Media & Entertainment 2026

Last Updated July 23, 2026

Colombia

Law and Practice

Authors



JGA Abogados S.A.S. is a boutique business affairs and investment firm based in Bogotá, Colombia, operating across Latin America, Europe and the United States. Led by founding senior partner Andrés Jaramillo, the team of six specialises in audiovisual co-production structuring, capital deployment and international entertainment transactions, with particular depth in Colombian cinematographic incentive frameworks, including Ley 814, CINA and CoCrea. The team advises producers, financiers and distributors on cross-border co-productions, music and image licensing, IP clearance and talent agreements. Recent mandates include handling business affairs on a Netflix documentary series (JAMES.), co-production structuring for Chile-Germany-Colombia-Spain projects, executive producer services for feature film slates, and CIC investment structures under Ley 814 for multiple film portfolios. JGA also advises on institutional cultural policy and regulatory reform initiatives affecting the Colombian audiovisual sector.

Colombia’s entertainment sector comprises a diverse ecosystem of interconnected creative industries, including:

  • music production and recording;
  • publishing and literature;
  • audiovisual content (film, television, streaming series);
  • theatre and live performance;
  • podcasting and audio production;
  • gaming and interactive entertainment; and
  • digital-first content creation across platforms.

These sectors operate with distinct economic models, rights architectures and transactional structures, but increasingly converge through streaming platforms and multi-format intellectual property development strategies.

The most significant transactional trend is the consolidation of streaming as the dominant distribution mechanism across all entertainment formats and sectors:

  • for music, this has intensified focus on metadata management and mechanical licensing, as streaming algorithms depend on accurate attribution;
  • for publishing, streaming and digital formats have compressed traditional release windows (hardcover, paperback, ebook, audiobook);
  • for audiovisual content, streaming has eliminated sequential theatrical/broadcast windows; and
  • for theatre and live performance, streaming has created new revenue opportunities while introducing contractual complexity around performer consent and rights allocation.

From a financing perspective, Colombia’s entertainment sector combines private investment incentives (the Ley 814 regime and its CIC certificate for audiovisual projects, venture capital for gaming, traditional publisher advances for books), public development funding (Film Development Fund, or FDC, grants for audiovisual work, the CoCrea cultural-investment deduction across the cultural sector), and direct licensing revenue. An emerging trend is multi-sector IP development vehicles that consolidate rights across music, publishing, entertainment and gaming simultaneously, with each sector accessed through distinct financing and exploitation frameworks but co-ordinated through a master IP development agreement.

Growth leaders in Colombian entertainment vary significantly across sectors and audience segments.

  • In music, urban genres (reggaeton, trap latino, dembow) achieve sustained international streaming dominance, with low production costs and digital-native audiences. Colombian producers distribute globally through licensing to international labels and aggregators, with streaming platforms (Spotify, Apple Music, YouTube Music, Amazon Music) as primary revenue sources.
  • In publishing, independent digital formats (self-published ebooks on Amazon, serialised fiction platforms like Wattpad, Audible audiobooks) enable Colombian authors to reach Spanish-language markets across Latin America and Spain without traditional publisher intermediaries. Rights architecture complexity increases when works incorporate music samples, images or references requiring clearances.
  • In entertainment, documentary and docuseries production for global streaming platforms (Netflix, Amazon Prime) attracts international financing. High-profile productions covering Colombian cultural figures generate substantial licensing opportunities for music, archive footage and image rights.
  • In gaming, Colombian indie studios achieve international recognition in mobile games and narrative-driven indie games, albeit constrained by limited domestic venture capital and mobile-first distribution economics.
  • In theatre and live performance, hybrid formats combining in-person audience with simultaneous streaming extend commercial lifespan beyond traditional theatrical runs and create new revenue through recorded distribution.

Across all sectors, the common pattern is the replacement of traditional gatekeepers (publishers, labels, broadcasters, distributors) with platform-mediated distribution, reducing barriers to entry but compressing per-unit creator revenue while increasing the importance of direct-to-audience engagement and IP ownership control.

Deal-making trends in Colombian entertainment reflect the fragmentation of intellectual property rights across multiple exploitation channels and the requirement for contractual precision on which party controls what.

  • In music, the separation of mechanical rights (reproduction of compositions as sound recordings) from performing rights (public communication of compositions) requires explicit allocation between record labels, publishers and artists. SAYCO (Colombian society for composers) and ACINPRO (recording artists and phonographic entities) administer these rights separately. Music production agreements must address:
    1. master ownership versus composition ownership;
    2. streaming revenue allocation between label, publisher and artist;
    3. term and exclusivity; and
    4. the treatment of samples and interpolations.
  • In publishing, rights negotiation occurs on a format-specific basis: print, ebook, audiobook, serialisation, dramatic adaptation and merchandise are licensed separately, with distinct duration and territorial scope. Publishers acquiring Spanish-language print rights do not automatically acquire ebook, audiobook or entertainment adaptation rights.
  • In entertainment, multi-territory licensing at the pre-production stage has distinct structures for theatrical, streaming, television, home video and other distribution channels.
  • In gaming, game engines (Unity, Unreal), third-party code, developer work, platform distribution agreements (Steam, Epic, console manufacturers) and in-game music/audio are all subject to licensing.

Back-end and profit participation structures differ substantially across entertainment sectors.

  • In music, back-end participation arises through artist royalties with labels/distributors (percentage of net revenues from streaming, downloads), publishing participation (songwriter percentage of mechanical and performing rights), and producer/featured-artist splits on recording revenues. The principal disputes concern the definition of “net revenue”, in terms of per-stream calculations, platform deduction recoupability, and the timing of artist percentage calculation.
  • In publishing, back-end participation arises through author royalties, subsidiary rights (dramatic, audio, serialisation, merchandise), and translation and territorial rights with reversion provisions. Disputes arise from the definition of “in print” in the digital age and revenue allocation from serialisation platforms.
  • In audiovisual, waterfall structures place investor recoupment first, with “above-the-line” (ATL) usually placed in the producer’s pool. The treatment of soft money (tax incentives, grants, public broadcasting support) is frequently disputed – in particular, whether an advance is recoupable or constitutes a non-recoupable grant. In Colombia, Ley 814 investment and FDC grants treated as non-recoupable are market standard, although not universal.
  • In gaming, revenue participation varies from flat licensing fees to per-sale royalties to in-game revenue share.

Across all sectors, a critical issue is platform reporting opacity. Streaming platforms, music distributors and digital aggregators provide minimal revenue transparency beyond aggregate metrics, sometimes forcing creators to undertake expensive audits to verify calculations.

Non-traditional financing models in Colombian entertainment include the following.

