Ecad calculates the remuneration to be paid by music users in accordance with the provisions included in the Collection Regulation manual, which was developed by right-owners through their music associations.
Music users can be natural or legal persons, and they use music in places frequented by the public, such as:
Event promoters and public recitals (shows in general, circus exhibitions etc.), movie theatres and similar , broadcasting organizations (radio stations and open TV), subscription television, night clubs, clubs, shops, Carnival fests (other than in the Carnival season), moving stages (trios), school of samba parades, industrial facilities, hotels and motels, supermarkets, restaurants, bars, casual dining places, shopping centers, aircraft, ships, trains, buses, beauty parlors, offices, clinics, natural or legal persons making available music on the internet, gyms, telephony service providers.
The Collection Regulation manual classifies the importance that music has for each activity or facility, as essential, necessary or secondary. It also takes into consideration the periodicity of the use of music (i.e. permanent or on certain occasions) and whether if the presentation has mechanical or live music is used, with or without dance exhibitions.
Fees are calculated taking into consideration the importance of music for the business in question, or a percentage on the gross revenue in the case of ticket sales, cover charge, or any form of payment when people visit the facilities that offer music presentations. It also takes into consideration the activity of the user, the kind of music used (live or mechanical music) and the socio-economic region in which the establishment is located. In these situations the region is only taken into consideration when the calculation is made on the area (and not on the income). Once the amount of the royalties is defined, users receive a bank slip and, after payment, the use of music is authorized. Ecad controls the issuance of these slips through a digitalized system especially developed for the institution.
Users are classified according to their frequency in the use of music:
Permanents – users that in the same facility as owners, tenants or entrepreneurs, hold at least 8 (eight) musical shows or presentations per month, during 10 (ten) months in the calendar year.
Temporary – users that are not included in the previous classification - they use music occasionally.
In addition, there is another sub-classification by type of activity:
• General Users – gyms, night-clubs, stores, bars, restaurants, hotels, supermarkets, shopping centers, clinics etc.
• Shows and Events – event promoters and public presentations, facilities that hold occasional events, general events as June festivities, Carnival, New Year´s Eve etc.
• Radio and Television – radio and television broadcasts, including open signal stations, or subscription broadcasts, community radios etc.
• Digital Media – Users that make music avaiable on the internet, mobile telephony and other digital devices.
• Cinema – movie theaters and other users that use music though film screenings.
Principles and procedures applicable to users
- Payment of copyrights must be made in advance;
- Users undertake to provide adequate means of verification of the veracity of the information used to calculate royalties, as well as the data necessary for the distribution of the rights collected;
- Payments are made through bank slips only and collected at bank branches. Neither legislation or Ecad´s General Assembly allowe Ecad to accept cash or any other type of payment made to staff and/or accredited agencies;
- When performing their duties, members of staff and agencies have identification credentials that must be presented to music users during their activities.