I

EDITORIAL

NOTHING RESISTS A GREAT SONG

Over the last 13 years, a number of incompetent governments in succession have caused the most severe crisis in Brazilian history, bringing back situations that we thought we had overcome. Inflation has made a vigorous comeback, destroying the purchasing power of the Brazilian people; foreign exchange fluctuation has soared to levels that are on the verge of ruining the Brazilian currency; economic uncertainties have caused a recession in productive activity; entrepreneurs have halted their investments: the political and economic crisis has affected the historic will of national evolution.

In a Dantesque scenario like this, it was to be expected that Authors' Rights laws and the Brazilian system of collective music management would also suffer the repercussion of the situation prevailing in Brazil.

However, as popular Brazilian songs state, nothing resists a great song, and in this adverse situation ABRAMUS (Brazilian Association of Music and Arts) has grown and Authors' Rights have received significant amounts of copyright, arising from the use of both their own works and cover performances. If on one hand the Brazilian currency lost almost 50% of its exchange value, on the other the collection of rights grew by about 2.4%, allowing not only the maintenance of the whole system, but for the system to flourish to its full potential. Furthermore, the distribution of rights, at least regarding ABRAMUS, reported a 12.27% increase as compared to the previous year.

ABRAMUS' growth ultimately resulted from the increasingly better management of directory documentation, which is represented by the striking number of (millions of works and phonograms).

We have had a huge increase in membership, with more than 48 thousand rights holders now members of the association. This therefore caused an even better performance in the documentation area in order to accommodate the vast directory that ABRAMUS' management has received.

The International Author Department met its target of increasing remittance sent to sister associations and managing the directory of Brazilian copyright holders abroad more efficiently. The department had an excellent result, with an increase equivalent to 183% of the amounts received from foreign entities in comparison to 2013.

The International Neighboring Rights – Related Rights has formed important partnerships, entering into two new agreements with the Canadian Mroc and the Belgium PlayRight. In addition, many foreign copyright holders have chosen ABRAMUS to represent them in Brazil.

The Theater and Dance Department (Dramaturgy) continues to make significant developments, attracting the membership of new authors and seeking increasingly faster rights management arising from Theater and Dance productions. In 2014, Theater & Dance ended the year with a significant increase in revenue and affiliation.

In 2014, AUTVIS (Brazilian Association of Visual Artists Rights) redesigned its website, presenting a new visual project and providing a more user-friendly interface. The work was arduous over the year, with affiliations of acclaimed names such as Oscar Niemeyer and Eduardo Kobra.

The Audiovisual Department had an important advancement in 2014; a special system for its category is now being developed and new domestic and international partnerships were made.

In that same year, the ownership interest changed to 6.89%. ABRAMUS, different from the other associations, assigns a 0.89% bonus to its copyright holders.

ABRAMUS ended 2014 with an outstanding increase in all its areas and starts 2015 with the organization and planning required to grow even further, focusing on member's customer service, the market and the defense of Authors' Rights.

The fact is that regardless of the Brazilian crisis and the loss of value of the national currency, the organization continues to grow; an unequivocal demonstration that nothing resists great pressure, and also, that working with its usual efficiency, ABRAMUS will always fulfill its historic destination.

Roberto Corrêa de Mello
General Manager

II

ARTISTIC & REPERTOIRE

11BRAZILIAN
STATES

With a 10% growth over the previous year and 5,338 new affiliations, totaling 44,608 full members, in 2014 ABRAMUS once again consolidated its position as one of the most important Brazilian authorial Societies. New and important affiliations were made throughout the year, reinforcing ABRAMUS as the major society in Brazil that is concerned with national repertoire.

Focusing on assistance and support, the Artistic & Repertoire departments based in Brazil's major capitals and cities – both with the intermediacy of our representatives and our agents – are responsible for acquiring new full members, as well as maintaining the present staff.

The use of our tools and the reformulation of our Relationship Portal were other important factors to sustain members' loyalty; those members rely on resources that enable them to register their work and phonograms, research protected credits, send files and information, check financial statements and much more, straight from their offices, without the need of movement around or of dispatch expenses, as all jobs can be done through the Internet.

2014 was also extremely important for the convergence of several societies under our leadership, covering a wide range of technical issues and rules that were altered throughout the year, thus culminating in a fairer and more transparent distribution among all full members.

