Collective management of copyright and the principles of good governance

The report examines the operation of collective management of copyright in Finland from the point of view of the principles of good governance. Collective management offers a solution to situations where individual licensing of copyright is impossible or impractical. Authors and other rightholders mandate collective management organisations (CMOs) to manage their rights, monitor the use of their works, conclude licensing agreements with users on their behalf, and collect and distribute their remunerations. Since collective management is essential for licensing certain uses of copyrighted works, it is important to ensure that the system’s actors follow efficient decision-making processes that meet their legal, social and ethical responsibilities. The current report implements a methodology for assessing governance in the context of copyright systems developed at Cupore.

The study is based on publicly available information on the CMOs, a survey of rightholders whose rights are managed by them, as well as interviews of CMOs representatives and users who negotiate licensing agreements. The data collected is used to determine whether and in what manner the system of collective management as a whole is conducive to the respect of eight principles of good governance: transparency, participation, accountability, coherence and consistency, responsiveness, effectiveness and efficiency, equity and inclusiveness, as well as separation of powers. The study also covers the manner in which the principles of good governance are implemented in the relationship between the three main stakeholder categories: rightholders, CMOs, and users.  The report concludes with suggestions for improving the system of collective management of copyright.