UBC distributed a record high of BRL 599.8 million last year, up 63% on the previous year. The previous record had been BRL 384.2 million in 2014. This remarkable figure represents 55% of the total amounts distributed by ECAD, around BRL 1.082 billion. As we start 2018 with this great news, we aim for even more positive results for this year.
NEW AGREEMENTS: YOUTUBE AND DEEZER
A long discussed and historic agreement has been reached with YouTube for the licensing of musical works performed on the platform in Brazil. This agreement covers the period from the beginning of YouTube operations and over the next 3 years. YouTube being the largest and most accessed distributer of musical content on the web, the agreement marks a very important achievement that guarantees remuneration to creators and rights-holders.
Another digital service that has signed a new licensing agreement is Deezer. The French music platform has been active in Brazil for 5 years, well before other popular services started their business in the country. With over 12 million users globally and over 43 million tracks, it is one of the main services in the digital marketplace and the new agreement is the most important step in safeguarding the rights of creators of the vast catalogue available on the platform.
More details on the distribution of these services will follow.
EXPLORING COPYRIGHT: HISTORY, CULTURE, INDUSTRY
January 15th marks the release of an updated version of the CISAC sponsored MOOC (Massive Open Online Course) “Exploring Copyright: History, Culture, Industry”. Through a partnership between Brazilian society UBC and Portuguese society SPA, the original course was translated to both Portuguese and Spanish, expanding its reach to whole new communities of professionals, students and anyone interested in the creative industries. From the movable type printing of Gutenberg to the paradigm-shifting arise of digital technology, the course covers centuries of history, concepts and treaties that gave rise to the legislation we know today, in constant change to include new market realities.
CISAC Director General Gadi Oron said: “For something that is so fundamental to culture, business and our economy, copyright is often not properly understood. We are delighted to be launching the new edition of our MOOC in Spanish and Portuguese, and to be spreading understanding of the vital importance of copyright in the lives of creators globally”.
Covering the period from October 2011 to March 2017, the first distribution of royalties collected from the Netflix license was processed this last December. The total amount was BRL 39.1 million and the distribution based on over 16 billion views, representing a significant challenge of processing and registration efforts. These royalties will be reflected in the payments to be made to societies by UBC in the 3Q2017 distribution, due in late February. Moving forward, distribution will be quarterly so sister societies can expect Netflix payments to be included in all the future remittances.
The rise of audiovisual productions in Brazil and the significant expanding of this market in general have been part of our strategic planning, with UBC investing in the training of personnel to specialize in the documentation and registration processes of audiovisual works, streamlining these procedures within the society.
ADVANCE ON UNIDENTIFIED ROYALTIES
In Brazil, legislation provides for 5 years for unidentified royalties to be identified and paid or put back into distribution when they are not identified.
Based on a statistical review and research on distribution data over recent years, Brazilian societies have agreed to create a new distribution mode whereby part of the unidentified royalties, retained for identification during 5 years, is redistributed after only 2 years, using the original source distribution as reference. To be clear, the unidentified performance logs themselves are kept for the full 5 years, meaning that any performance identified after this 2-year period is still entitled to be paid the full royalties originally allocated to it.
This was decided based on statistics that demonstrated that the majority of royalties that ended up being identified and released were actually processed in the first 2 years.