ZAPRAF Annual Report for 2018 1 Annual Report for 2018 (with the included Finan- cial Report for 2017) 1. GENERAL ASSEMBLY The General Assembly consisted of 20 members in 2018. The Assembly of ZAPRAF representatives has 11 members. 2. MANAGING BOARD Association for Protection, Collection The ZAPRAF Managing Board consists of 7 regular members. and Distribution of Phonogram Producers’ Rights President of the Managing Board: ZAPRAF Želimir Babogredac, Croatia Records Vice-president of the Managing Board: Branko Komljenović, Menart Ulica kneza Borne 5, 10 000 Zagreb Tel: +385 1 3668 194 Fax: +385 1 3668 072 Regular members of the MB: www.zapraf.hr CROATIA RECORDS MENART DANCING BEAR AQUARIUS RECORDS E-mail address: [email protected] HIT RECORDS Activity code: Activities of other membership organizations, NEM (9499) SCARDONA Registered number: 00000541 DALLAS RECORDS Identification number: 1150006 OIB: 43794390104 3. DIRECTOR Maja Vidmar Klarić IBAN: HR9823600001101365900 President: Želimir Babogredac 4. SUPERVISORY BOARD Director: Maja Vidmar Klarić The members of the ZAPRAF Supervisory Board are Mirjana Matić, Zrinko Tutić and Šima Jovanovac. Organizational Structure of ZAPRAF Structure Organizational 2 ZAPRAF Annual Report for 2018 ZAPRAF Annual Report for 2018 3 Content: Introductory remarks by the President of ZAPRAF .....................................6 Fee distribution for 2017 .............................................................29 Introductory remarks by the Director of ZAPRAF .......................................8 BTL Fund ............................................................................32 ZAPRAF’s activities between two annual meetings of the General Assembly .............10 Audit report .........................................................................34 Extraordinary meeting of the ZAPRAF General Assembly ...............................10 Inspection of ZAPRAF’s operations by the State Intellectual Property Office ..............36 Regular meeting of the ZAPRAF General Assembly .....................................11 Other activities ......................................................................37 Managing Board activities ............................................................13 Cooperation between ZAPRAF and the University of Zagreb ............................37 Highlights ...........................................................................13 11th Electronic Media Days again welcome a ZAPRAF representative ....................37 ZAPRAF obtains new approval for collective rights management ........................13 ZAPRAF’s participation in the MAKK conference .......................................37 Linking of ZAPRAF and HRT music archives completed .................................14 Creative industry calls on EU Presidency to resolve the problem of the transfer of value on the digital market ...........................................38 Implementing the GDPR in ZAPRAF’s activities .........................................14 HDU launches the “Incubator of Good Music” radio show ...............................39 The unified ISRC base presented ......................................................15 Second “Month of Music” held in Zagreb ...............................................39 Annual transparency report published ................................................15 International Record Store Day celebrated in April .....................................40 Supervisory Board report ............................................................16 First Study of music-listening habits in Croatia presented ..............................40 International cooperation and bilateral agreements ....................................16 Croatian Phonographic Association and Laganini FM sign Cooperation Agreement .......41 Lodovico Benvenuti, director of the IFPI’s European Office, visits ZAPRAF ...............16 ZAPRAF and HDU continue with the raising of awareness among students ...............42 Representative of the International Federation of the Phonographic Industry visits ZAPRAF . 17 Activities of the HDU’s Anti-piracy Department ........................................42 Albanian collective management organization visits ZAPRAF ...........................17 Cooperation between HDU and RTL on the new RTL Play service. 42 Regional conference held in Belgrade .................................................17 The first celebration of the National Album Day ........................................43 ZAPRAF and HDU representatives at Serbian Radio Days ...............................18 Launch of the book “70 priča o albumima povodom 70 godina od prvog izdanja” .........44 ZAPRAF representatives as regular participants in PRC Meetings .......................18 Croatian Phonographic Association launches new monthly vinyl chart ...................44 A number of bilateral meetings with collective management organizations from the region . 19 New cooperation between Deezer and HDU: “Selected for you by…” .....................45 BPI representatives visit ZAPRAF and HDU ............................................19 HDU annual awards and special recognitions presented ................................45 Financial report for 2017 .............................................................20 “Shape of You” – the song with the most airplay in 2017 ................................47 Collected fees .......................................................................21 ZAPRAF’s Staff ......................................................................50 Broadcasting ........................................................................22 Rebroadcasting (cable retransmission) ................................................23 Public performance ..................................................................24 Fee for phonogram reproduction for private or other personal use (blank-tape levy) .....25 Mechanical reproduction rights (dubbing) .............................................26 Allocations for the cost of rights management .........................................27 4 ZAPRAF Annual Report for 2018 ZAPRAF Annual Report for 2018 5 We have joined one of the most import- should strive to achieve. We believe that out Croatia. Introductory ant initiatives launched by numerous cre- the study conducted last year is a step In the year ahead, we would like to raise atives in Croatia and in Europe, and to- towards reaching those goals, together all of our previous successes to an even remarks by the gether with other associations, we have with national campaigns that should be higher level, and add some new ones, to begun to tackle the so-called Value Gap organized in synergy and cooperation of the satisfaction of all our rightholders. In President of problem. Up until the moment when the rightholders and government bodies and addition to the high-quality and active Copyright Directive was voted, we had ministries. protection of their rights, we shall en- ZAPRAF sent messages about the importance of Furthermore, we have also implement- deavour to establish cooperation with solving the Value Gap problem to the Eu- The year behind us was full of devel- ed a number of successful activities in new partners and to keep pace with ropean Parliament, and called on MEPs opments in the music industry, and in it cooperation with the Croatian Radio- global music trends and thus support the to support the development of new leg- – as in any other year – Association for television (HRT). In accordance with the growth and prosperity of our righthold- islation that would adequately protect Protection, Collection and Distribution of signed Music Industry Promotion Agree- ers with a high level of transparency and the rights of all stakeholders in the music Phonogram Producers’ Rights (ZAPRAF) ment, we have provided HRT with our professionalism, as in the past. We are industry and other creative industries, so implemented a number of activities. We entire archive containing over 95,000 pleased that we have continually validat- that they can enjoy the protection of their have summarised all of them in our An- domestically produced recordings. For its ed the trust of our members and collab- rights and obtain a just remuneration for nual Report which we hereby present to part, HRT has introduced internationally orators year after year, and I believe that their work. We had primarily addressed you. We are grateful that you have opened recognized ISRC codes as unique identi- the year ahead will yield the same results. the Croatian members of the European its cover page, and proud that you can fiers of each recording into its systems, Parliament, but also other MEPs, and the now learn more about the Association’s resulting in quicker and more accurate public at large. Eventually, we achieved activities and operations, and about its data on the recordings used that are then what we had insisted upon for nearly a detailed financial report, in this seventh collected by ZAPRAF. This cooperation is year: the Directive was adopted by the edition of our bilingual Annual Report. an excellent example of a national pub- European Parliament and submitted for lic media service and the music industry Over the past period, ZAPRAF has been further procedure, that is, for the tria- working together to promote and de- promoting interests of record producers logue between the European Parliament, velop music, creators and the recording and the music industry in Croatia, while Council and Commission. at the same time