AIE members area manager Fernando Prados talks about collecting your neighboring rights around the world.
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00:00The producer's role does not apply to the rights as such,
00:03but if it is documented as a musician,
00:06apart from as a producer,
00:08it will apply to those rights and will be able to receive them.
00:17Well, good morning everyone,
00:21welcome and thanks for your attendance,
00:25thanks to Bilbo for giving us this space
00:27and the opportunity to start the Music Week.
00:29It is a great honor.
00:31I am going to talk about how to collect
00:34your rights as such all over the world.
00:37But before answering this question,
00:40I think it is necessary to locate
00:43what those rights as such are.
00:45There is a lot of confusion and still a lot of ignorance.
00:49The rights as such are the rights
00:53that are generated by commercial exploitation,
00:56the use of your repertoire
00:59on radios, televisions and venues open to the public.
01:09These rights benefit the artists
01:13who have participated in the recording of this theme,
01:17both the main artists and the session musicians
01:21who accompany the main artists in the recording.
01:27Following the track of what rights are generated
01:31and to see the context and how they coexist
01:34with other intellectual property rights,
01:37if we look at the example you have there,
01:40the broken heart,
01:42on the one hand, rights would be generated
01:45for composition, the rights of author or edition.
01:48The beneficiaries of these rights
01:52would be the musical composers
01:55and the creators of the lyrics.
01:58These rights would be managed in a specific way
02:01by author management entities.
02:04There you have the examples of ASCAP, VMI, SESAC.
02:07In parallel, completely independent of these rights
02:11and additional, would be these neighboring rights,
02:14these rights connected to the rights of artists.
02:17So, who would be the beneficiaries of these rights?
02:21We have mentioned it before.
02:23The beneficiaries would be those who have participated
02:26in the recording of the songs that are being exploited,
02:29both the main artists and the session musicians
02:32who accompany the recording.
02:34They would be managed by management entities
02:37different from author management entities.
02:40In this case, we are talking about AIE,
02:43the society of artists that I represent.
02:46It is an international rights management society
02:49located in Spain with a worldwide reach.
02:52In this case, Alejandro Sanz
02:55and the whole line-up of musicians
02:58who have worked on the recording.
03:01There is a derivative of the rights connected
03:04that are also generated for the owner of the master.
03:08They are also independent and additional
03:11to the rights of the artist and the rights of the author.
03:14There you see that these rights would be managed.
03:18There are several management models.
03:21It can be a company dedicated to managing them exclusively,
03:24as in the case of Spain, which is a company called Hedi.
03:27Or it can be a joint, a company that manages
03:30the rights of the artists and also of the owners of the master,
03:34usually the labels.
03:37But you could also be independent artists
03:40and also have ownership of that master.
03:43That is the same, additional to everything we have mentioned before.
03:46And also additional to the royalties
03:49that you receive according to the contract
03:52that you have with your label or distributor.
03:58Why are they important?
04:01Apart from the recognition and reputation of your work,
04:05they are already an important part
04:08of the recorded music segment.
04:13You can see that in 2023
04:16they made almost 10% of the total income.
04:19We are talking about almost 3 million dollars.
04:24And it is not only that,
04:27because the potential for growth is very large.
04:30Why? Because it is a right that is being consolidated.
04:33The different countries and the societies
04:36that manage these rights
04:39are still developing and consolidating
04:42and they have to grow at the level of fees,
04:45but apart from that,
04:48there are also very important markets
04:51that are not being managed and are just starting.
04:54We are talking about the Asian market, the African market,
04:57and today you know that your music can be played anywhere
05:00and those rights can be generated anywhere.
05:03There you have a trend of what has been in recent years
05:06also of the growth of these rights.
05:10If we talk about management models,
05:13we could clearly identify two.
05:16It is important that you also differentiate them.
05:19One is the one that applies in the United States,
05:22that according to its legislation,
05:25the rights are generated by the use of music
05:28in non-interactive satellite radio platforms.
05:31We are talking about users like Sirius XM,
05:34and you see that it has a very important weight today,
05:37between 40 and 41%.
05:40The other model is the one that applies in the rest of the world,
05:43that the rights are generated by the use of music
05:46as it is used in traditional analog radios,
05:49the usual land radios.
05:52In addition, rights are also generated
05:55by the use of the repertoire in places open to the public.
05:58The use of your music can generate rights,
06:01as I say, all over the world.
06:08Oh, what happened?
06:14I don't know if we can get it back.
06:17Yes.
06:20Well, having seen the context of what rights are,
06:23we already answered the question we had at the beginning,
06:26how to collect them all over the world.
06:29What aspects should you take care of?
06:32Well, the most important thing I would tell you
06:35is to take care of your repertoire.
06:38It is, as we put it there, your most important asset.
06:41You have to make sure
06:44that your name is linked to the metadata of the data.
06:47It is vital,
06:50because if not, when you go to collect,
06:53when the entities go to claim your rights,
06:56at the level of the main artist,
06:59obviously it is easier,
07:02because it is in public domain,
07:05but at the level of the executive musician,
07:08we have more problems.
07:11So, when you go to record,
07:14you have to talk to the producer,
07:17with the record company, with whoever,
07:20but try to link them.
07:23The best way is through the Able Copy,
07:26which is a document that is the identity card of the song.
07:29It has to be there.
07:32From there, it is the effort you have to make,
07:35and then your repertoire will work for you
07:38at the level of rights.
07:41You do not have to worry later to do much more.
