YEARLY REPORT 2018 4 AMUS YEARLY REPORT 2018. TOTAL COLLECTED ROYALTIES 2.65%INCREASE IN 2018.

GROSS PAID ROYALTIES 12.09% DECREASE IN 2018.

SOCIAL FUNDS 43.10%DECREASE IN 2018.

CULTURAL FUNDS

DECREASE1.90% IN 2018.

CONSIDERING THE 1.70% PREVIOUS YEAR REDUCED COSTS

AMUS YEARLY REPORT 2018. 5 6 AMUS YEARLY REPORT 2018. CONTENTS

2018 AMUS Management Board Report 8

Incomes 2018. 17

International cooperation 18

AMUS Professional Service Operating Report 20

2018 Supervisory Board Report 22

Supervisory Board Independent report opinion 23

Board of Directors Independent report opinion 24

RECONS Report independent revision 25

AMUS YEARLY REPORT 2018. 7 2018 AMUS Management Board Report

ADOPTION OF CISAC RESOLUTION ON COPYRIGHT INFRINGEMENT BY BIH PUBLIC BROADCASTERS

A special resolution was adopted in the With this resolution, the CISAC, given its mis- meeting of the CISAC European Committee sion to protect and defend the moral and held on April 5, 2018 in , aiming to economic interests of more than four mil- resolve the issue of unauthorized and un- lion creators from all over the world, calls conscientious actions of public broadcast- primarily upon public broadcasters to rec- ers in (Radio and ognize AMUS as a legitimate key partner Television of Bosnia and Herzegovina - BHRT, and duly respect their legal obligations in Radio and Television of the Federation of accordance with national copyright leg- Bosnia and Herzegovina - RTVFBiH and Ra- islation and international treaties to which dio and Television of the Republic Srpska - Bosnia and Herzegovina is a signatory of. RTRS) in terms of respecting copyrights. The The CISAC European Committee meeting in initiative for this resolution was submitted Belgrade was attended by the President of by the Association of Composers – Music AMUS Management Board Mr. Davor Sučić, Artists (AMUS) in late 2017 due to continued members of the Management Board Mr. En- and persistent refusals of public broadcast- ver Šadinlija and Mr. Amir Šehić, Managing ers in BiH to sign the appropriate contracts Director of AMUS Professional Services Mrs. and honor their copyright obligations for Lejla Trnčić, Head of Legal and General Af- use of protected musical works within their fairs Mr. Sejad Sabljica, and Mr. Haris Hasić. radio and TV programs.

8 AMUS YEARLY REPORT 2018. In 2018, AMUS supported the local creative work through an open call for applications to be funded from the Cultural and Social Wel- fare Fund. A total of 31 cultural projects were funded. This activity is an important encour- CALL FOR FUNDING OF agement for the artists and includes the fol- lowing fields: CULTURAL PURPOSE PROJECTS • Music authoring (supporting work of importance for local music artwork);

• Music events (hosting festivals and events dedicated to new artwork and scien- tific events focused on topics important for for scholarships of deceased members and modern and traditional local music artwork); approved support for a certain number of members due to their financial and health • Musical publishing (issuing promotional issues. CDs, publishing pieces important for musical culture, publishing analytical studies and ex- In 2018, the project ‘Portrait of an Author’ in- pert musicology publications important for cluded 18 produced documentaries broad- local music artwork). casted on 19 TV stations throughout BiH ded- icated to our authors (Jozo Penava, Rade There were 59 applications to the open call Jovanović, Esad Arnautalić, Omer Pobrić, for funding from the Cultural and Social Wel- Spaso Berak, Safet Kafedžić, Ismet Alajbego- fare Fund of AMUS published on AMUS web- vić Šerbo, Duško Trifunović, Donna Ares, Jovi- site on April 23, 2018, of which 31 applications ca Petković) and a special show dedicated totaling 60,000 KM were approved. to 5th anniversary of the Association and admission of AMUS to full membership sta- In 2018, AMUS continued to provide funding tus within the International Confederation of from the Cultural and Social Welfare Fund Societies of Authors and Composers (CISAC).

