Romanian Cable Operators To Pay 6% For Copyright

According to Petric the increase by 4%, from 2% to 6%, of the remunerations for authorship and connected rights, requested from cable operators by collection and management structures, was decided by an arbitrage structure, through a decision issued on March 9.

 

The 6% was established since ACC – which represents the interests of over 100 cable operators, serving some 3.5 million subscribers – and the eight collective management structure collecting authorship rights, failed to reach an agreement regarding the percentage to be paid for copyright. The reason for the disagreement was that the collective management structures demanded an increase from 2% to 12%.

 

According to current legislation, every three years the ACC negotiates with the eight collective management structures the remunerations for authorship rights that need to be paid from the income obtained by broadcasting on television.

 

According to the decision reached on March 9 by the arbiters, the division of percentages for authorship rights will be applied as follows: musical work authors – 2.05%, audiovisual work authors – 2.2%, written work authors – 0.2%, graphical artwork authors – 0.05%, phonogram artists – 0.25%, audiovisual performance artists – 0.5%, phonogram producers – 0.25% and videogram producers – 0.5%.

 

In addition, the payment of authorship rights will be performed to a single collector, established by the Romanian Organization for Copyright (ORDA).

 

According to Petric the arbiter decision is applicable starting with April, but it is not final and binding. It can be challenged in the Bucharest Court of Appeal.

 

"We are preparing to challenge the decision in court," Petric said. He added the decision will increase the prices of cable subscriptions. "Cable subscriptions will grow in parallel with the value of the remuneration. I expect a growth of some 4%," Petric explained.

 

On March 5, the Cable Communications Association warned that an increase from 2% to 12% of the remuneration for copyright and other rights, demanded from cable communications operators by authorities, does not comply with European practices and will bring a 10% increase in subscription fees.

 

Petric then presented in a press conference the complaints of the over 100 cable operators, who serve some 3.5 million subscribers, regarding the manner in which negotiations unfolded with the eight collective management structures, who represent copyright holders – singers, actors, directors, etc.

 

Between 2005 and 2008 cable operators paid 2% per month, according to Petric. He added that at the moment, each month, the cable operators pay some EUR600,000 for authorship and connected rights, corresponding to the 2%.

 

However, on January 1, 2009, negotiations between the association and the collective management structures were resumed, and operators were asked to pay six times the amount paid so far, namely not 2% but 12%.

 

The association decided to take legal action against the increase in fee, Petric explained.