Collective management organizations (CMOs) play a fundamental role in promoting the creation of artistic works. For that reason, the efficient and transparent management of authors' rights is a crucial element in strengthening the creative industry in Latin America, a sector of the economy that is growing strongly, particularly in the audiovisual and musical sectors.
CMOs originated as a response to certain deficiencies in the management of individual authors' rights. Without prejudice to certain exceptions, the existence of CMOs involves a high level of segmentation that may be favoured by the regulations that frame them, since the aim is to maximise the benefits of the system for right-holders and users. The CMOs have a decisive and delicate role to fulfil regarding the collection and distribution of royalties as in the generation of tariffs for the repertoires to be licensed. As a result, these entities need to have well-known and transparent frameworks to facilitate both users and right holders in the administration of their rights.
Different regulations have been developed for the purpose of developing this type of organization. The aim of the project is, after a comparative study of the collective management systems in force in selected Latin American countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Peru and Uruguay), to identify the points of potential conflict in the administration of CMOs, as well as the challenges that these organizations must face in the context of new technological developments and business models based on the digital economy.
During the first stage, the objective of the project is to analyze the legal and economic design in which the CMOs operate. To this end, it aims to identify the stakeholders and their interaction in the market. In particular, it will examine their links with rights holders, their relationship with users and, if they have any, the kind of control they receive from the State. It will also study in detail the link between these entities and the CMOs operating abroad, with particular emphasis on the distribution of royalties. Similarly, it will examine the effectiveness of the administration of the CMOs, their organization, forms of governance and transparency.
See the first report (in spanish)
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