OPEN CALL PROJECTS SUPPORTED IN APRIL 2018

APLICANT PROJECT APLICANT PROJECT

ĐANA KARAVDIĆ CORONA ENSEMBLE ALBUM DARKO MARTINOVIĆ RECORDING TWO NEW SONGS GRAMOFON DOO BAND “NEŠTO IZMEĐU”

ĐANA KARAVDIĆ ALBUM DOGMATIK ASSOCIATION OF TEŠANJ SEVDAH FEST 2018 GRAMOFON DOO MUSICIANS ‘ALKATMERI’

ADIS SIRBUBALO ALBUM SIRTANGO YOUTH CULTURAL ELZA FEST 2018 „ART ESCAPE“ ASSOCIATION ASSOCIATION OF NEW ALBUM „TENIS KRALJICA“ GORAŽDE CITIZENS ‘VRAPČIĆI’ YOUTH CULTURAL CENTER ROCKMARATON DEMOFEST ETHNO GROUP “TRAG” „TRAG I PRIJATELJI“ 3RD ALBUM ‘URBANART’ 2018

JASMIN MUJANOVIĆ ALBUM „VIŠE OD IGRE“ CULTURAL ARTISTIC 56TH FESTIVAL FIRST VOICE OF MAG ASSOCIATION ‘BIJELO POLJE’ BIJELO POLJE - MOSTAR 2018

ARMIN BUŠATLIČ I DARK SIDE OF MY ALBUM KSOR PARTIZAN ILIDŽA ROCK FEST 2018 ALEN EKMEČIĆ ASSOCIATION FOR MOSTAR SUMMER FEST 2018 MUGDIM AVDIĆ BOSNIAN POP SEVDAH, PROMOTION OF URBAN HENDA INSTRUMENTAL ALBUM CULTURE IN HERZEGOVI- NA-NERETVA CANTON

AMUS YEARLY REPORT 2018. 9 3. 18TH REGIONAL MEETING OF COLLECTIVE ORGANIZA- TIONS FOR COPYRIGHT PRO- TECTION OF MUSIC ARTISTS

OPEN CALL PROJECTS SUPPORTED IN APRIL 2018

APLICANT PROJECT

UDRUGA EVERGREENFEST 2018 „EVERGREEN FEST“

‘KULTURNI CENTAR LIPA FEST YOUTH FESTIVAL NO.08 BILEĆE’ ASSOCIATION

HGU ŠIROKI BRIJEG WEST HERZEGOWINA FEST NO. 16

ASSOCIATION OF MUSIC “,KULTURNO ARTISTS NEMATERIJALNO BLAGO BIH”

ZONA MUZIKE ‘DOKUMFEST’ INTERNATIONAL FESTIVAL OF MUSIC ASSOCIATION DOCUMENTARY FILMS

ART PULS 12. FESTIVAL OF CHILDREN’S MUSIC CREATIVITY ‘MALI KOMPOZITOR’ - 2018

3M MUSIC 7TH BH RADIO TELEVISION FESTIVAL – COMPANY D.O.O. 2018

ESET MURAČEVIĆ BOOK „PROZOR U ESTRADNI SVIJET“

IVAN ČAVLOVIĆ IVAN ČAVLOVIĆ: CONCERT NOVIH DJELA

ASSOCIATION OF ETERNAL SEVDAH PERFORMING ARTISTS OF SARAJEVO CANTON

ASSOCIATION ICTM A GUIDE THROUGH TRADITIONAL OF BOSNIA AND HERZEGOVINA

MUSIC ACADEMY TRADICIONAL FOLK MUSIC OF BOSNIA AND SARAJEVO HERZEGOVINA, SERIES 3 AND SERIES 4

FATIMA HADŽIĆ SCIENTIFIC MONOGRAPH MUSIC INSTITUTIONS IN SARAJEVO

ASIM HOROZIĆ OPERA „DERVIŠ I SMRT“

CENTER FOR CULTURE ARDEA INTERNATIONAL CLASSICAL MUSIC AND EDUCATION, MASTERCLASS ČAPLJINA ACADEMY

SERB SINGING PLUS MUSIC CARAVAN BY ‘IVA’ ETHNO GROUP COMPANY “IVA”

