Frequently Asked Questions & Tips

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FAQ:

1. What are the composers' rights?
2. How long do composers' rights last?
3. What happens once this 50 year period has expired?
4. Why should I join SARRAL?
5. How do I join SARRAL?
6. How and when does SARRAL distribute royalties?
7. How does SARRAL meet its expenses?
8. How is SARRAL controlled?
9. How does SARRAL fit into the International picture?
10. Answers to other queries you may have?

Answers:

1. What are the composers' rights?

South Africa is a member of the International Convention on Copyright known as the Berne Convention, which dates back to 1886. In terms of this convention, South Africa has created its own copyrights laws, the last being the Copyright Act Number 98 of 1978, as amended. The two most important rights granted to a composer in terms of this Act are:

1. The exclusive right to control all recordings and copies made of his work.
2. The exclusive right to control all public performances or broadcasts of his work.

Amongst other rights granted to the composer is the exclusive right to control all arrangements or adaptations of his work. In practice, permission for arrangements is generally granted automatically where the work is to be used in a way that was originally intended by the composer, e.g. in cabaret show or similar variety type production. However, when an arrangement or adaptation is made for such uses as advertising then specific permission has to be obtained.

All a composer need do to ensure recognition of these rights is to write down or record that work in some material form.

2. How long do composers' rights last?

The composers' rights last for 50 years from the end of the year of his death. Thus, his full rights can be enjoyed throughout his lifetime and he has a very valuable asset that he can leave to his heirs who enjoy exactly the same rights for 50 years after his death.

3. What happens once this 50 year period has expired?

At this point, the musical work in its original form falls into public domain or "traditional" and anyone may freely use it without any permission. Modern arrangers can add new ideas to the original work without the permission, which was necessary during the lifetime of the copyright. Furthermore, should a new composer substantially add to the old work, he would effectively create a new copyright. This arrangement will then enjoy copyright for as long as the arranger is alive and 50 years thereafter, i.e.: this arrangement is treated as a completely new musical work.

Note: During 1988 SARRAL successfully obtained consensus for a recommendation to Government to extend the period of copyright from life plus 50 years to life plus 70 years. This is in line with world trends and amendments to the South African Copyright Act are pending.

4. Why should I join SARRAL?

1. Proof of Ownership


The difficulty arises as to how you prove that your copyright existed from the point of its creation. The importance of being able to prove this is when someone else uses your song and will not acknowledge that you are the composer / copyright owner. The composer could lodge a copy of his work with his bank or an attorney and ask them to give evidence in any subsequent dispute about authorship. However, it has long been recognized that the most effective way of administering composers rights is by the creation of composers / authors societies. Some European author' societies are over 200 years old.

To help composers / copyright owners, SARRAL acts as a free, depository of the musical work and maintains a record in its files as to the date on which it was notified that the work existed. Furthermore, SARRAL will also assist a composer in obtaining facilities to have his or her work written down if he or she is not able to do so themselves.



2. Information Services


SARRAL provides a free information service to all composers and copyright owners in all 11 official languages. Composers and copyright owners can visit our offices or telephone us to obtain free information concerning their rights on recordings made of their works. We will also provide as much information as possible considering the general workings of the music industry and how it would affect composers' / copyright owners' rights.



3. Administration of Recording Rights


SARRAL is concerned that when a recording is made:


• The recording is made with the permission of the composer / copyright owner;
• That proper negotiations are carried out between the person wishing to make the recording and the composer / copyright owner;
• That when permission is granted a fair and equitable royalty is paid to the composer / copyright owner.

SARRAL then ensures that after the recording has been made, the royalty is collected and distributed to the composer / copyright owner and a proper license is issued to the person making the recording. This licence also covers the manner and territory in which this recording may be used.



4. Royalties and Recordings made by Radio and Television Broadcasters


Reference has been made to the composer's exclusive right to control all or any recordings made of his musical works. But, some exemptions from this overriding principle have been granted. Once such exemption is that allowed to broadcasters the so-called ephemeral exemption. This allows the broadcaster of a member country of the Berne Convention, under certain circumstances, to make recordings without permission and without paying any royalties. Authors societies have great difficulty in accepting this exemption as it is probably the single most extensive inroad into the composer's rights. Perhaps if one considers one of the reasons given for the exemption, it might make the exemptions more understandable. Due to time zones applicable in large countries, e.g.: Canada, a recording has to be made of a programme to broadcast it at the same time throughout the country. The broadcasters maintain that they are therefore forced to make a recording through circumstances beyond their control and they should not have to pay royalties for these recordings. The validity of this argument is debatable.

