Payments to performer: representative entity

On December 27, 2006, this decision, which recognizes the capacity of the Argentine Performers Management Society (“Sociedad Argentina de Gestión de Actores Intérpretes”- S.A.G.A.I.) to act on behalf of both Argentine and foreign performers and dancers for the purpose of collecting and managing the payments for their performances broadcasted by any means, was published in the Official Gazette Decree No 1914/2006. Under S.A.G.A.I.’s by-laws, dubbing performers are also represented by such entity. In addition, the Decree No 1914/2006 extends S.A.G.A.I.’s capacity to also represent heirs and assignees of all the above mentioned performers.

Section 56 of the Law No 11,723 (Argentine Intellectual Property Law) regulates the payment to performers whose performances were broadcasted or transmitted by radio or television or recorded in a disc, CD, movie, tape or any other means suitable to allow the reproduction of their content.

Decree No 1914/2006 has interpreted Section 56 broadly, by considering that the payment arises from “the exploitation, use, interactive availability or broadcasting by any means.” In relation to the means of reproduction, the Decree refers to “audiovisual recordings or other media.”

The Decree entitles S.A.G.A.I. to enforce its rights in court.

Payments and formulas to calculate such payments will be approved by the Media Secretariat (“Secretaría de Medios de Comunicación”), which is an agency of the Leadership of the Cabinet Ministers (“Jefatura de Gabinete”), according to the proposal which will be drafted by S.A.G.A.I., and which will be based on market data and normal usage within the sector.

It should be borne in mind that Decree No 1914/2006 will apply to all those contracts executed as from the date on which the Decree will come into force (January 4, 2007).  It is remarkable that the model management agreement proposed by S.A.G.A.I. allows S.A.G.A.I. to “negotiate with the users” the payment for the use of the performances on behalf of S.A.G.AI.’s members.

S.A.G.A.I. was authorized to operate on November 13, 2006. Its President is actor Osvaldo “Pepe” Soriano. Its Vice-president is actor Federico Luppi.

S.A.G.A.I. is a private-law entity and is independent from the Argentine Actors Association (“Asociación Argentina de Actores”), which is a union and mutual company.

Finally, according to Decree No 1671/1974, the Argentine Performers Association (Asociación Argentina de Intérpretes –AADI-) continues to represent Argentine and foreign performers (as well as their heirs and assignees) for the purpose of collecting payments arising from the performances recorded in phonograms.