MANAGEMENT OF RIGHTS IN MUSICAL WORKS - HOW TO BUILD IT FROM BOTTOM UP PRESENTED BY ;   MAURICE MWANDE OKOTH CEO , MCSK NAIROBI , KENYA . Page 1

REFERENCES AND ACKNOWLEDGEMENT (1) THE SETTING - UP OF NEW COPYRIGHT SOCIETIES Some experiences and reflections The late Dr ULRICH UCHTENHAGEN (2) NEW SOCIETY ESTABLISHMENT Three (3) year work plan Robert Hooijer   (3) MCSK STRATEGIC PLAN PAGE 2

PREREQUISITES FOR MANAGEMENT OF RIGHTS IN MUSICAL WORKS 1. Legislation   2. The bundling of rights 3. Economic Sufficiency 4. Government support 5. Competent staff 6. Awareness of the law 7. Right holders 8. Right holders support PAGE 3

1. LEGISLATION NEED TO ENSURE : * EXPRESS PROVISIONS OF THE LAW REQUIRING COMPLIANCE * EXPRESS PROVISIONS OF THE LAW PROVIDING SANCTIONS PAGE 4

2. BUNDLING OF RIGHTS * ALL RIGHTS IN GIVEN LEGAL AREA IN RESPECT OF CATEGORY OF WORKS e.g performing rights administered by only one society in country PAGE 5

3. ECONOMIC SUFFICIENCY * ESTIMATE REVENUE BY FORECASTING VOLUME OF EXPECTED ROYALTY COLLECTION VERSUS THE COST OF COLLECTION * OPTIMUM DESIRED MAX THIRTY PER CENT (30% ) FOR PERFORMANCE AND BROADCASTING RIGHTS AND MAX TWENTY FIVE PER CENT (25%) MANAGEMENT OF REPRODUCTION RIGHTS * EXCEPTIONS TO ABOVE FOR EXAMPLE IN CASES OF ; (a) HIGH INFLATION (b) LARGE SCALE INVESTMENT eg on data processing equipment , music monitoring facilities etc PAGE 6

4. ROLE OF GOVERNMENT * GOODWILL FROM GOVERNMENT CRUCIAL , LENDS CREDIBILITY * ASSISTANCE IN ENFORCEMENT PAGE 7

5. COMPETENT STAFF * PROFESSION LIKE ANY OTHER .. PAGE 8

STEPS TOWARDS MANAGEMENT OF THE RIGHTS 1. APPOINTMENT AND TRAINING OF COMPETENT MANAGER   * WIPO / CISAC TRAINING PAGE 9

2. WORK PLAN TO COVER " inter alia " ; Situation analysis ; BPESTELS tool ( Business , Political , Economic , Social ,Technological , Environment , Legal issues , Stakeholders ) Legal documentation Communications and Marketing Budgets Human resource requirements Tariff negotiations and benchmarking Identification of major user groups Membership registration Documentation and Distribution benchmarking ( Distribution rules and documentation principles ) International accreditation applications : CISAC , BIEM etc Strategic plan PAGE 10

3.COST ESTIMATES AND COVERAGE * BUDGETING , ( Source of start up critical eg from govt , advances from affiliate societies etc ) PAGE 11

4. LEGAL FRAMEWORK, STATUTES AND CONTRACTS WITH AUTHORS AND PUBLISHERS * Right holder engagement / views critical * Registration of right holders *( Determination of which Authors / Publishers have voting rights ) PAGE 12

5. DOCUMENTATION * Data on national authors and publishers and their works * International documentation necessary to identify international right holders and their works PAGE 13

6. CONTRACT WITH MAJOR USERS * Engagement of major users PAGE 14

7. RECIPROCAL AGREEMENTS Engagement of international affiliates PAGE 15

8. DISTRIBUTION RULES AND PROCEDURE * Critical to have vivid rules and procedure for distribution and to follow " suum cuique " principle ie " to each his own " .. PAGE 16

9. DATA PROCESSING * Up to date and appropriate data should be used from the very beginning * Software chosen for data processing should meet needs of Society PAGE 17

10. SOCIAL WELFARE AND CULTURAL PROMOTION * Percentage set aside for cultural promotion of national repertoire and also for welfare of national right holders ( builds member confidence , Govt goodwill ) PAGE 18

CONCLUSION AHSANTENI SANA KE A LE BOGA MERCI BEAUCOUP THANK YOU !!