Important changes are expected for 2015 in the national scenario as well as after the consolidation of revenues as defined by financial agreements initialized in 2013 and concluded in 2014, financially re-empowering several major users and enhancing the distribution of quite a few rubrics.

ABRAMUS is ready for 2015 – ready to add to more than 30 years of AUTHOR RIGHTS TAKEN SERIOUSLY!

Gustavo Vianna
Artistic & Repertoire Manager

AFFILIATES IN 2014
5.338

TOTAL AFFILIATES
44.608

III DOCUMENTATION

The Documentation Department is the link between repertoire information and the repertoire's "owner".

It is one of the most important departments, and the one that receives the most attention within ABRAMUS. One of its functions is to register the Associates' repertoire on ABRAMUS base and on ECAD's distribution system.

The Department is strategically divided into three groups (works, phonograms and cue sheets), which allows for a better information dynamics and helps members have their information sent to ECAD as quickly and promptly as possible.

That kind of work, though it may appear simple, is actually highly complex, and it involves a series of peculiarities. Information is sent to members by ABRAMUS, which, within the Documentation Department, analyzes the data to be registered within our system and later to be exported to ECAD's system. Among the processes therein involved, the two major ones are analysis of information and cross-reference of data that's been registered by the other societies. Once the process is finished and all information has been dealt with and analyzed, the data are then sent to ECAD so that it loads the information on its distribution base.

However, due to the plurality of societies, information may clash with the information registered by another society, in which case ABRAMUS will contact the holding member to solve the matter.

ABRAMUS receives a very large volume of data to be registered every year, including works, phonograms and cue sheets. We must be prepared at all times to meet the demands of our Associates, and that is why the Documentation Department always works too closely with the Information Technology Department. Last years' numbers were highly positive, and the whole Staff has endeavored to keep improving.

Gustavo Gonzalez
New Businesses and Documentation Manager

Total registered by ABRAMUS:

WORKS
2.949.780 M

PHONOGRAMS
3.218.240 M

CUE SHEETS
33.024 k

IV

INTERNATIONAL DEPARTMENT AUTHORS' RIGHTS

In 2014 the International Department consolidated all the work planned in 2013. The aim was to continuously increase the values sent to the partnersister societies, but also to deal more efficiently with ABRAMUS' authors' repertoire abroad. In the last few years the department has focused on this issue, and the effort has been successful, as we could achieved in 2014 a 183% raise over the values received in 2013.

RECEIPTS

In 2014 we received R$ 4.366.101,44 from abroad.
The table beside shows the numbers from the last 4 years.

Authors and works that received the highest earnings from abroad in 2014:

1.094.824,75
2011
1.406.080,39
2012
1.542.027,69
2013
4.366.101,44
2014
AUTORS
CASSIO SAMPAIO SILVA
WORKS
BALADA
SHARON ACIOLY ARCOVERDE AI SE EU TE PEGO
DORGIVAL DANTAS DE PAIVA BARA BARA
SILVIO LUIS RICHETTO ALCANCEMOS LAS ESTRELLAS
PAULO RUBENS DE MORAES TATIT ON EAT
ILAN RECHTMAN E DEPOIS
EDUARDO JOSE QUEIROZ DE OLIVEIRA SAMBA DA GALINHA
KLEBER CAVALCANTE GOMES FUNK MONKEY
JORGE MARIO DA SILVA FORRO DA FRUTA
MIKAEL MUTTI RAMOS AVENIDA BRASIL CUES

REMITTANCES

In 2014 R$ 9.094.645,65 were sent to the societies with which ABRAMUS has bilateral agreements and also to the foreign publishers and authors represented directly by ABRAMUS here in Brazil. That meant a 25.4% raise compared to the cash values sent in 2013

Our goal in 2015 is to keep working to increase our members' receipts, with the expansion of the department and acquisition of new resources. Brazilian music is largely played and admired abroad and every effort must be made so that the authors receive the fair remuneration for their work.

Besides, as we've been doing since the beginning, ABRAMUS will contine focusing on the satisfaction of the foreign societies and authors represented by us in Brazil.

