Andrey Krichevsky, CEO of Russian accredited CMO, about collective management in Russia

Andrey Krichevsky gave to Russian media house “Kommersant” interview. During the conversation with journalist he explained his position and vision of collective management in Russia, his experience and perspectives in development of music business in generally. Below are his main thoughts, and, believe, they have been translated very correctly.

He believes a collective management organisation (CMO) is an intermediary between authors and users. “In industrial era the role of intermediary was very seriously, but in digital era the institute of intermediary began to die.” The CMOs had to react timely, but they did not. It is also very important to take into account the principle of interaction.

Technology is a means; this means connects someone with each other. There are the author and user, and there is also intermediary. You can name this intermediary differently – collecting society, songwriters fund, whatever – the name is some kind of tension, causing the questions – What for?, Who are these people, managing intermediary unit?, Why exactly they should be and who they are?

Transition to new model of relationships in the field of intellectual property would minimize all risks for authors. Such transition is possible thanks to new technologies. Application of one or another analogue of uber-model makes system more transparent, simplifies the system and reduce the period of transactions and exclude intermediaries from process. Now intermediary transforms into environment or infrastructure in order to organize the interaction of parties. And such transformation is a challenge for CMO. It should be some kind of digital platform for direct deals and motivation for such platform would be commission from transactions.

The merger of three accredited CMOs does not make a sense. (He did not mention that it is impossible under Russian law). It is necessary to differ judicial formalities and the matter of activity. The matter of activity is a certain set of functions. The functions can be unified; their execution for all three CMOs can be united and entrusted to one organisation. The economic efficiency defines whether functions should be executed separately by each organisation or by one organisation for all three organisations.

The practice proved that collection of royalties by one single organisation and distribution of collected royalties independently by each organisation is more effective for right holders. (He means that only one organisation in country would collect royalties and other “intermediaries” (CMOs, right holders) would distribute royalties, collected by such organisation, and bear all responsibility.) This is due to difference between copyright and neighboring rights.