Moscow, Russia, September 19, 2016 — Russian Non-Governmental Organization “Russian Authors’ Society” (RAO) announced its 2015 results and achievements.
In spite of declining macroeconomic activity, RAO managed to achieve positive dynamic in its key performance criterion. In 2015 the number of rights holders, who entrusted the Organization with management of their rights, increased significantly. By the end of the year the Society had collective management contracts with 26 941 rights holders. In 2015 802 rights holders (both physical and legal entities) transferred their rights to RAO.
Royalties were paid by all Russian theatres, philharmonics, circuses, almost all large cinema networks, catering and retail networks, TV and radio companies. Today RAO has 29 044 contracts with users (5 160 contracts were signed in 2015).
One of the most important RAO tasks in 2015 was to keep up the level of collections against declining economic activity in Russia. The Society reached that goal: the total collection was over 4.5 bln. rubles.
In 2015 several categories of rights showed significant increase of collections in comparison with the previous year: transportation sector (over 60% increase), Russian theaters (9% increase), concert royalties (also 9% increase). In total, public performance royalties went up by almost 200 million rubles and worked out over 3 bln. rubles.
Unfortunately royalty collection for some categories of rights declined. Remuneration from TV and Radio broadcasters decreased by 2% due to users’ decline of advertisement revenues. Receipts from the Russian Union of Rightsholders (RUR) for “private copying” fell in two and a half times.
RAO is aimed not only at increasing its collections, but also at faster distribution of royalties. Successful introduction of Common Information System (CIS) allowed RAO to enjoy continuous automatic distribution.
CIS has been tested by CISAC (International Confederation of Societies of Authors and Composers) and PRS for Music (British performing rights society) representatives, who expressed a high opinion of the system. Today CIS allows distributing almost all received remuneration. In 2015 RAO distributed 4 473 833 thousand rubles. Total post-tax pay-offs to rights holders were 3 264 625 thousand rubles.
«Looking back at the results of 2015, we can say that in spite of the difficult economic situation our Society could preserve high level of collections and pay-offs, — says Vera Fedotova, First Deputy General Director of RAO. — Throughout the year we were solving many tasks. We tried very hard to address the key challenge — our transparency. Creation and introduction of CIS provided absolute transparency of distribution and royalties transfer».
In 2015 RAO was very active in legal support of authors. Our Legal Service dealt with 2431 court cases on copyright infringements. Remuneration, assessed in damages, increased by 27% and amounted to 52 371 thousand rubles.
RAO is included in the world system of copyright protection. We are a member of CISAC - International Confederation of Societies of Authors and Composers, which unites 239 collective management organizations in 123 countries of the world. At the present time RAO has 190 reciprocal and unilateral representation contracts with 120 sister societies from 69 countries.
12 regional and 33 representative offices of RAO work all over the country. They employ 620 staff members and 106 agents.
In 2015 Russian Authors’ Society also took part in social projects, supporting national culture. It helped to organize different international music festivals. The Society promoted Russian Intellectual Property Days and VIII International Forum «Intellectual Property – XXI Century». RAO management, including its General Director Mr. Sergey Fedotov, supported several events within the “Year of Literature” project. It also supported international festivals and competitions, such as “St. Petersburg Music Spring”, International Festival of Contemporary Music “Moscow Autumn”, VI International Festival of Chamber Performance “Silver Lyre” etc.
Press-Service of Russian Authors’ Society
Table 1 / Collections of authors’ remuneration for 2015
Table 2 / Distribution of authors’ remuneration for 2015
Table 3 / Payments and deductions from the sums of authors’ remuneration for 2015
Table 4 / RAO expenditures for 2015*
Table 5 / International accounting* in 2015 (except the CIS countries)
Table 6 / International accounting* in 2015 (with the CIS countries)