By SOMADINA EUGENE OKORIE ESQ
In the previous article, we explored the foundations of collective management and its growing importance within modern copyright systems. We concluded by noting that while Collective Management Organization providesa practical mechanism for administering rights in an increasingly complex creative economy, it also raises important questions about governance, transparency, competition, use of technology and the balance between rightsholders and end users.
This second part of the article builds on that discussion by examining the issues raised more closely. In particular, it explores the broader societal and economic significance of collective management, as well as the regulatory frameworksboth international and domestic, that shape how Collective Management Organizations (CMOs) operate.
Understanding these structures is essential, not only for rightsholders and policymakers, but also for the wider public. A well-functioning collective management system does not merely benefit individual creators; it supports entire creative ecosystems and contributes meaningfully to national economic development.
BENEFIT TO SOCIETY AT LARGE
Collective management plays a vital role in the economic development of many countries, particularly through its impact on the creative industries. These industriesincluding music, film, publishing, broadcasting, and the visual arts, are increasingly recognized as important drivers of employment, innovation, cultural identity, and national income.
More than fifty countries have studied the economic impact of copyright industries using the methodology developed by the World Intellectual Property Organization (WIPO). According to these national studies, copyright-based industries contribute on average 5.44 percent to national Gross Domestic Product (GDP). In terms of employment, the impact is even slightly higher, with the sector accounting for an average of 5.78 percent of national employment.
These figures demonstrate that copyright industries are not merely cultural sectors; they are significant economic engines. In many countries, they grow more rapidly than the wider economy. Creative sectors such as music, film, publishing, and visual arts generate billions in revenue while supporting a vast network of professionals, from artists and writers to producers, distributors, and service providers.
By ensuring that rightsholders receive fair compensation for the use of their works, collective management helps sustain a financially viable creative ecosystem. This in turn encourages continued production, innovation, and cultural development.
A well-functioning collective management system also benefits industries that rely heavily on creative content. Broadcasting organizations, streaming platforms, advertising agencies, educational institutions, and digital media companies depend on efficient licensing mechanisms in order to access copyrighted works legally. Collective Management Organizations simplify this process by providing centralized licensing solutions, thereby eliminating the need for users to negotiate individual agreements with thousands of creators.
This significantly reduces transaction costs, increases market efficiency, and encourages investment in local creative sectors.
Moreover, royalties collected and distributed by CMOs circulate back into the broader economy. The income received by creators enables them to reinvest in new projects, hire professionals, and contribute to economic activity through taxation and consumer spending. In many countries, CMOs also support cultural development through grants, social programs, educational initiatives, and funding for artistic projects.
For these reasons, the effectiveness and integrity of collective management systems are closely tied to the overall health of a country’s creative economy.
REGULATORY FRAMEWORKS AND GOVERNANCE
Given the significant economic and cultural role played by collective management, effective governance structures are essential.
A strong regulatory framework, comprising legislation, regulatory oversight, and institutional safeguards, establishes the rules that govern rights management, transparency, accountability, and competition within the collective management system. Such frameworks reduce the risk of abuse, inefficiency, or lack of transparency in the operation of CMOs.
At the same time, collective management organizations themselves must develop robust internal governance structures. These internal frameworks include founding statutes, mandates from rightsholders, distribution policies, transparency mechanisms, and internal disputeresolution procedures.
Ideally, external regulation and internal governance should complement one another. External legal frameworks provide oversight and accountability, while internal governance structures ensure that organizations operate efficiently and fairly for the benefit of both rightsholders and users.
When properly aligned, these two frameworks form a balanced system capable of supporting a modern and transparent copyright marketplace.
To better understand how such frameworks operate, it is necessary to examine the international legal instruments that form the foundation of copyright protection worldwide.
EXTERNAL REGULATORY FRAMEWORK
The external regulatory framework for collective management begins at the international level. A series of international copyright treaties establishes the fundamental principles governing the protection of authors and related rights holders across jurisdictions. Although these treaties rarely address collective management directly, they nevertheless shape the legal environment in which CMOs operate.
The discussion therefore begins with the key international treaties governing copyright and related rights, before moving on to national legislation and regulatory structures that implement these principles domestically.
International copyright treaties and their relevance to collective management
Nigeria’s copyright and royalty systems do not exist in isolation. They are influenced by several international treaties that shape how creative works are protected globally and how creators are compensated when their works are used.
Understanding these treaties helps explain why modern, technology-driven collective management systems are necessary.
THE WIPO COPYRIGHT TREATY (WCT)
The WIPO Copyright Treaty modernized the Berne Convention for the Protection of Literary and Artistic Works for the digital age.
The treaty expanded the rights of an author to control how their works are communicated to the public, including online distribution, streaming, and digital downloads. It also introduced protections for digital rights management systems, making it illegal to bypass technological safeguards used to protect copyrighted works.
Although the treaty does not directly regulate Collective Management Organizations (CMOs), it significantly strengthens their role by ensuring that the digital rights creatorscan be licensed, monitored, and monetized across borders.
This reinforces the need for CMOs to adopt modern technologies capable of tracking digital and public use of creative works.
THE MARRAKESH TREATY
The Marrakesh Treaty, adopted in 2013, focuses on improving access to published works for people who are blind, visually impaired, or otherwise print-disabled.
The treaty allows countries to introduce copyright exceptions that permit the creation and distribution of accessible formats such as Braille, audiobooks, and large-print editions without requiring authorization from rightsholders.
While the Marrakesh Treaty primarily addresses accessibility rather than royalty collection, some countries allow remuneration systems administered by CMOs to compensate rightsholders for uses under these exceptions.
THE ROME CONVENTION
The Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations established international standards for the protection of performers, music producers, and broadcasters.
The convention introduced the principle that performers and producers should receive equitable remuneration when their recordings are broadcast or publicly performed.
This principle laid the foundation for modern collective management systems, where CMOs license the use of music and collect royalties from radio stations, clubs, restaurants, and other establishments that publicly play copyrighted works.
THE WIPO PERFORMANCES AND PHONOGRAMS TREATY (WPPT)
The WIPO Performances and Phonograms Treaty strengthened the rights of performers and music producers in the digital era.
Building on the Rome Convention, the treaty grants performers and producers exclusive rights over the reproduction, distribution, rental, and online availability of sound recordings.
These rights apply to modern digital services such as streaming and downloading, ensuring that performers and producers are compensated when their works are used online.
The treaty also reinforces the role of CMOs in licensing music and collecting royalties for digital uses, which today represent a major share of the global music economy.
THE BEIJING TREATY ON AUDIOVISUAL PERFORMANCES
The Beijing Treaty on Audiovisual Performances extended copyright protection to performers appearing in audiovisual works such as films, television shows, and digital media.
Before this treaty, international copyright law focused largely on sound recordings, leaving actors and other audiovisual performers with limited global protection.
The treaty grants performers rights over the reproduction, distribution, rental, and online availability of their performances, and allows countries to establish systems of equitable remuneration when audiovisual works are commercially used.
This framework further highlights the importance of well-regulated collective management systems capable of efficiently collecting and distributing royalties to performers.
In the concluding part of this article, we shall discuss in details how Technology can drive efficiency in licensing music and collecting royalties for digital uses
About the Author
SOMADINA EUGENE OKORIE ESQ. is a WIPO certified advocate, Intellectual Property/Business Solicitor and researcher based in Lagos. His work explores how legal innovation can drive inclusive economic growth and cultural preservation in Africa.
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