Newsletter
Third Reading of Amendments to the Copyright Collective Management Organization Act Passed in Legislative Yuan
Parties wishing to obtain licenses for musical works, for purposes such as playing music on business premises, holding concerts, or broadcasting, it can be difficult to locate individual composers and negotiate licensing issues therewith. To address this issue, Article 81, Paragraphs 1 and 2 of the Copyright Act stipulate that economic copyright holders and their exclusive licensees may, with the approval of the specialized agency in charge of copyright matters (Intellectual Property Office, hereinafter "TIPO”), establish copyright collective management organizations (hereinafter "CMOs”) for the purpose of exercising rights or collecting and distributing compensation for use. Under this circumstance, many composers entrust administration of their work to the CMOs, so as to streamline negotiations and acquisition of desired authorization.
Currently, CMOs administering musical works, sound recordings, and musical MV works in Taiwan include the Music Copyright Society of Chinese Taipei (MÜST), the Asia-Pacific Music Collective Management Association (ACMA), the Taiwan Music Collective Management Association (TMCA), the Association of Recording Copyright Owners of Taiwan (ARCO) and the Recording Copyright and Publications Administrative Society of Chinese Taipei (RPAT). Potential exploiters may consult with those CMOs according to various licensing requirements for public performance, broadcast, transmission, or the like.
The CMOs are governed by the Copyright Collective Management Organization Act (hereinafter "CMO Act,” formerly known as the Copyright Intermediary Organization Act). The Act was formulated and published on November 5, 1997, and later amended and published on February 10, 2010. Due to certain residual drawbacks and problems in practical application, another round of draft amendments to the “Copyright Collective Management Organization Act” passed a third reading in Legislative Yuan on April 29, 2022. The amendments seek to improve operation of the CMOs in Taiwan and thus protect the rights of members thereof and enhance the circulation of their works.
Highlights of the amendments include:
(1) Introduction of a public consultation mechanism;
(2) Addition of the term of office and the re-election restrictions for directors and supervisors of the CMOs, and the establishment of internal control system specifications for personnel, finance, business, and other matters;
(3) Expansion of TIPO responsibility to guide CMO use of innovative technology to enhance management efficiency and reduce exploitation costs; and
(4) Addition of the guidance or penalties by TIPO when CMOs violate laws and regulations.
The official provisions to be implemented will be subject to announcement by presidential decree.