The Brazilian Central Bureau for Collection and Distribuition (ECAD) defends the payment. of copyright royalties on sponsored live streams.
In an increasingly digital world, the music industry has primarily used digital platforms for the publicity and reproduction of music. With the Covid-19 Pandemic, artists and record lables realized that the live streams, i.e., live presentations performed through digital platforms, such as Youtube and Twitch, are an opportunity to maintain their income and popularity with fans.
In Brazil and the world, the live streams started to be produced professionally, with technical team, several cameras, sets and sponsors. The numbers reached by great Brazilian artists, mainly from Sertanejo, a Brazilian music style similar to country, aroused the interest of the Brazilian Central Bureau for Collection and Distribution (ECAD) and the Brazilian Union of Music Publishers (UBEM), which seek a 10% fee for copyright royalties in sponsored live streams.
ECAD argues that “the payment is due and must be made by the promoter or responsible for the live stream“, since sponsored live streams generate revenue. In this regard, Michaela Couto, Ubem’s executive director, explained that the remuneration for copyright is fixed in 5% calculated based on the sponsorship value of each live. The other 5% goes to ECAD.
The new form of collection takes place at a time of global crisis, which affects shows and events, in addition to the closing, temporary or permanent, of thousands of commercial establishments, contributing to an estimated reduction between 330 million and 340 million reais in the annual collection of ECAD. This drop can be slightly mitigated by the copyright license over the live streams.
It is important to highlight that the amount charged by ECAD has no connection with the amounts paid by platforms, such as Youtube, which already has agreements with the entity for the payment of copyright royalties.