Romanian Copyright Office Approves Protocol for Audiovisual Works Royalties

On October 18, 2012, the Romanian Copyright Office issued a decision outlining the protocol for the remuneration payable by the television companies to copyright holders for broadcasting cinematographic and other audiovisual works from the copyright collectives’ repertoires. The decision entered into force on October 27, 2012.

According to the protocol, TV companies have to obtain a non-exclusive license from the collectives in order to broadcast audiovisual works from the collective’s repertoires. The non-exclusive license may be granted for the period of one year, or less, upon user’s explicit request, with the possibility of extending the time period through an addendum. The TV companies are allowed to review the entire repertoire before acquiring the license. Once the TV companies obtain the license, the collectives have to provide a CD containing the repertoire under their management and to agree to update the repertoire every three months.

The TV companies are required to pay 2.5 percent of their total income resulting from broadcasting the audiovisual works, net of certain local and state taxes, proportionated with the effective use of the works. The remuneration is to be paid on a quarterly basis; for late payments, penalties are to be applied. The amount due is to be calculated on the basis of a quarterly report on the use of the works that TV companies must submit to the collectives.

The remuneration methodology does not apply to use of audiovisual works for which TV companies concluded a direct agreement with the copyright holders or with their agents.

The protocol also provides that TV companies that do not have sufficient incomes or cannot pay an equitable remuneration can agree with the copyright collectives to pay a lump sum, which is to be established each year by the Romanian Association for Audiovisual Communications, which represents the interests of Romanian broadcasters.

Negotiations to amend the present methodology or the payable taxes may be carried out only after three years from the decision’s publication, unless the copyright and related rights law is amended in the meantime.
In Romania, the Society of Romanian Audiovisual Authors (DACIN-SARA) is the only collective management society authorized to manage cinematographic and other audiovisual works.

By: Aura Campeanu

For more information, please contact Aura Campeanu at our Romania office.