### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately , timely and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### any restriction on the right of the members of the collecting society to participate and to exercise voting rights at the general meeting shall be fair and proportionate and be based on the following criteria : ### every member of a collective management organisation shall have the right to vote at the general meeting , including by electronic vote . any restriction on the right of a member of the collective management organisation to participate and to exercise its voting rights at the general meeting shall be fair and proportionate and be based on the following criteria :


### member states shall ensure that the collecting society establishes a supervisory function responsible for continuously monitoring the activities and the performance of the duties of the persons entrusted with managerial responsibilities in the collecting society . there shall be fair and balanced representation of the members of the collecting society in the body exercising this function in order to ensure their effective participation . ### member states shall ensure that the collective management organisation establishes a supervisory function responsible for continuously monitoring the activities and the performance of the duties of the persons entrusted with managerial responsibilities in that organisation . there shall be fair and balanced representation of the different categories of members of the collective management organisation in the body exercising this function in order to ensure their effective participation .


### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses . ### having the freedom to receive services for collective management of copyright and related rights across national borders entails that rightholders are able to freely choose the collective management organisation for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collective management organisation already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collective management organisation and entrust or transfer all or part of them to another collective management organisation or another entity irrespective of the member state of residence or the nationality of either the collective management organisation or the rightholder . collective management organisations managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collective management organisations should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses .


### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collecting societies who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive sanctions are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end . ### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collective management organisations who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive sanctions or measures are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end .


### the general meeting shall control the activities of the collecting society by , at least , deciding on the appointment and removal of the auditor and approving the annual transparency report and the auditor ' s report . ### the general meeting shall control the activities of the collective management organisation by , at least , deciding on the appointment and removal of the auditor and approving the annual transparency report and the auditor ' s report . if the financial management practice of the collective management organisation is reasonably in doubt , the general meeting may decide to conduct an internal or external audit . the result of such audit shall be communicated to all members and if necessary to the competent national authority , so that appropriate procedures can be initiated .


### members of collecting societies should be allowed to participate and vote in the general meeting ; the exercise of these rights may only be subject to fair and proportionate restrictions . the exercise of voting rights should be made easy . ### all members of collective management organisations should be allowed to participate and vote in the general meeting ; the exercise of these rights may only be subject to fair and proportionate restrictions . the exercise of voting rights should be made easy , and whenever possible by electronic means .


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collective management organisations collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collective management organisations exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collective management organisations maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collective management organisations . amounts collected and due to rightholders should be managed separately from any own assets of the collective management organisation and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collective management organisations ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collective management organisation should be managed in accordance with criteria which would oblige the collective management organisation to act prudently , while allowing the collective management organisation to decide on the most secure and efficient investment policy . this should allow the collective management organisation to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collective management organisations to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collective management organisations of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### ‘ member of a collecting society’ means a rightholder or an entity directly representing rightholders , including other collecting societies and associations of rightholders , fulfilling the membership requirements of the collecting society ; ### ‘ member’ means a rightholder or an entity directly representing rightholders , including other collective management organisations and associations of rightholders , fulfilling the membership requirements of the collective management organisation , regardless of its legal form ;


### the requested collecting society shall accept such a request if it is already granting or offering to grant multi - territorial licences for the same category of online rights in musical works in the repertoire of one or more other collecting societies . ### the requested collective management organisation shall accept such a request within 1 month after receipt , if it is already granting or offering to grant multi - territorial licences for the same category of online rights in musical works in the repertoire of one or more other collective management organisations .


### for the purposes of paragraph 2 , measures to identify and locate rightholders shall include verifying membership records and making available to the members of the collecting society as well as to the public a list of works and other subject matter for which one or more rightholders have not been identified or located . ### for the purposes of paragraph 2 , the collective management organisation shall put in place effective measures to identify and locate rightholders while ensuring appropriate safeguards to deter fraud . such measures shall include verifying membership records and making available regularly and at least annually to the members of the collective management organisation as well as to the public a list of works and other subject matter for which one or more rightholders have not been identified or located .


### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses . ### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of works , different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses or placement in the public domain .