Roseany Fagundes
Internacional Department Manager

SGAE SESAC SADAIC SACM AGADU
V

INTERNATIONAL DEPARTAMENT NEIGHBORING RIGHTS

In 2014, ABRAMUS's Neighboring Rights International grew bigger. There are now 21 bilateral partnerships and over 5 unilateral ones. Two new contracts were celebrated in 2014: Mroc (Canada) and PlayRight (Belgium), besides the traditional partnerships with several international societies, such as PPL (England), Sena (Holland), Sami (Denmark), and many others.

The Neighboring Rights International Department has also grown in terms of the number of agencies that represent international artists, with 21 contracts and about 50 foreign members who have chosen ABRAMUS to represent them in Brazil.

Such results are the fruits of a great work and much investment in people, systems and processes.

The strategy that's been adopted since 2013 also takes into account growth into the upcoming years, as negotiations with other countries are still in progress. All this is part of ABRAMUS's effort to improve its actions in an international scenario and, most of all, to obtain better results from the Brazilian repertoire being played abroad.

From 2013 to 2014, more than R$ 1.3 million were earned from foreign associations, of which R$ 813 thousand have already been distributed to Brazilian artists.

THE TABLE BELOW SHOWS THE PAYING SOCIETIES, BESIDES THE TOP-EARNING PHONOGRAMS AND ARTISTS IN 2014:

SOCIETY
AIE
COUNTRY
SPAIN
VALUE
R$379.177,63
CPRA GEIDANKYO JAPAN R$171.607,07
GRAMEX DENMARK R$14.045,77
PPL - I ENGLAND R$25.839,66
SAMI SWEDEN R$1.864,59
SENA NETHERLANDS R$146.655,97
SOUND EXCHANGE UNITED STATES R$572.754,41
TOTAL R$ 1.311.945,10
United States Spain Japan Netherlands England Denmark

MAIN RECEIPTS:

ARTISTS
NIVALDO BATISTA LIMA
PHONOGRAMS
BALADA
CAETANO EMMANUEL VIANA TELES VELOSO HUELLAS
JOSE ALVES VASCONCELOS FILHO BURGUESINHA
JORGE MARIO DA SILVA SO IN LOVE
JORGE LIMA MENEZES NOTHING BUT A SONG
THIAGO IORCZESKI SURF BOARD
VANESSA SIGIANE DA MATA FERREIRA TICKET TO RIDE
LOALVA BRAZ VIEIRA MAS QUE NADA
ROBERTO BATALHA MENESCAL FEELINGS
MAURICIO ALBERTO KAISERMAN LAMBADA
As for the international repertoire played in Brazil, ABRAMUS is also doing a great job. Around R$ 12.150 million have been distributed, covering an approximate 4,000 international holders through their societies and representatives. The documentation work for those phonograms is the major contributing factor to the ultimate result. We have at present about 3.020.000,00 million phonograms registered with the ECAD. And ABRAMUS, being the most active Brazilian society, is responsible for roughly 95% of all phonograms that were registered in 2014 alone.

Carlos Eduardo Franzão
Internacional Operations Manager

PARTNER SOCIETIES

ACOGEF (COSTA RICA)
ACTRA PRS (CANADA)
AIE (SPAIN)
ANDI (MEXICO)
APOLLON (GREECE)
CPRA/GEIDANKYO (JAPAN)
GRAMEX (DENMARK)
GRAMO (NORWAY)
HUZIP (CROATIA)

NUOVO IMAIE (ITALY)
OBERIH (UKRAINE)
PLAYRIGHT (BELGIUM)
PPL-I (ENGLAND)
PPL-PF (ENGLAND)
RAAP (IRELAND)
SAMI (SWEDEN)
SENA (NETHERLANDS)
SGP (PARAGUAY)

STOART (POLAND)
UMA (UKRAINE)
ZAVOD IPF (SLOVENIA)
ARTISTI (CANADA)
MROC (CANADA)
ROUPI (RUSSIA)
SOUNDEXCHANGE (USA)

AGENCIES

BLUEWATER (USA)
BOOSEY & HAWKES (ENGLAND)
DEFENSIVE (ENGLAND)
GLOBAL MASTER RIGHTS (ENGLAND)
IMAGEM UK (ENGLAND)
INGROOVES MUSIC (ENGLAND)
IPRG (NETHERLANDS)
IRR (ENGLAND)
MACC (NETHERLANDS)

