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New law to help UK’s rights holders 08/04/2016 British creators and other rights holders who license their rights through ‘collective management organisations’ will soon benefit from increased oversight and control of these bodies.

New law to help UK’s rights holders

From next week, British creators and other rights holders who license their rights through ‘collective management organisations’ (CMOs) will benefit from increased oversight and control of these bodies.

The Collective Rights Management Directive will be implemented into UK law on 10th April. It is designed to help make sure royalty payments are timely and accurate while significantly improving the transparency and governance of European CMOs. The Directive also creates a level playing field for multi-territorial licensing of online music services.

According to the Government, the measure will improve the system in a number of ways:

  • control of rights: rights holders will have an explicit right to authorise any CMO in the EU to manage their rights, and to withdraw this authorisation
  • decision-making: CMOs will need to give their members proper representation in decision-making processes, including on how royalties are distributed
  • payment: rights holders will be entitled to timely, accurate royalty payments for the use of their works
  • transparency: CMOs will need to publish more detail about their operations, letting right holders make an informed judgement on their performance

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