Royalty is a payment made to the owners of copyright and related rights when their works are used for commercial value. Proclamation No. 410/2004 to protect copyright and neighboring rights had completely neglected this critical issue of royalty. Hence, a considerable emphasis has been given to royalty in the Proclamation No. 872/2014 to amend the aforementioned proclamation.
Under the amendment, there is a provision on the obligation to pay royalty. It is clearly stated therein that any person who uses any works protected under the proclamation for commercial purpose shall have the obligation to pay royalty to the relevant collective management society. Ethiopian Intellectual Property Office, therefore, is working on the formation of Collective Management Society. A collective management society shall be formed based on the recognition granted by the office.
Preconditions for Formation of Collective Management Society
- An application for recognition of the formation of a collective management society shall be submitted to the office in a written form.
- The number of sector associations established under a collective management society may not be less than three.
Powers and Duties of the Collective Management Society
A collective management society shall have the powers and duties to:
- collect royalties from users of works protected under this proclamation as well as works protected abroad and distribute same to the right holders;
- prepare and submit to the office royalty scheme and implement same upon approval;
- prepare and submit to the office working manual for collection and distribution of royalty and implement same upon approval;
- withhold income tax in accordance with law from royalties distributed to members and pay same to the appropriate revenue collecting body;
- grant permit, upon payment of reasonable fee, to foreign musical bands or performing groups for entry of works for public performance or as well as foreign exhibitors or fine arts;
- collect royalties from works without masters and pay same to the office;
- own property, enter into contract, sue and be sued in its own name;
- submit performance report at any time when requested by the office;
- perform other functions necessary for the achievement of its objectives may be assigned to it by the office.