  • Music catalogues: there is a secondary market in music catalogue rights (masters and compositions), with investment funds acquiring established catalogues as revenue-generating assets. Emerging artist monetisation occurs through catalogue sale or licensing-back. Experimental NFT and blockchain mechanisms are used for distribution and royalty tracking.
  • Publishing: crowdfunding platforms and direct-to-reader subscription models enable independent author publication without traditional publisher backing. Rights management complexity increases with multiple independent financiers.
  • Audiovisual: a secondary market in CIC certificates (Certificado de Inversión Cinematográfica, under the Law 814 regime) allows investment vehicles to monetise the tax benefit by selling the certificates to corporate taxpayers with Colombian tax appetite. In parallel, the CoCrea mechanism (Law 1955 of 2019) provides a 165% income tax deduction for private company investments and donations across the whole cultural sector – theatre, music, literature and more – and the corresponding Certificate of Investment or Donation (CID) is itself tradable on a secondary market, creating a further channel for monetising cultural co-investment.
  • Cross-sector IP: multi-format entertainment properties (fictional universe as novel, streaming show, graphic novel, game, music property) are financed through structures where different financiers acquire rights to specific sectors/formats with master IP allocation agreement. This enables smaller projects to access financing through rights segmentation.

International entertainment investment transactions operate through multiple frameworks, depending on jurisdiction and sector. Colombian producers engaging in cross-border entertainment projects must navigate distinct institutional and regulatory contexts across different partner jurisdictions.

The key structural considerations are as follows:

  • each jurisdiction imposes distinct creative contribution, expenditure qualification and chain-of-title requirements for entertainment investment;
  • multi-jurisdiction transactions require simultaneous satisfaction of all applicable requirements;
  • entertainment IP ownership across multiple sectors must be clearly allocated in underlying transaction documentation; and
  • tax residency, withholding obligations and treaty relief provisions vary by jurisdiction and payment nature.

The principal structural challenge is that a multi-jurisdiction entertainment investment must satisfy multiple regulatory regimes, multiple co-production frameworks (where applicable) and multiple incentive regimes simultaneously. Failure to structure for this simultaneity results in post-production eligibility loss and financial complications. Colombian producers should develop transaction architecture addressing all regulatory requirements in parallel rather than sequentially.

After the pandemic, entertainment contracts across all sectors have incorporated production disruption lessons.

  • Audiovisual and live performance: force majeure clauses distinguish temporary suspension (equipment failure, talent illness) from permanent termination triggers (venue closure, legal prohibition of gatherings). Completion bond requirements are reinforced, and bonding companies have introduced pandemic-specific exclusions. Live performance contracts now include hybrid delivery (in-person and simultaneous streaming) provisions and rights allocation if live performances are recorded and subsequently distributed digitally.
  • Music production: recording session agreements include remote recording/mixing/mastering provisions, providing clarity on the ownership of remote session recordings for archival/alternative use. Publishing agreements specify whether compositions are licensed separately for streaming, broadcast, live performance or synchronisation, rather than undifferentiated “public communication”.
  • Publishing: publication agreements specify digital format delivery requirements (ebook specifications, audiobook quality standards), with reversion clauses accounting for digital-first publishing (“out of print” when perpetually available as ebook).
  • Gaming: publishing agreements include “live service” provisions for ongoing updates, patches and downloadable content, with corresponding royalty structures accounting for non-linear revenue curves.

Across all sectors, risk allocation has shifted materially toward content creators, with distributors/broadcasters imposing payment holdbacks conditional on audience achievement targets (views, downloads, sales metrics).

Colombian creators/performers in international entertainment transactions increasingly encounter foreign union and collective bargaining framework requirements that are absent domestically.

  • Audiovisual talent: occasionally, SAG-AFTRA and WGA requirements apply to productions with US co-producers or US distribution.
  • Musicians: session musician recordings intended for US/European commercial release increasingly require AFM (American Federation of Musicians) or equivalent European Union scale compliance, even when recorded in Colombia. Publishing and mechanical licensing in different territories (US, EU, UK) imposes distinct contractual requirements.
  • Performers/voice talent: AI-generated voice and likeness technology has increased the importance of including explicit consent provisions in talent agreements. Distributors/platforms require representations that talent has consented to digital replica creation.

Colombia has no domestic equivalent to SAG-AFTRA or WGA. Professional associations (Gremio de Guionistas, Asociación de Directores, actor associations) advocate for minimum rate schedules and residual frameworks inspired by US/European precedents. In the absence of binding domestic frameworks, protections are negotiated individually, creating bargaining power disparities between established and emerging creators.

The 2023 SAG-AFTRA and WGA strikes created a lasting structural shift in global entertainment negotiation, affecting Colombian creators in the absence of direct union coverage.

  • Talent agreements: the global standard shifted to explicit AI consent provisions addressing a performer’s right to approve digital replicas, the compensation payable, and continuing approval rights over AI-generated performance using said performer’s likeness. These terms are now standard in Colombian talent agreements for productions seeking international distribution.
  • Streaming compensation: WGA and SAG-AFTRA settlements established a new compensation category for streaming exploitation beyond initial production payment. Colombian talent agents are trying to adopt these expectations in negotiating positions despite the absence of domestic legal requirements.
  • Publishing and music: the strikes did not directly affect these sectors but influenced broader industry expectations regarding creative worker compensation. International partners increasingly expect publishers and labels in Colombia to demonstrate fair compensation frameworks for authors and recording artists, in the absence of formal union requirements.

For now, there is no domestic legislation establishing minimum rate schedules or residual frameworks for Colombian entertainment workers, and no bill to that effect is currently advancing. Any future framework of this kind would likely reference US and European union settlements as precedent. In the meantime, the alignment between Colombian and international compensation standards exists only where it is built into individual negotiations.

In Colombia, non-traditional content creators (social media influencers, independent musicians via digital platforms, self-published authors, indie game developers) operate outside formal guild, union or regulatory frameworks. Legal challenges are primarily IP-related rather than labour-related.

  • IP ownership and licensing: when non-traditional creators co-produce with traditional production/label structures (branded content, music collaborations, indie game publishing), the principal tensions concern IP ownership allocation and the treatment of a creator’s pre-existing audience as a distribution asset. Contracts frequently fail to address whether a creator’s social media handles, subscriber base or channel identity constitute separate IP assets or belong to the production company, and this ambiguity creates post-termination disputes.
  • Platform terms of service: non-traditional creators are subject to platform Terms of Service (YouTube, Spotify, TikTok, Instagram, etc) that reserve the right to monetise creator content and modify compensation with minimal notice. Platform terms conflict with traditional entertainment contracts, creating uncertainty around a creator’s ability to fulfil third-party licensing obligations.
  • Rights clearance: non-traditional creators often lack the business affairs infrastructure needed to ensure that all necessary music, image and third-party content clearances are obtained, which in turn creates errors and omissions insurance problems once the content is licensed beyond its original platform.
  • Collective licensing gaps: independent musicians and podcasters face a fragmented licensing infrastructure. SAYCO and ACINPRO provide blanket licensing for music performance/recording rights optimised for traditional media (radio, television, venues). For individual platform-distributing creators, the infrastructure is fragmented, with different platforms imposing different licensing requirements and revenue distribution mechanisms.

Tax incentives have materially shaped both production volume and financing architecture in Colombia. Several mechanisms are in operation, each with distinct legal bases, eligible beneficiaries and economic logic. A unifying institutional feature is that the certificates underpinning these incentives are issued by the Ministry of Cultures. The three tax/certificate regimes – Law 814, Law 1556 and CoCrea – are mutually exclusive on a per-project basis: a single project cannot stack one of these regimes on another (grant funding such as the FDC is treated separately).

