The split between rightsholders of licensing revenues collected by the Copyright Licensing Agency (CLA) and NLA media access (NLA) was independently determined for the first time ever in a rights valuation process that ran throughout 2015. The decision is effective from 1st January 2016.
The key objective was to commission an independent evidence-based determination as to how collective licensing revenues for copying text and images in books, journals and magazines should be shared between publishers, authors and visual artists. The valuation provided a timely opportunity to ensure that distributions would in future also satisfy the requirements of transparency and fairness in the Collective Rights Management Directive (subsequently implemented into UK law in April 2016).
The valuation was commissioned by the Authors’ Licensing and Collecting Society (ALCS); the Artists’ Collecting Society (ACS); the British Association of Picture Libraries and Agencies (BAPLA); the Design and Artists Copyright Society (DACS) and PLS. They appointed an independent valuer, Mark Bezant of FTI Consulting, to undertake the valuation. To ensure that the valuation was effective, all five participating organisations agreed at the outset to be bound by the outcome. Mark Bezant analysed and assessed detailed evidence relating to usage and perceived value and rights ownership in material copied by CLA and NLA licencees in the education, business and public sectors. PLS was tasked with gathering rights-based evidence from publishers.
Collective licensing delivers an important secondary revenue stream, worth £68.2m in 2014/15, to authors, publishers and visual artists. Whilst the valuation does not affect the licences offered by CLA and NLA, it does mean that licensees can be confident that the fees they pay for the right to copy small extracts from books, journals and magazines are distributed to the appropriate rightsholders.
Read the final determination and see how it impacts on distributions to publishers.