The South African Copyright Act has granted broadcasters this exemption but made the ephemeral period six months from the date of the recording. Thus, broadcasters may make, without permission and without paying any royalties, a recording of a musical work with their own facilities for the purposes of their own broadcasts provided that recording does not remain in existence longer than six months. The result of this is that virtually no recording made for radio broadcasting by the broadcaster himself enjoys any copyright recognition or earns any royalties.

However, TV programmes have to be created well in advance and kept long after the broadcast takes place for re-broadcasting purposes, export or other uses. SARRAL therefore, negotiates Blanket License agreements, which allows broadcasters to make recordings of musical works for television. The agreement ensures a fair and equitable royalty for, on the one hand, the broadcaster, and on the other, composer / copyright owners.



5. Royalties and Record Companies


SARRAL is the BIEM member society in South Africa and as such, is the only organization empowered to negotiate and implement the standard international BIEM Contract with all record companies. This contract governs the royalties to be paid on the sale of records, tapes, and CDs. As SARRAL's only objective is to look after the rights of the composer / copyright owners, it ensures the highest royalties possible are paid.



6. Royalties on Films, Videos, Advertisements and Other Recordings


SARRAL's protection also covers such areas as films, videos and advertisements. In these areas, the composer / copyright owner will have to give specific authorization for the recordings to be made, as well as set conditions such as media and territory to be licensed and royally payable. SARRAL will ensure the identification of the instances where recordings are made, assist in negotiations, issue licenses and also collect the relevant royalties. Therefore, SARRAL is not only providing protection and services to the composer / copyright owner, but is also providing a vital link for the user of the music by authorizing his requirements.



7. Royalties on International Recordings


All the above activities are carried out by SARRAL in its own territory of operation South Africa, Lesotho, Botswana and Swaziland. However, SARRAL is affiliated to all similar societies throughout the world. Therefore, by appointing SARRAL, the composer / copyright owner not only achieves the benefit of all SARRAL's local activities, but he is immediately protected in all countries through SARRAL's reciprocal agreements with other international societies. He or she is also registered in an international file held in Zurich, Switzerland, which identifies him or her as a composer / author or publisher throughout the world.

5. How do I join SARRAL?

Anyone who has created at least one musical work can apply to join SARRAL. You simply sign an agreement giving SARRAL the right to administer your works. Once you sign this agreement, you also have the right to apply to be a member of SARRAL. As a member, you will have a say in how SARRAL is run in terms of its constitution.

Simply phone or write to SARRAL and we will send the necessary form to you or you can collect one from the SARRAL offices in Johannesburg.

It is important to know that:

• The appointment / membership of SARRAL does not involve any payment;
• There are no delays in the commencement of our administration;
• There are no requirements as to a minimum number of musical works;
• There are no distinctions between any type of composer or copyright owner or where he or she resides;
• There is no age limit obviously a minor would have to be assisted by their parents or guardian in effecting an appointment;
• SARRAL provides a free Funeral Scheme for all its composer members and their immediate family or families;
• SARRAL provides, free of charge, regular workshops for its members to enhance their basic abilities as creators - subjects covered include "How To Read and Write Music";
• SARRAL provides free legal advice on copyright problems to its members;
• SARRAL will continue to administer a composer's rights on behalf of his heirs or a period of 50 years after his death, and any extension thereof. These royalties will be paid out in accordance with his or her wishes as expressed by him or her in his or her will.

6. How and when does SARRAL distribute royalties?

When distributing royalties collected from various sources, SARRAL issues statements in the name of the composer / copyright owner for each type of royalty. It also gives as much information as is practically and economically possible to ensure that the composer / copyright owner can easily identify the recording that has taken place.

Thus, we have separate royalty statements for the phono (royalties from the sales of records, tapes and CDs emanating from the record companies), blanket licenses (such as the SABC, television recording royalties) and individual licensing. This latter section includes royalties from such sources as film licensing, private recordings, video recordings, recordings for advertising, etc.

