Digital technologies have wreaked havoc on traditional models of royalty collection for song artists. With the Internet providing a platform for music to be broadcast and shared by virtually anyone, new technologies are providing the opportunity for the rampant infringement of the intellectual property rights of creators and artists.
"Technology is enabling pirates, counterfeiters and infringers to stay one step ahead," says Stephen Hollis, an associate at legal firm Bowman Gilfillan. "Industry and legal bodies are still struggling to mobilise resources to uphold the rights of musicians and artists."
But changes to the Copyright Act and Performers' Protection Act will help artists and copyright owners such as recording studios earn royalties from their intellectual property. The amendments have re-introduced the concept of needle-time royalties into SA law, which has created a mechanism by which collection agencies can be accredited. This allows agencies such as the SA Music Performance Rights Association (Sampra), SA Music Rights Organisation (Samro), the Recording Industry of SA (Risa) and the National Organisation for Reproduction Rights in Music (Norm), to collect royalties on behalf of musicians, vocalists, instrumentalists as well as record companies.
WHAT IT MEANS
 New laws will accredit collection agencies
Performers get much needed assistance
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"Needle time means musicians and copyright owners - in the form of recording studios - now have an additional revenue stream, while broadcasters have an additional overhead," says Hollis.
Firms or businesses that regularly play music to the public, such as restaurants and bars, will now need to comply with the requirements of an alphabet soup of collection agencies. Each business will need to negotiate licence agreements with the appropriate collection agencies to ensure that they do not infringe the copyright in sound recordings that they use. This may be more complicated in some cases where two agencies may oversee the copyright. For example, Sampra oversees the needle-time rights of copyright owners, such as recording studios, while Samro looks after the collection of royalties on behalf of composers. "Licences with both organisations may be required in some cases," says Hollis.
Jukebox owners will have the added burden of a licence with an agency such as Risa, which collects royalties for mechanical rights. "Jukebox owners also need to have their jukeboxes checked by the contracting collection society to ensure that their jukeboxes are fitted with appropriate encryption software. This is to protect the music from actual theft and also to record playlists, which can be supplied to the collection agency, for proper determination of how the proceeds of royalties should be distributed," he says.
Under the law, disc jockeys must also supply their playlists to the owner of the club or venue where they perform. If they perform as a main source of income, disc jockeys may also need to negotiate appropriate licences. "If disc jockeys happen to play at a venue that doesn't have an existing licence, they may be held responsible for copyright infringement along with the owner of the premises," says Hollis.
He says the laws extend the intellectual property rights of performers and give them much needed protection. However, a substantial percentage of the funds collected will flow outside the country, providing only marginal benefit to SA musicians.
"However, it's important that the industry keeps up with international trends and technological advances," he says.
In a recent SA case, Norm, which acts on behalf of songwriters, took legal action against ExactMobile, a company that makes and sells ringtones made from original music. The case was eventually settled out of court, but sent a strong message to other content aggregators that creators of music are willing to put up a fight.