CoCrea

CoCrea is the flagship of the incentive system. Established under Article 180 of Law 1955 of 2019 (as modified by Article 27 of Law 2277 of 2022), CoCrea is the system’s flagship precisely because it is the most transversal: it reaches the entire cultural and creative ecosystem, not only audiovisual, but also music, publishing and literature, theatre and the performing arts, visual arts, heritage, and creative-economy projects generally. It operates as an income tax deduction: a Colombian income tax payer that invests in or donates to a CoCrea-endorsed project deducts 165% of the contributed amount from its taxable base. Because the corporate income tax rate is 35%, the 165% deduction yields an effective tax saving of 57.75% of the amount invested or donated (165% × 35%). The Ministry of Cultures issues the contributor a CID evidencing the right to the deduction; the CID is a negotiable instrument (título valor) that may be used directly or fractioned and sold on a secondary market, which has created an active market for monetising the benefit. CoCrea operates through an annual call for projects requiring the corporation’s endorsement.

CINA and FFC – Law 1156

The Certificado de Inversión Audiovisual (CINA) and Fondo Fílmico Colombia (FFC) are two distinct instruments under Law 1556 of 2012 (as modified by Article 178 of Law 1955 of 2019), which must not be conflated. Proimágenes Colombia manages the application and administration process through the Film Promotion Committee, while the CINA certificate itself is issued by the Ministry of Cultures.

  • CINA is a transferable tax credit certificate equal to 35% of the qualifying expenditure incurred in Colombia on audiovisual and logistics services. It is issued in dematerialised form in favour of the foreign producer (who need not be a Colombian taxpayer) and is negotiable on the securities market to Colombian income tax payers, who apply it as a deduction against their own income tax before the National Directorate of Taxes and Customs (DIAN). The proceeds the foreign producer receives on transferring the certificate are not Colombian-source taxable income and are not subject to withholding, meaning the CINA functions as a tradable financial asset.
  • FFC is a direct cash rebate, equal to 40% of qualifying audiovisual services spend and 20% of qualifying logistics spend (hotel, catering, transport), paid from budget-appropriated national funds once production obligations in Colombia are verified. Because it delivers cash certainty rather than a tax base benefit, the FFC has been the principal magnet for inbound international and streaming platform production.

The structural distinction is essential: the CINA’s value is realised by selling a certificate to a party with Colombian tax appetite, whereas the FFC delivers cash regardless of the producer’s tax position. Both sit under Law 1556 and cannot be combined with the Law 814 regime on the same project.

CIC – Law 814

The Certificado de Inversión Cinematográfica (CIC) is the transferable certificate associated with the Law 814 regime, issued by the Ministry of Cultures and oriented to audiovisual investment in recognised national projects. It allows qualifying investment to be channelled and the corresponding benefit to be commercialised, supporting fiduciary and co-investment structures around audiovisual projects, but, like the others, it cannot be stacked with Law 1556 instruments on the same project.

For international counterparties, the practical point is twofold:

  • first, the choice of regime is economic, not merely procedural, turning on cash rebate (FFC) versus tradable certificate (CINA/CIC) versus broad cultural deduction (CoCrea), and on whether the structure has, or can sell to, Colombian tax appetite; and
  • second, that choice must be made at the project design stage, before the financing architecture is fixed, since a single project unit can capture only one of the three regimes.

Colombia competes with Mexico, Ecuador and Dominican Republic for international entertainment investment and production activity in the region, and each jurisdiction deploys a different incentive logic. In a broader context, Colombia competes with the Canary Islands and Malta.

Competitive positioning varies by sector and by incentive type. Mexico and Chile have attracted high volumes of commercial television and streaming-series production through cash rebate mechanisms; Argentina pairs audiovisual incentives with significant music production and recording infrastructure; Peru and Ecuador offer more limited but sector-specific support. Colombia’s own offering spans both logics: the FFC cash rebate (40% of qualifying audiovisual services spend and 20% of logistics spend) competes head-to-head with foreign cash rebate programmes for inbound and streaming platform production, while the CINA transferable certificate (35%) and the CoCrea cultural deduction provide certificate- and tax-base-driven alternatives.

Strategic competition is sharpest for high-budget streaming-native production, where global platforms source content across several jurisdictions at once and compare net effective benefit, cash-flow timing and certainty of payment. Colombia’s positioning turns on:

  • currency stability;
  • crew depth and quality;
  • location and infrastructure diversity;
  • security and logistics;
  • geographic proximity to major markets; and
  • sector-specific infrastructure (recording facilities, publishing networks, gaming developer talent).

The principal legal challenges for producers comparing jurisdictions are:

  • reconciling each programme’s distinct “qualifying spend” definitions;
  • managing cash flow differences between cash rebate timing (eg, FFC, paid after verification) and certificate monetisation timing (eg, CINA/CIC, realised on sale to a taxpayer); and
  • structuring for mutual exclusivity, since in Colombia the Law 1556 instruments (CINA/FFC) cannot be combined with the Law 814 regime (CIC) on the same project.

Multi-jurisdiction co-investment structures present an emerging opportunity where a Colombian incentive can be paired with a partner jurisdiction incentive on the same multi-territory project, to increase aggregate support.

Entertainment companies pursuing cross-border incentives across multiple Latin American jurisdictions must navigate considerations extending well beyond any single programme’s technical requirements.

  • Chain-of-title integrity: each incentive authority requires evidence that the applicant holds rights to the qualifying production. In Colombia, this is the gating requirement for CINA, FFC, CIC and CoCrea alike. That said, compliance is generally satisfied through a rights declaration submitted by the applicant, rather than through an extensive documentary verification process.
  • Spend verification and accounting: CINA and FFC require minimum spending in Colombia, and each regime defines “qualifying spend” differently. The FFC distinguishes audiovisual services expenditures (40%) from logistics expenditures (20%), while CINA computes its 35% certificate on qualifying Colombian expenditure, so separate, programme-specific accounting must be maintained from the outset.
  • For tax credit and transferable certificate incentive schemes (including CINA, CIC and CoCrea’s CID), the economic value ultimately realised depends on the ability to transfer the certificate to a Colombian income tax payer. Accordingly, financing and incentive planning should assess the depth of the purchaser market, the expected transfer timeline, and the discount rate at which the certificate is likely to be monetised. In practice, however, the Colombian market for these instruments is highly liquid, and certificates are frequently pre-sold before issuance, providing a high degree of certainty as to their recoverable value. In the case of CINA certificates, proceeds received by a foreign producer from the transfer of the certificate are subject only to a minimal withholding tax, generally below 1%.
  • Mutual exclusivity and classification: because the three Colombian tax/certificate regimes (Law 814, Law 1556, CoCrea) cannot be stacked on a single project, the regime must be selected at the design stage; a multi-format project may qualify different components under different logics, but each project unit can capture only one of these regimes (grant funding such as the FDC is compatible with Law 814 or CoCrea, but not with the Law 1556 instruments).
  • Regulatory risk: incentive regimes are subject to administrative and legislative change. Producers should contemplate the risk that a regime may be modified, suspended or eliminated after investment commitment – an active consideration in Colombia given pending reform discussions around the incentive architecture.

Colombia has developed a multi-layered co-financing ecosystem that combines private investment incentives with public funding across entertainment sectors.

