Client Rights Management Entities (RMEs)
Under a new approach adopted in recent years, CISAC is now able to offer services to Rights Management Entities (RMEs). These are companies that operate a different business model from the traditional Collective Management Organisations (CMOs) which make up CISAC’s membership. Under the new approach, RMEs can now become Clients of the Confederation and obtain access to CISAC’s business tools (the CIS Tools).
To become a Client, an organisation needs to demonstrate that it is a Rights Management Entity (RME) as defined in the CISAC Statutes. In addition, RMEs must fulfil several requirements and obligations:
- Have at least one representation agreement with a full CISAC Member;
- Comply with all relevant and applicable laws and regulations in countries where they operate;
- Sign and abide by the CIS Tools User contract;
- Comply with specific Binding Resolutions (most Binding Resolutions are applicable to both CISAC Members and Clients);
- Supply the Secretariat with certain documents and information to allow CISAC to validate that such RMEs qualify as Clients and comply with their obligations at all times.
Like CISAC members, Clients will be invoiced for their use of the CIS Tools. The fee structure for Clients reflects the costs for CISAC in running the CIS Tools. This fee structure may be subject to further review, evaluation and possible modification.
Assessment of Clients
There is an important difference between the application processes of CMOs and RMEs. The requests by RMEs to become Clients do not involve the same qualitative evaluation that is required when CMOs apply for membership of CISAC. In the case of Clients, the Secretariat verifies that the criteria mentioned above are met, but there is no qualitative evaluation of these entities’ operations.
Therefore, unlike in the case of admission of CMOs as CISAC members, the validation of Clients does not mean that they meet any qualitative thresholds in their operations, or that CISAC has granted to them any stamp of approval. CISAC members who wish to enter into agreement with any Client should carry their own due diligence. Any claim from RMEs that their validation as Clients means CISAC recognises or otherwise endorses their operations is incorrect.
Rights and obligations
CMOs that qualify to become CISAC members enjoy all the benefits that come with CISAC membership, including participation in CISAC’s governance, voting rights at the General Assembly, regional and technical committees. RMEs who become Clients have limited rights that relate to CISAC’s technology tools only, as illustrated below.