Recently EM received correspondence from musical consultant Mr. Fabien Alfonso highlighting the questioning of COTT's (Copyright Organization of Trinidad & Tobago) fees. The letter which is attached below called on COTT's board members to explain the seeminly unethical fees being charged for management of artistes copyright's affairs. Since this issue directly affects the recording artiste in Trinidad and Tobago, EM saw it necessary to contact Mr. Fabien for him to shed some light on the issue. This interview is like no other, as it tackles the business and operational aspects of the industry. Yes we macco these issues too.
Entertainment Macco: What organization do you represent?
Fabien Alfonso: “I represent the Recording Industry Association of Trinidad and Tobago (RIATT) we are a non-profit trade association representing the individuals and entities involved in the recording of all genres of music. RIATT will continue to educate the populace about the definition of a local Music industry and how it differentiates from the Carnival industry”.
Entertainment Macco: Who are you? What is your role in the entertainment industry?
Fabien Alfonso: “Really I am a record producer/activist/entertainment consultant; as a producer I have worked with Machel Montano, Destra Garcia, Bungi Garlin and Militant to name a few. I am in dialogue with a number artiste representative groups and I am also part of the Artiste Coalition of Trinidad and Tobago (ACTT). Promoting the development of a local music industry is what I’m all about”
Entertainment Macco: How did you become involved in the issue at hand?
Fabien Alfonso: “As the president of RIATT, some aggrieved members of Copyright Organization of Trinidad and Tobago (COTT) asked that I be the official spokesperson for this situation. The members trust and believe that I can articulate the present state of affairs and effectively represent them.
Entertainment Macco: What do the members hope to achieve by calling this ‘special meeting’?
Fabien Alfonso: "The members want COTT to explain why the organization deducts such a high percentage rate for administration of its duties. COTT’s argument, in defence of such high percentages taken has to do with their exorbitant administrative and legal fees. The members are also requesting a breakdown of salaries and other professional fees. As it stands, if COTT is unable to give satisfactory answers, the members intend to have the existing board removed. This would be done in accordance with COTT’s statutes.
Entertainment Macco: Who/What is WIPO?
Fabien Alfonso: “World Intellectual Property Organization which is the governing body responsible for intellectual property throughout the world. They also establish international treaties that all countries are encouraged to be signatories of. The members’ arguments were based on a WIPO endorsed report written by a Dr. Ulrich Uchtenhagen in 2005. In a release, COTT claims what is being reported as ‘ false and misleading’. Anyone can Google this document and see what these guidelines are”.
Entertainment Macco: Can you enlighten us some more about the WIPO report?
Fabien Alfonso: "According to the WIPO report, a copyright collection society can only be deemed viable, if the administration fee for the management of performance and broadcasting rights remain within a reasonable range of 30%. For the year ending 2009, information at hand showed COTT deducting a lot more than this recommended rate. The amount was 60% for broadcast distribution (Radio and Television) and 78% for General distribution (bars, restaurants, gyms, hotels etc.) Income from Carnival and some Live Events are not part of COTT’s general distribution."
Fabien Alfonso: “World Intellectual Property Organization which is the governing body responsible for intellectual property throughout the world. They also establish international treaties that all countries are encouraged to be signatories of. The members’ arguments were based on a WIPO endorsed report written by a Dr. Ulrich Uchtenhagen in 2005. In a release, COTT claims what is being reported as ‘ false and misleading’. Anyone can Google this document and see what these guidelines are”.
Entertainment Macco: Can you enlighten us some more about the WIPO report?
Fabien Alfonso: "According to the WIPO report, a copyright collection society can only be deemed viable, if the administration fee for the management of performance and broadcasting rights remain within a reasonable range of 30%. For the year ending 2009, information at hand showed COTT deducting a lot more than this recommended rate. The amount was 60% for broadcast distribution (Radio and Television) and 78% for General distribution (bars, restaurants, gyms, hotels etc.) Income from Carnival and some Live Events are not part of COTT’s general distribution."
Entertainment Macco: Does COTT have any official documentation stating the figure they are to deduct for administration fees?
Fabien Alfonso: "COTT has a document called ‘DISTRIBUTION RULES’ that clearly states how much COTT deducts for the administration of Reproduction Rights. With reference to broadcast and public performance rights fees, there is no stated stipulation in that said document. Seeing as both fall under their purview and the one document relates to both the rights that COTT administers why isn’t there a percentage stipulated for broadcast and public performances as was done for reproduction rights?"
Fabien Alfonso: "COTT has a document called ‘DISTRIBUTION RULES’ that clearly states how much COTT deducts for the administration of Reproduction Rights. With reference to broadcast and public performance rights fees, there is no stated stipulation in that said document. Seeing as both fall under their purview and the one document relates to both the rights that COTT administers why isn’t there a percentage stipulated for broadcast and public performances as was done for reproduction rights?"
Entertainment Macco: Is this practice illegal?
Fabien Alfonso: “It is not illegal but may be considered to be an unethical practice. It really begs the question of viability. Was COTT created to be viable to itself or to its members? Nevertheless it was those questionable deductions that prompted the members call for a ‘special meeting’.