10 AMUS YEARLY REPORT 2018. The 18th Regional Meeting of collective organi- casters in Bosnia and Herzegovina. The meeting zations for copyright protection of music artists also covered the honoring of obligations of or- was held in Sarajevo on April 25, 2019, hosted by ganizations within the region, in accordance with AMUS. The leading individuals from five regional signed bilateral agreements, the initiative to set collective organizations attended the meeting, up a workgroup for documentation and distribu- as follows: HDS ZAMP (), SAZAS (), tion rules, and status update on digital services SOKOJ (), ZAMP (Northern Macedonia) and in the region. AMUS (BiH). The attendees shared their experiences from Introductions were made by Mr. Davor Sučić, the region and beyond about implementation President of the Management Board of AMUS and of the Collective Rights Management Directive, Mrs. Lejla Trnčić, Managing Director of AMUS Pro- and recommendations and suggestions were fessional Services. They both thanked the guests presented by collective organizations based on for attendance and the successful cooperation their experiences related to actions that AMUS is with AMUS, especially for their support of AMUS taking based on the adopted Resolution on cop- membership in CISAC and adoption of Resolu- yright infringement by public broadcasters. tion on copyright infringement by public broad-

REPRESENTATIVES PARTICI- PATED IN THE CONFERENCE ENTITLED ‘NOMINATION OF AMUS representatives and members of the SEVDALINKA FOR THE UNESCO AMUS Management Board, Mr. Amir Šehić and REPRESENTATIVE LIST OF IN- Mr. Enver Šadinlija participated in the confer- ence entitled ‘Nomination of Sevdalinka for TANGIBLE CULTURAL HERITAGE’ the UNESCO Representative list of Intangible Cultural Heritage’ held in Tuzla and hosted by the Association of Tuzla Music Artists.

The attendees included employees from heritage and availability for participation in state and federal ministries of culture, ex- all steps of this process. He also stressed the perts in fields of science and media, as well need to engage the most qualified experts as cultural and musical artists. Speaking to in this process and reiterated that AMUS ac- the audience, Mr. Enver Šadinlija underlined tivities will always pay special attention to AMUS’s support to have Sevdalinka includ- music tradition of BiH, because Sevdalinka ed in the list of protected intangible cultural is more and more marginalized even in BiH itself. As part of the efforts to have the pub- lic broadcasters and commercial media change their music program orientation and include a higher share of authors and per- formers from BiH, a request will be made to also provide higher share of traditional mu- sic artwork.

AMUS YEARLY REPORT 2018. 11 opments in intellectual property legislation, opportunities and challenges. After the es- teemed professor, the issue of lawsuits relat- WORKSHOP ON LEGAL ed to copyright and patent protected mate- rial: BiH and US perspective, experience and PROCEEDINGS TO RESOLVE latest developments were discussed by Mrs. INTELLECTUAL PROPERTY Virginia Covington – US District Judge (Mid- dle District of Florida) and Mrs. Ljiljana Lalović, RIGHT INFRINGEMENT Judge in the Court of BiH. Day two started with a presentation of Mr. Pavle Fellner, at- torney from , Croatia, about claiming ‘Workshop on legal proceedings to resolve copy and similar rights before courts and intellectual property right infringement’ was state authorities in the Republic of Croatia in held in Sarajevo on June 12 and 13, 2018 in proceedings initiated by the collective cop- the premises of the Centre for Judicial and yrights protection organization, which was Prosecutorial Training, under the auspices of followed by a presentation by professor Ro- the Commercial Law Development Program mana Matanovac Vučković from the Legal (CLDP), US Ministry of Trade, US Embassy in Faculty of the Zagreb University about impor- BiH, and in coordination with the Association tant features of collective copyrights protec- of Composers – Music Artists (AMUS) and the tion. Prof. Haris Hasić from the Legal Faculty Centre for Judicial and Prosecutorial Training of University spoke about new

of FBiH and RS. The opening statements were copyright theories and judicial practice of delivered by Mr. Nedim Babović – Vice-Presi- the European Human Rights Court in the dent of AMUS Management Board, Mr. Davor context of Bosnia and Herzegovina. Mrs. Tan- Trlin on behalf of the Centre for Judicial and ja Hadžagić, attorney from Sarajevo, spoke Prosecutorial Training, and Mr. John Ashworth about practical issues related to implemen- –Economic Chief of US Embassy in BiH. The tation of the Law on copyright and related first day started with a presentation of Mrs. rights in the courts of BiH. Iza Razija Mešević from the Legal Faculty of the Sarajevo University on the latest devel-

12 AMUS YEARLY REPORT 2018. Mr. Imamović was part of the jury and Mr. Šadinlija spoke to the contestants on the fi- PARTICIPATION OF AMUS REPRE- nal night and expressed appreciation that SENTATIVES IN THE 10TH FESTIVAL the Festival also included the competition for new songs in the spirit of Sevdalinka, which ‘SEVDALINKO U SRCU TE NOSIM’ contributed to creative work based on the (SEVDALINKA IN MY HEART) foundations of traditional music.

