New in the industry: CAPASSO

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text supplied by SAMRO

Two years ago, at the 2012 AGM, a decision was taken by SAMRO members that SAMRO would move out of the Mechanical Rights administration space. For the past two years, SAMRO and NORM have been in talks to find a suitable solution for our members. This has resulted in the formation of CAPASSO.

CAPASSO is a non profit Mechanical Rights administration organisation, which will collect and distribute royalties to composers and music publishers. CAPASSO will replace both SAMRO and NORM in Mechanical Rights administration, providing rightsholders with a single Mechanical Rights society as recommended by the Copyright Review Commission.

Who is CAPASSO?
CAPASSO is a mechanical rights licensing agency, which collects and distributes royalties to its members: music publishers and composers.

CAPASSO licenses the reproduction or reformatting of musical works. This is because a mechanical right (which forms part of copyright) is raised whenever a reproduction (copy) or format transfer takes place. CAPASSO is authorised, by way of a mandate from its members, to issue such mechanical rights licences, collect the licence fees and distribute them as royalties back to the members.

Where did CAPASSO come from?
CAPASSO was incorporated in 2014, as a non-profit company representing the mechanical rights of music composers, authors and publishers (hence the name: Composers Authors and Publishers Association – CAPASSO).

The organisation came about as a result of the coming together of SAMRO and NORM, with the vision to create a progressive mechanical rights licensing hub, which would represent all rightsholders and would play an integral role in the copyright licensing landscape on the African continent.

Supported by the Copyright Review Commission Report released by the DTI in 2012, which recommended one collecting society per right, both SAMRO and NORM transferred their mechanical rights licensing operations to CAPASSO, and support the organisations strategic goals of service excellence to both members and users, comprehensive licensing in the digital era and being a truly African organisation.

When does CAPASSO launch?
July 2014

Will CAPASSO take assignment of rights?
No. CAPASSO will function on an agency basis, taking mandate from its members.

Will NORM still administer mechanical rights?
No. NORM will no longer administer mechanical rights. NORM will, however, remain a publishers association and will act in the interests of its members in all industry related matters.

Will SAMRO still administer mechanical rights?
No. SAMRO will no longer administer mechanical rights. SAMRO will focus on performing rights, and related activities, as its core business area.

What will happen to SAMRO’s mechanical rights members?
SAMRO will mandate CAPASSO to administer its member’s mechanical rights during the Interim Period of 12 months. During the Interim Period, all SAMRO’s mechanical right’s members will be requested to cancel their mechanical rights’ assignment to SAMRO, and join CAPASSO as members.
After the Interim Period, SAMRO’s mandate to CAPASSO will end and all ex-members of SAMRO will have to be members of CAPASSO if they wish CAPASSO to administer mechanical rights on their behalf.

What will happen to NORM’s mechanical rights members?
NORM will mandate CAPASSO to administer its member’s mechanical rights during the Interim Period of 12 months. During the Interim Period, all NORM mechanical right’s members will be requested to cancel their mandate to NORM and join CAPASSO as members.
After the Interim Period, NORM’s mandate to CAPASSO will end and all ex-members of NORM will have to be members of CAPASSO if they wish CAPASSO to administer mechanical rights on their behalf.

What is a mechanical right?
When it comes to music, there are several different rights that exist in any musical work or recording. Collectively, these are known as copyright. Yes, copyright is made up of several other rights, including, for example, performing rights, which are administered by SAMRO, and master rights, which are the rights the record label has in the actual sound recording.
CAPASSO only administers the mechanical right in copyright, i.e. the right that arises when music is reproduced or transferred from one format to another (from a master tape to a CD for example).
There are many examples of when a mechanical right arises: when promotional CDs are pressed, when an MP3 is purchased for download from an online music store by a user, when videos are put onto the correct format for broadcasting, or when music is attached to television programming …and these are just a few.
Remember, a license – or permission – from the copyright owner (represented by CAPASSO in this instance) must be obtained before any transfer takes place.

Who needs a CAPASSO licence?
Anyone who either makes copies of music or reformats (i.e. converts it to a different format). This includes the following classes of users:
Production houses who use commercial and production music in their productions (regular and promotional productions), whether on TV, radio, digital platform or hardcopy.
Record companies who don’t distribute their product through the major record companies.
Online music services that provide download and streaming services to the African continent.
Advertising agencies working in all forms of media e.g. radio, cinema etc.
Broadcasters
Filmmakers who use music (commercial and production) in their films
Corporate companies that use music for their corporate communications
Gaming and Apps companies that use music

Does CAPASSO license Synch rights?
CAPASSO does not license synchronisation rights (“synch rights”). You will have to contact the publisher directly should you need synch licence for commercial music usage for TV, radio or cinema advertising.

Who are CAPASSO’s Board of Directors?

Nick Matsukis
(Independent Chairman: CAPASSO)
Executive Director: Academy of Sound Engineering. Music Industry Consultant

Ryan Hill 

(Dep. Chairman: CAPASSO)
Managing Director: Universal Music Publishing
NORM Board Member

Abe Sibiya
Group Executive Chairperson: One Gospel TV, 1GKNI 103 FM, Urf Music , Mtommbo Audio Solutions
SAMRO Chairman

David Alexander
‎Managing Director: Sheer Publishing
NORM Chairman

Sipho Dlamini
Composer
SAMRO CEO

Louise Bulley
Managing Director: Synchro Music Management
NORM Member

Alexis Faku
Composer
SAMRO Member

Nothando Migogo
(CEO: CAPASSO)

 

 

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