THE AUDIO VISUAL COPYRIGHT SOCIETY v AUSTRALIAN RECORD INDUSTRY ASSOCIATION LTD. and ORS. [1999] NSWSC 947

THE AUDIO VISUAL COPYRIGHT SOCIETY v AUSTRALIAN RECORD INDUSTRY ASSOCIATION LTD. and ORS. [1999] NSWSC 947

The court held that the plaintiff collecting society held royalty funds on trust for relevant copyright owners and that the failure to allocate to owners of copyright in sound recordings incorporated into film soundtracks was a breach of that trust. However, as the plaintiff acted honestly and reasonably under a generally accepted but mistaken interpretation of the law, it was entitled to be wholly relieved from liability for breach under s 85 Trustee Act 1925 (NSW). Payment from the IBNR Fund for artistic works was not a breach of trust. The court declined to finally endorse the proposed compensation mechanism for past underpayment pending further submissions, but expressed a prima facie...

Jurisdiction
Australia
Judgment Date
17 September 1999
Procedural Posture
Equity / Judgment
Outcome
Declarations and orders substantially as sought by the plaintiff: trust declared; breach of trust declared regarding sound recordings incorporated in film sound-tracks; relief from liability granted to plaintiff for such breaches; court approval of some payments and schemes withheld pending further submissions;...
Legal Topics
['copyright' 'statutory Licensing Schemes' 'collecting Societies' 'breach of Trust' 'trustee Relief' 'distribution of Royalties' 'interpretation of Articles of Association']
['intellectual Property' 'equity' 'trusts'] ['copyright' 'statutory Licensing Schemes' 'collecting Societies' 'breach of Trust' 'trustee Relief' 'distribution of Royalties' 'interpretation of Articles of Association']

Case Brief

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Procedural Posture

Equity / Judgment

Legal Issues

  1. 1 ['Whether equitable remuneration collected by plaintiff was held on trust for copyright owners under its Articles and the Copyright Act 1968 (Cth)' 'Whether the omission to allocate royalties to owners of copyright in sound recordings incorporated into film sound-tracks was a breach of trust' 'Whether, by paying money from the IBNR Fund to Viscopy in respect of artistic works, plaintiff breached trust' 'Whether plaintiff should be wholly relieved from personal liability for breaches of trust under s 85 Trustee Act 1925 (NSW)']

Ratio Decidendi

The court held that the plaintiff collecting society held royalty funds on trust for relevant copyright owners and that the failure to allocate to owners of copyright in sound recordings incorporated into film soundtracks was a breach of that trust. However, as the plaintiff acted honestly and reasonably under a generally accepted but mistaken interpretation of the law, it was entitled to be wholly relieved from liability for breach under s 85 Trustee Act 1925 (NSW). Payment from the IBNR Fund for artistic works was not a breach of trust. The court declined to finally endorse the proposed compensation mechanism for past underpayment pending further submissions, but expressed a prima facie...

Court Disposition

Declarations and orders substantially as sought by the plaintiff: trust declared; breach of trust declared regarding sound recordings incorporated in film sound-tracks; relief from liability granted to plaintiff for such breaches; court approval of some payments and schemes withheld pending further submissions;...

Orders

  • ['Declaration that remuneration collected is held on trust as submitted' 'Declaration of breach of trust for omission to allocate to sound recording owners' 'Order relieving plaintiff from liability for breaches of trust under s 85 Trustee Act 1925 (NSW)' 'Declaration that payment to Viscopy from IBNR Fund was not a...