OFF LIMITS (ENGLAND)
SATV / EMI (USA)
GENIKA (ENGLAND)
DOMINO (ENGLAND)
DOUBLE SIX (GERMANY)
FINTAGE (ENGLAND)
KOBALT (ITALY)
RAL (ENGLAND)
TORTURED (ENGLAND)

TSZ (ENGLAND)
OHR (ENGLAND)
EAGLE-I (NETHERLANDS)

VI

NEW BUSINESSES

The music market has been going through a period of changes and adaptations, driven by new technologies and the internet progress in the developing countries. High speed internet, in turn, is increasingly more accessible, and, with the same "beat" the digital music stores are furiously spreading throughout the world, especially in the so called "new markets", due to the facilities offered by the internet. Such positive mix of factors, together with a market with a promising growth potential, have boosted the music sales within the digital means throughout the world, and 2014 was undoubtedly an extremely important year to the solidification of this new segment as one of the modern music industry’s pillars.

In several countries music sales in the digital market have halted the losses with the physical products and given a new push to the recording companies and to the market as a whole, which for a long time has been suffering losses due to a decrease in sales of the physical products. In Brazil, this market has also been positive and indicates a strategic importance for the following years. Today, Brazil is perfectly inserted into this scenario as a country with the highest increasing income obtained by digital music. All the big players are now operating in Brazil (Apple, Google, Spotify, Radio, Deezer) and many others are considering whether to open their operations here due to our strong growth potential. In Brazil, the big source of income in the digital music segment is still the paid download (service which is offered, for example, by Apple and Google), but the subscription services, like Spotify and Radio, are increasingly attracting more users.

Abroad, these services fight for the consumers' preference, and preference varies a lot from one country to another. For example, in the USA the most popular service is still the download (offered by Apple, for instance, through the Itunes store), but the subscription services have increased significantly. In France and Sweden, we see a scenario: the most popular services are the subscription ones, like Deezer and Spotify.

In Brazil it is still too early to say that there is a preference for one type of service, since the subscription services began operating in the country a short time ago, while Apple has operated its music sales store since 2011. Currently the most significant part of the income is obtained by the download services, but the amount of subscription services users has increased substantially.

ABRAMUS has been working within UBEM – União Brasileira das Editoras de Música – aiming at monitoring this important and strategic market. This segment has increasingly attracted the market attention and it will certainly be an important differential in the years to come.

Even though it is no longer a new market, the digital music segment still raises several questions and the New Businesses department is closely monitoring its development in Brazil and abroad to be able to provide our authors with the best assistance possible.

Whether by download or streaming, music cannot stop!

Gustavo Gonzalez
New Businesses and Documentation Manager

VII

THEATER & DANCE

The Major Rights Department, renamed Theater & Dance, began its activities in May 2004, with the implementation of the Major Rights Department, then renamed Theater & Dance. There was a different attitude from the customary. Instead of hiring national authors, we brought in foreign societies which were unsatisfied with the administration at the time. The first society to sign a contract with Theater & Dance was SGAE, followed by SACD.

Today, besides them, we have contracts with SIAE, SPA, AGADU, ATN, SSA, RAO and ARGENTORES. With this representation, the national authors migrated from their former society to be represented by ABRAMUS. Currently ABRAMUS has nearly 252 national authors, among them Manuel Bandeira, Cecilia Meireles, Carlos Drummond de Andrade, Luis Fernando Veríssimo, Ariano Suassuna, Nelson Rodrigues, and other renowned authors.

In the last few years a working methodology has been developed based on the transparency and productivity. Theater & Dance is in a continuing adaptation process to improve its everyday activities. It could be said that today ABRAMUS is a unique society of authors. Its work is not limited to charging and distributing rights. ABRAMUS is practically an agent of authors which makes their works public and researches new texts to be introduced into the national and international markets. ABRAMUS was successful with this kind of work in 2009, 2010, 2011, 2013 and 2014, with a significantly increasing income. Our turnover in 2014 was over R$ 2.200.000 (two million and two hundred thousand reais), with an annual 8% growth This was due to the fact that ABRAMUS has been increasingly expanding its field of action abroad.