### a collecting society which grants multi - territorial licences for online rights in musical works shall have procedures in place to enable rightholders and other collecting societies to object to the contents of the data referred to in article 22 or to information provided under article 23 , where such rightholders and collecting societies , on the basis of reasonable evidence , believe that the data or the information are inaccurate in respect of their online rights in musical works . where the claims are sufficiently substantiated , the collecting society shall ensure that the data or the information are corrected without undue delay . ### a collective management organisation which grants multi - territorial licences for online rights in musical works shall have procedures in place to enable rightholders , other collective management organisations , and users to object to the contents of the data referred to in article 22 or to information provided under article 23 , where such rightholders , collective management organisations , and users , on the basis of reasonable evidence , believe that the data or the information are inaccurate in respect of their online rights in musical works . where the claims are sufficiently substantiated , the collective management organisation shall ensure that the data or the information are corrected without undue delay .


### the collecting society shall regularly , diligently and accurately distribute and pay amounts due to other collecting societies . ### the collective management organisation shall regularly , diligently , accurately and without undue delay distribute and pay amounts due to other collective management organisations .


### every member of a collecting society shall have the right to appoint any other natural or legal person as a proxy holder to attend and vote at the general meeting in his name . ### every member of a collective management organisation shall have the right to appoint any other natural or legal person as a proxy holder to attend and vote at the general meeting in his name . to be valid , the proxy shall have been given by the member to the proxy holder no more than three months before its use .


### collecting societies shall be diligent in the collection and the management of rights revenue . ### collective management organisations shall be diligent , accurate and transparent in the collection and the management of rights revenue . except in member states with systems of extended collective licensing , a collective management organisation may not collect rights revenue or bring or seek infringement proceedings in respect of works , rights or territories which it is not authorised to represent .


### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights or types of works and other subject matter granted to a collecting society or to withdraw from a collecting society any of the rights or categories of rights or types of works and other subject matter of their choice , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the middle and at the end of the financial year , whichever is sooner after the expiry of the notice period . ### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights , works or types of works and other subject matter granted to a collecting society or to withdraw from a collecting society any of the rights or categories of rights , works or types of works and other subject matter of their choice , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the end of the financial year .


### rightholders shall have the right to authorise a collecting society of their choice to manage the rights , categories of rights or types of works and other subject matter of their choice , for the member states of their choice , irrespective of the member state of residence or of establishment or the nationality of either the collecting society or the rightholder . ### rightholders shall have the right to authorise a collective management organisation of their choice to manage the rights , categories of rights or types of works and other subject matter of their choice , for the member states of their choice , irrespective of the member state of residence or of establishment or the nationality of either the collective management organisation or the rightholder . collective management organisations shall have the right to require the exclusive assignment of the rights in all works of their members .


### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights or types of works and other subject matter granted to a collecting society or to withdraw from a collecting society any of the rights or categories of rights or types of works and other subject matter of their choice , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the middle and at the end of the financial year , whichever is sooner after the expiry of the notice period . ### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights , works or types of works and other subject matter granted to a collective management organisation or to withdraw from a collective management organisation any of the rights or categories of rights , works or types of works and other subject matter of their choice , at any time during the term of the authorisation , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collective management organisation may decide that such termination or withdrawal will take effect only at the middle and at the end of the financial year , whichever is sooner after the expiry of the notice period .


### this directive lays down requirements necessary to ensure the proper functioning of the management of copyright and related rights by collecting societies . it also lays down requirements for multi - territorial licensing by collecting societies of authors ' rights in musical works for online use . ### this directive lays down requirements necessary to ensure the proper functioning of the management of copyright and related rights by collective management organisations . it also lays down requirements for multi - territorial licensing by collective management organisations of authors ' rights in musical works for online use .


### ' collecting society ' means any organisation which is authorised by law or by way of assignment , licence or any other contractual arrangement , by more than one rightholder , to manage copyright or rights related to copyright as its sole or main purpose and which is owned or controlled by its members ; ### ' collective management organisation ' means any organisation authorised by law or by way of assignment , licence or any other contractual arrangement to manage copyright or rights related to copyright on behalf of more than one rightholder , for the collective benefit of those rightholders as its sole or one of its main purposes , which is : owned or controlled by its members , and / or organised on a not - for - profit basis ;


### ‘ member of a collecting society’ means a rightholder or an entity directly representing rightholders , including other collecting societies and associations of rightholders , fulfilling the membership requirements of the collecting society ; ### ' member ' means a rightholder or an entity directly representing rightholders , including other collective management organisations and associations of rightholders , fulfilling the membership requirements of the collective management organisation , regardless of its legal form ;


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collective management organisation regularly , transparently , in a timely manner and diligently distributes and pays amounts due to all rightholders it represents . the collective management organisation shall carry out such distribution and payments without undue delay and no later than 12 months after the rights revenue was collected . the collective management organisation shall carry out such distribution and payments at least on a quarterly basis and accurately , ensuring equal treatment of all categories of rightholders .