Public Funding

This includes grant-based support that is not repayable – most prominently, the FDC, administered through Proimágenes Colombia, which awards grants for audiovisual development, production and distribution, alongside regional and municipal cultural funds that are often more flexible and responsive to local needs than national mechanisms, and indirect support through copyright protection and collective licensing infrastructure benefiting music, publishing and the performing arts.

Private Investment Incentives

These convert tax treatment into de facto co-financing: the CoCrea mechanism (165% deduction; effective saving of roughly 57.75%) channels private company investment and donations across the whole cultural sector, while the Law 814 regime and its CIC certificate, and the Law 1556 instruments (CINA and FFC), channel private and foreign capital into audiovisual projects. Because the CID and CINA/CIC certificates are tradable, they also seed a secondary market that itself functions as a co-financing channel.

Component-Level Financing of Multi-Format Properties

This is a distinct emerging trend, whereby a single intellectual property exploited as novel, streaming series, graphic novel, game or music can draw on different sources by component:

  • audiovisual components access the audiovisual incentives (FFC/CINA or the Law 814/CIC regime);
  • cultural components access CoCrea;
  • music components access music-sector support; and
  • gaming components access venture or private equity capital.

This segmentation allows smaller projects to assemble financing through rights and sector segmentation rather than a single comprehensive commitment. One structuring nuance is decisive here: the FDC grant can be combined with the Law 814 regime (CIC) or with CoCrea on the same audiovisual project, but never with the Law 1556 instruments (CINA or FFC), and the three tax/certificate regimes themselves remain mutually exclusive per project.

Colombia lacks specific legislation addressing copyright ownership of AI-generated content across entertainment media. Ley 23 de 1982 (Copyright Law) and Andean Community Decisión 351 require a work to have a human author in order to be protected. Under the current doctrine, content generated entirely by artificial intelligence without meaningful human creative input would not qualify for Colombian copyright protection.

Principal Legal Challenges Arising From AI in Entertainment

AI-generated content ownership

When a musician, writer or visual artist uses an AI tool to generate output (music, text, images), the legal status of that output is ambiguous. The licence terms of a subscription or platform-licensed AI tool typically purport to assign rights in the output to the user, but Colombian law may not recognise an artificial system as a source of protectable authorship. This creates uncertainty as to whether the user acquires copyright at all, or merely a limited right to use the output.

Copyrighted works as training data

The use of existing copyrighted works (music recordings, published books, films, artwork) as generative AI model training data raises reproduction right issues under Ley 23 de 1982 Article 12. The absence of a specific statutory AI training exception means rights-holders could theoretically prohibit training dataset use, but enforcement mechanisms are limited and the practice is largely unregulated.

AI-generated likenesses and voice replications

The creation of AI-generated digital replicas of identifiable persons’ voices or likenesses engages Colombian personality rights (derechos de la personalidad) independent of copyright. Inalienable rights may require explicit consent for commercial use even where the underlying content is not copyrighted.

Defamation and mis-attribution liability

AI-generated content presented as authentic performance/creation by a real person (deepfakes, AI-generated voices attributed to real artists) creates defamation and mis-attribution liability not addressed by copyright law but actionable under personality rights, unfair competition and trade mark law.

Colombian courts have not yet issued any decisions specifically addressing AI-generated content disputes in an entertainment context.

Domestic Developments

The most relevant recent domestic development is Superintendencia de Industria y Comercio (SIC) engaging with AI ethics and data protection frameworks, particularly the emerging application of GDPR-equivalent principles to the collection and use of personal data in AI training. SIC has issued guidance on automated decision-making and algorithmic transparency, but has not directly addressed entertainment copyright.

International Developments

Recent developments monitored by Colombian practitioners advising AI-adjacent entertainment/licensing transactions include the following.

  • US litigation on training datasets: ongoing proceedings involving generative AI developers (OpenAI, Midjourney, etc) and rights-holders (publishers, news organisations, visual artists, recording artists) over whether copyrighted work used in training datasets constitutes copyright infringement. The resulting precedents are likely to influence Colombian courts’ approach to equivalent claims.
  • EU AI Act implementation: the EU’s proposed AI Act framework includes provisions requiring transparency about AI training datasets and rights-holders’ right to object to inclusion. This is being monitored as a potential model for future Colombian regulation.
  • Industry standard-setting: in the absence of clear judicial or regulatory guidance, industry actors (music publishers, recording labels, literary publishers, film studios) are developing contractual standards and guidelines for AI training licensing. These standards are likely to operate as the de facto framework governing entertainment AI use for as long as the area remains unlegislated.

Colombian entertainment, musical, literary and visual content licensing for AI training purposes is an emerging transactional activity. Technology companies approach rights-holders across entertainment sectors seeking training model licences.

  • Music: technology companies seek licences to use music recordings and compositions for audio model training. Rights-holders include record labels, music publishers and individual artists. SAYCO, ACINPRO and other collective management organisations are in preliminary discussions about developing collective AI training licensing mechanisms.
  • Literature and publishing: publishers and authors are approached to license published works for text-generation model training. Some major publishers have actively resisted, while others have entered into experimental licensing arrangements.
  • Visual art and photography: photographers, illustrators and visual artists are approached to license imagery for visual model training. In the absence of strong Colombian photography collective licensing infrastructure, individual rights-holders face informational asymmetries regarding appropriate licensing terms.
  • Contractual framework: in Colombia, AI training licences are structured as broad reproduction licences under the Ley 23 de 1982 copyright framework. The principal negotiation points are:       
    1. permitted use scope (training only versus derivative output exploitation);
    2. duration and territorial scope;
    3. treatment of outputs substantially similar to licensed works;
    4. transparency regarding training dataset composition portion; and
    5. rights-holder right to object or withdraw from future training iterations.
  • Collective licensing gap: Colombian collective management organisations (SAYCO, ACINPRO) have not developed specific AI training tariff schedules, leaving a gap in collective licensing coverage that must be filled through direct individual negotiation. This opens the door for technology companies to negotiate unfavourable terms with less-informed rights-holders, while sophisticated rights-holders are able to command premium licensing rates.

Colombia has no guild- or union-negotiated residual framework comparable to the SAG-AFTRA, WGA or DGA models in the United States. There is no contractual residual paid each time a work is re-exhibited or streamed, and there is no collective bargaining agreement that establishes such obligations. This is the single most important point of difference for international counterparties: streaming re-use in Colombia does not generate negotiated residual liability of the kind familiar from the US system.

Instead, Colombia operates a statutory remuneration-right model administered through collective management societies. Critically, the party that pays is not the producer but the user that publicly communicates the work: the broadcaster, the pay-TV operator (eg, DirecTV), the exhibitor or the streaming platform. The obligation attaches to the act of public communication, so it sits with whoever performs that act commercially, not with the production company. The mechanisms differ according to the category of right-holder.

