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TELEVISION LICENSING Incomes from Copyright 2015

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TELEVISION LICENSING Incomes from Copyright 2015 MUSICAUTOR | www.musicautor.org | ANNUAL REPORT 2 015 is a non-profit organization for collective management of copyright of MUSICAUTOR composers, authors of lyrics and music publishers. | www.musicautor.org | Musicautor has more than 2 700 members. Through reciprocal con- tracts with foreign sister societies in nearly 100 countries, the organiza- tion offers almost the entire world repertoire of music for the Bulgarian market. CONTENTS Management body and structure 4 Introduction and general parameters 6 Incomes from copyright 2015 8 MANAGEMENT Television 9 Retransmission 10 Radio 11 Public performance HoReCa sector 12 Concerts 14 LICENSING Mechanical rights 16 Digital Rights 17 Documentation and registration 19 Sister societies with reciprocal Sister societies in negotiations for Sister societies without reciprocal contracts with Musicautor reciprocal contracts with Musicautor contracts with Musicautor Distribution 2015 20 Graphic analysis of distribution 22 Ratio in broadcasting Bulgarian and foreign 24 repertoire in the RTV-sector DOCUMENTATION DOCUMENTATION MUSICAUTOR IS MEMBER OF CONTACTS DISTRIBUTION AND International A: 1000 Sofia, Bulgaria, 17, Budapest Str., 4th fl. Society’s funds 26 Confederation of Societies T: (+359) 700 10 350, (+359 2) 980 10 35 of Authors and Composers F: (+359 2) 980 02 53 Remedies actions 27 (CISAC) E: [email protected] International cooperation 28 The society was founded in 1992 г. and registered with the International Bureau of New distribution software 28 SUPPORT AND Register kept at the Ministry of Culture under No. 1 of 13th DEVELOPMENT Authors’ Societies for January 1994. New year for Bulgarian culture 29 Collective Management of Me- chanical Rights and Reproduction The society has not opened and registered any branches. (BIEM) #3 Board of Directors Iassen Kozev - chairman Vasil Gyurov - deputy chairman Stoyan Mihalev - deputy chairman GENERAL ASSEMBLY Членове Vasil Rusev Committee Financial Board of Directors Veselin Todorov Committee Viktor Stoyanov Control Committee Viktoriya Terziyska Commission Georgi Arnaudov Chief Executive Officer Prof. Georgi Kostov Kiril Marichkov Krasimir Kurtev Peter Delchev General Peter Doundakov Licensing Distribution Registration Administration Virginia Publishing EOOD Shubert Music Publishing OOD Legal Department Television, Incomes from Bulgarian cable, satelite TVs repertoir Financial control commission MANAGEMENT BODY AND STRUCTURE Accounting and radio operators Incomes from Foreign Vassil Nikolov - chairman Office Manager retransmission repertoir Doncho Genov Public Valery Grigorov International performance Incomes from Music Relations # Commercial, radio publishers’ Manager tourist sites and catalogues Chief Executive Officer other public places Incomes from Ivan Dimitrov (shortly HoReCa) HoReCa sector Public # Concerts Relations Manager Digital Incomes from uses concerts Pursuant to Art. 37 of the company Statutes, Musicautor is represented by its chairman, the deputy chairmen and the CEO, together or separately. Mechanical Incomes from reproduction mecanical reproduction Incomes from digital uses Imcomes from Musicautor - mission foreign sister societies Musicautor promotes and protects authors with the implementation of innovative practices in order to increase the remmuneration from the exploitation of their works. We believe that by meeting the current legal, licensing and technological standards in collective management of copyright we will be recognized as a reliable and trustworthy partner of authors, users and related international organizations. Our team is aware of and takes the responsibility through its operation to be a factor for sustainable integration, validation and implementation of copyright in the value system of Bulgarian society. #4 #5 # In 2015, Musicautor reported the highest experts at such a high level for the first time. income in its history - it amounted to 7 459 048 Serious factor which forms our expectations is BGN. This financial result should not be viewed the fact that the interests of our members will in isolation. The company continued to invest be reflected and protected by the new law in the development of its human resources, as much as possible. expertise and technological capacity to Administrative% costs overcome the accumulated problems and In addition, the successful interaction with ǽȞȖȣȜȒȖIncomes ȎȒȚȖțȖȟȠȞȎȠȖȐțȖ ȐșȓȐȎ (BGN) (%) created a positive trend in the income of the CISAC in the recent years gave our country ȞȎȕȣȜȒȖ authors and publishers. the chance to host in 2016 the meeting of the European Committee of CISAC in the city of The most serious annual growth was Sofia. The conduct of such an authoritative 28,87% achieved through transmission. Despite the forum is an expression of confidence and is a huge share of the informal economy in this positive sign that the undertaken reforms and sector, the new tariff and the agreement policy on transparency and development signed with the Bulgarian Association of do not remain unnoticed by our international 25,50% Cable Communications Operators (BACCO) partners. 