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Peermusic announces agreement with Chinese collecting society CAVCA

By | Published on Wednesday 17 May 2023


The neighbouring rights division of Peermusic has announced a new agreement with the Chinese collecting society CAVCA. The agreement will enable its clients to more easily collect royalties when their recordings are publicly performed within China, thereby benefiting from a relatively recent change to Chinese copyright law.

Previously, the Chinese copyright system did not include performing rights – or neighbouring rights, if you prefer – as part of the sound recording copyright. This meant that revenues from public performances were not available to artists and labels. However, that changed with an amendment to the country’s copyright rules that came into effect in 2021.

CAVCA already existed before that change to the law, primarily collecting royalties due from the copying of music into videos, particularly in the karaoke sector. However, its remit has expanded following the expansion of the sound recording copyright and it now also handles the collection of the new royalties that are due.

Of course, each country has its own collecting societies, which issue licenses to, and collect royalties from, licensees in their home market. Those societies then have reciprocal agreements with their counterparts around the world, so that each society can license something nearing a global repertoire within its home country.

To access royalties due from the performance or broadcast of their music abroad, music-makers and music companies can rely on their local societies and those reciprocal deals, or they can join every single society directly.

Alternatively, for recorded music, artists and labels can ally with a neighbouring rights agency. These agencies have direct relationships with most societies worldwide, enabling them to directly access and manage any monies due. That’s what Peermusic Neighbouring Rights does, and now it will be able to directly collect for its clients in China as well.

Says CEO Mary Megan Peer: “We are honoured to conclude this deal with CAVCA and look forward to getting these royalties from these new rights flowing back to our Peermusic Neighbouring Rights clients”.

“The Asian region remains an important focus for Peermusic’s global operations and an important part of Peermusic’s plans for investment and growth into the future”, she goes on. “Over the past eight years we have enjoyed a 62% compound annual growth in receipts for the territory”.

Peermusic’s Asia Pacific President Spencer Lee adds: “Since the copyright law amendment came into effect on 1 Jun 2021, this is a time of great transformation in the region. We have an enormous opportunity to advocate on behalf of our clients, and this deal with CAVCA marks another milestone in harnessing the region’s potential for Peermusic Neighbouring Rights record labels and performer clients”.