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collective management organisation regularly and diligently distributes and pays amounts due to all rightholders it represents in accordance with a transparent distribution procedure ensuring equal treatment . the collective management organisation shall carry out such distribution and payments without undue delay as soon as the amount for a rightholder covers the collection costs and maintenance for the corresponding rights and administrative costs , after a period of three months and no later than six months from the collection of the relevant right revenues . the collective management organisation shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders .


### members should be allowed to take part in monitoring the management of collecting societies . to this end , collecting societies should establish a supervisory function appropriate to their organisational structure and allow members to be represented in the body that exercises this function . to avoid imposing excessive burden on smaller collecting societies and to make the obligations arising from this directive proportionate , member states should be able to , if they consider this to be necessary , exclude the smallest collecting societies from having to organise such a supervisory function . ### members should be allowed to take part in monitoring the management of collective management organisations . to this end , collective management organisations should establish a supervisory function appropriate to their organisational structure and allow members , representing different categories of rightholders , to be represented in a balanced manner in the body that exercises this function . to avoid imposing excessive burden on smaller collecting societies and to make the obligations arising from this directive proportionate , member states should be able to , if they consider this to be necessary , exclude the smallest collecting societies from having to organise such a supervisory function .


### broadcasting organisations generally rely on a licence from a local collecting society , for their own broadcasts of television and radio programmes which include musical works . this licence is often limited to broadcasting activities . a licence for online rights in musical works would be required in order to allow such television or radio broadcasts to be also available online . to facilitate the licensing of online music rights for the purposes of simultaneous and delayed transmission online of television and radio broadcasts , it is necessary to provide for a derogation from the rules that would otherwise apply to the multi - territorial licensing of musical works for online uses . such derogation should be limited to what is necessary to allow access to television or radio programmes online and to material having a clear and subordinate relationship to the original broadcast produced for purposes such as supplementing , previewing or reviewing that television or radio programme . that derogation should not operate so as to distort competition with other services which give consumers access to individual musical or audiovisual works online , or lead to restrictive practices , such as market or customer sharing , in breach of articles 101 or 102 of the treaty on the functioning of the european union . ### broadcasting organisations generally rely on a blanket licence from a local collective management organisation in order to acquire rights to the worldwide repertoire of musical works – in order to communicate them and make them available – and to be able to provide the public with television and radio programmes and online services . such blanket licences for broadcasting organisations , which are based on their actual needs , have become firmly established and are recognised by rightholders , broadcasting organisations and collective management organisations alike . this directive should therefore uphold this well - established practice in order to avoid a situation where different rules apply to licences issued for broadcasters’ online and offline services . it is therefore necessary to exempt collective management organisations from the provisions of title iii where they issue licences for broadcasters’ online services related to their offline services ; such licences should be issued in accordance with national and european union law , in particular articles 101 and 102 of the treaty on the functioning of the european union .


### member states shall ensure that collecting societies act in the best interest of their members and do not impose on rightholders whose rights they manage any obligations which are not objectively necessary for the protection of the rights and interests of these rightholders . ### member states shall ensure that collective management organisations act in the best interest of the rightholders whose rights they manage as trustees and do not impose on them any obligations which are not objectively necessary for the protection of the rights and interests of these rightholders .


### for reasons of sound management , a collecting society ' s senior management must be independent . managers and executive directors should be required to declare annually to the collecting society whether there are conflicts between their interests and those of the society . ### for reasons of sound management , a collective management organisation ' s senior management must be independent . managers and executive directors should be required to declare before taking up their duties and thereafter annually to the collective management organisation whether there are conflicts between their interests and those of the organisation .


### for reasons of sound management , a collecting society ' s senior management must be independent . managers and executive directors should be required to declare annually to the collecting society whether there are conflicts between their interests and those of the society . ### for reasons of sound management , a collective management organisation ' s management must be independent . managers and executive directors should be required to declare before taking up their duties in a collective management organisation whether there are conflicts between their interests and those of the organisation . moreover , they should also be required to make such declarations of conflict of interest every year after taking up their duties in a collective management organisation .


