Leading Russian collective management organizations (CMOs) – Russian Authors’ Society (RAO) and the All-Russian Organization for Intellectual Property (VOIS) announced preliminary results of activity in 2017.
RAO’s collections in 2017 reached a historical maximum and amounted to RUB 5,053 billion, that is RUB 683 million more than in 2016.
VOIS collected RUB 1,158 billion rubles, an increase of RUB 28,6 million over 2016.
“In 2017, we radically transformed the work of CMOs, that allowed us to increase collections significantly. We launched a process of technical modernization, computerized key operating processes, increased activities transparency, – commented the Head of RAO Board of Directors, VOIS Director General Andrey Krichevsky. – It was a difficult year, especially for RAO, but we coped with the tasks set for both organizations. Both RAO and VOIS collected RUB 6,212 billion of royalties in 2017, which is 12% more than in the previous year.”
RAO Director General Maxim Dmitriev noted that systematic upgrading policy launched in RAO in early 2017 led to such record-breaking indicators.
Today Society uses modern software and has almost switched to electronic workflow. Rightholders have their own personal accounts, where they can get a quick access to info on their royalties accrued and distributed.
To obtain the most complete and accurate info from users on use of copyrighted objects RAO uses FonMix (B2B-service) capacities. FonMix is a digital player for legal performance of background music in public places, which forwards usage reports to RAO automatically.
RAO also reformed the system of royalties collections. In particular, employees with fixed salary had been replaced with agents working for a percentage of collected royalties.
“The principal difference between an inspector and an agent lies in motivation. Agents are directly interested in the final result. The transition to the agent scheme allowed us to conclude a large number of new contracts with users and collect arrears from non-payers”, – said RAO Director General Maxim Dmitriev.
In turn, the Head of RAO Board of Directors, VIOS Director General Andrey Krichevsky added that RAO agents also collect remuneration for VOIS, which administers related rights. We have managed to improve the efficiency of our work by combining several business processes, including royalties collections.
In line with adoption of “umbrella” operational model we transform collecting networks and coordinate common efforts of RAO and VOIS agents. Thus, each accredited organization will be specialized in implementation of certain functions for the entire system of collective management of rights.
A full report on organizations’ activities for 2017 will be submitted to the Ministry of Culture of the Russian Federation until June 1, 2018.