Outcome of DACS’ mediation with the Copyright Licensing Agency

    DACS, Copyright Licensing Agency (CLA), Authors' Licensing and Collecting Society (ALCS) and PICSEL have reached an agreement about the future division and distribution of CLA collective licensing revenues to visual rightsholders from 2017 onwards.

    Putting our members’ interests first

    The agreement was reached following mediation in November 2016 and concerns the collective licensing royalties that we pay annually through Payback.
    It followed a valuation process in 2015 which resulted in an increase of visual artists’ share of CLA royalties from 8% to 8.7%. Following the end of this process in December 2015, the CLA and the visual artist representatives that participated in the valuation discussed how these royalties should be allocated and distributed from 2017 onwards, with the CLA asking for a more data-led approach.
    From the very beginning DACS was committed to negotiating effectively on behalf of all visual rightsholders and ensuring that these discussions, and the resulting distribution process, is fair and transparent, putting our members’ interests at the centre of the discussions.

    Changes to Payback from 2017 onwards

    During the discussions, DACS highlighted the difficulties involved in the collection of retrospective data from rightsholders in visual works, which could put many visual artists at a disadvantage.
    As a result, DACS was able to agree a more gradual introduction of a system that will focus more on CLA photocopying and scanning data, while seeking to minimise any negative impact and burden on rightsholders in visual works. These changes will be introduced incrementally over a period of six years and a distinction will be made between educational and non-educational publications.
    Concerning 2016 revenues which will be paid out in 2017, it was agreed that only 10% of CLA royalties will be allocated on the basis of CLA data. We will update members shortly on what type of information will be required as part of their Payback claims going forward.
    Regarding the allocation of the remainder of the CLA royalties to rightsholders in visual works, an independent auditor (yet to be appointed) will determine the value of individual mandates represented by each of the visual artist representatives on an annual basis and based on DACS’ well-established Payback model. For the royalties relating to 2016 for payment in 2017, this system will remain unaltered. Going forward an additional top claim bracket will be introduced in an attempt to address concerns about imbalances in the existing systems.
    DACS believes this agreement strikes the right balance and the process will continue to offer a fair, transparent collective licensing system to the benefit of all visual rightsholders. We will work with all our Payback members to ensure a smooth and efficient transition in claiming royalties next year and in years to come.

    DACS to provide further updates

    We will update Payback members on data requirements for future claims over the coming weeks and will be publishing more information in our FAQs. We’ll also include this information in this year’s royalty statements.
    Should you have any queries please do not hesitate to contact us at communications@dacs.org.uk.


    Posted on 23/11/2016 by Jessica Bancroft