This amends the Copyright Act 1994 as follows:
Indemnity Fee - a regular fee paid by a person to share copyright works in the form of computer files
Indemnity Collecting Body - a body which collects fees on behalf of rights holders
Indemnity Compensation Payment - a payment made to an individual rights holder in compensation for Indemnified Copy
Indemnified Copy - a copy of a work (in the form of a computer file) that would be an Infringing Copy if no indemnity were paid.
Typical Online Price - the typical price a class of work, such as a film or music track is sold for on an online basis
S93A. Indemnity Collectiing Body
The Minister [which one?] may authorise any body to collect Indemnity Fees on behalf of rights holders. The Minister must be satisfied that:
1. The body maintains appropriate fiduciary standards
2. The body has the support of a substantial proportion of the members of a class of copyright holders that wish to receive Indemnity Compensation Payments.
3. The body collects appropriate statistics as to the number of Indemnified Copies being made of it's members works, and of the Typical Online Price of those works.
S93B. Definition of Indemnified Person
A person who pays a fee (the Indemnity Fee) set out in a regulation by the Minister [which one?] via an ISP authorised by the minister.
S93C. Distribution of Indemnity Fees.
1. All Authorised Collecting Bodies will declare on an annual basis the number of Indemnified Copies being made of it's members works, and the Typical Online Price of those works.
2. The declared statistics will be used to apportion the total collected Indemnity Fee revenue to Authorised Collecting Bodies on an equitable basis [should we set this out]
3. Each Authorised Collecting Body is required to pay the received revenue, less expenses, to it's members as Indemnity Compensation Payments on an equitable basis.
S93D. Indemnified Copies
Copyright in a computer file is not infringed when:
1. The person making the copy has paid an Indemnity Fee for the period when the copy was made, and;
2. The person making the copy is not doing so for gain, whether direct or indirect, and including any advertising or site referral payments
3. No license or rights are transferred by the act of making an Indemnified Copy
S93E. Amount of Indemnity Fee
1. The Minister will set the indemnity fee on an annual basis, taking account of:
a. the number of Indemnified Copies being made, the number of Indemnified Persons and the Typical Online Price of works
b. the average price of Internet service in New Zealand
2. The fee shall not be less than 10% of the median price of broadband Internet service in New Zealand
3. The fee shall not exceed 20% of the median price of broadband Internet service in New Zealand