2.T3 - SADAIC: Recaudación y Licencias de Uso

Understanding SADAIC: Revenue Collection and Usage Licenses

Overview of SADAIC's Role

• The session focuses on how SADAIC (Sociedad Argentina de Autores y Compositores de Música) collects revenue and manages usage licenses for musical works.

• Registering works with SADAIC grants permission to manage and collect royalties, emphasizing the distinction between moral and economic rights discussed in previous classes.

Types of Economic Rights

• The lecture categorizes economic rights into specific types related to different uses and licenses, aiming to clarify each right's implications.

• A license is defined as granting permission for others to use one's work, ensuring that authors receive a fair share of any benefits derived from their creations.

Categories of Rights

Performing Rights

• Performing rights pertain to public performances of music, whether live or recorded, allowing audiences access without needing personal copies.

• These rights cover various venues such as concerts, radio, television, hotels, bars, and shopping centers where music is played publicly.

Mechanical Rights

• Mechanical rights involve reproduction of recorded music through physical formats (e.g., vinyl, cassettes), as well as digital storage methods like streaming services.

• This category also includes downloads; each download represents a mechanical right due to the creation of a copy on the user's device.

Synchronization Rights

• Synchronization rights allow for the coordination of audio with visual media (e.g., films), requiring contracts that specify terms for using musical works in audiovisual projects.

• These contracts are essential for any media format that incorporates music alongside visuals, including television shows and movies.

Detailed Breakdown of Usage Licenses

Public Communication Rights

• Public communication encompasses live performances and broadcasted music across various platforms.

• SADAIC sets tariffs for licensing these uses so that composers can be compensated fairly when their works are performed or broadcasted.

Internet Usage Rights

• Online access to music involves both public communication rights (streaming without personal copies) and mechanical rights (digital storage).

• The dual nature of internet usage means that both types of rights apply simultaneously when users stream or download music online.

Summary on Licensing Fees

Understanding Copyright Payments in Live Music and Digital Platforms

Who Pays for Copyright in Live Performances?

• The producer of a live show is responsible for paying copyright fees, which are based on the gross ticket sales, typically around 12%.

• In cases where there are no ticket sales, alternative calculations may apply; however, the producer remains liable for these payments.

• For physical music releases, record producers (or self-producing artists) must pay mechanical royalties to manufacture physical discs.

• A minimum payment is required for producing 500 discs regardless of actual production; this acts as a baseline fee set by SADAIC.

• The percentage owed on these discs is approximately 8.19%, highlighting the financial obligations of producers even if they are also the authors.

Digital Music Distribution and Revenue

• Artists can earn from digital platforms like Spotify and iTunes through streaming or selling singles online.

• YouTube serves as both a video platform and a digital store; revenue can be generated from views if they meet certain thresholds.

• SADAIC collects both communication rights and mechanical rights from platforms like Google and Spotify when their content is used.

• Latin American countries have formed a unified system called "ventanilla única" to negotiate tariffs with international companies collectively.

• Current estimates suggest that about 10% is charged to sites offering music services, while synchronization rights may incur around 6.35%.

Challenges in Revenue Collection

• Artists need significant viewership (approximately 70,000 to 100,000 plays on platforms like YouTube or Spotify) before seeing any revenue reflected in their payments.

• SADAIC primarily collects revenues based on usage within Argentina; international streams may require reciprocal agreements for collection.

• Understanding where listeners are located is crucial since only plays originating from Argentina contribute directly to local collections by SADAIC.

• Webcasting and simulcasting have specific rates set by SADAIC, charging up to 6% for both mechanical and communication rights associated with online radio broadcasts.

Overview of Communication Rights and Fees

Regulation of Public Communication Rights

• The discussion revolves around the regulation of public communication rights for various entities such as radio stations, bars, hotels, and other venues that utilize recorded music.

• Each entity will be required to pay a fee or percentage based on their usage of music, which will be determined by legal representatives responsible for these businesses.

• The fees will also apply to audiovisual productions like films and telefilms, where synchronization rights and inclusion in broadcasts are concerned.

• A minimum fee structure and standard contracts will be established for each case, ensuring clarity in payment responsibilities.