### any restriction on the right of the members of the collecting society to participate and to exercise voting rights at the general meeting shall be fair and proportionate and be based on the following criteria : ### every member of a collective management organisation shall have the right to vote at the general meeting , including , where appropriate , by electronic vote . any restriction on the right of the members of the collective management organisation to participate and to exercise voting rights at the general meeting shall be fair and proportionate and be based on the following criteria :


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collective management organisations collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that collective management organisation , or another organisation . it is therefore important that collective management organisations exercise the utmost diligence , with maximum efficiency , in collecting , managing and distributing that revenue . accurate distribution is only possible where collective management organisations maintain proper and transparent records of membership , licences and use of works and other subject matter . data on the use of the rights managed by collective management organisations should also be provided by rightholders and users with due speed and care , and verified by those organisations . amounts collected and due to rightholders should be managed separately from any own assets of the collective management organisation and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collective management organisation ' s general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collective management organisation should be managed in accordance with criteria which would oblige the organisation to act prudently , while allowing it to decide on the most secure and efficient investment policy . as the collective management of rights by collective management organisations is not a profit - making activity , these organisations should opt for an asset allocation that is suitable in terms of its precise nature and duration , and avoids any exposure to risk of rights revenue . this should allow the collective management organisation to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collective management organisations to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collective management organisations of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collective management organisations collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collective management organisations exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collective management organisations maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collective management organisations . amounts collected and due to rightholders should be managed separately from any own assets of the collective management organisation and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collective management organisations ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collective management organisation should be managed in accordance with criteria which would oblige the collective management organisation to act prudently , while allowing the collective management organisation to decide on the most secure and efficient investment policy . this should allow the collective management organisation to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collective management organisations to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collective management organisations of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### those procedures shall include an annual individual statement by each of those persons and directors , to the body entrusted with the supervisory function , containing the following information : ### those procedures shall include an individual statement by each of those persons and directors , to the body entrusted with the supervisory function and to the members , and publicly accessible through the website of the collective management organisation . the statement shall be made before each of those persons take up their duties , and shall thereafter be renewed annually . the statement shall contain the following information :


### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses . ### having the freedom to receive services for collective management of copyright and related rights across national borders entails that rightholders are able to freely choose the collective management organisation for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collective management organisation already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collective management organisation and entrust or transfer all or part of them to another collective management organisation or another entity irrespective of the member state of residence or the nationality of either the collective management organisation or the rightholder . collective management organisations managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collective management organisations should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses .


### ‘ rights revenue’ means income collected by a collecting society on behalf of rightholders , whether from an exclusive right , a right to remuneration or a right to compensation ; ### ‘ rights revenue’ means income collected by a collective management organisation on behalf of rightholders , whether from an exclusive right , a right to remuneration or a right to compensation , and including any income derived from the investments of rights revenue ;


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collective management organisations regularly and diligently distributes and pays amounts due to all rightholders it represents . the collective management organisation shall carry out such distribution and payments without undue delay and no later than six months after the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collective management organisation from respecting this deadline . the collective management organisation shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders .


### ‘ rights revenue’ means income collected by a collecting society on behalf of rightholders , whether from an exclusive right , a right to remuneration or a right to compensation ; ### ' rights revenue ' means income collected by a collective management organisation on behalf of rightholders , whether from an exclusive right , a right to remuneration or a right to compensation , including any income derived from the investments of rights revenue ;


### collecting societies shall accept rightholders as members if they fulfil the membership requirements . they may only refuse a request for membership on the basis of objective criteria . these criteria shall be included in the statute or the membership terms of the collecting society and shall be made publicly available . ### collective management organisations shall accept rightholders , or any other members as defined in article 3 , as members if they fulfil the membership requirements . they may only refuse a request for membership on the basis of objective and non - discriminatory criteria . these criteria shall be included in the statute or the membership terms of the collective management organisation and shall be made publicly available .


### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights or types of works and other subject matter granted to a collecting society or to withdraw from a collecting society any of the rights or categories of rights or types of works and other subject matter of their choice , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the middle and at the end of the financial year , whichever is sooner after the expiry of the notice period . ### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights or types of works and other subject matter granted to a collective management organisation or to withdraw from a collective management organisation any of the rights or categories of rights or types of works and other subject matter of their choice , at any time during the term of the authorisation , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the middle and at the end of the financial year , whichever is sooner after the expiry of the notice period . member states may provide for measures , in compliance with articles 101 and 102 tfeu , allowing collecting societies to adopt adjusted detailed rules aimed at restricting the scope for rightholders to go back and forth in an objectively abusive manner .


