• Objectives of tariff setting

    1. To establish fair, reasonable and standard range of royalty fee
    2. To set standard royalty fee, so as to handle the licensing work of large number of music public performance of the same category at one time

    3. To achieve a balance between “Ensuring an acceptable income to copyright owners” and “Requesting music users to pay an acceptable royalty fee”, and allow creators to receive reasonable remuneration, so as to stimulate music creation and improve music quality, and assist music users to use music in public areas legally.

    Ways of establishing tariffs

    1. In many countries and regions around the world which provide copyright protection, it has been publicly recognized that the work of copyright owners is able to benefit the music users and enhance the development of various industries either directly or subtly. Hence, a share of the achievement of respective industries is the most equitable remuneration to the copyright owners. For example, radio and TV broadcasting industry can select from the global music repertoire with the issuance of blanket licenses.

      However, to the other industries, music may not contribute directly to the profitability of a business, and furthermore accurate revenue figures from the respective industries may not be easily obtainable. Therefore, “standard tariff” are generally adopted.

    When establishing a tariff for a specific business or trade, MACA will:

    1. ·Study the form of music usage in such businesses and its operation status by research, and compare these with other businesses where tariffs have been established.
    2. ·Make a matrix of references to relevant tariffs which were already established by MACA’s affiliated societies with similar functions; as their tariffs would in many cases have been established for years and/or by means of decisions made by “Copyright Tribunal”, or the courts, and have already been accepted by the respective industries.


    Standards for tariff setting

    1. For annual license, tariff standard reflects the value of music to different industries and the value that different usage of music brings within the same industry,
    2. 1. Value that different form of music usage brings to users, in descending order:
    3. ·Live music performance (e.g. live band music)
    4. ·Music performed for accompanying dancing
    5. ·Visual music performance (i.e. music performed together with visual presentations by means of monitors and television screens)
    6. ·Background (emotional) music

    1. 2. Values by similar means of music usage in different industries:
    2. ·Background music is more essential in a bar than in a shopping mall
    3. ·Visual music is more essential in a karaoke lounge than in a boutique
    4. ·Live singing by customers in a karaoke lounge is not as important as live music performance in bars, however, the value is similar.

    1. 3. Different Values from varying scales of music usage of the same industries:
    2. ·Duration of music usage in broadcast
    3. ·Area of reach, capacities, etc. to reflect the audience sizes
    4. ·Number of video screens, or relevant devices, to reflect the scale of visual music usage.
    5. ·Box office income, advertisement revenues of television and radio channels to reflect audience size and profitability.


    For one-off musical events, the standard tariffs are set according to the events’ nature, scale, duration, attendance, box office, form of performance, etc.
    In short, royalty fees are based on the following criteria:

    1. ·Music value to the respective businesses
    2. ·Facilities
    3. ·Type of premises
    4. ·Events’ nature, scale, duration, attendance
    5. ·Box office
    6. ·Mode of the performance, etc.


    Procedure for music public performance license application

    1. 1.Applicant complete and submit application form;
    2. 2.MACA calculate royalty fee and issue invoice;
    3. 3.Applicant pays royalty fee
    4. 4.MACA issue license agreement
    5. 5.Applicant provides music usage report during renewal process or at the end of the event


    Legal liability for unauthorized broadcast and public performance of copyright music:

    1. ·Copyright owner or the collective management organization that he/she belongs to, may file lawsuit against the user who illegally use copyright music, according to “Copyright and Related Rights Code - Decree-Law no.43/99/M”


    Benefits for applying for music license

    1. ·It will be legal to play or perform music publicly
    2. ·It is a way to show respect for copyright and music creators
    3. ·Save time, with ONLY one music public performance license, one can play music managed by local and overseas’ associations.
    4. ·Promote music creation, with the help of collective management organization in managing the copyright issue for the music owner, more time and effort can be out into creating musical works, in short, music users help with music creation.


    Example of industries and music performances where licenses are issued:

    Beauty Salon
    Retail Shop
    Shopping Centre
    Fitness Centre
    Hair Salon
    Hi-fi Shop & Showroom
    One-off event
    Musical Fountains
    Lighting Shows