Partial elimination of a copyright collection monopoly: SADAIC

Through Decree 765/2024 issued by the National Executive Branch (PEN) of Argentina, a significant reform in the country’s intellectual property system was implemented, primarily focusing on the mechanisms for collecting copyright royalties. This measure, aligned with Law 27.742 (Law on the Bases and Starting Points for the Freedom of Argentinians), aims to dismantle monopolies in this field.

Historically, the Argentine Society of Authors and Composers (SADAIC) was responsible for charging businesses for the right to reproduce or perform music, even at private events. However, Decree 765/2024, which amends Articles 33 and 35 of Decree No. 41.223/34 (the regulatory decree of Law 11.723 on Copyright), brings this situation to an end. The Decree argues that the modified regulations needed to be updated to reflect the original intent of the copyright law.

As a result, musical “performances” or “executions” that take place in a private setting, with restricted access to the public (whether of a permanent or temporary nature) are now exempt from payment.

While this measure significantly curtails the collection monopoly held by the managing entity, it has been welcomed by many experts. They argue that the previous collection model had effectively turned into a form of hidden or pseudo-tax, without clear benefits for authors or real compensation for businesses.