Copyright Act, 1978 (Act No. 98 of 1978)RegulationsCollecting Society Regulations, 2006Chapter 2 : Obligations of collecting societies8. Distribution |
| (1) | Subject to subregulation 6(2), a collecting society shall distribute at least once every year amounts collected by it according to a distribution plan and after deducting such amounts as are necessary to cover the costs incurred in the administration of the collecting society. The first such distribution shall be made not later than 18 months after the initial accreditation of the collecting society and subsequently not later than any anniversary of the initial accreditation and any renewal thereof. |
| (2) | The costs and expenses incurred in the administration of the collecting society shall be calculated in conformity with Generally Accepted Accounting Practices (GAAP) set from time to time by the professional bodies of South African chartered accountants. The manner of bookkeeping and maintenance of records by a collecting society shall be such as to enable the ready verification of revenue received or accrued, as well as expenditures and costs incurred. |
| (3) | A collecting society shall distribute the amounts collected in a manner to reflect as nearly as possible the actual use of sound recordings and protected performances covered by the repertoire under its administration, taking into account the need for an economical and efficient management of the collecting society. |
| (4) | A collecting society shall establish a distribution plan and apply it based on information publicly available, trade information available to its members and on information to be furnished by individual users and user groups in terms of framework agreements and non-exclusive licensing agreements. |
| (5) | The distribution plan and any amendments thereof shall be submitted to the Registrar. The Registrar shall approve a distribution plan if it complies with the following principles and conditions: |
| (a) | A distribution plan shall not provide for arbitrary or discretionary distributions; |
| (b) | Subject to any contractual agreement to the contrary as contemplated in section 9A(2)(b) of the Copyright Act, 1978, and section 5(4) of the Performers' Protection Act, 1967, where a representative collecting society has as members both owners of copyright in sound recordings and performing artists, whether directly or through one or more collective organisations of performers or of owners of copyright in sound recordings, money collected shall be distributed on an equal basis to performers and to owners of the copyright in sound recordings, either directly or to their collective organisation so that copyright owners and performers shall benefit equally on the basis of their volumes of use. |
| (c) | A collecting society may provide in its distribution plan that, with the approval of the highest executive organ of the society, a portion of the proceeds may be set aside for the promotion of the creative arts, and culture and for welfare purposes (including pension benefits) of performing artists. Such portion shall not exceed 10% of the amount to be distributed in any one year. |