AMUS representatives and members of the AMUS Management Board, Mr. Enver Šadinlija and Mr. Nedžad Imamović participated in the jubilar 10th festival ‘Sevdalinko u srcu te nos- im’ held on April 11 and 12 in Tuzla, hosted by the Association of Tuzla Music Artists.

‘CREART – CREATIVITY AT WORK’ CONFERENCE

On April 18, the amphitheater of Banski dvor included more than 150 attendees who were in Banja Luka was the venue of a conference given an opportunity to enjoy inspiring and for art faculty students entitled ‘CreArt – Cre- educational presentations. ativity At Work’, which included several good speakers addressing the young creative au- AMUS representatives, including the member dience and AMUS was one of the parties in- of the Management Board Mr. Igor Vukojević, vited to speak. briefly spoke about activities and operations of AMUS, presenting the young authors with The conference was designed to primarily options available to them as members of show positive examples in the creative in- AMUS. dustry and to motivate and educate both art students and the general public. CreArt

AMUS YEARLY REPORT 2018. 13 ROUND TABLES AS PART OF PUBLIC DEBATE ON AMENDMENTS TO THE ARTICLES OF ASSOCIATION

The Management Board sent and published tember 19, 2018 in Mostar, September 20, 2018 the explanation of the foreseen amend- in Banja Luka, October 9, 2018 in Belgrade ments to the Articles of Association, as well (Serbia), October 10, 2018 in Tuzla, October 11, as an invitation of comments from all mem- 2018 in Bihać, November 11, 2018 in Sarajevo, bers of AMUS. Public events were organized and December 5, 2018 in Sarajevo. within a popular music festival to discuss amendments to the Articles of Association. The Management Board has lists of all au- thors present in these meetings. Further- Most importantly, members of the Manage- more, these meetings resulted in a written ment Board held several meetings for AMUS statement of participating members that members in many different cities throughout the adoption of these documents is a top Bosnia and Herzegovina, even Serbia, to dis- priority for AMUS. There are numerous evi- cuss these amendments. dences proving that these documents were changed and amended as a direct conse- These meetings took place on May 9, 2018 quence of consultation with the members. in Sarajevo, May 22, 2018 in Sarajevo, May 23, 2018 in Mostar, May 24, 2018 in Tuzla, May 26, 2018 in Banja Luka, July 19, 2018 in Ilidža, Sep-

14 AMUS YEARLY REPORT 2018. SCHEDULED MEETING OF THE AMUS ASSEMBLY

President of the AMUS Assembly Mr. Dervišha- that both meetings had the required quo- lidović scheduled a meeting of the Assem- rum only briefly, at the start of the meeting. bly for May 9, 2018 at Hotel Bristol in Sarajevo, Dissatisfied members of the Assembly were Fra Filipa Lastrića 2 street (the Wilson’s Alley) leaving the meetings during their early stag- starting at 18.00 hours. The proposed agen- es, causing the loss of quorum and stoppage da and documents for the meeting were de- of Assembly meetings. livered to the members in accordance with AMUS bylaws. Two additional Assembly meetings were scheduled in 2018, on December 5 and De- Vice President of the Assembly Mr. Mladen cember 17 at the Bristol Hotel in Sarajevo. Nei- Matović scheduled a meeting for October ther of these meetings produced a quorum 29, 2018 in Doboj at the Park Hotel starting at for valid decision making. 18.00 hours. The proposed agenda and docu- ments for the meeting were delivered to the members in accordance with AMUS bylaws.