Entertainment Macco: Can this issue affect the group or the board negatively?
Fabien Alfonso: “Many possibilities come to mind; for this group, victimisation and being branded as trouble makers if this effort is not successful.
I’m concerned about some of the individuals that are on the current board. These are people I know and genuinely respect. My belief is members of the board were not aware of this particular issue. But if there were any that knew about it, let’s hope it does not affect them”
Entertainment Macco: What do you feel the outcome would be?
Fabien Alfonso: "COTT has to justify their operational costs. It’s a case of income minus expenses; there is also discourse about the purchase of a new building. The question is, was this necessary? Was it a priority, does it benefit the members or the organization? Does this new facility assist the organization in collecting extra money? So if answers to these questions aren’t forthcoming, the members are certain about that vote of no confidence in the existing board. They want an organization that’s about cost-effective financial management and whose main priorities are its members."
Entertainment Macco: Should this effort succeed, can you give us an idea of what new policies or strategies are proposed to be put in place?
Fabien Alfonso: "Revisit of policies “Most of COTTs current policies would be revised. Case in point, the nomination and election process of the board. There must be a reduction of excessive operational and legal costs. COTT needs to engage other Industry stakeholders to deal with Compliance issues from a collective standpoint. The collection of reproduction/mechanical rights would be exercised with aggression. Some members expressed that COTT has become sort of an elitist group and has lost touch with its grass roots members. I hope this is an allegation and not a reality. In conclusion, the members are advised to draft a document similar to a manifesto. This would contain the course of action the new board would implement should they succeed in removing the current board and gaining full control of COTT.”
Fabien Alfonso: “It is not illegal but may be considered to be an unethical practice. It really begs the question of viability. Was COTT created to be viable to itself or to its members? Nevertheless it was those questionable deductions that prompted the members call for a ‘special meeting’.
Entertainment Macco: Can this issue affect the group or the board negatively?
Fabien Alfonso: “Many possibilities come to mind; for this group, victimisation and being branded as trouble makers if this effort is not successful.
I’m concerned about some of the individuals that are on the current board. These are people I know and genuinely respect. My belief is members of the board were not aware of this particular issue. But if there were any that knew about it, let’s hope it does not affect them”
Entertainment Macco: What do you feel the outcome would be?
Fabien Alfonso: "COTT has to justify their operational costs. It’s a case of income minus expenses; there is also discourse about the purchase of a new building. The question is, was this necessary? Was it a priority, does it benefit the members or the organization? Does this new facility assist the organization in collecting extra money? So if answers to these questions aren’t forthcoming, the members are certain about that vote of no confidence in the existing board. They want an organization that’s about cost-effective financial management and whose main priorities are its members."
Entertainment Macco: Should this effort succeed, can you give us an idea of what new policies or strategies are proposed to be put in place?
Fabien Alfonso: "Revisit of policies “Most of COTTs current policies would be revised. Case in point, the nomination and election process of the board. There must be a reduction of excessive operational and legal costs. COTT needs to engage other Industry stakeholders to deal with Compliance issues from a collective standpoint. The collection of reproduction/mechanical rights would be exercised with aggression. Some members expressed that COTT has become sort of an elitist group and has lost touch with its grass roots members. I hope this is an allegation and not a reality. In conclusion, the members are advised to draft a document similar to a manifesto. This would contain the course of action the new board would implement should they succeed in removing the current board and gaining full control of COTT.”
Entertainment Macco: Do you think that all the artistes would come together?
Fabien Alfonso: “This is an opportunity for artistes within the entertainment fraternity to unite, exercise team work and organizational democracy. The outcome could only be positive”.
Fabien Alfonso: “This is an opportunity for artistes within the entertainment fraternity to unite, exercise team work and organizational democracy. The outcome could only be positive”.
Category:
COTT,
Fabien Alfonso,
RIATT
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2 Responses
WIPO does not set standards for organisations like COTT, CISAC the International Confederation of Societies of Authors and Composers does. CISAC does not set any standard like that 30% administration rate. The name of the WIPO publication is "The Setting Up of new Collecting Societies-Some experiences and reflexions by Dr. Ullrich Uchtenhagen. Paragraphs 22 of that publication also states the basis for the calculation of tariffs as being the “10 % rule” according to which the authors and publishers are entitled to 1/10th of all income obtained by copyright users from the exploitation of the works." My experience with dealing with COTT does not indicate that COTT charges anywhere near this much for the music it licenses. Given the deliberate propensity of music users in Trinidad and Tobago to avoid paying for their use of music, I imagine COTT would have close to a zero percent success rate in collecting fees at that rate. I also note a disclaimer written in the preface to the booklet that states "The opinions contained in this publication reflect only the views of the author and not necessarily those of WIPO." Therefore this booklet does not reflect any WIPO position or standard.
FACT FINDER
Fantastic Interview. It's great to be able to get some insight on the other part of the entertainment industry, the complex issue of ROYALTIES