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«Prepared for Caribbean Export Development Agency Barbados April 2001 CHAPTER ONE INTRODUCTION The rapid growth of an intellectual property and ...»

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Consequently, the pirate is able to beat legitimate product not just on price but also on availability, timely delivery and diversity of product. One can find pirated material easily on the streets as well as in record stores. An important development in the pirate market has been the shifting from cassettes to CDs as the soundcarrier of choice. At present there are no anti-piracy campaigns throughout the region.

The OECS region is also affected by the problem of low local or regional content in radio airplay (see table 2). This is an issue that impacts on the wider region. The problem is partly one of seasonality whereby most of the music is produced for the various national carnivals. Consequently, the soca music from the Eastern Caribbean suffers the same fate as music coming out of Trinidad and Tobago and Barbados, the two dominant producers of calypso music. This genre, however, enjoys the benefits of a transnational circuit of overseas Caribbean carnivals. Artists and bands have reported that success in the Trinidad carnival is critical to effectively tap into this diasporic market. Participation in other territories’ carnivals and festivals has proven to be an effective marketing strategy.

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One of the most problematic areas is the weak institutional base of the artistic community. There is a high level of fragmentation and individualism in the community of artist, musicians and recording industry stakeholders.

The OECS region is not alone in this regard but the problem is exacerbated by the politics of small size. As a result, the negotiating and bargaining power of the sector is extremely weak in relation to the hotel and advertising sectors. Industry reports suggest that performance fees at hotels and the professional fees for ad work have not kept pace with inflation. With no established artist or musician unions there are no standards or code of ethics to secure growth in earnings. The impact is that an important source of alternative income for the music industry is choked off in the local business environment. This is problematic because it is these ancillary sectors that offer the training grounds for artists. There is an overwhelming need to build an institutional capacity in this area.

A weak institutional base ensures that the music industry has limited advocacy capabilities when addressing sectoral issues. Within governmental circles there is no definitive policy on the music industry or the entertainment sector in general. Some of the gaping areas for state involvement include infrastructural development like performance venues.

This is an investment that is unlikely to be made by the private sector but which can reap significant rewards once the investment is aligned, for example, with a festival tourism strategy. Educational policy is another area for governmental support. The training of artists, musicians, composers and cultural entrepreneurs and administrators is critical to move the sector to higher levels of domestic value-added. Intellectual property policy and administration is a key area to protect the investment of artists and cultural entrepreneurs. This is not just a legal problem as there is much need for an infrastructure of collective administration to collect and distribute royalty income.

Copyright Administration

Copyright legislation in the OECS sub-region devolved from United Kingdom legislation, specifically the Copyright Act 1911 or the Copyright Act 1956. Even after independence several territories continued under UK laws. Consequently, up until the early 1990s there were three categories of copyright legislation in force in the region: (1) those territories under the UK 1911 Act; (2) those with the 1956 Act; and (3) those which have put in force new copyright laws after independence (De Freitas 1991: 16; Pollard 1989).

Participation in international copyright regimes or institutions was minimal prior to the 1970s. Caribbean membership in the Berne Convention started with the Bahamas in 1973 followed by Suriname, Barbados, Guyana, Haiti, Jamaica, St.

Lucia, St. Vincent and Trinidad and Tobago. Membership in WIPO also started in the mid-1970s and includes most territories. All OECS countries are members of the WTO and are therefore subject to TRIPs compliance.

From the late 1980s the governments of the respective territories were faced with lobbies from the music industry for updated laws. However, not until legislative reform in the 1990s have most territories developed indigenous laws, largely in response to international agreements and treaties such as the WTO TRIPs agreement and the new WIPO treaties on Copyright and Related Rights. In fact, all territories have updated their laws to comply with the WTO TRIPs agreement (Nurse 2000).

Up until 1999 there was only one collective administration organization in the sub-region: the Performing Rights Society (PRS) of the UK. These territories have operated under an agency arrangement with PRS. PRS had two agencies in the following territories: Dominica (which covers Antigua) and St. Lucia. A national society has come on stream in St. Lucia (HMS – Hewanorra Musical Society) in 1999.

The key issues affecting collective administration in the region is the institutional capability to license users (especially radio stations, entertainment venues and hotels), monitor usage, expand domestic and international collections and administer the distribution of copyright income. In most OECS territories the size of the domestic market is considered too small to make a national collection society a viable venture. It is also that royalty collections have been hampered by the high level of piracy and other forms of copyright infringement, for example, the use of music by a large number of unlicensed users (Nurse 2000).

Many Caribbean artists have not been educated on how to secure their copyright and continue to be subject to infringement in spite of the new laws. A large percentage of musical works by local artists and publishers are not properly documented and so royalty payments go unidentified, particularly in overseas markets. In addition, regional collections, where musical works from the region are highly represented, have been faced with the problem of high administration costs under the agency arrangement with PRS thereby reducing net distribution to right owners.

Data on the overseas royalty income of the region is currently unavailable. The information generated by PRS only consists of data on outflows from the region and not on their inflows from foreign societies. Thus table 3 shows the royalty exports or outflows for Dominica and St. Lucia. Royalty collections fluctuated over the period, peaking in 1995 at £214,192 but dropping subsequently to £99,359 in 1997, the latest complete data for both territories.

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Another copyright concern is the inadequate representation the OECS region has in terms of collective administration. The region only has one national copyright society, the Hewanorra Musical Society, based in St.

