Your flagship visual artists’ rights organisation.

Dear Mark,
We are pleased to inform you that after a second day of mediation on 18 November 2016, DACS, Copyright Liensing Agency (CLA), Authors' Licensing and Collecting Society (ALCS) and PICSEL reached an agreement about the future division and distribution of CLA collective licensing revenues to visual artist representatives. DACS distributes this revenue annually through Payback.
As you may be aware, a valuation process carried out in 2015 resulted in an increase of visual artists’ share of CLA royalties from 8% to 8.7%. Following the end of this process in December 2015, the CLA and the visual artist representatives that participated in the valuation discussed how these royalties should be allocated and distributed from next year onward, with the CLA asking for a more data-led approach.
From the very beginning DACS was committed to negotiating effectively on behalf of all visual rightsholders and ensuring that these discussions, and the resulting distribution process, is fair and transparent, putting your interests at the centre of the discussions.
During the discussions, DACS highlighted the difficulties involved in the collection of retrospective data from rightsholders in visual works, which could put many visual artists at a disadvantage. As a result, DACS was able to agree a more gradual introduction of a system that will focus more on CLA photocopying and scanning data, while seeking to minimise any negative impact and burden on rightsholders in visual works. These changes will be introduced incrementally over a period of six years and a distinction will be made between educational and non-educational publications.
Concerning 2016 revenues, which will be paid out in 2017, it was agreed that only 10% of CLA royalties will be allocated on the basis of CLA data. We will update you shortly on what type of information will be required as part of your claims going forward.
Regarding the allocation of the remainder of the CLA royalties to rightsholders in visual works, an independent auditor (yet to be appointed) will determine the value of individual mandates represented by each of the visual artist representatives on an annual basis and based on DACS’ well-established Payback model. For the royalties relating to 2016 for payment in 2017, this system will remain unaltered. Going forward an additional top claim bracket will be introduced in an attempt to address concerns about imbalances in the existing systems.
We believe this agreement strikes the right balance and the process will continue to offer a fair, transparent collective licensing system to the benefit of all visual rightsholders. We will work with all our Payback members to ensure a smooth and efficient transition in claiming your royalties next year and in years to come.
In the coming weeks, we will update you on data requirements for future Payback claims. We will include this information on your Payback royalty statement this year. We will also provide full details on our website and in our FAQs.
Should you have any queries in this respect please do not hesitate to contact us at communications@dacs.org.uk.
With best wishes,
Gilane Tawadros
Chief Executive, DACS
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Established by artists for artists, DACS is a not-for-profit visual artists' rights management organisation

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