The Management Board regrets to conclude

AMUS YEARLY REPORT 2018. 15 ANNUAL AMUS AWARDS

This year’s official ceremony of the ‘Annual AMUS Awards’ was held on March 28, 2018 in the crowded amphitheater of ‘’ in Sarajevo. The Management Board congratulates the winners of AMUS awards who contributed to development of music art in Bosnia and Herzegovina. The winners of AMUS awards were as follows:

1. ‘Avdo Smailović’ Award (for outstanding achievement in classical music) – Ališer Sijarić;

2. ‘Fra Grgo Martić’ Award (for promoting the vernacular music of peoples of BiH) – posthumously Vehid Gunić and ‘Etnoakademik’ vocal ensemble;

3. ‘Vlado Milošević’ Award (for music journalism and musicology) – Milorad Kenjalović;

4. ‘Kemal Monteno’ Award (for outstanding artistic achievement in popular music) – Zdravko Čolić;

5. ‘Ismet Alajbegović Šerbo’ Award (for outstanding artistic achievement incorporating traditional music) – Damir Imamović;

6. ‘Slobodan Bodo Kovačević’ Award (for outstanding artistic achievement in instrumental music) – Sinan Alimanović;

7. ‘Dražen Ričl’ Award (for best young author) – Sassja (Sanela Josipović);

8. ‘Oskar Danon’ Award (for affirmation of authors and music copyrights in BiH) – Lejla Trnčić;

9. Lifetime Achievement Award – posthumously Omer Pobrić and .

The award for best students from music academies: Sarajevo, I. Sarajevo, Banja Luka, and Mostar was already traditionally awarded on the occasion of the World Music Day to the following students: Mastilo Marija, Brigita Šilić, Mladen Janković, and Ivan Dujmović.

16 AMUS YEARLY REPORT 2018. INCOMES 2018

INCOME INCREASE 2.65% IN 2018.

REDUCED GROSS ROYALTIES IN 2018. 12.09%

INCREASE

20.7%ELECTRONIC MEDIA

INCREASE

CABLE0.11% OPERATORS

INCREASE 2.25% PUBLIC PERFORMANCE

AMUS YEARLY REPORT 2018. 17 INTERNATIONAL COOPERATION

INTERNATIONAL COOPERATION AMUS AND AKM OF CONCLUDED A RECIPROCAL AGREEMENT FOR MUTUAL REPRESENTATION. THE SAME AGREE- MENT WAS CONCLUDED WITH TONO OF NORWAY, WHICH MEANS THAT THE FOLLOWING RECIPROCAL AGREEMENTS ARE NOW IN PLACE:

18 AMUS YEARLY REPORT 2018. SOME OF OUR EMPLOYEES PARTICIPAT- ED IN THE SEMINAR HELD IN MOSTAR ON THE TOPIC OF ‘COLLECTIVE PROTECTION OF COPYRIGHTS AND SIMILAR RIGHT – EXCHANGE OF EXPERIENCES AND BEST PRACTICES’ HOSTED BY THE INSTITUTE FOR INTELLECTUAL PROPERTY OF BOSNIA AND HERZEGOVINA IN COOPERATION WITH THE WORLD INTELLECTUAL PROPERTY ORGAN- IZATION (WIPO).

A SEMINAR HELD IN WARSAW WAS ATTENDED BY AMUS EM- PLOYEES COVERING THE TOPIC OF COST AND INCOME MANAGE- MENT, WHICH WAS MANDATORY ACCORDING TO CISAC REGULA- TIONS.

AMUS YEARLY REPORT 2018. 19 copyright infringement, insufficient awareness, ignorance, as well as overall difficulties in terms of the country’s economy.

Despite all of the aforementioned, AMUS was able to achieve and even exceed very ambitious financial goals. However, we were not prepared for the situation that we are facing for quite some time now, nor were we able to find solutions for it, therefore we focused on the part of income that was relatively safe, which meant ensuring that users licensed by AMUS do not stop paying roy- alties. Despite making this our top priority, many users stopped paying AMUS, including some of the largest ones. We definitely can not say that AMUS grew this year, despite the fact that in certain fields we AMUS have put in more effort than in previous years.

