Ecad clarifies music copyright rules for corporate events and unclaimed royalties

The Central Bureau for Collection and Distribution (Ecad) has issued guidance regarding music copyright obligations and the management of unclaimed royalties in Brazil.

For corporate year-end celebrations, Ecad stipulates that companies must license music even for private events restricted to employees. Paying a DJ or band fee does not cover copyright royalties for composers and other rights holders. Under Law No. 9.610/1998, public execution of music in collective spaces requires prior authorization. Human resources departments are advised to verify whether event organizers or venues have included licensing in their budgets.

Regarding unclaimed funds, Ecad retains money from unidentified songs, recordings, or streaming plays for up to five years. If the works are not identified within this period, the funds are redistributed to the original segment with monetary correction, meaning the original owners may lose access to the money if they have not regularized their registration. Common causes for withheld credits include artists not being affiliated with an association, missing ISRC codes, or discrepancies in names between distributors and platforms.