On completion of the analysis and allocation of royalties to the various composers and copyright owners, these amounts, less commission, are posted to their accounts. At the end of every calendar quarter a relevant statement is issued, provided there are royalties in the account.

Members receive their royalties within 60 days of the half-years ending March 31st and September 30.

It should also be noted that royalties emanating from other countries are subject only to a commission being charged by the society in the country of collection. On the receipt of the royalties by SARRAL no further commission is charged and it is passed on as quickly as possible to the local composer / copyright owner.

7. How does SARRAL meet its expenses?

Being a non-profit organization, SARRAL's only objective is to cover expenses. This is done in two ways:

• Any income that is earned by investing money awaiting distribution is offset against expenses.
• The balance of the expenses is covered by charging a commission on the royalties collected.

In this way, everyone participates proportionate to his earnings in all income and all expenses incurred by SARRAL.

It should be noted that Performing Rights Societies distribute all royalties collected well after their financial year end. SARRAL, as with aU Mechanical Rights Societies endeavour to distribute as much of the royalties collected within the year of collection. In SARRAL's case, this is four times per year locally and twice a year internationally. Only a portion of Broadcaster Blanket Licenses must of necessity be distributed after the end of the financial year.

8. How is SARRAL controlled?

For SARRAL to be effective in its objectives of looking after composers' / copyright owners' rights, it has to ensure that it remains completely independent of any influence exercised by persons or organizations wishing to make recordings of musical works. Therefore, the Board of Directors which controls SARRAL must, in terms of the Constitution, be made up as follows:

• A minimum of Five directors and a maximum of 13 directors.
• The managing director shall be appointed by the Board.
• The election of directors shall be by the members in general meeting.
• Excluding the managing director, at least half of the directors shall be composers and at least one third shall be publishers.
• Of the publishers elected at least half of their number shall be independent of any user control.
• The composers elected should represent as many styles of music composition as possible.
• All directors except the managing director shall hold office for a period of four years and may be re-elected.
• Casual vacancies on the Board shall be filled by the Board of Directors.
• The Chairman and the Vice-Chairman of the company shall be elected by the Board of Directors from amongst themselves.

SARRAL holds an Annual General Meeting of members and this normally takes place in each year. Every member shall have one vote and such votes maybe given either personally or by proxy.

9. How does SARRAL fit into the International picture?

There are authors societies in virtually every other country of the world and SARRAL has a reciprocal arrangement with them whereby it will represent their interests in South Africa and they in turn will represent SARRAL's interests in their countries.

Furthermore, there are two international copyright organisations to which most authors societies of the world belong and in which SARRAL is a full participating member:

• CISAC (Confederation International des Societies D'Auteurs et Compositeurs) which is an organization based in Paris, France and is concerned with general authors-rights throughout the world.
• BIEM (Bureau International des Societes Gerant Les Droits D'Enregistrement et De Reproduction Mecanique) which is also based in Paris and is the international organization which concerns itself specifically with mechanical rights throughout the world.

SARRAL regularly participates in conventions organized by these two. International organizations and, with regard to mechanical rights, SARRAL has participated in the international negotiations with international user organizations as a member of the BIEM negotiating team.

10. Answers to other queries you may have?

What are Commissioned works?

Musical works are for the most part created solely through the inspiration of the composer. But very often, producers of films, advertising agents, perhaps even a person who has purely philanthropic reasons, may approach a composer to specially create a piece of music. The music created in these circumstances is known as a commissioned work. It is most important to note that even though someone has actually commissioned a composer to create a piece of music, the composer still remains the owner of that work. The person commissioning him or her gains no ownership whatsoever. In fact, if no mention of usage is made at the time of commissioning, the commissioner obtains no right to record or use the work either.

How then is it possible for a film company or advertising agency to obtain the right to use a piece of music that they have commissioned the composer to create? Firstly, it must be realized that the film company or advertising agency wish to make a recording i.e.: the musical work is to be recorded onto the sound track of the film or in the case of a jingle onto the sound track of a television, film or radio advertisement. The right to make these recordings is generally embodied in the original commissioning contract. Thus, for instance, the film company would approach the composer on the basis that he or she wishes him or her to create the music and allow him or her to record it onto the sound track in return for a fee.