Guilherme Amaral
Theater and Dance Manager

VIII

AUTVIS

In 2014, AUTVIS worked intensely on national repertoire with its users. Such an action led to an increasing use of the works by Brazilian holders who are still not widely known.
Participating as supporter in cultural events, aiming at expanding the Association's visibility among new artists, was another focus. One must highlight AUTVIS's presence in the 2nd Latin America's Autumn Hall jointly held by Salon d'Automne, from France.
A new website was developed in 2014, presenting a new visual project and making it easier for users to post their requests and to research after their represented artists.
The major accomplishments in that year, however, were the affiliation by internationally renowned architect Oscar Niemeyer and Graffiti artist Eduardo Kobra, who is quickly becoming a world icon.

2015 is going to be a year of great and important exhibits in Brazil, which means a great deal of work. In addition, AUTVIS intends to begin a national campaign for allowing Resale Rights to be collected in Brazil and entering new markets.

Fabiana Nascimento
Visual Arts Manager

money-earning in 2014:

NATIONAL
R$ 548.255,67

TOTAL OF AFFILIATES
755

IX

AUDIOVISUAL

Since 2008 ABRAMUS has been endeavoring to implement collective management of audiovisual works in Brazil.

For six years, it has dealt with the political and conceptual issues related to the subject, and additionally it has studied the subject through the international societies currently conducting this kind of job.

In 2014, the wheels began to turn. A project was devised, a system for documenting and managing audiovisual work was developed, new and important national and international partnerships were established, and a educational work for authors as well as negotiations with users were started.

Numbers are not yet available for demonstration, but a new path begins to appear.

Once again ABRAMUS is a pioneer, opening new doors to author rights.

Fabiana Nascimento
Visual Arts Manager

X

COMMUNICATION

ABRAMUS' Communication Department was opened in 2014 with the purpose of revitalizing and consolidating the Association's image through its means of communication: social networks, website, magazine, mailing, fairs and events.

The Association worked basically on 2 principles: transparency and access to information. A new and more modern and lighter visual identity was adopted for communication.

Following a world trend in graphic design (Flat Design), used by major companies such as Google, Facebook, Microsoft, etc., ABRAMUS began to change its visual identity.

ABRAMUS's objective is to bring information to everyone involved in the Author rights productive chain; and with that focus the Association has started the "Author rights DNA" Campaign, containing every bit of information about the procedures used in ABRAMUS's departments and units. Such an action was initiated in our social networks and website, and it was soon extended to a printed version. The following strategies were used to reach the highest number of users in our social networks: an average of 2 weekly posts with sponsored links by Facebook, with roughly 1,000 visualizations per posted message; 44,000 visualizations of the latest message; and a rough increase of 1,000 “enjoy” clicks on page during the campaign.

Aiming at bringing more transparency to Authorial Right's Holders, ABRAMUS organized two events alongside ECAD in its Goiânia and Campo Grande units, focusing mainly on answering all of their questions about earnings and Distribution.

Early in 2014, ABRAMUS initiated its layout changes on ABRAMUS Magazine, which was widely accepted by its target-public; additionally it has made its prints more attractive and more widely sought by the artists. The cover showed artists such as Lulu Santos, Gusttavo Lima, Thiaguinho and Emicida.

ABRAMUS's major growth in 2014 was due to the strategies that were used to reach a greater number of people and to make access to the Association's daily information readily available, so that the members would hot need to go to one of ABRAMUS's units.

Besides our ongoing fight for Authors' Rights, our purpose for 2015 is to strengthen relations with full members and make our interaction stronger and more effective through a website that enables propagation of links and news from visitors. Therefore, we hope to be able to improve our relationship with our partners and reinforce the bonds between members and the Association that represents them.

Danilo Ando
Communication

YOU MAY CHECK BELOW THE POSITIVE NUMBERS FOR 2014:

WEBSITE

Our new website went on the air on March 14th 2011, as a portal covering all of ABRAMUS's fields (Music, Theater & Dance, Audiovisual) as well its colligates' (AUTVIS and ABRISAN).

Services provided: News about music, theater, author rights, visual arts and audiovisual, artists' galleries, research on works and phonograms, information about affiliation and documentation, download of affiliation forms, among others.

