LABELS/INDIE ARTISTS

Licensors FAQ

  1. What services does PPCA provide?
  2. What does it mean when the Input Agreement says that it is non-exclusive?
  3. What is direct licensing and do I need my own policy on direct licensing?
  4. How can I develop my own policy on direct licensing?
  5. Who runs PPCA?
  6. What is the PPCA Performers’ Trust Foundation?
  7. How does PPCA distribute the money it collects?
  8. What is the Code of Conduct and how does it impact on PPCA’s operations?
  9. How to help safeguard copyright in your recordings?
  10. How is the Licensor representative of the PPCA Board Selected?

We receive numerous questions relating to public performance rights and copyright, so we’ve put together a quick 'Q&A' of some of the most popular questions we are asked.

For FAQs relating to artists and licensing click on the relevant link below:

What services does PPCA provide?

In order to inform users of sound recordings and music videos of their licensing obligations, PPCA undertakes the following:

  • use of flyers, newsletters and other publications;
  • writing to businesses around Australia to inform them of their legal obligations;
  • placing advertisements in publications produced by peak industry bodies and trade associations;
  • attending user group meetings and trade fairs to give talks and answer questions on licensing matters and the PPCA’s general role; and
  • providing constantly-updated information on our website.

What does it mean when the Input Agreement says that it is non-exclusive?

This means that the owner of copyright in a sound recording or music video continues to be able to grant such licences directly to users of that sound recording or music video.

 

What is direct licensing and do I need my own policy on direct licensing?

 Instead of going through PPCA, direct licensing means an individual or business seeking a license goes directly to the owner of the copyright and negotiates terms of the license. As a result of the ACCC's re-authorisation of PPCA's activities, each PPCA licensor, large and small, must develop its own policy on direct licensing. You must have your direct licensing guidelines finalised and available to the public by 19 April 2008. From 1 July 2008 PPCA will cease to provide licensing on your behalf if you do not have direct licensing guidelines available.

 

How can I develop my own policy on direct licensing?

 

There is a free sample guideline available from the Arts Law Centre of Australia (Arts Law). PPCA has arranged for Arts Law to independently develop a sample guideline and provide basic legal advice on the guidelines free of charge. Alternatively licensors can develop their own guidelines and may wish to approach their lawyer to assist them.

 

 

The Arts Law free sample guidelines and an information sheet about direct licensing for public performance and transmission rights is available online, so visit their website at www.artslaw.com.au and follow the links to the direct licensing information. Once your policy is completed, please provide PPCA with a copy.

 

Who runs  PPCA?

PPCA was founded in 1969 by the major record companies. These companies hold shares but are not entitled to any dividends. The current shareholders are SonyBMG Music Entertainment, EMI, Universal Music and Warner Music.

The board of PPCA is currently made up of eight directors comprised of the nominated representatives of the four shareholders, three directors representing the registered artists (one of which is drawn from the artist management sector) and one representing non-shareholding licensors..

The day to day management of PPCA is delegated to the Chief Executive Officer who is appointed by the Board.

 

What is the PPCA Performers’ Trust Foundation?

PPCA established the PPCA Performers’ Trust Foundation for the purpose of encouraging the performing arts. The Trust makes grants for such purposes as:

  • Prizes for music examinations
  • Music workshops and seminars
  • Encouragement of music and the performing arts

For further information, set the PPCA Performers’ Trust Foundation.

 

How does PPCA distribute the money it collects?

At the end of each financial year, PPCA undertakes the process of calculating the amount available to be distributed to licensors and registered Australian artists (after the deduction of administration costs). This process takes some months and these amounts are distributed in December of each year. The funds available for distribution are allocated on a track-by-track basis and distributed in one of two ways:

 

  • For recordings featuring Australian artists, an amount equivalent to 2.5% is deducted prior to making any distributions in relation to each track and allocated to charitable, educational and like purposes (including the PPCA Performers’ Trust Foundation, which administers grants for the encouragement of the performing arts). If the featured Australian artist(s) has registered with PPCA under the Artist Direct Distribution Scheme, half of the balance available for that track is payable to the registered Australian artist(s) and the other half is paid to the relevant record label. If the featured Australian artist has not registered with PPCA, then their allocation is forwarded to the controlling record label for distribution to the artist(s) in accordance with their individual record company agreements.

 

  • For all other recordings (i.e., recordings that do not feature an Australian recording artist(s)), the net funds payable in respect of the relevant track are sent to the controlling record label for distribution to artists in accordance with their individual record company agreements.

 

What is the Code of Conduct and how does it impact on PPCA’s operations?

The Code was an initiative of PPCA and other major Australian collecting societies, and it was developed with the support of the Federal Government.  It aims to promote awareness of copyright and collecting societies, to set service standards for our dealings with copyright holders and licensees, and to ensure that accessible and fair procedures are available for the handling of complaints and the resolution of disputes.

The Code reflects the standards of service PPCA offers in its dealings with copyright holders and licensees. In particular:

  • We aim to be fair, honest, courteous and transparent;
  • We make available information about the benefits of and responsibilities involved in obtaining a PPCA licence, and generally about the types of licences we offer to users of sound recordings and music videos; and
  • We maintain a Complaints Handling and Dispute Resolution Policy, which explains how we will handle any complaints about our standards of service.

 

How is the licensor representative on the PPCA Board selected?


As the number of licensors had grown considerably over recent years, in 2005 the Board and Shareholders moved to broaden board representation and provide an opportunity for increased participation by that group.

Commencing in 2006, the Board will now include an elected licensor representative, appointed on the following terms:

  • The Licensor Director must be (and remain during their term) a Managing Director or equivalent of a Financial Licensor ;
  • A ‘Financial Licensor’ is a PPCA licensor (excluding a shareholder) that has been allocated at least $100 in the most recently completed PPCA distribution, excluding amounts available for payment to featured Australian artists under the Artist Direct Distribution Scheme;
  • The term of the appointment will be one year (commencing 1 July), and will be determined by an annual election; and
  • Each Financial Licensor (excluding shareholders) will be entitled to nominate a candidate from the pool of Financial Licensors, and then lodge a vote for their preferred nominee.

Nomination forms are issued to licensors on or around April 1 each year.