Generally speaking, SARRAL does not get involved in these commissioning contracts and initial licensing arrangements except to advise the composer on the wording of his or her contract so as to ensure that his or her rights are fully recognized and maintained. It is most important that all terms and conditions such as media, territories, duration of license, royalty applicable are written into the commissioning contract.

SARRAL does, however, get involved in the normal way for all other recordings of these musical works. In fact, in some instances where the original commissioning license was for a limited period, SARRAL would carry out all the extensions of such limited licensing terms.

Are there different types of licensing terms?

It is quite possible to issue a person who wishes to make a recording of a piece of music with a license which will entitle him or her to make recordings wherever, however, and forever. But, the royalty that the composer would have to charge for such an all-encompassing right would have to compensate him or her for their lifetime plus the 50 years after their death. The amount would no doubt be astronomical.

Consequendy, limitations are introduced into the licensing system and licenses are tailored to the needs of the person making the recording. Thus, for example, if an advertising agent wishes to use a piece of music in an advertisement to be broadcast on television, in the territory of South Africa, for a period of one year the license has been limited in three ways but it has been tailored to the actual needs of the user. The advertiser is happy as he or she has the right to use the music in the area that he or she requires at a reasonable fee. The composer is happy because he or she has limited the usage that can be made of his or her work and is receiving a fair royalty. Also, if he or she has not given away exclusive rights, he or she would be free to negotiate other usage of that music certainly after the period of the initial licence.

What is the involvement of the music publisher?

Composers generally assign their musical works to music publishers by granting the music publisher a participation in the ownership and a share of the royalties. It should be noted that a composer does not have to assign his or her work to a music publisher. He or she usually only does this in the expectation that the activities of the music publisher would generate more income and that the composer's lower share would now be worth more money than if he or she had retained a 100% ownership.

The music publisher's job is to promote, and enhance the usage of musical works so as to generate as much income as possible to be shared between himself or herself and the composer. The division of the royalties between the music publisher and the composer are a matter for negotiation. The international authors societies generally recommend a division of one third to the composer, one-third to the author of the lyrics and one third to the music publisher.

In the early days of Tin Pan Alley, as an example, composers hardly ever sang their songs and without the music publisher, all the famous singers of the day would never have been able to obtain all the wonderful songs that they sang. Today, with the greater movement to singer / songwriters, composers are forming their own music publishing companies to handle the promotion of their own songs. In South Africa many composers have formed their own publishing operations by creating legally constituted companies or merely with registered trade names.

Most large music publishers are worldwide organizations and therefore can provide composers with international promotion. The transfer of the rights belonging to the composer / original music publisher to foreign music publisher generally takes the form of a sub-publishing agreement. This introduces a further participating owner in the musical work and the original owners' shares are accordingly reduced dependant on the terms of such sub-publishing agreements. The composer and original publisher should anticipate a higher income in respect of their smaller share in the royalties.

It should be noted that SARRAL, or for that matter other author societies, are not involved in the direct promotion of the musical works as this is the domain of music publishers or the composers themselves. However, our administration has always ensured the recognition of the chain of ownership from the composer to the original publisher and to subsequent sub-publishers. This ensures that each link in the chain obtains its rightful share of any royalties.

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Tips:

1. How do you get permission to make a remix?
2. How do you get permission to make a compilation?
3. Copyright in the Music Industry: The Law and Practice?
4. Musical Work Copyright: Rights under Copyright?
5. Arrangement, Composition and Authoring?
6. Requirements for Copyright Exploitation?

Answers:

1. How do you get permission to make a remix?

Note: This information is supplied Courtesy of Nisa Global Entertainment (PTY) Ltd.

Re-Mix (Adaptation) - steps to take for the song:

1. Get permission from owner/s to adapt song. In the event of more than one owner - there should be unanimous agreement on the request.
2. Do the adaptation.
3. On completion of adaptation - get approval from the owner/s for the use of the adaptation for recording purposes.
4. Negotiate splits on new copyright. The original owner/s normally receive not less than 50% of new copyright.
5. Give the adaptation (re-mix) a new title. Ensure information integrity on new copyright documentation.
6. Complete the Deed of Assignment.
7. Draft a Musical Work Re-mix Agreement to cover all rights for future use and exploitation.
8. Notify: SARRAL, SAMRO and NORRM:
• As composer and / or publisher separately.
• Stat Sheets - detail of work.
• Originals / copies of deeds (make at least 8 originals to be stored in a safety deposit box for safe keeping).

