Each entity using audiovisual works is obliged to pay for it. These are royalties transferred to rightsholders by intermediaryof competent organization for collective management, ZAPA is such organization. In the context of the entities using creative works (e.g. TV broadcasters, cable operators, cinema operators) are called users. On the other hand, rightsholders areauthors or producers whom the royalties due are paid.
The Act on copyrights and related rights of 4 February 1994 as amended provides legal grounds for the obligation imposed on users to pay royalties. These provisions guarantee creators inalienable right to remuneration for the use of their creative works. Organizations for collective management of copyrights and related rights collect royalties from users. They operate by virtue of licenses of the competent minister for culture and are regularly controlled to guarantee transparency of their operations.
The creators represented by ZAPA are assured that entrusting our organization with management of their economic rights they will receive the royalties due. The organization managing their rights negotiates and signs agreements with the users, collects royalties and distributes them and pays to the rightsholders. When the user evades to pay royalties, ZAPA strives to collect the amount due, also by means of court proceedings.
The obligation to transfer royalties by intermediary of collective management organizations makes rightsholders certain that in the situation when the users evade the payment, the organization will pursue the amount due until it succeeds. It is easy to imagine the effect of the lack of the intermediation obligation of the organization of collective management in the transfer of royalties. An individual rightsholder without professional legal service asking huge companies operating in the market (broadcasters, cable operators etc.) to pay the amounts dues is in most cases doomed to failure from the start.
The process of royalties payment - step by step - is illustrated by the diagram below:
1. The user makes use of an audiovisual work. A TV broadcaster making retransmission of a film on one of his channels may serve as an example. At this moment, the obligation on the part of the user to pay royalties has arisen.
2. ZAPA asks the user to pay royalties in favour of the rightsholder. ZAPA negotiates conditions of the agreement regulating the amount of the royalties collected and the time of payment. If the agreement with the user is already signed, the next step after the use of the work is COLLECTING.
3. ZAPA negotiates with the user trying to collect the royalties due. If this is unsuccessful, ZAPA files a lawsuit to court against the user.
4. ZAPA collects the royalties on behalf of its rightsholders, but also on behalf of those who have not registered with ZAPA yet, but whose creative works are within the scope of protection exercised by ZAPA. Generally speaking, ZAPA collects royalties for Mr./Ms. X represented by ZAPA, but also for Mr./Ms. Y, who may join ZAPA in some time. This gives a guarantee that the rightsholders who are not represented by ZAPA at the moment when the royalties are collected will receive them for the period before they registered with ZAPA.
5. ZAPA distributes the collected royalties on the basis of regulations on distribution. This stage is called distribution.
6. The rightsholder registered with ZAPA will receive the royalties due together with the payment report containing detailed calculations. Therefore, everybody receiving royalties will have a full insight in the summary of what amounts and for which works were transferred.