### ‘ member of a collecting society’ means a rightholder or an entity directly representing rightholders , including other collecting societies and associations of rightholders , fulfilling the membership requirements of the collecting society ; ### ‘ member’ means a rightholder or an entity directly representing rightholders , including other collective management organisations and associations of rightholders , fulfilling the membership requirements of the collective management organisation , regardless of its legal form ;


### members of collecting societies should be allowed to participate and vote in the general meeting ; the exercise of these rights may only be subject to fair and proportionate restrictions . the exercise of voting rights should be made easy . ### all members of collective management organisations should be allowed to participate and vote in the general meeting ; the exercise of these rights may only be subject to fair and proportionate restrictions . the exercise of voting rights should be made easy , and whenever possible by electronic means .


### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collecting societies who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive sanctions are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end . ### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collective management organisations who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive measures and sanctions are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end .


### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members and rightholders . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights . ### there are significant differences in the national rules governing the functioning of collective management organisations , in particular as regards their transparency and accountability towards their members and rightholders , which makes for fragmentation of the internal market in this sector . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collective management organisations lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collective management organisations , rightholders and users alike , for whom it is too complicated to assert their rights in other member states . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights .


### member states shall ensure that the persons who effectively manage the business of a collecting society and its directors , with the exception of the directors exercising supervisory function , design procedures so as to avoid conflicts of interest . the collecting society shall have procedures to identify , manage , monitor and disclose conflicts of interest in order to prevent them from adversely affecting the interests of members of the society . ### member states shall ensure that the persons who effectively manage the business of a collective management organisation and its directors , with the exception of the directors exercising supervisory function , design procedures so as to avoid conflicts of interest . the collective management organisation shall have procedures to identify , manage , monitor and disclose conflicts of interest in order to prevent them from adversely affecting the interests of members of the organisation . such procedures shall also require that before taking up their duties and then once a year such persons and directors , make an individual statement on conflict of interests to the body entrusted with the supervisory function and to the members of the organisation , as well as make such a statement publicly accessible through the website of the collective management organisation .


### member states shall ensure that collecting societies act in the best interest of their members and do not impose on rightholders whose rights they manage any obligations which are not objectively necessary for the protection of the rights and interests of these rightholders . ### member states shall ensure that collective management organisations act in the best interest of the rightholders whose rights they manage and do not impose on them any obligations which could undermine the protection of their rights and their interests , provided they allow the collective management organisations sufficient discretion to negotiate with rights users .


### broadcasting organisations generally rely on a licence from a local collecting society , for their own broadcasts of television and radio programmes which include musical works . this licence is often limited to broadcasting activities . a licence for online rights in musical works would be required in order to allow such television or radio broadcasts to be also available online . to facilitate the licensing of online music rights for the purposes of simultaneous and delayed transmission online of television and radio broadcasts , it is necessary to provide for a derogation from the rules that would otherwise apply to the multi - territorial licensing of musical works for online uses . such derogation should be limited to what is necessary to allow access to television or radio programmes online and to material having a clear and subordinate relationship to the original broadcast produced for purposes such as supplementing , previewing or reviewing that television or radio programme . that derogation should not operate so as to distort competition with other services which give consumers access to individual musical or audiovisual works online , or lead to restrictive practices , such as market or customer sharing , in breach of articles 101 or 102 of the treaty on the functioning of the european union . ### broadcasting organisations generally rely on a blanket licence from a local collective management organisation in order to acquire rights to the worldwide repertoire of musical works – in order to communicate them and make them available – and to be able to provide the public with television and radio programmes and online services . such blanket licences for broadcasting organisations , which are based on their actual needs , have become firmly established and are recognised by rightholders , broadcasting organisations and collective management organisations alike . this directive should therefore uphold this well - established practice in order to avoid a situation where different rules apply to licences issued for broadcasters’ online and offline services . it is therefore necessary to exempt collective management organisations from the provisions of title iii where they issue licences for broadcasters’ online services related to their offline services ; such licences should be issued in accordance with national and european union law , in particular articles 101 and 102 of the treaty on the functioning of the european union .