  • Performers (actors): Law 1403 of 2010 (the “Fanny Mikey Law”) created an unwaivable, inalienable statutory right of remuneration for the public communication of audiovisual performances. This right cannot be assigned away in the performance contract, with any clause purporting to waive it being unenforceable. It is collected and distributed exclusively through the collective management society ACTORES Sociedad Colombiana de Gestión, which licenses and collects from the users that communicate the work to the public (television channels, pay-TV operators, exhibitors and, increasingly, digital/streaming platforms), and distributes to performers after commission. It is a legal levy on the user’s act of communication, not a back-end tax paid by the producer.
  • Audiovisual producers and directors: producer rights are managed collectively through EGEDA Colombia; certain director remuneration mechanisms operate through related societies. These follow the same logic – remuneration is collected by the society from the communicating user, not from the producer, and is not negotiated in individual contracts.
  • Authors and composers (music in audiovisual): public communication royalties for musical works and recordings embedded in audiovisual content are likewise collected by the relevant societies from the users that communicate the work, as a statutory collection rather than a re-use residual.

The emerging trend is the gradual extension of these statutory remuneration rights to streaming exploitation. Historically the societies’ tariffs were built around television broadcast and theatrical/public venue exhibition; the central question now is how public communication remuneration applies to on-demand streaming platforms, and at what tariff. Negotiations and tariff-setting between the societies and the platforms are the active frontier. The cost therefore falls on the distributing/communicating platform or channel as a statutory licensing obligation, structurally different from, and not interchangeable with, US-style negotiated residuals; it is not a production cost borne by the producer.

Separately but relevantly, the audiovisual incentive landscape has materially reshaped how productions are financed and where talent and infrastructure are deployed. Public rebate and investment incentive mechanisms for qualifying audiovisual expenditure have expanded substantially over the past decade, attracting a growing volume of international and streaming platform production into the country. That growth has increased production activity, professionalised the talent pool, and intensified the practical importance of the collective remuneration framework described above, because more content produced and exploited domestically means more statutory remuneration flowing through the societies. The incentive expansion and the remuneration-rights system are thus increasingly interconnected features of the same maturing market.

The principal challenges in negotiating revenue-sharing models for digital-first entertainment content across all sectors are as follows.

  • Platform reporting opacity: global streaming platforms, music distributors and digital aggregators provide creators with minimal revenue calculation transparency, reporting only aggregate metrics (streams, downloads, views) rather than underlying revenue data. Creators lack the data necessary to verify net receipts against revenue share thresholds without initiating formal expensive audit requests, which disrupt ongoing relationships.
  • Window compression and simultaneous rights acquisition: traditional entertainment windows (theatrical, home video, pay television, broadcast, physical sales) were sequential, providing multiple monetisation opportunities. Streaming platforms typically acquire all-window rights simultaneously, eliminating sequential revenue opportunities and making initial acquisition negotiation the only commercial leverage point available to creators. This structural shift has compressed creator bargaining power materially.
  • Revenue definition variance across sectors: “revenue” is defined differently by platform and content type:
    1. music streaming: per-stream basis (USD0.003-0.005), with significant variance across platforms (Spotify, Apple Music, Amazon Music, YouTube Music have different rates);
    2. audiovisual content: per-view, per-hour-watched, or all-in-subscription basis, depending on subscription tier or ad support; and
    3. books/literary: varies by format (ebook, audiobook, serialisation) and platform.
  • Currency and payment timing: global platform payments are often in USD or EUR, subject to currency conversion and withholding tax, with actual creator payments delayed 30–90+ days, compressing cash flow for smaller creators.
  • Platform modification rights: platform terms of service reserve the right to modify revenue share terms, reporting mechanisms and payment schedules with minimal notice. Creators have limited contractual protections against unilateral platform modifications reducing compensation.

In-season stacking and simultaneous windowing practices are increasingly common across entertainment sectors.

  • Audiovisual: “in-season stacking” (making television series episodes available on related streaming platform before the broadcast season concludes) creates disputes when the broadcaster acquisition agreement does not explicitly address streaming rights on related platforms. Colombian contract interpretation principles require unambiguous language construed against the drafting party, but this is only helpful if litigated, which is rare in practice.
  • Music: “exclusive window” practices in music distribution commonly restrict track availability on competing platforms for defined periods. Labels may grant exclusivity to Spotify or Apple Music for 30–60 days before rollout to competing services. Exclusive windows are negotiated between labels and platforms, creating real restrictions on global platform availability timing.
  • Publishing: sequential windowing in publishing (hardcover, paperback, ebook, audiobook, serialisation) has compressed significantly in the digital era, simultaneous release across formats being increasingly common. Publishers and authors frequently dispute whether “book rights” contracts automatically include ebook and audiobook rights or require separate licensing.
  • Gaming: simultaneous availability across platforms (PC, console, mobile, cloud gaming) is now the default for major releases. Staggered availability is used only for strategically competitive launches (console exclusivity for six months). Revenue share models vary significantly across platforms, creating stagger launch incentives despite consumer simultaneous availability preference.

In practice, Colombian producers and broadcasters increasingly include explicit simultaneous windowing provisions addressing rights on affiliated/related platforms, specifying whether these are included in the initial licence, require a separate fee, or constitute an exclusivity breach. The absence of such provisions in legacy agreements generates disputes that are typically resolved through commercial negotiation rather than litigation.

The labour cost and compensation impacts of emerging collective advocacy in entertainment are significant, and vary by sector and jurisdiction.

  • Audiovisual talent: professional associations (Gremio de Guionistas, Asociación de Directores) have adopted advocacy positions inspired by the SAG-AFTRA/WGA settlements, pressing for minimum rate schedules and residual frameworks. For productions seeking international distribution or co-production partnerships, compliance with those positions has become a reputational necessity even without any binding legal requirement, and productions perceived as undervaluing Colombian creative talent face industry pressure and social media scrutiny.
  • Musicians and recording artists: recording artist advocacy organisations (ACINPRO members, independent artist collectives) advocate for higher streaming royalty rates and platform revenue calculation transparency. The per-stream payment structure (USD 0.003-0.005) has become a focal point of criticism, with advocates arguing for per-stream rates to be tied to average revenue per user (ARPU) metrics, which would increase payments when platform advertising/subscription revenue increases.
  • Publishing authors: independent author advocacy focuses on publisher standard contract terms, particularly ebook and audiobook rights, subsidiary rights participation and reversion clauses. The emergence of direct-to-reader distribution platforms has created an alternative to traditional publishers, increasing the bargaining power of established authors.
  • Non-union cost pressure: absent binding union agreements, cost pressure operates through reputation and market dynamics rather than enforceability. For streaming platforms and global distributors, above-minimum contractual standard adoption is often justified on the basis that such standards will become industry standard within two to three years as legislative reform is anticipated, and anticipatory adoption reduces platform legal and reputational risk.

The aggregate effect is a material Colombian media and entertainment labour cost increase in the past 18–24 months, with particularly sharp increases for entertainment talent engaged in productions with international distribution.

M&A transactions involving Colombian entertainment companies present characteristic legal issues distinguishing them from general corporate acquisitions.

