AmCham Macedonia Spring 2016 (issue 49) | Page 22

ANALYSIS Dialogue & Transparency Needed Among Copyright Stakeholders Author: Michelle Osmanli, Executive Director, AmCham Macedonia Most people don’t have any idea what a copyright collecting society is or does. And yet, in Macedonia, when you stay in a hotel, you pay more in collecting society fees than you do in taxes. You also pay the copyright collecting society – albeit indirectly – when you purchase cable television, visit a shopping center, go to a club, eat at a restaurant, and more. Despite this lack of awareness, mention the word “ZAMP” (the acronym of Macedonia’s virtual monopoly collecting society) to average citizens or local artists, and you’re likely to get an immediate, rather negative reaction. ZAMP has a reputation among average citizens in Macedonia as the organization that comes calling at large family celebrations to demand cash payment for music played there. In late 2013, the Copyright Law was amended to specifically forbid this practice, but the reputation remains today. Among local artists, ZAMP is regularly accused of failing to represent their interests and provide an adequate source of revenue for them.1 For the non-expert, copyright collecting societies can be understood as bodies that are authorized to license copyrighted works and collect fees (or royalties) on behalf of their members. Without them, individual artists would need to collect payment directly for the use of their work, which is why they’ve been around since the 18th century. Local companies have complained for years about the level and structure of royalties they pay. Most recently, several industry associations within the Economic Chamber held a press conference in late 2015, calling for reductions to current ZAMP royalties, including: • 16 MKD (~2.6 euro cents) for each cable TV customer, per month; 1 For a full discussion of this, see Collective Management of Music Copyrights in Macedonia: Climbing Up the Ladder in the Corner of Europe (PDF Download Available at https://www.researchgate. net/publication/233751881_Collective_Management_of_Music_ Copyrights_in_Macedonia_Climbing_Up_the_Ladder_in_the_ Corner_of_Europe) [accessed May 6, 2016]. 22  Spring 2016  Issue 49 • The obligation of companies to pay music royalties for space it rents to others; • The obligation to pay music royalties by medical spa facilities; and • 10% of total event revenues generated by hotels where copyrighted music is played.2 The company representatives emphasized that they were not questioning whether royalties should be paid for commercial use of copyrighted material, but that current royalty levels were out of sync with their realistic economic value in the local context, lack logic and transparency. This recent series of events demonstrates how little real dialogue there is between stakeholders in today’s copyrights marketplace in Macedonia. Laws are passed without consulting stakeholders, copyright users and artists groups regularly hold press conferences to air their concerns and ZAMP rarely appears in public fora of any kind. In late August 2015, without any public consultation process whatsoever, the Ministry of Culture proposed amendments to the Copyright Law to arbitrarily cap royalties paid by radio and TV broadcasters to 18, 12 and 6 average Macedonian monthly salaries per year (e.g., just 6.410 – 2.137 EUR for 2015). The amended law also exempted taxi companies, public transportation companies, museums and mountain huts/shelters and others from paying any royalties whatsoever. The move appears to have been primarily motivated by a desire to reduce royalties paid by public institutions, however it also attempted to address long running concerns with the level of royalties paid by private companies in some sectors. As is virtually always the case, Parliament promptly passed the proposed amendments. 2 Source - http://a1on.mk/wordpress/archives/556156