Sunday, September 25, 2011

Why Is It Necessary to Separate Authors' Royalties from Collective Management Remuneration?

 

This was the question posed by John-Willy Rudolph during our trip to Bislig City, Surigao del Sur last September 18, 2011.

Rudolph is the chair of the Norwegian Copyright Development Association (NORCODE), the organization established by five collective management organizations (CMOs) in his country to help new CMOs abroad like the Filipinas Copyright Licensing Society, Inc. (FILCOLS).


He visited Manila to give a talk on the experiences of Kopinor, the reproduction rights organization (RRO) he led as executive director for 24 years, during the 32nd Manila International Book Fair (MIBF) held at the SMX Mall of Asia, Pasay City on September 11.

The link to his talk at the MIBF is here.

Aside from the author, Rudolph was accompanied by Membership Officer Bebang Siy and Licensing Officer Leo Almonte.


FILCOLS Membership Officer Bebang Siy. (Photo by Alvin J. Buenaventura)


A brief background

Copyright is the legal protection given to authors of scientific, literary, artistic, and dramatic works. Works are creative outputs like books, journals, songs, paintings, sculptures, among others. Chapter IV of the Intellectual Property Code of the Philippines (IP Code) lists more examples of works and provides the scope of the protection.

When an author’s work is produced by the book publisher, it is called primary use. Meaning, this is the first time the author directed the publisher to use his or her reproduction right to print copies of the book.

After the books are sold, the author receives royalties. However, second-hand books may be sold without paying the author another set of royalties because he or she has already exhausted the primary use.

Reproduction via photocopying or digital copying is called secondary use. However, the IP Code (Sec. 177.1) states that only the author can authorize the reproduction of his or her work except for small portions that may be covered by fair use.

In many educational institutions, books and other materials are usually reproduced by students and teachers every semester. Without authorization and payment to the authors, the regular and large-scale reproduction of works is obviously not fair.

These large-scale reproductions may violate the authors’ reproduction rights and deprive them of their livelihood thus the need for an RRO, which is a specific term for organizations collectively managing the rights of authors and publishers. CMO is the new, general term that is replacing the older term RRO internationally.

FILCOLS Licensing Officer Leo Almonte. (Photo by Alvin J. Buenaventura)

The RRO is the bridge between authors and publishers (rightsholders) and end-users (students, teachers, institutions). They are authorized by rightsholders to offer copyright licenses to institutions. The large-scale reproductions are made legal in exchange for a minimal fee.

In Norway and other Scandinavian countries, the prevailing view among CMOs is that copyright is a human right. This is anchored in Article 27.2 of the Universal Declaration of Human Rights which states: every one has the right to the protection of the moral and material interests resulting from any scientific, literary, or artistic production of which he (or she) is the author.

The IP Code calls them Moral Rights and Economic Rights. These are the two main components of copyright.

Here is how I processed our discussion.

What you can’t name: you can’t identify

Names are necessary to identify something and separate it from similar things. For example, Jupiter has a number of moons, and the massive ones were named Io, Europa, Ganymede, and Callisto. However, Earth possesses only one, so we call it the Moon.

The names of Jupiter’s moons make it easy and practical to point to the specific moon. And the name makes it stand out from the rest of the moons.

If one cannot name something, one cannot identify that something.

FILCOLS Executive Director Alvin J. Buenaventura.
(Photo by Bebang Siy)

What you can’t identify: you can’t measure

Clear identity and separation of something from the rest of similar things makes it easy to measure it. For example, ordinary Filipino employees receive salaries and allowances. The salary is the basic minimum wage set by the government. Allowances are those benefits provided by the company voluntarily to their employees without government order.

Naming everything the employee receives as “sweldo” or “compensation” will make it hard to measure increases in the basic minimum wage, if there is an order from the government to do so. It will also be hard to measure increases in allowances like transportation, food, medical, and clothing.

If one cannot identify something, one cannot measure that something.

 



What you can’t measure: you can’t improve

I worked for five years as executive assistant to the Chair of the National Book Development Board (NBDB). Out of the many speeches made by Dr. Dennis T. Gonzalez, I distinctly remember the one he made in 2007.

As the NBDB chair, he explained the decision of the board to spend more than a million pesos on the second nationwide Readership Survey. The NBDB is primarily tasked with developing the Philippine book publishing industry. One of the ways to do this is to improve access to books and raise the level of readership.