### in the online music sector , where collective management of authors ' rights on a territorial basis remains the norm , it is essential to create conditions conducive to the most effective licensing practices by collecting societies , in an increasingly cross - border context . it is therefore appropriate to provide for a set of rules coordinating basic conditions for the provision by collective management organisations of multi - territorial collective licensing of authors ' online rights in musical works . these provisions should ensure the necessary minimum quality of the cross - border services provided by collecting societies , notably in terms of transparency of repertoire represented and accuracy of financial flows related to the use of the rights . they should also set out a framework for facilitating the voluntary aggregation of music repertoire and thus reducing the number of licences a user needs to operate a multi - territorial service . these provisions should enable a collecting society to request another collecting society to represent its repertoire on a multi - territorial basis where it cannot fulfil the requirements itself . there should be an obligation on the requested society , provided that it aggregates repertoire and offers or grants multi - territorial licences , to accept the mandate of the requesting society . the development of legal online music services across the union should also contribute to the fight against piracy . ### unlike other creative sectors where direct licensing plays a more prominent role , the collective management of authors ' rights on a territorial basis remains the norm in the music sector . therefore it is essential to create conditions conducive to the most effective licensing practices by collective management organisations , in an increasingly cross - border context . it is therefore appropriate to provide for a set of rules coordinating basic conditions for the provision by collective management organisations of multi - territorial collective licensing of authors ' online rights in musical works . these provisions should ensure the necessary minimum quality of the cross - border services provided by collective management organisations , notably in terms of transparency of repertoire represented and accuracy of financial flows related to the use of the rights . they should also set out a framework for facilitating the voluntary aggregation of music repertoire and thus reducing the number of licences a user needs to operate a multi - territorial service . these provisions should enable a collecting society to request another collecting society to represent its repertoire on a multi - territorial basis where it cannot fulfil the requirements itself . there should be an obligation on the requested society , provided that it aggregates repertoire and offers or grants multi - territorial licences , to accept the mandate of the requesting society , without abusing its market power . the development of legal online music services across the union should also contribute to a decrease in unauthorized copying of music .


### where the amounts due to rightholders cannot be distributed , after five years from the end of the financial year in which the collection of the rights revenue occurred , and provided that the collecting society has taken all necessary measures to identify and locate the rightholders , the collecting society shall decide on the use of the amounts concerned in accordance with article 7 , without prejudice to the right of the rightholder to claim such amounts from the collecting society . ### where the amounts due to rightholders cannot be distributed after three years from the end of the financial year in which the collection of the rights revenue occurred , or earlier where national legislation or the statute of the collective management organisation provides for a shorter period , and provided that the collective management organisation has taken all necessary measures to identify and locate the rightholders , and without prejudice to the right of the rightholder to claim such amounts from the collective management organisation , the amounts collected shall either be redistributed by the collective management organisation to its members , or attributed to cultural and social funds targeting artists and the promotion of young under the control of members of collective management organisations making decision at the general meeting .


### member states shall ensure that collecting societies make available to their members and rightholders effective and timely procedures for dealing with complaints and for resolving disputes in particular in relation to authorisation to manage rights and termination or withdrawal of rights , membership terms , the collection of amounts due to rightholders , deductions and distributions . ### member states shall ensure that collective management organisations make available to their members and rightholders effective and timely procedures for dealing with complaints and for resolving disputes in particular in relation to authorisation to manage rights and termination or withdrawal of rights , membership terms , the collection of amounts due to rightholders , deductions and distributions . the procedures for dealing with complaints and for resolving disputes shall be independent .


### member states shall ensure that the collecting society establishes a supervisory function responsible for continuously monitoring the activities and the performance of the duties of the persons entrusted with managerial responsibilities in the collecting society . there shall be fair and balanced representation of the members of the collecting society in the body exercising this function in order to ensure their effective participation . ### member states shall ensure that the collective management organisation establishes a supervisory function responsible for continuously monitoring the activities and the performance of the duties of the persons entrusted with managerial responsibilities in that organisation . there shall be fair and equal representation of all the different categories of members of the collective management organisation in the body exercising this function in order to ensure their effective participation .


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collective management organisation regularly and diligently distributes and pays amounts due to all rightholders it represents in accordance with a transparent distribution procedure ensuring equal treatment . the collective management organisation shall carry out such distribution and payments without undue delay as soon as the amount for a rightholder covers the collection costs and maintenance for the corresponding rights and administrative costs , after a period of three months and no later than six months from the collection of the relevant right revenues . the collective management organisation shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders .


### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members and rightholders . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights . ### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members , rightholders and users . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike .


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collective management organisations collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that collective management organisation , or another organisation . it is therefore important that collective management organisations exercise the utmost diligence , with maximum efficiency , in collecting , managing and distributing that revenue . accurate distribution is only possible where collective management organisations maintain proper and transparent records of membership , licences and use of works and other subject matter . data on the use of the rights managed by collective management organisations should also be provided by rightholders and users with due speed and care , and verified by those organisations . amounts collected and due to rightholders should be managed separately from any own assets of the collective management organisation and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collective management organisation ' s general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collective management organisation should be managed in accordance with criteria which would oblige the organisation to act prudently , while allowing it to decide on the most secure and efficient investment policy . as the collective management of rights by collective management organisations is not a profit - making activity , these organisations should opt for an asset allocation that is suitable in terms of its precise nature and duration , and avoids any exposure to risk of rights revenue . this should allow the collective management organisation to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collective management organisations to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collective management organisations of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### in the online music sector , where collective management of authors’ rights on a territorial basis remains the norm , it is essential to create conditions conducive to the most effective licensing practices by collecting societies , in an increasingly cross - border context . it is therefore appropriate to provide for a set of rules coordinating basic conditions for the provision by collecting societies of multi - territorial collective licensing of authors’ online rights in musical works . these provisions should ensure the necessary minimum quality of the cross - border services provided by collecting societies , notably in terms of transparency of repertoire represented and accuracy of financial flows related to the use of the rights . they should also set out a framework for facilitating the voluntary aggregation of music repertoire and thus reducing the number of licences a user needs to operate a multi - territorial service . these provisions should enable a collecting society to request another collecting society to represent its repertoire on a multi - territorial basis where it cannot fulfil the requirements itself . there should be an obligation on the requested society , provided that it aggregates repertoire and offers or grants multi - territorial licences , to accept the mandate of the requesting society . the development of legal online music services across the union should also contribute to the fight against piracy . ### unlike other creative sectors , where direct licensing plays a greater role , collective management of authors’ rights on a territorial basis remains the norm in the online music sector . it is therefore essential to create conditions conducive to the most effective licensing practices by collective management organisations . it is therefore appropriate to provide for a set of rules coordinating basic conditions for the provision by collective management organisations of multi - territorial collective licensing of authors’ online rights in musical works , thereby enhancing consumer choice and advancing towards completion of the digital single market . these provisions should ensure the necessary minimum quality of the cross - border services provided by collective management organisations , notably in terms of transparency of repertoire represented and accuracy of financial flows related to the use of the rights . they should also set out a framework for facilitating the voluntary aggregation of music repertoire , thus reducing the number of licences a user needs to operate a multi - territorial service and enabling them to be issued more efficiently . these provisions should enable a collective management organisation to request another collective management organisation to represent its repertoire on a multi - territorial basis where it cannot fulfil the requirements itself . there should be an obligation on the requested organisation , provided that it aggregates repertoire and offers or grants multi - territorial licences , to accept the mandate of the requesting organisation . the development of legal online music services across the union should also contribute to the fight against piracy .


### for the purposes of paragraph 2 , measures to identify and locate rightholders shall include verifying membership records and making available to the members of the collecting society as well as to the public a list of works and other subject matter for which one or more rightholders have not been identified or located . ### for the purposes of paragraph 2 , the collective management organisation shall put in place effective measures to identify and locate rightholders while ensuring appropriate safeguards to deter fraud . such measures shall include verifying membership records and making available regularly and at least annually to the members of the collective management organisation as well as to the public a list of works and other subject matter for which one or more rightholders have not been identified or located .


### the requested collecting society shall accept such a request if it is already granting or offering to grant multi - territorial licences for the same category of online rights in musical works in the repertoire of one or more other collecting societies . ### the requested collective management organisation shall accept such a request without delay if it is already granting or offering to grant multi - territorial licences for the same category of online rights in musical works in the repertoire of one or more other collective management organisations .


### commission recommendation 2005 / 737 / ec promoted a new regulatory environment better suited to the management , at union level , of copyright and related rights for the provision of legitimate online music services . it recognised that in an era of online exploitation of musical works , commercial users need a licensing policy that corresponds to the ubiquity of the online environment and which is multi - territorial . however , the recommendation , due to its voluntary nature , has not been sufficient to encourage the widespread multi - territorial licensing of online rights in musical works and to address the specific demands of multi - territorial licensing . ### commission recommendation 2005 / 737 / ec promoted a new regulatory environment better suited to the management , at union level , of copyright and related rights for the provision of legitimate online music services . it recognised that in an era of online exploitation of musical works , commercial users need a licensing policy that corresponds to the ubiquity of the online environment and which is multi - territorial . however , the recommendation has not been sufficient to encourage the widespread multi - territorial licensing of online rights in musical works and to address the specific demands of multi - territorial licensing .


