HOW ECCO WORKS: THE FACTS

cropped-ecco-logo-sc.pngA society of writers & publishers, the Eastern Caribbean Collective Organization of Music Rights (ECCO) is a Collective Management Organization (CMO) responsible for the administration of performance rights and the licensing of public use of music. Through reciprocal agreements with CMOs throughout the World, ECCO represents and can license virtually the whole worldwide repertoire of copyright music for public performance, broadcast, cable transmission, online and mobile use.

Essentially, ECCO serves as an intermediary body between writers & publishers and music users, providing a one-stop avenue for music users to license their public use of a world-wide catalogue of music, and in turn a one-stop collection and distribution avenue for ECCO members (writers, composers and publishers) for royalties due to them from the public use of music emanating from a number of sources, worldwide.

Simply put; ECCO licenses users of Copyright Music and pays Writers and Publishers whose music was performed, in the form of royalties.  That is all ECCO exists to do. A role which according to the organization’s audited financial statements, ECCO is becoming better at; producing growth year after year which exceeds national averages.

Membership in ECCO is not a benefit membership whereby due are paid out to members yearly simply as a result of their membership. Rather, members are paid royalties based on performance logs and data from licensed broadcasters and events. Therefore, it should be clearly understood that no performances means no Royalties. Further, considering the role of ECCO, it should be noted that it is the responsibility of the individual songwriter and/or his publisher to seek out usage of his songs in as many ways as possible.10849765_847622648636923_8512688286548424058_n

In fact membership of ECCO is similar to that of a Credit Union, where although you are a member of the Credit Union, you do not get free money given to you. Rather you can only draw out what you put in.  Therefore, in the case of Songwriter members of ECCO, if your music is performed in a licensed venue or by a licensed Broadcaster you will get Royalties from ECCO.  If your works are not performed you will not be entitled to any Royalties.

ECCO will therefore not perform fraud by giving to members what they are not entitled to. In fact giving free money to any member means that the members of ECCO or its Affiliate Societies whose musical works are regularly performed are being disadvantaged. Further, this would serve as a breach of ECCO’s mandate resulting in penalty action from overseeing bodies and affiliate societies.

Despite ECCO’s success in collecting licensing revenue, the organization has seen a lower percentage of national performances across the ECCO territories. It is an undisputed fact, that currently only an average of between 5% and 10% of Music performed locally is written by ECCO members.  Therefore out of every $1M which ECCO distributes, an average of only $50,000 to $100,000 will be due to ECCOs 600 plus members, as their share of distributable revenue.

Considering this, ECCO General Manager, Steve Etienne believes it is essential that focus be placed on establishing other vital areas of the music industry within the Eastern Caribbean. “I have been advocating for years that what we should be concentrating on is building a Music Industry focused on Exports and to promote the Business of Music, other than wanting to tear down the only successful pillar of the nascent Music Industry,” Etienne offers.

He believes that it is important that others take a cue from ECCO and set up other components of the Music industry that can take its place alongside ECCO.  This, Etienne says, can be supported by ECCO, to do all the things which ECCO cannot do.

The formation and establishment of Musicians Associations, Promoters Associations, Artist and Writer development forums, Audio Visual productions entities, and the development of policies which can influence the creation and performance of more local content; are a few examples recommended by Etienne as necessary components need to boost growth of Eastern Caribbean music industry.

“ECCO should not be the only game in town,” Etienne says. “Other entities should use their areas of expertise to create critical mass and bring real benefits to all participants in the Music Industry. For example, in the case of St Lucia, were ECCO is headquartered, we are hopeful that the Government and people of St. Lucia will use the strategy document produced for the country by the European firm, SOUND DIPLOMACY, as a template for building a viable export oriented music industry. ECCO is ready and willing to play its part in this endeavor.”

 

IFPI Grants ECCO the Right to Administer Related Rights for International Sound Recording Owners in the OECS

 

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Photo Retrieved www.copyrightsworld.com

“Copyright enables you to make a living off your art,” says Dave Kusek, founder and former CEO of Berklee Online and founder of the New Artist Model online music business course. “When you write or record music you produce more than just a ‘song,’” Kusek expounds.  “You also get exclusive rights and no one else can perform actions protected by your rights unless you give them permission.”

Kusek goes on to state that there are two kinds of music copyrights, the composition and the sound recording. Currently within the Eastern Caribbean, through the Eastern Caribbean Collective Organization for Music Rights (ECCO) Inc, focus has primarily been on composition copyrights, through the administration of performance rights.  Performance Rights owners [i.e. owner of the copyrights in the music composition] are typically the songwriters, composer and music publishers.

As a Collective Management Organization (CMO) responsible for the administration of performance rights on behalf of songwriters and music publishers, ECCO through reciprocal agreements with other CMOs worldwide, licenses the public use of music. ECCO in turn remits to the composition copyright holders the respective performance rights royalties related to the public use of copyright music.

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Photo Retrieved from www.cipo.gov.vc

Directly related to copyrights in the ‘song’ (owned by the songwriters and music publishers), are the rights of owners in the recording of the ‘sound’–the rights of which are typically owned by the recording artist/performer and the master recording owners (usually record label or the executive producer of the recording). Copyrights in the sound recording owned by the performer and record label/executive producer are referred to as Related Rights or Neighbouring Rights. According to a MusicClout.com article, they are called related rights/neighbouring rights because they are said to be directly “related to” performance rights.

Related rights refer to the right to publicly perform or broadcast a sound recording. As with every copyright, owners of those rights are entitled to collect royalties every time the sound recording is broadcast or publicly played. However, it is important to note, that without a collective society or CMO to administer related rights, owners of these rights will find it extremely difficult to self administer their rights in much the same way as songwriters would find it impossible to track performances of their songs, locally, regionally or globally and on the flip side, music users would not be able to cope with having to clear the millions of recordings existing globally as laws demand.

The good news for the Eastern Caribbean is that ECCO has been approached by the International Federation of the Phonographic Industry (IFPI) to collect related rights on their behalf in the OECS. ECCO is currently preparing its Business Plan to set out its financial plan, training for staff and agents, education of the market and identifying owners of the sound recording within the OECS (who will become a new category of members) with a view to ECCO administering related rights in the new year.

What does this mean for music rights holders within the OECS?

As expected, finalization of agreements by ECCO to administer Related Rights will mean that the Eastern Caribbean society will now be able to collect royalties on behalf of a new set of rights owners (performers, and owners of the master recording) who up to now have not been able to benefit from exploitation of the rights in their recordings.  Through reciprocal agreements ECCO will also be able to collect royalties for use of its members recordings globally which would usher in a new stream of music industry revenue for OECS rights holders.

References:

Kusek, D. (2014). Understanding Copyright: 6 Exclusive Rights for Indie Musicians. Retrieved from

https://bandzoogle.com/blog/understanding-copyright-6-exclusive-rights-for-indie-musicians

 

MusicClout.com (n.d.). What are Neighboring Rights? Retrieved from

https://www.musicclout.com/contents/article-437-what-are-neighboring-rights.aspx