REVIEW OF AUSTRALIAN COPYRIGHT COLLECTING SOCIETIES

A REPORT TO

THE MINISTER FOR COMMUNICATIONS AND THE ARTS

AND

THE MINISTER FOR JUSTICE

BY

SHANE SIMPSON

56 Kellett Street
Potts Point
NSW 2011

Ph: (02) 358 2464
Fax: (02) 357 3112
NOTE: THIS EDITION

This document provides an electronic version of the report by Shane Simpson to the Hon Michael Lee MP, Minister for Communications and the Arts, and the Hon Duncan Kerr MP, Minister for Justice, that was published in June 1995. Mr Simpson's findings and recommendations in the Report are currently being considered by the Government.

Printed copies of the Report (ISBN 0 642 22909 0) are held by major Australian academic and community libraries, and by the various collecting societies.

The text of this document is copyright to the Commonwealth of Australia. It is being released in an electronic edition to assist community awareness of the role and operation of the Australian copyright collecting societies.

Queries about the Report may be addressed to the

Department of Communications and the Arts

GPO 2154

Canberra ACT 2601

ph: 06 279 1000

fax: 06 279 1901

in the first instance.

July 1995

FOREWORD

Copyright ensures that innovation, creativity and imagination are recognised and rewarded. For this reason, copyright is important for all Australians.

In Creative Nation, the Government's cultural policy statement, we made a commitment to develop an effective copyright regime which achieves a balance between:

• rewarding creative Australians;

• increasing investment by the copyright industries; and

• maintaining access to materials for all Australians.

As part of this commitment, the Government recognised the important role of the collecting societies who administer copyrights for the vast range of individual creators and other copyright owners in this country, and undertook to provide legislative and other support for these administrations where appropriate. The Government also commissioned Mr Shane Simpson to provide a report on the structure and operations of Australia's collecting societies.

Mr Simpson's comprehensive Review of Australian Copyright Collecting Societies is a milestone. It is the first report to address the activities of Australian collecting societies in such detail, and will be a useful contribution to the Government's policy development in this area. The report makes over 100 recommendations about the activities of Government and the various collecting societies. It is sure to be an important reference tool for academics, lawyers, copyright owners and users of copyright material who need to learn more about the collecting societies.

The report's recommendations will be considered by a working-group made up of representatives from the Department of Communications and the Arts, the Attorney-General's Department, the Department of Industry, Science and Technology, and the Treasury. The working-group will provide advice to the Government on appropriate responses to the recommendations. Collecting societies will also be actively considering the recommendations are particularly relevant to their operations.

On behalf of the Government, we are pleased to release this report and would welcome any comments on its content and recommendations.

MICHAEL LEE

Minister for Communications and the Arts

DUNCAN KERR

Minister for Justice

CONTENTS

Pages numbers after chapter headings refer to the printed edition of the Simpson Report and do not apply to the web edition.

1. INTRODUCTION TO THE REPORT 4

2. INTRODUCTION TO COLLECTING SOCIETIES 10

3. HISTORICAL BACKGROUND 22

4. LEGAL STRUCTURE AND GOVERNANCE 29

Chapters 1-4

5. MEMBERSHIP 39

6. RIGHTS AND LICENCES ADMINISTERED BY THE

COLLECTING SOCIETIES 61

7. LEGAL BASIS OF ADMINISTRATION 70

8. GEOGRAPHICAL JURISDICTION 80

Chapters 5-8

9. RELATIONSHIP TO ALL OWNERS

OF RELEVANT RIGHTS 84

10. SERVICES OR BENEFITS TO RIGHTS USERS 89

11. IDENTIFICATION OF COPYRIGHT OWNERS 96

12. LICENSING ACTIVITY 117

Chapters 9-12

13. SETTING OF RATES FOR COPYRIGHT USAGES 131

14. PROCESSES/TECHNIQUES USED TO

QUANTIFY ROYALTIES 147

15. APRA & CAL SAMPLING SCHEMES 171

Chapters 13-15

16. COLLECTION OF REVENUE 176

 

17. ENFORCEMENT 178

18. DISTRIBUTIONS TO COPYRIGHT OWNERS 189

19. FOREIGN DISTRIBUTIONS, INCOME AND SOCIETIES 198

Chapters 16-19

20. DISTRIBUTIONS TO NON-MEMBERS 215

21. UNDISTRIBUTABLE MONIES 218

22. ACCOUNTS 229

23. TAXATION 236

24. ADMINISTRATIVE EXPENDITURE 241

Chapters 20-24

25 LONG TERM FINANCIAL INVESTMENTS AND

ARRANGEMENTS 263

26. THE USE OF INFORMATION TECHNOLOGY BY

AUSTRALIAN COLLECTION SOCIETIES 265

27. MERGER OF SOCIETIES - ARE THERE TOO MANY? 272

28. ROLE OF SOCIETIES IN PROMOTING LAW REFORM

AND FORMULATION OF GOVERNMENT POLICY 277

29. EDUCATIONAL ACTIVITIES 280

30. FUNDING OF CULTURAL OR BENEVOLENT PURPOSES 285

31. REVIEW OF THE COPYRIGHT ACT AS IT AFFECTS

COLLECTING SOCIETY EFFICIENCY OR EQUITY 293

Chapters 25-31

32. JURISDICTION AND ROLE OF THE

COPYRIGHT TRIBUNAL 306

33. TRADE PRACTICES ISSUES 311

34. A COPYRIGHT COLLECTING SOCIETY

FOR THE VISUAL ARTS 320

35. NEW TECHNOLOGIES 342

___________________________________

APPENDIX ONE:

STRUCTURE OF INQUIRY MADE OF EACH SOCIETY

APPENDIX TWO:

CONTACTS AND SUBMISSIONS

APPENDIX THREE:

ADDITIONAL COLLECTING SOCIETIES

APPENDIX FOUR:

GLOSSARY

Chapters 32-35 Appendices and Glossary