🇦🇺Australia

Lizenz- und Vertragsverstöße bei mechanischen Rechten

3 verified sources

Definition

Mechanical royalties are paid on the physical or digital copy of a recorded song, owed by record labels or anyone releasing an album or digital product that reproduces the composition.[8] In Australia, APRA AMCOS/AMCOS license mechanical rights for reproductions such as CDs, vinyl, downloads, and digital streams.[3][6][8] If a label reproduces or distributes works without an appropriate mechanical licence or under‑reports units/streams, this constitutes copyright infringement under the Copyright Act 1968 (Cth). Rights‑holders can demand unpaid mechanical royalties, damages, and legal costs. LOGIC: Australian copyright cases involving unauthorised reproduction commonly result in negotiated settlements or court‑ordered payments that include back‑royalties plus legal costs easily exceeding AUD 50,000 per dispute, and potentially several hundred thousand dollars where catalogue‑scale under‑licensing is uncovered. Manual royalty tracking and lack of centralised licence registers increase the risk of such non‑compliance.

Key Findings

  • Financial Impact: Quantified (Logic): Typical exposure of AUD 50,000–500,000 per infringement/under‑licensing matter when combining back‑royalties, legal fees, and potential damages or settlement amounts.
  • Frequency: Low to medium frequency but high‑severity; arises when catalogues are acquired, works are used without clear chain of title, or when audits uncover systematic under‑reporting.
  • Root Cause: Absence of a central system linking sound recordings to underlying composition rights and licence status; manual handling of mechanical licensing with AMCOS; inconsistent reporting of reproduction quantities or streams; and lack of internal audit of royalty statements and licence obligations.[3][6][8]

Why This Matters

The Pitch: Australian 🇦🇺 labels and distributors risk AUD 50,000–500,000+ per infringement matter in back‑royalties, legal fees, and settlements when mechanical licences are mishandled. Automating licence checks, usage reporting, and contract controls minimizes these exposures.

Affected Stakeholders

Label Owner and Directors, Head of Legal / In‑house Counsel, Royalty & Licensing Manager, Finance Manager, Music Publisher

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Nicht erfasste und verjährte mechanische Tantiemen

Quantified (Logic): 5–10% of mechanical royalty revenue leakage, typically AUD 50,000–250,000 per mid‑sized catalogue over 5–7 years due to unmatched, misallocated, or time‑barred mechanical royalties.

Verzögerter Zahlungseingang bei mechanischen Tantiemen

Quantified (Logic): 4–6 months of mechanical royalties outstanding as receivables (AUD 330,000–1,500,000 for typical mid‑sized players), producing AUD 23,000–150,000 per year in interest/financing cost at 7–10% cost of capital.

Fehlentscheidungen durch ungenaue Tantiemenabrechnungen

Quantified (Logic): 2–3% margin impact on mechanical‑related revenue, typically AUD 100,000–300,000 per year for a catalogue generating AUD 5–10 million in gross receipts.

Artist Advance Recoupment Disputes

AUD 50,000+ per artist in unrecouped balances and audit costs

Delayed Royalty Payments

6-12 months delay, 20-30% of artist royalties withheld

Recoupment Accounting Disputes

AUD 10,000-100,000 per audit/legal dispute

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