Professional The image presented to the public is causing many users to stop making their payments, fur- thermore they do not intend to obtain their li- Service 2018 censes. All this is happening during the time when, in addition to AMUS, there are two other Operating copyright protection organizations collecting royalties from the users, using rates which are Report significantly more affordable for the users. The growth in previous years ensured that AMUS matures in more ways than one. This relates first of all to annual income growth, two royalty pay- ments per year and an increasing number of us- Esteemed members of AMUS, ers paying royalties, as well as winning cantonal court cases, etc. Undoubtedly, we had quite a turbulent past year. In 2018, the Professional Service continued to work This year there was a severe setback to the abil- on delivery of broadcast records by electronic ity of AMUS to progress and improve collective media, achieving 7.58% increase compared to exercising of copyright protection rights. Perhaps 2017, increasing the number from 122 to 132 elec- the most important indicator is the total collect- tronic media. ed amount of 4,674,517 KM, 89.90% of the financial plan, which means that for the first time in AMUS Due to certain deficiencies and inconsistencies history the financial plan of 5,203,750 KM was not in delivery of broadcasting records by the re- achieved, and also that the growth compared sponsible persons of some radio and TV stations, to the previous year was at its all-time low since a warning was issued to electronic media to en- 2016. AMUS costs amounted to 27.33%, down 1.37% sure keeping accurate and complete records on compared to the previous year. all use of copyright material and duly notifying AMUS in regular reporting intervals. The AMUS Ever since it was established, AMUS grew every Professional Service continues to pursue filing year, quite substantially too. It seemed that this lawsuits against new electronic media and fol- growth was inevitable. We took it for granted, lowing up on legal actions for electronic media while in fact it was a result of extraordinary ef- against whom lawsuits were already filed before forts by the members, AMUS bodies and the Pro- the court for evasion of signing a contract with fessional Service, who were able to find solutions AMUS and payment of past due receivables re- to numerous obstacles we were facing, including lating to use of copyright material. the non-existent Copyright Council, lack of action on the part of authorities in charge of control of In April 2018, at the meeting of the CISAS Europe-

20 AMUS YEARLY REPORT 2018. an Committee (EC) in Belgrade, a Resolution was something the users will definitely find out and adopted to push the resolution of the current sit- use to their own benefit, which will inevitably uation with public broadcasters of BiH in order to bring into question the very existence of AMUS. put additional pressure on public broadcasters, against whom legal actions in court are still on- These are only the new problems being added to going, to ensure that they fulfill their obligations the list of existing difficulties inherent to collective towards all music artists in the world. copyright protection in BiH.

We have overcome the problems that we were The users often do not know, do not want to know facing in the very beginning. Now, we are tack- and in general do not wish to sign contracts with ling all new problems. New problems definitely AMUS or pay for their use of music. When and if require new solutions. they conclude the contracts, they do not pay on time, they do not pay as much as it was agreed As a member of CISAC, AMUS has certain rights, or simply do not pay at all. but equally important is that it has certain obli- gations. These obligations include adjusting the This year was also notable in terms of frequent documentation to standards and rules of CIS- challenges to the monopoly status of AMUS as a AC. AMUS is at risk of not fulfilling its obligations collective organization by companies that indi- to CISAC, which would result in immediate loss of vidually ensure copyright protection for foreign membership status. This would be catastrophic artists and offer their services to users in BiH only for the future of AMUS, especially given our efforts to avoid payments to AMUS. By doing so, they ig- to protect copyrights even beyond our country’s nore the legislation by collecting royalties from borders. these users and leaving AMUS to sue them in or- der to protect its rights. Despite the aforemen- The Institute for Intellectual Property, regardless tioned, the number of contracted users has in- if that was appropriate and within its authority or creased and most of the large users continued not, pointed to a number of flaws in the found- to make their payments, but only after clearing ing documents of AMUS. The fact is that the Pro- the misinformation about the status of AMUS be- fessional Service is on a daily basis dealing with ing released to the public. this and many other major and minor problems and issues for which simply there are no answers These are only some of the most prominent ex- in the Articles of Association and other founding ternal attacks and problems AMUS is facing on documents of AMUS. This is both unacceptable a daily basis, which absolutely require a unified and counterproductive, as we have blatantly and strong AMUS to make sure we come out on learned this year. top and ensure the benefit for the authors.

In addition, this year we are witnessing an alarm- It is time for AMUS to become a collective organ- ing trend of users who are openly and daringly ization it can be – the force for copyright protec- showing their contempt for AMUS. tion to be reckoned with. Public broadcasters in Bosnia and Herzegovina have still not paid even a single KM for the music they continue to use daily and abundantly. The lawsuit we filed is slowly making its way through Sejad Sabljica the court system. Managing Director of the Professional Service

The users with whom we had signed contracts are terminating these contracts or refusing to pay the royalties that they owe both morally and legally. They know the rules. They just decide to openly ignore them, thinking that AMUS in its cur- rent state does not have neither internal strength nor willpower to deal with them.