### those procedures shall include an annual individual statement by each of those persons and directors , to the body entrusted with the supervisory function , containing the following information : ### those procedures shall include an individual statement by each of those persons and directors , given to the body entrusted with the supervisory function , and made publicly available through the website of the collective management organisation , in accordance with applicable law on privacy in the member state . the statement shall be made before each of those persons take up their duties , and shall thereafter be renewed annually . the statement shall contain the following information :


### the statute of the collecting society shall provide for appropriate and effective mechanisms of participation of its members in the collecting society ' s decision - making process . the representation of the different categories of members in the decision - making process shall be fair and balanced . ### the statutes of the collective management organisations shall lay down appropriate , effective and transparent mechanisms of participation of their members in the decision - making process of the collective management organisation . the representation of the different categories of members at all levels of the decision - making process shall be fair and organised on a footing of equality .


### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses . ### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of works , different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses or placement in the public domain .


### any restriction on the right of the members of the collecting society to participate and to exercise voting rights at the general meeting shall be fair and proportionate and be based on the following criteria : ### every member of a collective management organisation shall have the right to vote at the general meeting , including by electronic vote . any restriction on the right of a member of the collective management organisation to participate and to exercise its voting rights at the general meeting shall be fair and proportionate and be based on the following criteria :


### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members and rightholders . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights . ### there are significant differences in the national rules governing the functioning of collective management organisations , in particular as regards their transparency and accountability towards their members and rightholders . furthermore , problems with the functioning of collective management organisations lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collective management organisations , rightholders and users alike . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights , provided that they do not compete directly with management organisations in the areas of collecting and distributing monies due to rightholders . in such cases the criteria of membership and control by the membership are not relevant .


### member states shall ensure that collecting societies act in the best interest of their members and do not impose on rightholders whose rights they manage any obligations which are not objectively necessary for the protection of the rights and interests of these rightholders . ### member states shall ensure that collective management organisations act in the best interest of the rightholders whose rights they manage and do not impose on them any obligations which could undermine the protection of their rights and their interests , provided they allow the collective management organisations sufficient discretion to negotiate with rights users .


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collective management organisations collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collective management organisations exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collective management organisations maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collective management organisations . amounts collected and due to rightholders should be managed separately from any own assets of the collective management organisation and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collective management organisations ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collective management organisation should be managed in accordance with criteria which would oblige the collective management organisation to act prudently , while allowing the collective management organisation to decide on the most secure and efficient investment policy . this should allow the collective management organisation to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collective management organisations to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collective management organisations of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### guaranteeing the functioning of the internal market , in particular by ensuring effective competition . ### guaranteeing the functioning of the internal market , in particular by ensuring effective competition , while also pursuing the objectives of cultural diversity and social and territorial cohesion .


### support for the production of cow’s milk in madeira and réunion has not been sufficient to maintain the balance between domestic and external supply , chiefly because of the serious structural difficulties affecting the sector and its poor capacity to adapt to new economic environments . consequently , authorisation to produce uht milk reconstituted from milk powder of eu origin should continue , in order to cover local consumption more fully . in order to inform the consumer correctly , it should be made compulsory to indicate the method by which uht milk is reconstituted using milk powder on the sales labelling . ### support for the production of cow’s milk in madeira and réunion has not been sufficient to maintain the balance between domestic and external supply , chiefly because of the serious structural difficulties affecting the sector and its problems in adapting to new economic environments . consequently , authorisation to produce uht milk reconstituted from milk powder of eu origin should continue , in order to cover local consumption more fully , provided that this does not pose an obstacle to the collection and marketing of all locally produced milk , or hamper the efforts to promote the expansion of local production , the medium - term aim being to secure , for réunion , self - sufficiency in milk . in order to inform the consumer correctly , it should be made compulsory to indicate the method by which uht milk is reconstituted using milk powder on the sales labelling . this provision should also be applicable in martinique , french guiana and guadeloupe , should france make such a request citing the wish of local stakeholders to be covered by it and their ability to develop the milk sector .


### having regard to the treaty on the functioning of the european union , and in particular the first subparagraph of article 42 and article 43 thereof , ### having regard to the treaty on the functioning of the european union , and in particular the first subparagraph of article 42 , article 43 and article 349 thereof ,


### member states shall submit a draft posei programme to the commission in the light of the financial allocation referred to in article 29 and . ### member states shall submit a draft posei programme to the commission in the light of the financial allocation referred to in article 29 and . the draft programme shall be deemed admissible by the commission only if it has been notified to the leaders of the elected departmental or regional authorities .