Estimate shows a possible decrease of R$ 140 million in ECAD’s collection of royalties
The Central Collection and Distribution Office (ECAD) recently announced a possible loss of approximately R$ 140 million in the collection of amounts resulting from the public performance of musical compositions and phonograms, if the quarantine established due to the Covid-19 pandemic lasts up to four months. Such an estimate would result from the suspension of public activities and physical establishments, such as cinemas, nightclubs and restaurants.
The entity expressed an understanding that the monetary loss would be concrete, although part of the musical concerts previously scheduled has been rescheduled for dates after the quarantine. However, as a way of mitigating the impact on interpreters and composers, ECAD seeks to advance the payment of royalties and established a vacation period for part of its employees, given that physical inspections have been suspended.
In any case, it is possible to observe the maintenance of the collection of values resulting from alternative and modern sources, such as digital platforms, in addition to other traditional means such as radio companies and television stations. ECAD still expects the collection derived from music concerts to be normalized in 2020, considering the fear of loss of approximately R$ 11.3 million in copyright in this segment alone.
Further information available in Portuguese at https://veja.abril.com.br/entretenimento/ecad-preve-queda-de-r-140-milhoes-na-arrecadacao-de-direitos-autorais/