Eros International CEO Kishore Lulla believes that the amendment to India's Copyright Act, if the go through in the current format, will help reduce business risk by ensuring that minimum guarantees paid out to composers are reduced. On the Eros International conference call, an investor asked Lulla about the impact on Eros' business, with the changes in the Copyright Bill: Q. What are the proposed changes to the Copyright Act, and how will they impact Eros and the overall film value chain. Kishore Lulla: Eros also has a publishing division, and we have a joint ventuer with EMI internationally, and we represent the EMI catalog in collecting those royalties in India. the step was going to come,a nd it's a step in the right direction. When it comes to the royalties, there's a twelve-twelvth share. when the music label acquires a film, they keep six-twelth of the royalties collected by societies across the world. which is where television plays it. the balance 6-twelvth of that royalty is divided between the composer and the music publishing house which collects on their behalf. This is not on sales, but on royalties from the performing rights being collected. That's what Javed Akhtar and the society went to the government, on why don't we implement the 6-twevth share which can come to the composer, and the rest can go to the music record label. Our model is a co-production model. At the moment, the producer pays a fixed fee to the composer. Now, when…
