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At the Extraordinary General Meeting held on March 26, 2009, 95% of SODRAC’s members in attendance or represented by proxies voted in favour
of the amendments to the Articles and Bylaws proposed by the Board of Directors following the submission of the report by the co-chairs of the
committee charged with reviewing rights management. The members also welcomed the simplification of various administrative procedures. |
As a result of these changes, SODRAC will offer greater flexibility to its members who so desire, while maintaining the principle of full assignment of rights,
which forms the basis of our efforts and our collective strength.
Greater flexibility for SODRAC members
Below you will find a summary of the changes to our musical rights management procedures, which members may take advantage of effective April 1, 2009
if they so desire. If you have any questions, please contact Chantal Beaudoin, Manager, Members Services, at (514) 845-3268, ext. 232 or at
cbeaudoin@sodrac.ca.
Self-production
Songwriters and/or composers who meet the following definition have a new option available to them. They will no longer be required to have SODRAC process
payment of their share of the royalties and will no longer be required to pay the applicable commissions if:
- They own their master recordings (because they are producers or have acquired the proprietary rights from a producer) and they control the use and
marketing of their works in their personal capacity as a record company or majority shareholder of a related company.
Direct licensing
In either of the following cases, publishers have a new option available to them. They will no longer be required to have SODRAC process payment of their
share of the royalties and will no longer be required to pay the applicable commissions, subject to certain conditions, if:
- They utilize and market their works in their capacity as a record company (i.e. if they own or are the majority shareholder thereof).
- Their company is the subsidiary of a record company.
1st integration (synchronization rights)
The following three options are now available. They reflect the fact that the vast majority of our members want SODRAC to continue managing their synchronization rights.
Option 1 - Full management of synchronization rights by SODRAC, including the following new benefits:
- Payments received from users will be distributed to SODRAC members twice a month for all royalty amounts totalling at least $250. If the royalty
amount is less than $250, it will be paid during the following distribution period.
- You can authorize SODRAC to simultaneously issue the master recording license in its capacity as agent, on a customized basis. SODRAC thus
facilitates matters for you by becoming a “one-stop shop” as regards concluding transactions with users of your works.
Option 2 - New change: you may negotiate your own rights directly with users of your works subject to the conditions that you determine with
them.*
SODRAC will subsequently be responsible for issuing the license in accordance with your conditions and, thanks to the reserve clause included in the
contract, for ensuring the collection of your royalties on all other platforms for the life of the product. The applicable commission will be reduced. In addition,
you can take advantage of the benefits described in Option 1 as regards the twice-monthly payment of royalty amounts in excess of $250
and the possibility of authorizing SODRAC to manage your master recordings on a customized basis.
* Being understood, however, that this option 2 does not apply when a tariff or a general licence exist.
Option 3 – You may take advantage of an expanded restriction (partial or total) of your contribution.
Individuals whose membership criteria currently include a restriction will receive a letter to this effect. Members (or potential members) who have not yet
signed a restriction for their synchronization rights and who wish to take advantage of this benefit should notify SODRAC and submit the appropriate form. In all
cases, the deadline for taking advantage of the new restriction is September 30, 2009; thereafter, the deadline will be the membership renewal date. For the
restriction to be valid, the following conditions will apply: 1) Once the contract or license has been finalized, a copy thereof must be submitted to SODRAC and,
in the case of publishers, to the songwriters and composers as well; 2) An appropriate reserve clause must be included covering any reproduction rights that are
subsequently fully assigned to SODRAC.
The restriction will cover the integration of preexisting musical works to the following types of productions (except for synchronization rights covered by tariffs
or general licenses):
- Independently produced TV programs (cinematographic works)
- Digital audiovisual productions (cinematographic works)
- Audiovisual productions (cinematographic works)
- Advertisements
Please note that if you select Option 3, SODRAC can also manage your master recordings on a customized basis.
Commissioned works
All rights for commissioned works may be assigned for all jurisdictions. The foregoing does not apply to rights covered by general licenses and established
tariffs or to royalties collected by SODRAC’s affiliates, provided that a reserve clause is included in the contract binding the rights holder and the producer.
Educational and promotional projects
Complimentary licenses may be granted for certain projects. Administrative fees will apply.
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