  • IP ownership across formats: entertainment companies frequently hold rights to multiple formats simultaneously (music masters, compositions, audiovisual content, books, visual art, trade marks, domain names). Each asset class has distinct ownership, licensing and exploitation characteristics. The buyer must map the ownership structure of every material asset, identifying co-owner consent requirements, third-party consent obligations (from artists, publishers, co-producers, broadcasters) and any encumbrances or liens.
  • Co-production and co-ownership structures: in a co-production, IP is typically co-owned by the co-producers in the proportions defined by the co-production agreement, so that acquiring one co-producer’s shares does not automatically convey ownership of the full underlying content library. Due diligence must identify every co-producer change-of-control consent requirement and third-party approval right.
  • Talent and creator agreements: exclusive talent and creator agreements may contain change-of-control provisions giving talent the right to terminate or renegotiate upon a change of control. Key-person provisions may tie entertainment company value to specific creatives’ continued participation, creating acquisition retention risk.
  • Ley 814 investment obligations: where the target company has pending CIC endorsement applications, ongoing Ley 814 commitments or assumed investment contract obligations with third-party investors, the buyer must assess whether those obligations survive a change of control, whether the deduction benefit accruing to a registered investor is affected by the acquisition, and whether investor consent is required for the acquisition.
  • Material contracts and distribution agreements: entertainment companies typically hold distribution agreements, production financing agreements, licensing agreements and talent agreements containing change-of-control provisions, consent requirements or termination rights. Systematic review is necessary to identify consent requirements and renegotiation rights triggered by acquisition.

Colombia’s antitrust framework (Ley 1340 de 2009, administered by SIC) applies to combinations that result in a dominant market position in the relevant market. Entertainment sector antitrust issues are sector-specific.

  • Broadcast and cable distribution: cable or satellite distribution infrastructure combining with production studios or streaming platforms is not common in the Colombian market, as the principal distribution conglomerates (RCN, Caracol, Claro Video) maintain relatively distinct production/distribution functions. Separation may not persist; a production company acquisition by a distribution platform would trigger the mandatory Ley 1340 pre-merger notification.
  • Streaming services and content production: the most significant pending antitrust question concerns the definition of the streaming service market – whether domestic and international streaming platforms compete in a single relevant market with free-to-air television and pay cable, or whether they constitute a distinct market with different competitive dynamics. SIC has not issued definitive guidance, but preliminary enforcement positions suggest that streaming services are treated as a separate relevant market.
  • Music rights and collective licensing: SAYCO and ACINPRO market concentration in music rights collection raises antitrust questions, although these organisations operate as state-mandated collective management entities subject to regulatory rather than purely competitive constraints.
  • Publishing and distribution: international publishing house concentration in the Spanish-language market creates antitrust concerns, but Colombian enforcement has not actively addressed cross-border publishing consolidation.

In practice, Colombian antitrust enforcement in entertainment is limited, with most transactions proceeding without significant SIC intervention if there is no obvious horizontal consolidation of market-leading competitors.

Representations and warranties in Colombian entertainment M&A transactions are tailored to entertainment asset-specific risk profiles, and vary significantly by asset class.

  • Audiovisual (entertainment, television, streaming content):
    1. chain of title – the validity of all creative contributor assignments (directors, screenwriters, cinematographers, composers) under Ley 23 de 1982 requires written assignment for full copyright transfer;
    2. talent and crew agreements – the existence and enforceability of all agreements, and the absence of pending residual, deferral or gross participation claims;
    3. music synchronisation and clearances – all music is cleared for exploitation platforms and territories;
    4. guild compliance: the applicable SAG-AFTRA, WGA or equivalent union requirement compliance for covered talent or writing; and
    5. errors & omissions coverage – valid E&O insurance existence, and the absence of claims triggering policy deductibles.
  • Music (masters and compositions):
    1. master ownership – sound recording ownership validity, and the absence of third-party claims from producers, engineers or featured artists;
    2. mechanical licensing – mechanical reproduction rights clearance, and the absence of publisher or co-writer claims;
    3. publishing rights – composition and publishing ownership, songwriter assignment validity, and the absence of encumbering co-publishing arrangements;
    4. collection society representation – SAYCO and ACINPRO current representation status, and the absence of collection society disputes; and
    5. performer and sample clearances – all featured artists and samples properly cleared and compensated.
  • Publishing (books, literature, audiobooks):
    1. author agreements – publisher author agreement validity, and the absence of change-of-control triggered reversion or termination rights;
    2. rights portfolio – clear identification of which edition/format/territory each author has licensed to the publisher (print, ebook, audiobook, serialisation, dramatic adaptation, foreign language);
    3. subsidiary rights – the status of subsidiary rights (dramatic, adaptation, merchandise), and author participation arrangements; and
    4. translation and co-publishing – foreign-language edition and co-publishing arrangement status.
  • Gaming and interactive media:
    1. engine and software licensing – game engine (Unity, Unreal, etc) and third-party code library licence validity;
    2. developer and artist agreements – bespoke development work ownership, and the absence of creator residual or equity claims; and
    3. platform agreements – distribution platform agreement status (Steam, Epic, console manufacturers), and platform term compliance.
  • Standard across all formats: seller representation that there is no third-party rights infringement in entertainment asset exploitation, and material SAYCO, ACINPRO and other collective management organisation obligation compliance.

The treatment of legacy IP and talent/creator agreements in Colombian entertainment M&A presents distinct format-specific challenges.

Audiovisual Legacy Content

Colombian copyright law provides for an author’s inalienable right to participate in the commercial exploitation of their work. The audiovisual work regime under Ley 23 de 1982 provides for a rebuttable presumption of economic rights assignment to the producer, but the director’s and screenwriter’s moral rights (integrity, attribution, withdrawal) remain inalienable and may constrain the acquirer’s legacy content editing, reformatting, re-versioning or redistribution ability without the consent of the original author. Legacy talent agreements frequently contain holdback provisions restricting specific media or territorial exploitation for defined periods. The acquirer must systematically audit these provisions to assess whether the intended exploitation plan is contractually permissible across library titles.

Music Legacy Agreements

Pre-digital era recording contracts frequently contain narrow royalty definitions that do not contemplate streaming revenue, creating disputes about whether streaming royalties are due under the contract, or whether the label retains exploitation rights without a royalty obligation. Many legacy contracts contain territorial restrictions that are no longer commercially relevant in the global streaming environment, creating an efficiency and compliance burden. Publishers and labels are increasingly seeking legacy agreement renegotiation to modernise royalty definitions and territorial scope, creating acquirer cost and time burdens.

Publishing Legacy Agreements

Pre-digital era author agreements frequently contain ambiguous ebook and audiobook rights language, open to different interpretation by authors and publishers. Agreements may contain “in print” reversion clauses, which are ambiguous when the work is perpetually available as an ebook but is out of print physically. Pre-internet era subsidiary rights arrangements may not contemplate dramatic adaptation or serialisation rights, creating publisher exploitation rights gaps.

Acquiring Company Strategy

The acquirer of an entertainment company should develop a legacy contract remediation plan prioritising the renegotiation of:

  • contracts with significant royalty disputes or ambiguities;
  • contracts containing moral rights or approval provisions constraining exploitation; and
  • senior creator or high-profile work agreements, the renegotiation of which is commercially important.

Systematic renegotiation cost should be considered a post-acquisition integration cost.

Audit rights and profit participation transparency in Colombian entertainment contracts vary significantly by format, and can become central commercial negotiation points.

