Ecad represents right-owners/members of the seven associations that form Ecad. Therefore, the Office is not in charge of the collection and distribution of the copyrights of non-members of those associations. When a person becomes a member, information is provided on the repertoire of the new member, and the association to which he/she now belongs becomes his/her legal representative and proxy, and in that capacity will represent the member at court or out of court. Consequently, Ecad, as the Central Office created by the associations with the aim of collecting and distributing the copyright royalties derived from public performance, is also the representative of each single right-owner, and therefore of the thousands of artists members of associations. When the user pays for the music used, right-owners are credited the amounts resulting from the performance of music captured and identified by Ecad. The credits are then transferred to their respective associations.
Some basic rules are necessary to allow artists to receive their rights: to be a member of one of the 8 associations of which Ecad is made up; to have their repertories registered and constantly updated in the association; the songs have to be publicly played and captured by Ecad systems; the user has to pay Ecad for the music he/she has used; radio and television broadcaster has to provide Ecad with the forms detailing the musical programming – in the case of concerts, the organizer has to provide to Ecad the list of musics played during the event.
All amounts collected by Ecad are distributed according to the rules defined by the musical associations that form Ecad, based on the criteria adopted worldwide. Of the total amount collected, 85% are transferred to right-owners, who in turn are members of the association. Furthermore, 5% is allocated to the associations to pay their expenses. With the remaining 10% Ecad supports its operating expenses throughout Brazil. The distribution is made to right holders in accordance with the various segments in which the songs were performed. If the song was performed and the user of music has paid Ecad, the right-owner then receives a statement of payment of his/her association with the breakdown of the amounts paid by each segment.
The amounts to be distributed are classified according to the type of use. In the case of mechanical music (with a DJ, for example) both the owners of copyrights and neighboring rights receive their remuneration. In the case of live music, only the copyright owner is paid, as there is no phonogram used in these cases, and therefore there is no neighboring right involved.
After distributing the royalties (copyright and neighboring rights) the amount corresponding to the authors’ part will take into consideration the percentages agreed among composers and their respective publishers, if and when publishing or right assignment contracts exist. The percentages for neighboring rights are always fixed and determined by the General Assembly of the Ecad.
In these cases, the amount to be distributed is as follows: 2/3 for composers, adapters, versionist and publishers, which are the owners of copyrights, and 1/3 for the performers, recording companies and musicians, which are classified as neighboring right owners. The total amount corresponding to the neighboring right shall be distributed as follows: 41.70% for each category (performer and phonogram producer) and 16.60% for artists classified as “accompanying musicians”.
Brazil is one of the pioneering countries to distribute neighboring rights, which also benefit performers of music (performers, accompanying musicians and recording companies). This is a proof of excellence in terms of distribution by Ecad, under the management of music associations.
The amounts distributed are classified according to the type of music used. In the case of mechanical music, the owners of authors rights and of neighboring rights are paid as shown bellow. In the case of live music, only the owner of authors’ rights is paid, as no phonogram is used in these cases.