The Musical Work Re-mix Agreement should cover all of the following:

• Synchronisation rights - for video purposes.
• Performance rights.
• Mechanical rights.
• All other rights.
• Future adaptation rights.
• Advertisement rights.

This will ensure that there will be no need to go through the entire processes again in the event of you wanting to exploit the adaptation further.

Re-Mix (Adaptation) - steps to take for the sound recording:

1. Get permission from owner/s of SR of song. In the event of more than one owner - there should be unanimous agreement on the request.
2. Do the adaptation. You must get the separates - separating / filtering the voicings from the each other for use in the adaptation.
3. On completion of SR adaptation - get approval from the owner/s for the use of the adaptation on an album. Obtain the mechanical licence.
4. Negotiate royalty on SR Master. The owner/s of the original master normally will insist on owning the re-mix master. The owner/s of the re-mix master could licence the master and grant the re-mixer a % royalty.
5. Draft a Sound Recording Re-mix Agreement to cover all rights for future use and exploitation on the part of both parties.
6. Release.

In the Sound Recording Re-Mix agreement there should be a re-mix producer royalty clause included. Remember that the artist and producer of the original works also receive a royalty on the adapted work. Since there is an exchange occurring between the owners and the re-mixers of the musical work it can be expected that a licence may be issued for a period of time in order that the re-mix may be exploited. Other rights issues to be considered when drafting the re-mix agreement with respect to the sound recording are:

• Translation.
• Further adaptation.
• Synchronisation.
• Digital.

N.B.: Tie up all possibilities in your negotiations to prevent having to repeatedly go back and forth between parties. The rights of royalties outlast any term of an agreement.

Ensure that all the necessary permissions are requested and granted before one proceeds with the sound recording re-mix.

It is necessary to establish a paper trail when dealing with rights.

N.B.: Always begin with the musical work first and then thereafter the sound.

© Nisa Global Entertainment (PTY) Ltd. - 2004 All Rights Reserved.

2. How do you get permission to make a compilation?

Note: This information is supplied Courtesy of Nisa Global Entertainment (PTY) Ltd.

With compilations one should always complete a brief to the owners of the musical works and the sound recordings with an overview of the project parameters. The project plan should stipulate the following:

• What the offer to the owner/s are - Licence % offered and/or advance fee per track.
• Intended sales.
• Format of release.
• Any deductions (reserves and/or packaging).
• Territory.
• Date of release.
• Marketing plans and deals.
• Media platforms to be utilised.
• Exclusive versus non-exclusive.
• Term.
• Intended release title.
• Intended PPD.

In the event of the titles that are going to be used in the compilation, each owner of the musical work and sound recording must be approached in order to get permission for the use of the musical work and sound recording.

Certain terms may be negotiated with the owner/s in order to get their approval for the use of their songs and sound recordings. These may be:

• That none of the tracks will be put onto any other compilation for the next 3 years.
• The number of tracks on the compilation - the less tracks on the album the more money generated per track for the owners.
• The right to alter the PPD (the reality of discounting).
• That owner/s will desist from giving permissions for new track releases.
• That licenses may be renewed.

With international artists a compilation would invariably be licensed to the territory of SA only. It is always necessary to clear the song and the sound recording as mentioned previously, however if compulsory licenses are available you just need to notify the societies and the mechanicals of 6,76% will be allocated automatically - subject to the fee of the territory in which the compilation is manufactured.

On compilations you need to be aware of what is termed the favourite nation status - which stipulates that the deal of one owner of the musical work and or sound recording cannot be worse than any other deal on the compilation. It is necessary to point out that not every track on the album will be the same in terms of value - so therefore this clause should be avoided at best.

© Nisa Global Entertainment (PTY) Ltd. - 2004 All Rights Reserved.