07:44Make sure that the information is well complete,
07:47that it is precise,
07:50full name and last name,
07:53and the role with which you participate.
07:56We have talked about the role of the main artist
07:59and the executive musician,
08:02but nowadays the producer,
08:05apart from his important task,
08:08he also intervenes as a musician,
08:11many times.
08:14He puts in instrumentation, programming, keyboards,
08:17or traditional instruments.
08:20The producer's role does not apply to the rights as such,
08:23but he documents as a musician,
08:26apart from as a producer,
08:29he will apply those rights and will be able to receive them.
08:32Therefore, it is very important that you document both roles.
08:37And the other aspect
08:40that you have to worry about
08:43is to have a global management.
08:46The neighboring rights
08:49are of mandatory collective management.
08:52This means that they have to be managed
08:55through an entity.
08:58It would be impossible to go from country to country,
09:01because the model is that each country has a management entity
09:04that is in charge of gathering users,
09:07radios, televisions, rooms,
09:10all those rights,
09:13and then establish the distribution process.
09:16It is important to know
09:19that there always has to be a use.
09:22This is very complicated for musicians.
09:25Imagine going from country to country
09:28because of the affiliation process.
09:31What emerges at that moment?
09:34One of the models that I am going to tell you about,
09:37which is the model of intermediary agent,
09:40which sees those difficulties and also sees that there may be
09:43an interference between the artist
09:46and the management society.
09:49I have told you that each management entity
09:52has an administrative discount
09:55to manage its operations,
09:58and this is insurmountable.
10:01When this model of intermediary agent arrives,
10:04it comes and says,
10:07I will help you do this management
10:10for a fee.
10:13What happens is that this model,
10:16apart from the fact that you are surrounded by many people
10:19who have to help you and, logically,
10:22receive their remuneration,
10:25this is another added plus.
10:28It is not such an efficient model
10:31because that difficulty that I indicated for the artists
10:34is also transferred to the agents.
10:37Obviously, this management is going to be better,
10:40but we do see that the artists are going to be affiliated
10:43in the countries that are determined as the most important,
10:46and a repertoire management is also done
10:49in each entity with the difficulties that this entails.
10:52The other model is to ensure
10:55a global management with a management entity
10:58that has a reach as universal as possible.
11:01How is this universal reach achieved?
11:04Management entities reach agreements of reciprocity
11:07to exchange rights between them.
11:10So that I, my affiliates,
11:13claim for them in any country in the world,
11:16where I have that agreement of reciprocity,
11:19that country pays me and vice versa.
11:22This model also sinned a bit of inefficiency a few years ago
11:25because the entities and the right were still in development,
11:28but now it is sufficiently consolidated
11:31to trust it.
11:34In fact, an advantage and a strong point of this model
11:37is that all entities share tools at the level of technology
11:40and database, repertoire, lineups with musicians
11:43and uses that facilitate this exchange a lot.
11:46And in this sense, I am already talking about AIE,
11:49AIE is the entity that has the most agreements of reciprocity
11:52signed worldwide.
11:55Where the rights of the artists are recognized,
11:58there is a signed agreement to collect these rights.
12:01There is a list,
12:04well, very diverse.
12:10But in the global reach,
12:13not only do you have to think about a global reach at a geographical level,
12:16but also a global reach at the level of legislative development,
12:19development of the right.
12:22Before we talked about the rights generated by the use of your repertoire
12:25but also rights are generated in the audiovisual environment,
12:28rights of artists.
12:31When a song is played in a series, in a movie,
12:34you can generate rights and you can also collect them.
12:37AIE also contemplates the audiovisual right.
12:40Although it is true that it is not a right that is extended
12:43throughout the world,
12:46AIE is managing it and collecting it
12:49and making it reach the artists.
12:52So that when that model or that right is extended
12:55in the rest of the countries,
12:58through the agreements of reciprocity that AIE has,
13:01we will directly receive those rights and they will also reach the musicians.
13:04The same with the digital environment.
13:07AIE is the only management entity in the world
13:10that is managing, collecting and distributing
13:13a right of remuneration for the use of music on digital platforms,
13:16streaming platforms.
13:20In parallel or in addition to the royalties
13:23that the artist has established
13:26with his record label.
13:29And this is also very good for the executive musicians
13:32who did not get anything from this part of the cake,
13:35the session musicians.
13:38The same in new markets like video games, social networks
13:41or markets where the right is about to develop
13:44like the Asian market and the African market.
13:50Well, I don't have much more time.
13:53We are going to be here this week,
13:56my colleagues and I.
13:59If you have any questions,
14:02we will be happy to answer you.
14:05This afternoon at 3 p.m. we also have the round table
14:08where my colleague will participate.
14:11To finish, the process of affiliation to AIE is very simple.
14:14It is a process, from beginning to end, online.
14:18And it finally leads you to the necessary documentation
14:21through digital signature.
14:24Once you are accepted as affiliates,
14:27as partners, you are given access
14:30to the tools on the Internet, the virtual office.
14:33And from there, it is important to report
14:36the repertoire in which you are working.
14:39Be very constant, very regular.
14:42This is a long-term career,
14:46your repertoire does not generate much at the beginning,
14:49but it is important to have it ready
14:52so that when that sounds, it reaches you.
14:55In addition, your rights also last in time.
14:58The use, a use that is made on a date
15:01can be recorded for several years.
15:04There are many details that, as we say,
15:07we can clarify for you.
15:10And nothing else.
15:14A pleasure and see you here.
15:17Have a good week.