I remember him saying that we cannot see changes in book access and readership level among our people, especially among the youth, if we do not have a baseline to see whether the interventions are working.

The future heads of the NBDB should make the survey a regular service for the book publishing industry. The survey provides measurable data which can be used to compare with surveys in the future.

 If one cannot measure something, one cannot improve that something.

Applying these to royalties and remuneration

Rudolph said it took them some time in Norway to decide what to call the income right holders receive from Kopinor. There were many names proposed: RRO money, compensation, remuneration, photocopying money.

But not royalties. Because royalties are the income of authors from the sale of their books, given by the publishers. The publishers’ income is not called royalties but sales revenues.

The authors and publishers together are called rightsholders or right holders. Both are members of Kopinor. And, they both receive their share from Kopinor.

Eventually, they settled on calling the income from Kopinor: remuneration. Although many still call it photocopying money especially in relation to the books published under the grant from Kopinor and are showcased in the House of Literature (Litteraturhuset) in Oslo.

Remuneration is the income received by both the authors and publishers from Kopinor. Later, other CMOs followed the custom of using remuneration to differentiate it from royalties.

(L-R) John-Willy Rudolph, Leo Almonte, Alvin J. Buenaventura, and Bebang Siy.

Why the fuss, then?

After naming and identifying remuneration, then it makes it easy to measure it and then improve it.

From the perspective of the CMO, the board and management can monitor the remuneration they are collecting from various licensees. It is now easy to adjust their efforts to see remuneration grow.

If the remuneration increases then their current strategies are working. If the remuneration decreased then they need to sit down, set new directions, craft new plans, and even examine government and international policies to help improve it.

From the perspective of the government and international organizations like the International Federation of Reproduction Rights Organisations (IFRRO), World Intellectual Property Organisation (WIPO), International Publishers Association (IPA), among others, they can craft new policies based on the numbers presented to them by their members.

Both the national government (in the case of the Philippines, the NBDB and the Intellectual Property Office of the Philippines) and international organizations need numbers (provided by the CMO) they can identify and measure to help them decide which way to go or what policy to craft.

And these same numbers are measured after the new policies and interventions were introduced to assess if things improved or not.

Learning from Kopinor’s experiences to build up FILCOLS

Armed with remuneration data, Kopinor was able to demonstrate to its government through the Ministry of Culture that the CMO is contributing much to the country’s economy and culture. They are invaluable to the book publishing industry’s ability to survive, provide employment, and continue producing new works.

They also provide support to the development of their national culture through the new books created via Kopinor’s publishing grant.

Kopinor also financed some of the book fairs managed by the Norwegian Publishers' Association.

The same remuneration data is what Kopinor uses to bolster its concerns among international bodies like IFRRO, WIPO, and IPA especially the still uncontrolled and unremunerated digitization of published materials.

Kopinor is not the only country affected by mass digitization. The practice is rampant all over the world especially in countries with increasing internet infrastructure and bandwidth.

Librarians and other staff of the De La Salle John Bosco College
with Rudolph and the FILCOLS team.  

Following the path of Kopinor, once FILCOLS collects remuneration from its licensees, it can start distributing to the members. This can be used to prove that collective management is viable in the Philippines.

FILCOLS can use its remuneration data to inform the government that it is functioning and that its existence is important for the publishing industry and development of national culture.

And that government (both NBDB and IPOPHL) must ensure that FILCOLS succeeds as the country’s CMO for the book publishing industry.

 

Notes:

NORCODE is composed of Kopinor, TONO, NORWACO, BONO, and GRAMO.

John-Willy Rudolph is also the manager of Kopinor’s Development Fund.

NORCODE and Norway’s Ministry of Culture provides financial support to FILCOLS through a grant which started in August 2010.

 

About the author:

Alvin J. Buenaventura is the executive director of FILCOLS. He is the first officer of a Philippine RRO to participate in the WIPO-NORCODE Training Programme on the Management of Copyright and Related Rights in the Global Economy, which was held in Oslo, Norway (June 2-19, 2009) and Accra, Ghana (December 1-5, 2009).

 

The author allows the reposting of the unaltered article provided the following is included at the end:

Text and photos by Alvin J. Buenaventura. Photo by Bebang Siy.

For more information, please visit https://filcols.blogspot.com

 

 

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