What is a 'collecting society' and what do they do?

In Plain English

A "collecting society" is an organization that looks after the rights of copyright owners. Think of it like a representative for artists, musicians, and authors. These societies manage licenses, collect fees when their members' work is used, and then distribute those fees back to the copyright owners. They make sure creators get paid fairly when their creations are used by others.

Detailed Explanation

A collecting society is a body that manages copyright and related rights on behalf of copyright owners. Several sections within the Copyright Act 1968 and other related legislation outline the roles, responsibilities, and requirements for collecting societies.

Key aspects of collecting societies include:

1. Declaration and Appointment:

   • A body can apply to the Minister to be declared a collecting society for all relevant copyright owners or specified classes of copyright owners (Copyright Act 1968 section 135ZZZO(1)).
   • The Minister can declare a body to be a collecting society by publishing a notice in the Gazette, refuse the application, or refer the application to the Copyright Tribunal (Copyright Act 1968 section 135ZZZO(2)).
   • The Copyright Tribunal can also declare a body to be a collecting society if the Minister refers the application (Copyright Act 1968 section 135ZZZO(4)).
   • For visual artists, a body may apply to the Minister to be appointed as the collecting society (Resale Royalty Right for Visual Artists Act 2009 section 35(1)). The Minister can appoint the body for a period not exceeding 5 years specified in the notice (Resale Royalty Right for Visual Artists Act 2009 section 35(2)).

   • Requirements for Declaration/Appointment:

   • The body must be a company limited by guarantee (Copyright Act 1968 section 135ZZZO(7)(a); Resale Royalty Right for Visual Artists Act 2009 section 35(4)(a)).

   • All relevant copyright owners or their agents must be entitled to become members (Copyright Act 1968 section 135ZZZO(7)(b); Resale Royalty Right for Visual Artists Act 2009 section 35(4)(b)).
   • The rules of the society must prohibit the payment of dividends to its members (Copyright Act 1968 section 135ZZZO(7)(c); Resale Royalty Right for Visual Artists Act 2009 section 35(4)(c)).
   • The rules must contain provisions to protect the interests of members, including provisions about the collection and distribution of equitable remuneration, payment of administrative costs, holding amounts in trust for non-members, and access to records (Copyright Act 1968 section 135ZZZO(7)(d); Resale Royalty Right for Visual Artists Act 2009 section 35(4)(d)).

   • Functions and Responsibilities:

   • Collecting societies manage licensing arrangements, permitting the use of copyright material (A New Tax System (Goods and Services Tax) (Attribution Rules – Supplies and Acquisitions Relating to Collecting Societies) Determination 2025).

   • They collect copyright fees under these arrangements (A New Tax System (Goods and Services Tax) (Attribution Rules – Supplies and Acquisitions Relating to Collecting Societies) Determination 2025).
   • They distribute collected copyright fees and royalties to their members (A New Tax System (Goods and Services Tax) (Attribution Rules – Supplies and Acquisitions Relating to Collecting Societies) Determination 2025).
   • For visual artists, they collect and distribute resale royalties to holders of resale royalty rights (Resale Royalty Right for Visual Artists (Provisions to be Contained in Collecting Society Rules) Determination 2020).

   • Revocation of Declaration/Appointment:

   • The Minister can revoke the declaration of a collecting society if it is not functioning adequately, is not acting in accordance with its rules, or has altered its rules to no longer comply with the requirements (Copyright Act 1968 section 135ZZZP(1); Resale Royalty Right for Visual Artists Act 2009 section 36(1)).

   • The Minister can also refer the question of revocation to the Copyright Tribunal (Copyright Act 1968 section 135ZZZP(2)).
   • The Copyright Tribunal can revoke the declaration if it is satisfied that the body is not meeting the required standards (Copyright Act 1968 section 135ZZZP(3)).

   • Reporting and Transparency:

   • Collecting societies must prepare an annual report of their operations and send it to the Minister (Copyright Amendment (Disability Access and Other Measures) Act 2017 section 113Z(1); Resale Royalty Right for Visual Artists Act 2009 section 37(1)).

   • They must keep accurate accounting records and have their accounts audited annually (Copyright Amendment (Disability Access and Other Measures) Act 2017 section 113Z(2); Resale Royalty Right for Visual Artists Act 2009 section 37(5)).
   • Members must be given reasonable access to copies of reports and audited accounts (Copyright Amendment (Disability Access and Other Measures) Act 2017 section 113Z(5); Resale Royalty Right for Visual Artists Act 2009 section 37(8)).
   • Any alterations to the rules must be reported to the Minister (Copyright Amendment (Disability Access and Other Measures) Act 2017 section 113ZA; Resale Royalty Right for Visual Artists Act 2009 section 38).

   • Copyright Tribunal Oversight:

   • The Copyright Tribunal can review a collecting society's distribution arrangements upon application by the society or a member (Copyright Amendment (Disability Access and Other Measures) Act 2017 section 113ZB(1)).

   • The Tribunal can confirm, vary, or substitute the arrangement for distributing amounts collected (Copyright Amendment (Disability Access and Other Measures) Act 2017 section 113ZB(2)).

   • GST Attribution Rules:

   • The A New Tax System (Goods and Services Tax) (Attribution Rules – Supplies and Acquisitions Relating to Collecting Societies) Determination 2025 sets out specific rules for attributing GST for supplies and acquisitions made by collecting societies and copyright owners.

   • These rules ensure that GST and input tax credits are attributed to the correct tax period, particularly when there are delays in awareness of GST liability or consideration being received/provided.

In essence, a collecting society acts as an intermediary, ensuring that copyright owners are compensated for the use of their works, while also managing the administrative and legal complexities of copyright management.