It came to simplify the process for entrepreneurs and guarantee the rights and fees of producers and music artists. Called the Digital Licensing Portal, it has issued more than 1,500 licenses in its nearly two months of existence, allowing new establishments and/or events to publicly broadcast recorded music, music videos or karaoke during their operations. The next step is the migration of music users, who already have a license, to the new portal.
Under the motto “Give music to your business” and under the responsibility of Audiogest (the non-profit organization, dependent on the Ministry of Culture and representing record companies), the main advantages of the new platform are the simplification of the process and transparency of it. The use of the portal does not entail any additional costs – besides what results from the application of tariffs to the different economic activities – and it is a way for entrepreneurs to “simply and quickly find all the necessary elements and the costs associated with the music included in the different activities,” explains DN/Dinheiro Vivo, Director of Digital Licensing, Sílvia Sá, adding that the platform can be used from anywhere and at the most convenient times.
“There are also huge efficiencies, both in the internal processing of processes and in the time it takes to obtain the licenses,” emphasizes the official, recalling that “currently it can take up to 15 days for the entrepreneur to receive the license and it even depends on the times of transmission of physical documents”.
When using digital licenses, licenses and all necessary documentation are available immediately after payment. “The license also has a QR code that allows detailed consultation of the license terms, as well as its presentation to entities with supervisory powers, such as ASAE, GNR, PSP and Maritime Police,” explains Sílvia Sá.
As far as artists and music producers are concerned, the increase in the number of licenses and also the reduction in the cost of obtaining licenses “estimates an increase in the amounts distributed”, as “neighbouring rights are increasingly a relevant part of the compensation from producers and artists,” predicts the Digital Licensing manager.
Sílvia Sá says the pre-pandemic projections predicted an increase in the number of voluntary licenses of about 10% in three years. Since the portal is also integrated into the digital transition process of the licensing service, it is now expected that with greater automation of the process and a reduction in the unit cost of each license, it will be possible to increase the fee of artists and producers. “As the number of licensed activities increases, especially those that use music in a supportive and punctual manner (events), the unit costs of licenses also increase. For this reason, it is essential to create more flexible and automated processes that allow make these costs reduce. costs,” he emphasizes.
Since the use of music by the various activities is “increasingly a marketing tool”, it is also important that entrepreneurs are aware of the obligation to have licenses to perform music. Sílvia Sá says most of these agents are aware of this determination and are already getting the permit voluntarily. “The partnerships that the licensing service has entered into with the most representative industry associations, as well as with public entities, have made a decisive contribution to this clarification,” he justifies. “Our focus has always been on B2B (business to business), but given the broad scope of the licensing requirement, which extends to all public spaces where recorded music is used, even if only occasionally, it is increasingly important to have a to create general awareness that the use of musical works is always subject to authorization/licence,” he emphasizes.
Obtaining usage licenses is equivalent to paying artists and music producers a value determined by law. Sílvia Sá explains how the process works. “The collected amounts, deducted from the mandatory legal reserves and the operating costs of the licensing service, are delivered in equal parts to artists and producers”.
To let entrepreneurs know how much they will pay, the rates and terms and conditions are published on the licensing service’s website and can be simulated using the licensing portal, which is also available on the same website, the official explains. “A bar that is voluntarily licensed with a capacity of 100 people and that uses ambient music (without the use of a DJ, minimum consumption or dance floor) will pay about 584 euros per year,” he says as an example.
And to avoid fines for broadcasting music without a license – although the imposition of fines has been reduced in the last two years – Sílvia Sá adds that “the licensing agency has created mechanisms for phasing payments, especially in cases of higher rates. . to enable these entrepreneurs to continue to develop their business legally”.
Mónica Costa is a journalist for Dinheiro Vivo
Source: DN