3. Copyright in the Music Industry: The Law and Practice?

Note: This information is supplied Courtesy of Nisa Global Entertainment (PTY) Ltd.

In terms of Intellectual Property - there are four ownership vehicles, namely:

• Patents.
• Trademarks.
• Designs.
• Copyright.

What is Copyright?

Copyright is a defined rights management system and is a limited qualified monopoly right. In the music industry we will consider "musical works or compositions" and "sound recordings" and the bundle of rights and their application within these works.

Copyright protects original works of authorship and gives the following exclusive rights to the owner in order that he / she may:

• Reproduce the works - mechanical rights / synchronisation rights.
• Produce a derivative of the works - adaptation rights / translation rights.
• Distribute copies of the work - publication rights.
• Perform the work in public - performance rights / broadcast rights / dramatisation rights.

Ownership of the musical works may be transferred to others when:

• The work is commissioned.
• Through a Deed of Assignment - that will transfer rights to the publisher.
• You work for the State.
• You are employed.

Copyright subsists when:

• The work is deemed "original".
• It is in material format.
• Authored / composed by a qualified person.
• It is published.

Copyright affords the author / composer the right to exploit the works for economical gain and therefore include all works in their catalogue on the balance sheet as an asset. The persons who benefit from this economic right are:

• The author.
• The composer.
• The publisher.
• The arranger.

South Africa subscribes to certain international agreements that allow for a reasonable degree of standardisation on forms and levels of protection for works both foreign and local. The reciprocal agreements exist between a large number of societies across the globe and were brought about primarily through the Berne Convention.

South Africa also subscribes to:

• TRIPS - Trade Related Aspects of Intellectual Property Rights
• The WIPO (World Intellectual Property Organisation) Copyright Treaty - supplementary to the Berne Convention
• The WIPO Performance and Phonograms Treaty - supplementary to the Rome Convention with respect to needle-time and neighbouring rights that affect performers, artists and producers with respect to adaptations.

© Nisa Global Entertainment (PTY) Ltd. - 2004 All Rights Reserved.

4. Musical Work Copyright: Rights under Copyright?

Note: This information is supplied Courtesy of Nisa Global Entertainment (PTY) Ltd.

Who is involved in the "musical works" and the "sound recording"?

With the musical works the following people are involved:

• The composer - the music.
• The author - the lyrics.
• The arranger.
• The publisher.

The author, composer, arranger and publisher could all be the same person.

With the sound recordings (the material form) the following people are involved:

• The artist.
• The musicians.
• The producer.
• The record label.

When working with session musicians in the studio - agreements have to be reached in terms of the extent of their involvement in the musical works. Some may request a share in the copyright if their input, in terms of a riff or solo constitutes a new (second or third) melody line. These issues must be dealt with up-front to avoid any disputes that may arise in the future especially if the recording becomes a "hit". If the musician is there purely to reproduce what has been arranged in terms of his instrument then a "release form" has to be signed indicating as much.

Copyright, as previously mentioned, is an economic right, which implies that there is a "return" or opportunity for monetary gain. It is therefore possible to negotiate, to your best possible advantage, the bundle of rights that you as the author/composer and/or publisher have with respect to your works. You need to exploit the use of your works in order to get the best possible return on your investment - not only in terms of your monetary input but also in terms of your sweat equity (IP).

Moneys come back to you through the following channels:

• Publishing or administration - splits dependant upon whether you own your own publishing or whether you entered into a specific deal with a publishing agent.
• Collection societies - SARRAL, SAMRO and NORRM, who administer the various rights on your behalf if you are a member of the societies.
• Directly.

The Mechanical right is remunerated at 6.76% of the Published Price to Dealer (PPD). The Copyright Act however, makes provision for 5% of the Retail Price. The current status of 6.76% of PPD was determined by the collection societies themselves. The European Union (EU) fee is between 9% and 11.2% of PPD.

The performing rights for the musical work is paid out according to whether the performance of the work is being delivered through:

• Broadcast.
• Public performance - such as a live concert.
• A diffusion service.
• A signal carrying service.

The various forms of public performance are subjected to different types of licence fees that are set by the Performing Rights Organisations who keep all manner of record of the musical works exposure to the public through play-lists, cue sheets and live performance lists.

