights Managers in text & image sector Operate on RROs -Reproduction Rights Organisations Collective Rights Managers in text & image sector 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 q q q Awareness raising Copyright enforcement Licence, collect and distribute revenues RROs Make Copyright Work!

Content of RRO repertoire licence • Limited extracts • 5 -15%; chapter; article • 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 o Analogue o Electronic carrier o Online o Digital sources and applications • Sources o Analogue o Electronic carrier o Online o Internet download • Applications and uses o Scan o Printout o Intranet o. View o Store o Email o PPT o Whiteboard o Virtual Learning Environment o Document delivery o Redirect to content o RRO content database

RROs Areas licensed by RROs • Education at all levels – Schools; Universities; Further RROs Areas 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

Supporting collective management is supporting economy, knowledge, culture INCOME FROM SECONDARY USES IS INDISPENSIBLE Supporting collective management is supporting economy, knowledge, culture INCOME FROM SECONDARY USES IS INDISPENSIBLE TO CREATION AND INVESTMENT IN NEW WORKS

Kopinor (Norway) – extended collective licence • • 22 member associations, 5 publisher, 17 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

Ø Example France CFC global activities REPROGRAPHIC REPRODUCTION RIGHTS MANAGEMENT • • Ø DIGITAL Ø Example France CFC global activities REPROGRAPHIC REPRODUCTION RIGHTS MANAGEMENT • • Ø DIGITAL RIGHTS MANAGEMENT IN THE EDUCATION SECTOR • • Ø Compulsory collective management system: CFC represents all rights holders by effect of the law CFC licence Education, businesses and government CFC collected 45 M€ in 2012 Royalties allocated to works reproduced according to reports from users and distributed to rights holders Legal exception introduced in French law in 2006 CFC negotiated an agreement with Ministry of education, who pays a lump sum (1. 45 M€ 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 24

Pro. Litteris (Switzerland) – legal licence • Cooperative society: 8, 000 -plus creators, 600 Pro. Litteris (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 q Germany Levy – text and image based works – Examples Germany and Hungary q Germany q. Law authorises reproduction q. Single copies for Private use q. Copies of single works for Own scientific or archival use; q. Copies of out-of-print works q. Copies of small parts of works other than text books for teaching q Copies may be in analogue or digital formats q. Equipment and Operator levy collected in 2012: € 73. 5 million q Hungary q. Individual allowed to copy for private purposes q. May copy for others: Educational and cultural institutions; retail, copy shops and others charging for copies q. Equipment and Operator levy collected in 2012: € 1 million

RRO rights administration New areas • Digital Libraries – Orphan Works – Works out RRO rights administration New 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 – Mo. U - ETIN

Library Digitising project Examples 28 FRANCE • Out-of-Commerce Books published in France < 2001 Library Digitising project Examples 28 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

Strengthening copyright & collective management HELPS CREATE WEALTH, EMPLOYMENT AND ECONOMIC GROWTH Strengthening copyright & collective management HELPS CREATE WEALTH, EMPLOYMENT AND ECONOMIC GROWTH

Copyright A Fundamental Human Right! Jaron Lanier virtual reality • Fundamental problem: Web being Copyright A Fundamental Human Right! Jaron Lanier virtual reality • 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) A world that values knowledge values its creators!

Economic growth Cannot be created by giving all away for free Al Gore We 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 Copyright education Compliance Enforcement Appropriate legislation © RRO rights administration Sustaining local creative industries Copyright education Compliance Enforcement Appropriate legislation © User friendly licences Rightholder mandates

Collective Management Seamless access to copyright works Convenient Fast Safe Simple Cost effective Innovative Collective Management Seamless access to copyright works Convenient Fast Safe Simple Cost effective Innovative

Thank you! Olav. Stokkmo@ifrro. org www. ifrro. org 34 Thank you! Olav. [email protected] org www. ifrro. org 34