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

Provider of reliable information on copyright-led solutions in the text and image based sector IFRRO International Federation of Reproduction Rights Organisations

The global network 140 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

4 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 countries Around the world – on all continents

IFRRO. RRO-members, total members and collected fees

Creative Industries fuel the Digital Economy Copyright is fundamental to Cultural Diversity and Economic Growth

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

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 Valuing copyright allows investment in creativity, knowledge and culture

WIPO studies: Creative industries important to economy

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

Core copyright industries Main contributor to GDP: press & literature

Income from secondary uses Fundamental 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. 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

Seamless Access to © works – Addressing primary and secondary markets Provision of easy, legal access to © works protects users and R/Hs

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

The educational publishing ecosystem Primary market Secondary market Exceptions 15 Valuing copyright allows investment in 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 between rightholder 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 Organisations Collective 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 PPT o Printout o Whiteboard o Intranet o View o Virtual Learning Environment o Document delivery o Store o Redirect to content o o RRO content database o Analogue o Online o Electronic carrier o Internet download

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

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

 R EPROGRAPHIC 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  D IGITAL 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  D IGITAL 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

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  Germany  Law authorises reproduction  Single copies for Private use  Copies of single works for Own scientific or archival use;  Copies of out-of-print works  Copies 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  Hungary  Individual allowed to copy for private purposes  May copy for others: Educational and cultural institutions; retail, copy shops and others charging for copies  Equipment and Operator levy collected in 2012: € 1 million

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 – 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 28

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!

Appropriate legislation Rightholder mandates User friendly licences Compliance Enforcement Copyright education RRO rights administration Sustaining local creative industries

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

34 Thank you!