  • Contractual audit rights: typical provisions permit the royalty recipient to inspect the payer’s accounting records, upon reasonable notice, with the audit cost borne by the requesting party unless a material discrepancy is identified (typically 5%–10% of amounts due). In practice, Colombian market audit rights are rarely exercised due to the cost of specialist entertainment accountants and the risk of commercial damage to the ongoing relationship.
  • Streaming platform reporting: streaming platforms (music, video, publishing) typically provide minimal revenue calculation transparency to creators. Platform creator reporting usually provides viewership or listening metrics rather than underlying revenue data. Per-unit revenue calculation (per stream, per download, per hour watched) is often opaque, with platforms claiming that reporting precision would compromise proprietary algorithms or business intelligence. This informational asymmetry has created significant creator frustration, particularly as platforms claim they are unable to provide detailed reporting due to allocation model complexity.
  • Music collection society reporting: SAYCO and ACINPRO provide semi-annual performance and recording rights collection and distribution reporting. However, the reporting mechanism is aggregated at collective level (total member distributions) rather than providing per-creator granularity. Individual creators have limited reported royalty accuracy verification ability without undergoing costly collection society audits.
  • Industry response: the absence of standardised platform reporting formats and platform-reported revenue audit difficulty have led to industry advocacy for mandatory reporting standards and independent audit mechanisms. Some international platforms (Spotify, Apple Music) have begun to provide more granular reporting to professional manager partners, but Colombian-specific reporting standards are non-existent. Contractual provisions mandating specific reporting formats or independent audit rights remain the exception rather than the rule for Colombian distribution agreements.

The opacity of platform reporting has created a structural informational disadvantage for creators and independent producers, particularly those without professional representation, and has become a focal point of industry reform advocacy.

Non-compete clauses in Colombian entertainment contracts governed by general contract law principles (Código Civil, Código de Comercio) with entertainment sector-specific application are subject to the following.

  • Enforceability standards: Colombian courts historically applied a reasonableness standard to non-compete obligations, requiring duration, geographic scope and subject matter limitations for enforceability. Indefinite or geographically unlimited non-competes are generally not enforceable. Non-compete provisions preventing professional or trade engagement may violate the constitutional freedom-to-work guarantees (Código Civil Article 25), creating heightened scrutiny.
  • Entertainment sector applications:
    1. talent exclusivity – exclusive performer or presenter agreements with broadcasters or streaming platforms commonly include exclusivity-restricting non-compete provisions during an exclusivity term;
    2. creator exclusivity – screenwriter or filmmaker agreements may restrict competing project development during the production period;
    3. production company key-person agreements – directors or showrunners are subject to competing production work restrictions during principal photography;
    4. publishing exclusivity – author agreements may restrict competing work publishing with other publishers during the defined contract term; and
    5. music label exclusivity – recording artist agreements with labels commonly include label-competing recording restrictions during the contract term.
  • Labour law constraints: Colombian labour law (Código Sustantivo del Trabajo) imposes post-employment non-compete restrictions for dependent employees, limiting their duration to two years and requiring employee compensation for the restriction period. Independent contractor non-competes (applicable to most entertainment sector relationships) are subject to the general reasonableness standard without an employee compensation requirement.
  • Practical enforcement: entertainment contract non-compete clauses are enforced through contractual damages provisions (liquidated damages or indemnification) rather than injunctive relief. Colombian courts are reluctant to grant injunctions preventing creator work, favouring damages awards instead.

Artificial intelligence, virtual reality and augmented reality are driving meaningful entertainment contract changes in Colombia, particularly in past 18–24 months.

AI Consent and Compensation Provisions

Such provisions are standard in talent agreements for all entertainment productions (entertainment, music, publishing, gaming) seeking international distribution, driven by US and European distributor standard deal terms now including explicit AI consent language. Provisions typically address:

  • the producer’s right to create performer voice or likeness digital replicas;
  • the compensation payable for such use (typically initial performance fee percentage premium);
  • a performer approval right for any AI-generated likeness rendition; and
  • the performer’s performance portrayal modification restrictions (eg, a guarantee that the AI replica cannot portray unapproved political or product endorsement).

Immersive and Interactive Format Agreements

These present Colombian-specific IP ownership challenges, as interactive content combining narrative structures and immersive experience user-generated elements does not fit cleanly within the Ley 23 de 1982 definitions of entertainment work or literary work. Practitioners increasingly structure these agreements with separate IP schedules addressing:

  • the software component (game engine, interactive narrative engine);
  • the entertainment or literary component (pre-recorded narrative, written content);
  • interactive platform user-generated content; and
  • core IP divergent derivative or alternative narrative path rights.

Virtual Performance and Avatar Licensing

For virtual environment performances (metaverse platforms, immersive gaming environments, virtual concerts), contracts now commonly address:

  • performer virtual avatar/representation control right;
  • virtual performance compensation (potentially materially different from physical performance);
  • contract term expiry post-avatar use restrictions; and
  • avatar modification limits without performer consent.

Mixed Reality and Augmented Reality

AR-enabled entertainment experiences (particularly publishing where book AR elements might exist, or music where artist AR appearance rights are licensed) present novel contractual questions about performer approval, compensation and territorial scope, which have not yet been addressed by industry standards.

The formation of an entertainment production, publishing or media company in Colombia involves several structural and regulatory considerations specific to the entertainment sectors.

  • Legal vehicle: the most common vehicle is the sociedad por acciones simplificada (SAS), which provides limited liability, flexible governance and simplified incorporation. For Ley 814 investment purposes, the production company must register with the Dirección de Cinematografía as a qualifying production entity. For music labels and publishing companies, registration with SAYCO and ACINPRO is not mandatory but is essential for revenue collection.
  • Ley 814 specific requirements: for companies seeking Ley 814 investment, the specific production must obtain CIC endorsement before the investment contract is executed. The endorsement process evaluates whether the production qualifies as a Colombian work, requiring Colombian creative participation, Colombian spend and compliance with cultural content requirements.
  • Guild and union signatory status: there are no Colombian guild signatory requirements equivalent to SAG-AFTRA or WGA, and crew engagements are individual contracts governed by the Código Sustantivo del Trabajo (Colombian labour code). Productions seeking US distribution or co-production partnerships should obtain qualified US entertainment counsel on guild signatory requirements before engaging US-based writers, directors or performers. The production company should assess whether compliance with US or European union requirements is feasible before committing to an international transaction.
  • Music label-specific: music labels must register with collective management organisations (SAYCO and ACINPRO) to collect performing and recording rights on behalf of artists. The registration process is straightforward, and essential for revenue collection.
  • Publishing-specific: publishing companies must register with national and international ISBN authorities to obtain published work ISBNs. publishers may also register with digital distribution platforms (Amazon, Apple Books, Google Play, etc) to distribute digital editions globally.
  • Operational considerations: production companies should establish internal processes for rights acquisition and clearance, contract documentation and management, accounting and royalty calculation, collection society and platform reporting, and E&O insurance compliance for distribution-intended productions.

Legal and business distinctions between Free Ad-Supported Streaming Television (FAST), Ad-Supported Video on Demand AVOD), Subscription Video on Demand (SVOD) and other streaming models in the Colombian market are primarily contractual and operational rather than regulatory, as Colombia lacks comprehensive entertainment media service regulations distinguishing these models.

