The FINANCIAL — The Georgian Copyright Association expects to accumulate 30-35% more royalties by the end of the current year. The Association has distributed GEL 800,000 to authors. The Russian Federation is the top country in terms of usage of Georgian copyrighted works. Georgian folklore is popular in Japan. Meanwhile, HoReCa sector is the largest payer of copyright in Georgia.
“The Association has achieved significant success in terms of distribution of royalties. The royalties collected throughout 2013 exceeded GEL 1,900,000. The sum is about eight times larger than the average volume of previous years’ payments,” Giga Kobaladze, Chairman at the Georgian Copyright Association, told The FINANCIAL.
“Over 45% of the total royalties is made up by the HoReCa sector. The number of major users also includes TV broadcasters and cable operators,” said Kobaladze.
In Kobaladze’s words, the Association launched a reform process in 2011. “Lots of activities were carried out in order to make the usage of copyright legal. Everyone who uses copyright should have to obtain proper permission from the author. We arranged hundreds of meetings with the users of copyright and explained to them the demands of the law and the need for its protection. In this regard, the Government, as well as the authors themselves, started to be more active in terms of the nature and usage of copyright,” he said.
“Authors have clearly understood how copyright protection can become a source of income for them. The previously incorrect practice of authors, when they were ignoring copyright violation, or just avoiding speaking about it publicly, has gradually changed. All of these groundbreaking changes have been backed by international organizations. They were and still are fundamentally interested in copyright protection in Georgia. All the listed factors have contributed to positive results of our work. The success has been reflected in an increase in collected royalties. The amount of royalties is increasing by 30-35% annually. We are planning to achieve the same growth by the end of 2014,” said Kobaladze.
Q. How are fees calculated for users?
A. The number of segments of copyright users exceeds 40. Representatives of each segment that uses copyrighted works is obligated to pay royalties in accordance with the law. The Association issues licenses for such users. There are two types of licenses: general and so-called blanket licenses. The general license is mostly issued for one-time usage of the product, like in the case of using music in a commercial. The majority of licenses are of the blanket type though. In this case the user receives the right for multiple usages of the copyrighted works. The method of calculation of the royalties varies in accordance with the segments. For example, in the case of food establishments the royalties are calculated in line with the number of seats. Shopping centres pay in accordance with square meter. TV and radio broadcasters are charged due to the interest rate of their income.
Q. What amount has the Association distributed among authors?
A. The royalties paid to authors amounted to GEL 800,000 in 2013.The figure is significantly higher than the average royalty received by authors in previous years. We are expecting a 35% increase in this direction by the end of the current year.
Q. By how many percentages is the usage of foreign authors’ work exceeding that of locals?
A. The usage of foreign products in Georgia, like in the whole world, is higher than of local products. This is logical. The repertoire of a single country cannot exceed the whole repertoire of the rest of the world. Georgian repertoire makes up 30% of the total that is used. The remaining 70% is made up by foreign repertoires. This figure is almost the same all over the world. The rare exceptions are the UK and USA.
Q. In which foreign countries are Georgian repertoires used most frequently?
A. Georgian repertoire is most often used in Russia. The size of this country and the inertia of cultural relations in the past are the main contributing factors to this. So, the Russian Authors Society collects the largest amount of royalties for Georgian authors. Georgian copyrighted works, particularly, Georgian folklore, is frequently used in Japan. The list of users comprises those from post-Soviet countries, as well as Western Europe and the USA.
Q. How frequently is Georgian authors’ copyright violated abroad?
A. The violation of copyright takes place not only in Georgia, but also abroad. There are occasions when the production of our members is used in foreign countries without permission. In this case, our association contacts its sister societies operating in the territory where the violation has taken place. We then ask them to eradicate the violation. The system works likewise when the copyright of foreigners is infringed on Georgian territory. This mechanism is quite effective. There have been cases when with mutual assistance the violators have paid compensation. However, this is the only mechanism, which is offered by our type of associations in line with our competence. In the event of a need for court proceedings abroad, the author is forced to act with their own efforts against the infringer.
Q. How has the understanding of copyright been changing among the Georgian population every year?
A. The modern mechanisms of copyright protection have only a short history in Georgia. It was first launched in 1999. The Georgian law on Copyright and Related Rights was adopted then. The field was non-prioritized and other daily problems existed in the country. Accordingly, proper attention was not paid to it neither by authors nor by the Government. In 2011, the authors themselves decided to change the situation. With the election of new execution in the Association the situation started to become rectified.
The low level of public awareness caused by the lack of information was the main problem at that time. The Association had a major focus put on it. We launched a campaign focused on changing public attitude towards copyright issues.
We did a lot of work in this regard. Targeted promo campaigns, workshops for authors and users together with foreign experts, as well as training programmes for students were all arranged by the Association. We published a regular magazine “Copyright”, which was the first magazine to exist in this field in the country. Professional literature and information brochures were also published. Almost all of our activities were covered in the media. All this significantly contributed to the increase of awareness by authors and by users. We started the formation of new tariffs on usage of copyright that were acceptable for both sides. The work of the Association has since then strengthened and become more transparent and public. The institution has become more flexible. As a result of a lot of work the public’s attitude towards this area has gradually changed for the better.
Authors have realized that copyright is not only about their moral, but also material satisfaction. In turn, users understand that violating copyright is illegal and that they must comply with the law on this matter.
Nonetheless, the situation in Georgia in this regard is still behind that in developed countries. As opposed to here, they have 200 years of history of copyright regulation and the public’s attitude towards it is already firmly established.
Violation of copyright is still common in Georgia. The relatively small history of this institution and economic hardship are the main reasons behind it. So, the Association is still actively continuing its work in order to overcome the challenges that exist in this direction.
Q. What is the section of the Government that is in charge of regulating this sphere?
A. The involvement of the Government is also vital for this sphere. The Government should ensure the enforcement of existing legal mechanisms. This should be achieved through fines or other sanctions. This will greatly assist the eradication of existing violations and their further prevention. There is an entire chapter devoted to the subject of copyright in the Association Agreement. It includes the state’s duties in this. So, I am hopeful that the recently signed AA will give impetus to the Government and will become more effective in terms of this.
Q. In which categories do you encounter the majority of copyright violations?
A. Singling out one particular category is difficult. We find law-breakers in almost every category, when users decline to pay royalties. The main segment is constituted by the music sphere however. Music is the most voluminous, it is the most used and over 60-65% of our regulation sphere is made up by music. There have been cases of users having to pay compensation for violation. Such cases mostly occur through involvement of the courts. Going through the courts is the only legal mechanism for us to be able to combat copyright infringement. We are not an administrative body and we have no right to fine or impose any other sanctions.
Q. If we compare copyright in Georgia to its neighbouring countries, which of them are the most advanced and which the least?
A. I am proud to state that due to the reforms implemented by the Association Georgia topped the list of post-Soviet countries by royalty collection and distribution in 2013. Georgia surpassed even such large countries as Russia and Ukraine. This once again underlines the fact that copyright in Georgia is an important intangible wealth. Its protection is vital for the development of artistic fields. This result is a good motivator to combat abuses in this area more effectively and make our copyright protection index equal to that of Eastern European countries.
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