ACCESS
153.593

SOCIAL NETWORKS

FOLLOWERS
7.324

FOLLOWERS
5.678

MAGAZINE

The quarterly magazine is sent out along with the pay statement, and it brings news about artists, author rights and the market. In addition, the magazine can be read on its website: www.abramus.org.br

COPIES
6.000/by edition

NEWSLETTER

Our monthly newsletter brings the profiles of artists, important news and an Event calendar for each field.

CONTACTS OF MUSIC
30.527

CONTACTS OF THEATER&DANCE
711

CONTACTS OF AUTVIS
2.360

XI

FINANCIAL

ABRAMUS represents the repertoire of over 44 thousand Associates both in Brazil and abroad. It is a job of high responsibility, and it is done in a most transparent and professional way.

Every job is part of a production chain, just like an assembly line, and the Financial Department is in charge of delivering the final product, i.e., they cash values gained through public execution of musical works in Brazil and throughout the world. This highly responsible job reflects the whole image of the company.

The number of full members of ABRAMUS is growing continuously and the Association is constantly readapting itself to their needs so that it can steadily provide the best service to all Associates. Besides its financial staff, with offices in Rio de Janeiro and São Paulo, ABRAMUS also relies on the constant support from the IT Department, responsible for the system and the information processing.

Our challenge is to keep the payment chronogram on time; as it is, that chronogram has been working as properly as a Swiss watch for over 12 years. Additionally, our balance is yearly audited by outside companies that attest to the good work being done by ABRAMUS.

The Financial Department's job never ends and is of high responsibility; this is why ABRAMUS keeps working towards improving it at all times.

Antonio Almeida
Financial Administrative Manager

OPERATIONAL EXPENSES

Expenses Accrued Surplus - 2014 Accrued Surplus - 2013 Accrued Surplus - 2012
EXPENSES WITH PERSONNEL (12.287.342) 60,5% (10.091.523) 52,4% (9.202.712) 58,9%
EXPENSES WITH OFFICES (4.398.907) 21,7% (5.327.955) 27,7% (3.734.162) 23,9%
ADMINISTRATIVE EXPENSES (4.823.674) 23,7% (3.799.786) 19,7% (2.785.964) 17,8%
TAX EXPENSES (158.907) 0,8% (227.715) 1,2% (143.003) 0,9%
FINANCIAL EXPENSES (140.931) 0,7% (233.289) 1,2% (210.097) 1,3%
FINANCIAL INCOME 1.494.069 -7,4% 434.839 -2,3% 462.042 -3,0%
Total (20.315.692) 100% (19.245.429) 100% (15.613.897) 100%

VALUES IN (R$)

DISTRIBUTION % OF EXPENDITURE IN YEAR

XII

INFORMATION TECHNOLOGY

2014 was the year of integration with Associates, of investment in equipment for a better integration between internal systems and the ABRAMUS Portal, in addition to an ongoing improvement of the internal systems.

Additionally, an Oracle integrated solution for Hardware and Software made the Portal readily accessible to all Associates. At present, ABRAMUS can rely on more than 2,000 created accesses, and its goal is to reach 100% from its active Associates.

The acquisition of such new equipment has paved the way for a new project for ABRAMUS's continuing business, which on its turn shall open up, in 2015, a redundancy environment, allowing operations to be recovered even in the eventuality of a physical loss on ABRAMUS's Data Center.

With its new Relationship Portal, ABRAMUS may provide receipts and pay statements from its Associates, subsequently eliminating the use of paper in the future and, by so doing, becoming a real "green" company.

As far as systems are concerned, besides continuously optimizing ABRAMUS's collaborators’ work, over 400 individual supports and corrections were carried out in 2014.

Alexandre Sant'Anna
Information Technology Manager

XIII

ECAD

Know a few numbers from ECAD:

36% 64% ABRAMUS 2013 ECAD

DITRIBUTED BY ECAD
R$ 732,2 million

DITRIBUTED BY ABRAMUS
R$ 266,2 million

36% 64% ABRAMUS ECAD 2014

DITRIBUTED BY ECAD
R$ 823,8 million

DITRIBUTED BY ABRAMUS
R$ 272,5 million

ANNUARY ABRAMUS 2014

direito autoral levado a sério