Public Lending Right Scheme 1997 (Modification No. 1 of 2015)

Overview

The Public Lending Right Act 1985 was enacted to provide a legislative framework for a scheme recognising the loss of income by Australian creators and publishers of books held in public lending libraries. This act aims to compensate for the diminished royalties that authors and publishers receive when their works are borrowed from libraries. The Public Lending Right Scheme 1997, established under the Act, sets annual rates of payment to eligible creators and publishers, which can be adjusted through modifications by the Minister for the Arts. In 2015, a modification was introduced to increase the creator rate of payment from $2.00 to $2.02 and the publisher rate from 50 cents to 50.5 cents for the 2014–15 period, reflecting the evolving landscape of book distribution and consumption. This legislative instrument, the Public Lending Right Scheme 1997 (Modification No. 1 of 2015), was registered in the Federal Register of Legislative Instruments, adhering to the requirements of the Legislative Instruments Act 2003. The modification was determined to be compatible with human rights, as it did not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Public Lending Right Act 1985 provides the legislative framework for a scheme aimed at compensating Australian creators and publishers of books that are part of public lending libraries, acknowledging the financial loss incurred due to their works being available for free public use. This Act applies to eligible creators and publishers, ensuring they receive payments for the use of their books in public libraries, and in the 2013-14 financial year, payments totaling $9.563 million were distributed among 7,852 claimants. The scope of the Act extends to the Commonwealth jurisdiction, providing a national framework for the compensation scheme. The Public Lending Right Scheme 1997, which sets the annual payment rates, may be modified by the Minister for the Arts based on advice from the Ministry, allowing for adjustments in the rates of payment as demonstrated in the 2015 modification that increased the creator rate and publisher rate slightly. This modification is a legislative instrument under the Legislative Instruments Act 2003 and is compatible with human rights and freedoms as recognised in relevant international instruments.

Key Provisions

The main operative sections of the Public Lending Right Scheme 1997 (Modification No. 1 of 2015) include the amendments to the annual rates of payment for eligible creators and publishers of books held in public lending libraries. Specifically, section 3 of the modification increases the creator rate of payment from $2.00 to $2.02 for the period 2014–15, while section 4 raises the publisher rate from 50 cents to 50.5 cents for the same period. These changes reflect the adjustments made to the Scheme as advised by the Ministry for the Arts. The Act imposes certain obligations and requirements on the parties involved. Under section 5(1)(b) of the Public Lending Right Act 1985, the Minister is authorised to modify the annual rates of payment. The 2015 modification follows this authority, with the Minister determining to adjust the rates based on the Ministry’s advice. Additionally, the modification adheres to the Legislative Instruments Act 2003, ensuring that the changes are registered in the Federal Register of Legislative Instruments to satisfy the gazettal requirement as per subsection 56(1) of the LIA Act. In terms of consequences for non-compliance, the Explanatory Statement does not detail specific offences, penalties, or consequences for breach of the provisions. However, as the modification is a legislative instrument under the LIA Act, any failure to adhere to the legislative requirements could result in legal scrutiny or challenge. It is also noted that this legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, indicating no anticipated conflicts with human rights considerations.