Music Copyright Bill

Copyright infringement and the distribution of musical works has long been a debate within the artistic community, its governing bodies, and the government. It hit a whole new level in 1999 when online sharing sites like Napster hit the internet and made it easier than ever before for consumers to illegally share and release copyrighted music. Anyone who creates a song or piece of music wants to be fairly reimbursed for their hard work and the use of that work.

In Brazil, there is a new bill making its way through Congress that would set new rules for the collection, storage, and distribution of copyrights for musical works. It aims to give more transparency to the relationship between the entities responsible for collecting the revenue from the copyright, the authors of the works, and the public with regard to the “public performance of musical works, and musical lyrics and phonograms.”

The project was developed based on the public audit of the Central Bureau of Collection and Distribution (ECAD) and contains several amendments. The first establishes the 10th of every month as the deadline for radio, television, and film companies to deliver a completed list of the works that they have used during the previous month. This period is longer than the original version of the bill. Another amendment changes the billing of the users of the works will be proportional to the degree of utilization.

A deeper look at some of the changes

All of this stems from the investigation of ECAD by the senate to examine allegations against the company of wrongdoing. The organization currently holds the collection and distribution royalties on behalf its stable of composers and artists.

According to the Rapporteur, Senator Humberto Costa, the bill was written in a way to try and appease the different interests of everyone involved and get them a fair piece of the pie. ECAD will remain as the sole collecting agency for copyrights but will be under government control possibly as a branch of the Ministry of Culture.There will also be a three year mandate for ECAD leaders who will only be up for one reelection.

The bill creates and promotes access to a cost table for the use of any piece of music. On top of that, all data related to collection and payments, as well as preserving the identity of the artists.

It also changes the pricing structure. The revenue ceiling used to fund the expenses of the ECAD will be lowered from 25 percent to 15 percent. What this means is that should the legislation become law, 85 percent of what is collected by for the use of a particular piece of music will be distributed to the owners if the copyrights, authors of the song, interpreters and any other group that contributed to the piece like the studio musicians. This change will not go into effect overnight as the ECAD will have four years to change the percentage at a rate of 2.5 percent per year.

Penalties for breaking the news laws

There are large sums of money being talked about here. In 2012, the ECAD grosses R$624.6 million ($276.6 million) and paid out R470.2 ($208.3 million). Officials responsible for collecting the revenue from the copyrights acting dishonestly will not only be fired from but suffer civil and criminal sanctions and have their conduct reported.

If this change goes into effect, any musical artist would be wise to partner with Brazilian lawyers to make sure they getting fairly reimbursed for their hard work.

Petroleum for Education

Last December, the administration of Brazilian president Dilma Rousseff announced that 100 percent of all interest earnings on petroleum revenue would be funneled toward education spending. The government submitted that bill in May, and through the legislative process, the interest earnings were adjusted to 75 percent for education and 25 percent for healthcare.

Additionally, until 2022, 50 percent of the interest earnings on all oil contracts that have not yet been executed will go toward education.

The program is expected to generate $280 billion for the Ministry of Education—a figure that will help the government reach the goals of its National Education Plan, which call for education spending to account for 10 percent of Brazil’s GDP over the next 10 years.

Primary and middle school education (for students ages 7 to 14) became a right of all Brazilians in 1988, on the grounds that it would help in “fully developing the person, preparing the individual for the exercise of citizenship and qualifying him/her for work.”

Since then, education has been a concern of Brazilian lawmakers, including Rousseff, who took office in 2011. In her inauguration speech, Rousseff identified education reform, including an increased focus on teacher training programs, as one of her three primary priorities, along with achieving higher quality health and public safety.

“Quality teaching will only exist if teachers are treated as the real authorities in education, with ongoing training, appropriate remuneration and the solid commitment of both teachers and society to educating children and young people,” she said.

Since then, Rousseff has followed through on her promise, through the petroleum interest initiative and separate programs that would extend access to education to the poor

Protests for Political Reform Referendum

The protests taking place across the country of Brazil have made global headlines as residents have taken to the streets in an effort to initiate government change. If proposed referendums are any indication, those voices may have been heard.

On June 24, President Dilma Rousseff issued a statement calling for the people to choose the necessary changes for political reform. Two days later, Marcus Vinicius Furtado, the president of the Brazilian Bar Association (OAB), stepped up to defend the president’s idea.

According to Furtado, he rejects the idea that Brazilian citizens are unprepared to vote. Instead, they should be a bigger part of the process.

If passed, it would create a questionnaire that citizens can fill out which will essentially provide a priority list of the kinds of social and government change that the country’s leaders can focus on. Furtado stressed the need for those questions to be “simple and direct.” This is because citizens from all walks of life want to be a part of this change and making sure everyone understands the survey is crucial. He even called for the Superior Electoral Court to conduct knowledge campaigns prior to the release of the questionnaire that is free of partisan ideas and just spreads the facts to the people.

“What the Congress is doing now, it should always do, instead of simply waiting for the protests,” Furtado said. “Hearing the sentiment of society and expressing the will of the community. This is the function of the National Congress.”

INPIs’ changes to improve

Because of a diminished staff and poor infrastructure, Brazil’s National Institute of Industrial Property (INPI) has found itself with a major backlog of patents in a number of different sectors. According to a report from Monday, the weight can be anywhere from eight to 10 years in some instances and, in 2011, the average time was 5.4 years.

To help alleviate this problem, the organization announced several changes that will speed up the process and help eliminate the backlog. First off, there has been a partnership formed between the European Patent Office (EPO) and INPI in Argentina which will see the groups work together on the mountain of patents currently awaiting approval. On top of that, the Brazilian locations are working to upgrade their IT infrastructure which will include online applications and digital document sharing.

Another new rule allows for the fast-tracking of certain patents, like the examination of those for medications, healthcare equipment and processes that could weigh more heavily on public matters. Essentially, anything that the Ministry of Health considers a priority will get moved to the front of the line. These will include medications or procedures related to the treatment of cancer, aids, and neglected diseases, such as leishmaniasis, malaria and yellow fever.

There is currently a law in place that allows those filing a patent to apply for priority treatment from the government if they believe their product is for the “public interest.” This rule eliminates the need to file a request as every patent will be subject to that decision.

Proposal for Amendment

It was announced this week that the Senate leader of the Labor Party, Wellington Dias, is planning to submit a proposal for an amendment to the Constitution (PEC) that would see the National Council of Justice (CNJ) supervise the courts of public auditors. It also has an attachment that would add new responsibilities to the National Council of the Attorney General.

According to the senator, these changes could cover the gap of supervision and transparency in the audit courts which handles municipal, state and federal managers regarding the use of public resources.

For this to happen, the PEC would shake up the current councils and create new seats and categories. This has been in the works since 2007 and PEC 28 – as this bill in known – has undergone several revisions.

There are drawbacks, however, and not every member of the congress is ready to jump on board this plan.

“In a State with a structure that consumes 40 percent of GDP, there is no space for a new council, more posts, more daily expenses, more wages,” said Diogo Ringenberg, the president of the National Association of Auditing Public Attorneys.

President of the Association of the Members of the Courts of Auditors of Brazil, Antonio Joaquim, said the amendment would create a “bizarre” situation because it would have people that are not part of the Judiciary branch being a part of the national council on justice.

The bill is still being debated and Brazilian lawyers will be waiting for an outcome that could shake things up.