© Nisa Global Entertainment (PTY) Ltd. - 2004 All Rights Reserved.

5. Arrangement, Composition and Authoring?

Note: This information is supplied Courtesy of Nisa Global Entertainment (PTY) Ltd.

The Copyright act does not contain the definition of a song. A musical work is defined as an instrumental. If lyrics are added it is viewed as a new work and is subject to new splits in terms of the share of the rights associated with the work.

A composition is made up of two (2) parts, namely:

• The melody - the key element in understanding the song and;
• All other instrumentation.

The split here is normally on a 50 / 50 basis.

If lyrics are added the music and the lyrics are split as follows:

• 50% composition (25% melody ; 25% instrumentation).
• 50% lyrics.

The lyric part could then further be split into verse and chorus.

The Musical work involves the following relationships:

• Publisher.
• Author / Composer / Arranger.
• Musical Work.

Once a musical work has been completed it is essential to complete all the necessary paperwork required to notify the various societies of the work. The notifications will include all the information related to the song indicating pertinent information relevant to the author, composer, arranger and publisher. This notification will also indicate the splits accordingly - so that on pay out the relevant parties receive what is legally due to them.

For this reason it is essential that all data input on all documentation between yourself and/or your administrator of your rights and the various collection societies, is 100% correct. "The integrity of the information passed on is paramount to you receiving what is rightfully yours".

It is essential that the author / composer understand what rights reside in their works - as in copyright the future always has more value than the past. Authors / composers should view their works as valuable assets that form part of their legacy which if owned by them will be passed on to their heirs. Copyright exists for 50 years after the death of the owner or if published or performed - 50 years after first publication or performance (please see the Copyright Act).

The musical works copyright has the most defined rights management system - as indicated above with respect to the author, composer, arranger and publisher and grants them the exclusive right to exploit their works through its use across various platforms available to them for gain.

Creation is a valuable commodity. That creation is the Intellectual Property of its creator and as such should be fully understood in these terms and treated with respect and professionalism in order to extract its full monetary benefit.

© Nisa Global Entertainment (PTY) Ltd. - 2004 All Rights Reserved.

6. Requirements for Copyright Exploitation?

Rights	Song	Sound Recording
Re-Mix (Adaptation) Substantially changed, Lyrics removed, Song shortened	Get rights from owners for adaptation. Get approval for adaptation. New copyright exists - new splits. Original owner never gets less than 50%.	Get rights from the owners of the SR. royalty to be paid to producer of re-mix. Notify SARRAL and SAMRO.
Recording	If a cover - notify owners - permissions must be obtained.	If a cover - you pay you own SR. Notify SARRAL, SAMRO and Label of the use of the song.
TV Broadcast	Permissions - sync, performance and mechanicals. TV uses the maximum use of rights - therefore gives maximum returns.	Permissions - sync, performance and mechanicals
Film	Cinematographic rights - ads, features, documentaries etc. gain permissions. Licence - trailers, promos, soundtracks. Terms, territory, sync, performance and mechanical rights.	Cinematographic rights - ads, features, documentaries etc. gain permissions. Licence - trailers, promos, soundtracks. Terms, territory, sync, performance and mechanical rights.
Interactive Voice Response	Permissions - mechanicals and performance. Perhaps even adaptation rights only if works are adapted.	Permissions - mechanicals and performance. Perhaps even adaptation rights only if works are adapted.
SMS / Ring-Tones	Permissions - no performance fee at present. Mechanical licence.	Permissions - no performance fee at present. Mechanical licence.
Compilations	All rights - mechanicals and performance.	All rights - mechanicals and performance.

The owners of a musical work have the monopolistic right to make a decision based on the rights they own versus the rights requested. When requesting permissions for a song (musical work) and its Sound Recording the following people need to be approached:

• Musical Works - the owner/s.
• Sound Recording - the owner/s.

People involved in the copyright (owner/s) with respect to the composition and sound recording are:

• Song (Musical Work): Author, Composer, Arranger / Producer, Publisher.
• Sound Recording: Artist (and / or performers), Producer.
• Remix: Record Label.

In respect of a cinematographic film - the music and the film are inextricably linked. Sound Effects: are generally linked to a particular frame of a movie and are not normally included onto a soundtrack.

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