7 459 048 generated 1055% more income compared to The society‘s efforts to provide services of a that reported in 2014. 6 123 712 higher quality were proven by the conclusion During the year, key agreements with the of monitoring contract with the monitoring 5 007 809 groups of BTV and Nova Television were agency BMAT which is based in Spain. In so agreed. They will provide an opportunity to far as this company works with the leading 4 242 962 19,16% focus on the problematic sectors related to world companies for collective management concert activity, mechanical rights and radios of rights, the interaction with it aims to set new 3 256 147 16,81% in 2016. performance standards for Musicautor. 16,08%23 The efforts for legislative changes aimed at During the year, the company managed facilitating the monitoring of the compliance to consolidate and adapt its network of with the Copyright and Related Rights Act associates engaged with licensing of public performance of music to that of Prophon. The INTRODUCTION AND GENERAL PARAMETERS (CRRA) in the public performance of music and in respect of the empty information mechanisms of interaction are based to a large 2011 2012 2013 2014 2015 media continued even more intensively. extent on the model adopted by Musicautor. The common information platform is created Musicautor initiated jointly with the Bulgarian entirely on the current system of Musicautor. Music Association (BMA) the campaign New This is a strategic move aimed at the future Year for the Bulgarian Culture. The event synergy which will facilitate the users and will was supported by the Ministry of Culture, save money of the rightholders. Committee on Culture and Media, Sofia Municipality, International Confederation of The company generated its highest revenue ǾȎȕȝȞȓȒȓșȓțȖȎȐȠȜȞȟȘȖȐȨȕțȎȑȞȎȔȒȓțȖȭ²ȑDistribution of royalties 2011 – 2015 (BGN) Authors and Composers Societies (CISAC), from use of digital rights in the past year. The Filmauthor, Artistauthor, Union of Bulgarian challenges in this area are enormous and Composers, Bulgarian Book Association, place the company in a situation which șȐ5 000 000 Union of Bulgarian Artists and a number of requires from it to seek a technological Bulgarian authors and performers. Next step solution for processing of the huge information toward more serious and constructive debate massifs and for adapting its licenses to the șȐ4 000 000 on the intellectual property protection and large number of specific services. promotion of the creative and cultural industries was made through the initiative. The external environment continues to be șȐ3 000 000 unfavourable for realization of the copyrights. The belief that these processes have already The main institution which monitors the respect been launched and are irreversible motivated of the rights is the Ministry of Culture. However, șȐ2 000 000 Musicautor to establish, in cooperation with its activities in this area are still too passive. There its partner organisations, expert commission is no adequate position on the extremely large șȐ1 000 000 on preparation of draft legislation in the number of violations in conducting concerts area of collective management of rights. in the country. The debate on amendment of Art.26 of the CRRA which working definition The draft legislation is required in view of the șȐ0 forthcoming transposition of Directive 2014/26/ would increase significantly the income of the 2011ȑ 2012ȑ ȑ2013 ȑ2014 ȑ2015 EC on collective management of copyright rightholders is currently interrupted. These are DistributedǾȎȕȝȞȓȒȓșȓțȖȟȡȚȖ royalties 3șȐ3492 492 185 șȐ22671 671 459 șȐ55011 011 107 șȐ23203 203 357 șȐ22959 959 353 and related rights and multi-territorial licensing some of the challenges which will focus the of rights in musical works for online use in the efforts and policies of Musicautor in 2016. internal market. Ivan Dimitrov The companies involved in the collective Chief Executive Officer #6 management of rights were positioned by the #7 TELEVISION LICENSING Incomes from copyright 2015 TV licensing incomes 2011 – 2015 LICENSING 4 000 000 BGN 3 500 000 BGN INCOMES 2015 Administrative Types of users Report 2015 % of the forecast Royalties For agents costs 3 000 000 BGN 2 500 000 BGN 2 000 000 BGN 1 500 000 BGN BNT 745 103 98,04% 596 082 149 021 1 000 000 BGN 500 000 BGN BNR 487 768 106,04% 390 214 97 554 0 BGN 2011 2012 2013 2014 2015 BNT 748 756 BGN 460 826 BGN 871
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