We are forced to increasingly ensure copyright protection through the courts. This is a long-last- ing process. It is also complicated and uncer- tain in nature. Costly too. Failing to file lawsuits is

AMUS YEARLY REPORT 2018. 21 2. Expenditure approved for 2018 3. Expenditure for the period 1.1. to 12.31.2018 2018 Supervisory 4. Expenditure analytics in the period 1.1. to 12.31.2018 5. Analytical review of income in the period 1.1. to 12.31.2018 Board report 6. Procurement procedures planned and executed in 2018 7. Recapitulation of salaries per month in the period from 1.1. to 12.31.208 8. Review of payments under contracts in the period 1.1. to 12.31.2018 9. Review of remuneration of persons engaged in le- gal, supervisory and other committees and working bodies in the 1.1. to 12.31.2018 10. Analytical Review of Billing and Allocation Nr: NO-01/07-19 11. Analytical review of income and expenses Sarajevo, 08. July 2019. 12. Analytical Review of Revenue 13. Financial data on generated revenues organiza- In 2018, a total of 6 (six) meetings of the Superviso- tions during the financial year sorted by the type of ry Board were held at which materials submitted by rights and the manner in which the copyright is used AMUS were analyzed, overseeing and controlling the deed or object of related right (income from public work of the Association. announcement, public performance, broadcast- re- transmissions, special fees, etc.) 1. CONTROL AND OVERSIGHT OF BUSINESS Opinion of the Supervisory Board: As part of the con- trol and supervision of the financial and accounting The purpose of control and supervision was to deter- operations, the Supervisory Board determined that the mine the regularity in the adoption and implemen- financial and accounting operations were conducted tation of decisions of the Assembly and the Man- in accordance with the normative acts and envisaged agement Board related to business, financial and procedures for adoption. operational policies. In this regard, supervision and control over the implementation of 42 decisions of CONCLUSION: the Board of Directors that were made in 2018 were After reviewing the financial and accounting operations exercised. of AMUS, the Supervisory Board noted that the financial Supervisory Board Opinion: As part of the control of and accounting operations were carried out in acord- the Board of Directors’ decisions related to the busi- ance with the applicable legal, regulatory and internal ness, financial and operational policies of AMUS, the acts, and that there were no irregularities observed in Supervisory Board determined that these decisions the performance of these operations. were made in accordance with the normative acts and envisaged decision-making procedures. 3. CONTROL AND SUPERVISION OF ADMINISTRATIVE OPERATIONS CONCLUSION Following the implementation of the Management The Supervisory Board performed regular controls and Board’s decision-making procedure related to busi- oversight of the administrative operations of internal acts ness, financial and operational policies, the Supervi- and regulations. sory Board notes that there are no irregularities in the Opinion of the Supervisory Board: Within the control decision-making and implementation procedures of and supervision of administrative operations, the Super- the Management Board’s decisions in this segment. visory Board determined that the administrative oper- ations were carried out in accordance with normative 2. FINANCIAL CONTROL AND SUPERVISION acts and envisaged adoption procedures. ACCOUNTING OPERATIONS CONCLUSION: After the control and supervision of the administrative - The documentation provided by the Expert Service operations were carried out, the Supervisory Board was monitored: notes that no irregularities in the work of AMUS in the pe- 1. Review of Expenditure for 2018 riod 2018 were detected in this segment.

22 AMUS YEARLY REPORT 2018. AMUS YEARLY REPORT 2018. 23 24 AMUS YEARLY REPORT 2018. AMUS YEARLY REPORT 2018. 25 26 AMUS YEARLY REPORT 2018. AMUS YEARLY REPORT 2018. 27 YEARLY REPORT 2018

TRG SOLIDARNOSTI 2A PODRUŽNICA BANJA LUKA 71 000 SARAJEVO, BIH Veselina Masleše 1 78 000 Banja Luka, BiH TEL: +387 33 20 56 00 Tel/Fax: +387 51 217 477 TEL: +387 33 25 53 00 FAX: +387 33 21 82 58 PODRUŽNICA MOSTAR Kneza Branimira 6 WWW.AMUS.BA 88 000 Mostar, BiH [email protected] Tel/Fax: +387 36 322 022

30 AMUS YEARLY REPORT 2018.