2013 Annual Report

Your Licence to Copy ANNUAL REPORT 2013 Contents 1 CEO’s Report 2 Chair’s Report 3 Director Profiles 4 The CLNZ Cultural Fund 6 Financial Statements About Copyright Licensing New Zealand Copyright Licensing New Zealand (CLNZ) is jointly owned by the Publishers Association of New Zealand (PANZ) and the New Zealand Society of Authors (NZSA). As a member of the International Federation of Reproduction Rights Organisation (IFFRO), CLNZ is part of this global network that represents the interests of publishers and authors from all around the world. Our tailored licensing solutions allow education facilities, businesses and government departments to copy, scan and share from copyright protected material including books, magazines, journals and periodicals; beyond what is permitted under the Copyright Act 1994. CLNZ is a non-profit business and all nett proceeds from licensing are distributed to copyright owners. copyright.co.nz | 1 CEO’s Report How to best sum up the year that was 2013? There are a number of words that could be used (and not many of them would be literary). he copyright world is not for by in the New Zealand media without It would be impossible to reflect on the faint hearted. Resilience and a certain “internet entrepreneur” being 2013 without acknowledging the all- Tstrength of purpose are needed mentioned and the commencement consuming process that was (and is) in bucket loads as we work to rebut the of his new service Mega resulted in our reference to the Copyright Tribunal constant attack on the rights of creators CLNZ issuing of a number of takedown for a new licensing scheme with the and owners of creative content to be notices, including one for an illegal copy New Zealand universities. Christmas able to earn a living from their work. of The Luminaries. Eve 2013 finally delivered a positive Creativity IS a business. It has economic interim result for CLNZ from the value. It earns New Zealand millions of In financial terms, 2013 was a steady Tribunal but this has been appealed by dollars every year. It employs people. Lots year. Any non-essential spending was the universities with the appeal to be of people. It makes our country look good deferred or cancelled due to the resource heard in the High Court in May 2014. In on a world stage. And yet there are those required for the Copyright Tribunal the meantime we continue to work with who, either intentionally or ignorantly, reference. Licence income was consistent our highly skilled legal team to ensure choose to see creativity as a nice-to-have with previous years and interest income that the right result is achieved from the and an easy rip-off for their own gain. maximised through diversification and licensing scheme in this sector. careful cash flow management. One of the constants for CLNZ in 2013 We head into 2014 with a new and was the requests for help from copyright CLNZ is the New Zealand member of tightly focused strategy for CLNZ. We owners whose work had been used or IFRRO* that operates an Asia Pacific are a small organisation of dedicated made available without their permission. Committee (APC) to assist with the people who firmly believe in the rights Illegal file-hosting generally gets the development of copyright law and of creative people and the need for most media attention, but we are seeing collective management in the region. legislation that supports these rights. more instances where services like August 2013 saw the APC meet We also understand the needs of Facebook are being used to facilitate within the region for the first time at a our customers (CLNZ licensees) but infringement without actually hosting conference hosted by the Publishers will work more closely with them to any content. In these cases it can be and Booksellers Association of Thailand facilitate their future access to content more difficult to secure the necessary in Bangkok. It is important for New and we will continue our action in the evidence against either individual Zealand rightsowners who are looking Copyright Tribunal. Three big objectives Facebook users or owners of Facebook for new markets within this region that for the next two years: groups; however we managed to achieve appropriate legislative and licensing Lobbying / Customers / Tribunal a number of successes in 2013 and in mechanisms are in place to ensure that the process of these learned better ways the maximum value can be derived I know that our team – staff, myself and to work with Facebook to secure a good from sales into those markets. We are our Board – are up to the challenge! result for our rightsowners. This doesn’t working closely with our colleagues, mean we took our eyes off the ball of especially those in Australia, to assist illegal file sharing. Hardly a day goes with this development. Paula Browning *International Federation of Reproduction Rights Organisations copyright.co.nz | 2 Chair’s Report It would be easy to make this year’s annual report commentary only about the ongoing trials and tribulations that CLNZ are experiencing through our dispute with Universities New Zealand and the fight for a fair licence fee. ne could be quite cynical when around how well we are positioned to steer reviewed the historical footprint of the one considers the substantial the organisation through these turbulent fund and made recommendations for Osum of money the universities waters. This has lead us to engage with how the Cultural Fund will be managed are prepared to spend on what at face professionals and leaders in governance into the future. The Cultural Fund remains value appears to be a legally combative and strategic planning to enhance our critical for developing authors, publishers and evasive strategy on their part. The skill levels as directors and articulate a and educators and the work that has contribution of the publishing industry compelling strategic plan that is appropriate been done and recommendations made globally to Higher Education is gigantic for the times. The willingness each and will continue to ensure it meets its and very few graduates would have every board member has shown to constitutional purpose. completed their degrees without the challenge our governance practices and support of finely crafted texts written look to develop and improve has been To conclude I would like to thank the CEO by passionate educators and funded laudable. I’d also like to commend the and staff of CLNZ for the dedication and by publishers. The publishing industry CEO for the very active role she has professionalism that has been demonstrated has been one of the great enablers played in these activities. The end throughout the year. I would also like of education and the CLNZ licence is result of this has seen the development to thank the Board members for their an integral part of that enablement. of a very clear and focused strategic continued contribution to the sector When put in the context of the value plan. We have also proposed to our through participating in one of its most the license provides to students and shareholders a fundamental change to important entities. academic faculty it beggars belief that how the board is configured and once we’re locked in this process to defend this is ratified we can look forward to our right to be fairly remunerated. In bringing talented directors to the board the broader picture of the operating from outside the publishing sector. This Adrian Keane expenditure of the universities, the sums is critical to the ongoing health of the are minuscule. One senses this is part business and to successfully executing of a thinly veiled anti-copyright agenda our strategic objectives. but in the absence of open and genuine communication from the universities we The board has been very active in can only speculate. establishing work groups to deal with the array of initiatives that have been Which leads me to the silver lining. At a progressed. One of these was the time of adversity the Board and CEO have Cultural Fund working group consisting focused on the operation, considered the of Sam Elworthy, Tony Simpson and governance and asked the hard questions the CEO Paula Browning. They have copyright.co.nz | 3 Director Profiles Adrian Keane Adrian Keane started his publishing career in the early 90’s in Sweden and Finland for US educational publisher Addison Wesley (Pearson). He then worked for Addison Wesley in Australia before returning to New Zealand. Mergers and acquisitions created Pearson Education whom he became the Managing Director of in 2007. Following Pearson’s exit from New Zealand in 2013, he founded Edify Limited. Adrian is the current Chair of CLNZ and immediate past-president of the Publishers Association. Mark Sayes Mark is Publisher and Managing Director of privately owned educational publisher, ESA Publications (NZ) Limited. ESA publishes a range of Study Guides and Workbooks, at primary and secondary school level, that meet the requirements of the New Zealand Curriculum and NCEA. Mark has been on the board of CLNZ for some years, including a number of years as Chairman. Mark has an ongoing interest in squash administration. Sam Elworthy Sam went to university in Dunedin where he edited the student newspaper and wrote a book about student life, ‘Ritual Song of Defiance: A Social History of Students at the University of Otago’. He spent fifteen years in the US, completing a Ph.D. in history. He was Editor-in-Chief at Princeton University Press. He lives in Devonport and is the Director of Auckland University Press. Vanda Symon Vanda Symon is a Dunedin writer and has successfully published five Crime Fiction novels.

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