Lucia. Dominica and Antigua also have representation but from an agency of the UK based Performing Rights Society. The Copyright Organization of Grenada is yet to get off the ground. St. Vincent and St. Kitts are not represented by any collective administration organization. However, this situation is likely to improve with the coming on stream of the Caribbean Copyright Link, which is an alliance of national copyright societies from Trinidad and Tobago, Jamaica, Barbados and St. Lucia. It is envisaged that the smaller territories, which are unable to financially sustain a national copyright society would be serviced under some agency arrangement by Caribbean Copyright Link.

In regards to a regional copyright and collective administration one of the critical issues to be addressed would be the special case of Dominica. A large percentage of Dominican music, unlike its other OECS members, circulates in the French departments, mainland France and Francophone countries. Artists like Ophelia Marie and Exile One have historically generated publishing income through these markets and consequently will be reluctant to join the regional copyright system and may opt to stay with the French copyright society SACEM. It is suggested that this problem could be solved by allowing the affected authors and composers joint or split membership between CCL and foreign copyright societies.

Because of the low level of copyright administration in the OECS region an important source of income for artists is lost. It also means that most hotels, nightclubs and other entertainment users are operating without public performance licenses. In addition, without such an organizational capacity there is limited lobby or advocacy capability on the issue of piracy and other forms of copyright infringement as well as the updating and enforcement of copyright legislation. There is a clear need for the development of a strong anti-piracy campaign. Copyright legislation is currently being updated in each of the territories.

Carnivals and Music Festivals One of the most important features of the music industry in the OECS is the significant contribution that carnivals and music festivals make to the entertainment and tourism sectors (see table 4 below). Most of the music produced in the region is festival inspired. Each territory has a carnival, which has a long and rich historical tradition. These carnivals are generally organized along the same lines as the Trinidad carnival. For example, the main artforms are calypso, steel pan and masquerade and they tend to have the same competitions as those found in the Trinidad carnival. These carnivals import a range of services from Trinidad, such as mas designers, steel pan arrangers and soca bands.

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The carnival season in the various territories is the primary time for music production and consumption. The carnivals generate local demand for sound recordings. These songs are then broadcast over the airwaves and act as promotional tools for the recording artists to win performance contracts. Success within the carnival creates (e.g. winning road march competition) opportunities for overseas performance work in the regional

and diasporic markets and widens the market for merchandising andexports.

The carnivals also generate tourist arrivals, which expands the audience and market for the music and other carnival related goods and services.

For example, carnival in St. Kitts and Nevis, which runs for ten days prior to New Year’s day, attracts close to 5,000 returning residents and friends and is one of the peak tourism seasons. St. Lucia, which has developed a comprehensive festival tourism strategy, has moved the carnival from the pre-Lenten period to the month of July so as not to compete with the Trinidad carnival. The once popular Vincy Mas in St,. Vincent and the Grenadines, used to attract many visitors from Trinidad and neighbouring territories.

The economic impact and consequently the economic potential of the carnivals remains largely undocumented. For example, a visitor survey has not been done for any of the carnivals. It appears, however, that there is a wind of change in that several governments have identified festival tourism as an important innovation in their tourism strategy, namely, St. Lucia, St.

Kitts and Dominica. This is evident in the growth of music festivals.

The last decade has seen the introduction of a number of tourism-inspired music festivals, for example, the St. Lucia Jazz Festival, the St. Kitts Music Festival and the World Creole Music Festival in Dominica. Grenada has followed suit with its recently established Spice Jazz festival. These festivals have achieved some international acclaim through media exposure in print media and on cable television channels such as Black Entertainment Television. In addition, these festivals have reaped significant rewards for the tourism sector. The demand-pull created by these festivals is such that they have been able, in some instances, to convert what was a trough in the tourism calendar into a peak period of arrivals. There tends to be an appreciable increase in hotel occupancy levels and the number of airlifts by regional and international air-carriers.

Festival tourists are also observed to stay longer, spend more - especially on indigenous goods and services - and are repeat visitors. The festivals also generate new markets in that a large percentage of the visitors for the festivals are regional and diasporic tourists, neglected market segments in traditional tourism marketing and research.

St. Lucia Jazz Since its inception, the festival has grown in stature and magnitude. It is considered around the region as the premier jazz festival. The festival has definitely increased awareness about the island, as exemplified by the increased arrivals during the month of May, which was traditionally a very slow period. It has also effected a change in the traditional flow of visitors to the island. There has been a marked increase in the number of visitors from the Caribbean, especially from the French West Indies, not just for the Jazz Festival but throughout the year.

In the estimation of the St. Lucia Tourist Board, the festival organizer, the value of the publicity and media coverage that the island receives as a result of the festival exceeds the total annual budget of the tourist board. The St. Lucia Jazz Festival has proved to be an invaluable marketing tool for the tourist economy.

The Jazz Festival accounts for 42.5% of arrivals for the month of May 1998.

Data from 1998 shows that the festival generated 3.9% of total arrivals and 4.9% of total visitor expenditure (see table 5). The latter suggests that Jazz Festival patron/visitors spend more than the average visitor.

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The budget for the festival in 1998 was EC$3.9 million. Based on the following financial and economic analysis the festival generates visitor expenditures to the tune of EC$37.5 million which gives a healthy return on investment of 933% (see table 6). This figure is gained from comparing the festival budget with the level of visitor expenditures.

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