FAST Channel Distribution

FAST channel distribution raises specific music synchronisation licensing issues: continuous linear content broadcast on FAST channels may require SAYCO and ACINPRO performing rights licences, in addition to a production-embedded synchronisation licence. This creates an additional layer of licensing complexity and cost.

AVOD Distribution

AVOD models are more clearly addressed by the synchronisation licence structure, as licensing typically covers specific platform and territorial exploitation. However, AVOD platforms have raised novel questions about whether on-demand streaming (viewed once or repeatedly by the same user) constitutes “communication” or “public performance” triggering synchronisation-separate performing rights obligations.

SVOD Distribution

SVOD services typically negotiate comprehensive synchronisation licences covering all subscription platform exploitation. Music publishers and producers have developed relatively standardised SVOD licensing practices, though per-subscriber royalty calculations and revenue share mechanisms vary significantly across platforms.

Content Producer Revenue Models

  • FAST: content is typically licensed on a flat fee or advertising revenue-share basis.
  • AVOD: content is licensed on an advertising revenue attribution revenue-share basis.
  • SVOD: content is licensed on a flat fee (acquisition payment) or per-subscriber royalty basis, often structured as a minimum guarantee against per-subscriber calculations.

Principal Commercial Issue

For content producers, the principal distinction is revenue predictability. FAST and AVOD provide advertising inventory and rates-tied revenue, which fluctuates significantly. SVOD provides subscription-number-tied revenue, which is more predictable revenue, but platforms typically do not disclose subscriber numbers to producers, making per-subscriber calculation verification difficult.

Music Licensing Complexity

Music licensing cost treatment varies significantly across models. FAST and AVOD platforms typically require music licensing cost to be a separate negotiation from the platform fee, creating an additional cost layer. SVOD platforms sometimes bundle music licensing costs into overall platform budget, although this is not universal.

The compensation of talent in an interactive entertainment format is an emerging and complex area of negotiation in Colombia, driven primarily by international platforms’ interactive content distribution requirements.

Interactive Entertainment Formats

The central contractual challenge is that traditional linear content residuals and reuse payment structures do not translate directly to interactive formats. Interactive content “performance” may be used in multiple branching narrative combinations, each constituting distinct underlying talent recording use. Colombian talent agreements for interactive formats should address:

  • whether the per-episode or per-project fee covers all branching combinations or only the narrative paths actually exploited;
  • the treatment of unused recording;
  • performer interactive role AI-generated continuation creation right;
  • interactive format design approval right, to the extent creative contribution is affected; and
  • compensation for multiple branching uses (ie, whether five distinct narrative branches using a performer’s performance triggers five separate royalty payments or a single flat fee cover).

Interactive Gaming Formats

For voice actors, motion-capture performers and other gaming-engaged talent, compensation structures typically involve:

  • session fees for recording or motion-capture work;
  • “point” participation in game sales or in-game purchase revenue; and
  • sequel or spin-off game re-use residuals if a character is re-used.

The absence of a standardised industry rate means that negotiations are highly variable, with established names commanding significant point participation and emerging talent receiving primarily session fees.

Interactive Music Formats

Interactive music experiences (branching music narratives, user-choice-based dynamic soundtracks, AI-generated music variations) present novel licensing questions. A composer licensing their composition for an interactive game must contemplate:

  • how many distinct composition versions or variations will be created;
  • whether each variation constitutes a separate use triggering a separate synchronisation fee, or whether a single fee covers all variations;
  • player-generated or AI-generated composition variation treatment; and
  • future game sequel or spin-off composition use rights.

Interactive Publishing Format

For authors licensing interactive fiction platforms or choose-your-own-adventure style game content, the compensation structure typically involves a flat licensing fee or revenue-share arrangement, with terms varying significantly across platforms. Key negotiation points include:

  • whether the author retains reversion rights if the interactive adaptation goes out of print;
  • narrative modification or user-generated branch treatment; and
  • interactive adaptation translation or localisation treatment.
JGA Abogados S.A.S.

Calle 33 # 15-39 of. 201
Bogotá D.C.
Colombia

+57 300 667 49 56

a.jaramillo@jgaabogados.com www.jgaabogados.com
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Trends and Developments


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JGA Abogados S.A.S. is a boutique business affairs and investment firm based in Bogotá, Colombia, operating across Latin America, Europe and the United States. Led by founding senior partner Andrés Jaramillo, the team of six specialises in audiovisual co-production structuring, capital deployment and international entertainment transactions, with particular depth in Colombian cinematographic incentive frameworks, including Ley 814, CINA and CoCrea. The team advises producers, financiers and distributors on cross-border co-productions, music and image licensing, IP clearance and talent agreements. Recent mandates include handling business affairs on a Netflix documentary series (JAMES.), co-production structuring for Chile-Germany-Colombia-Spain projects, executive producer services for feature film slates, and CIC investment structures under Ley 814 for multiple film portfolios. JGA also advises on institutional cultural policy and regulatory reform initiatives affecting the Colombian audiovisual sector.

Colombia’s Entertainment Sector at an Inflection Point: Multi-Format Industry Consolidation and a Future Business-Friendly Tax Incentive Reform for the Cultural Industries

The Colombian entertainment sector entered 2026 at a structural inflection point. Three converging dynamics are fundamentally reshaping the legal and commercial frameworks that govern creative production, intellectual property management, and the deployment of investment capital:

  • sustained legislative debate over the reform of the cultural incentive framework (Ley 814) and the broader incentive architecture;
  • the practical arrival of artificial intelligence as both a production tool and a contractual reality; and
  • the global consolidation of streaming as the dominant distribution mechanism across all entertainment formats.

Colombian entertainment today operates as a genuinely multi-sectorial ecosystem in which music, publishing, audiovisual, theatre, gaming and podcasting represent parallel and increasingly integrated revenue streams. This market structure is substantially different from earlier frameworks of analysis that privileged single-format industry discussion. This sectorial parity is not a future state: it is the current market reality. Industry practitioners, investors and policy makers must recognise and operate within this multi-format landscape rather than treating non-audiovisual sectors as secondary or derivative.

The multi-format entertainment landscape

Music production has achieved genuinely global market positioning. Colombian reggaeton, trap latino and related urban genres sustain international streaming dominance through low production costs, digital-native audience engagement, and rapid platform distribution. The revenue of collection societies SAYCO and ACINPRO demonstrates the scale: Colombian recording artists and publishers now derive material portions of career revenue from international streaming royalties. The per-stream economics (USD0.003-0.005 across platforms) create fundamentally different financing and investment structures than audiovisual production, requiring distinct contractual approaches to royalty calculations, publishing rights allocation and mechanical licensing obligations that remain substantially underdeveloped relative to audiovisual contract standards.

Publishing and literature have undergone parallel transformation. Self-published authors distributing globally through digital platforms (Amazon, Wattpad, Scribd, Audible) now represent material industry activity. Rights architecture spanning print editions, ebooks, audiobooks, serialisation platforms and dramatic adaptation rights – each with distinct publication windows, revenue models and contractual terms – has replaced the traditional unified publisher intermediary role for substantial author populations. Colombian authors increasingly retain direct control over rights exploitation, creating both opportunity and complexity in IP management and secondary rights licensing.

Theatre and live performance have evolved in the post-pandemic period toward hybrid models that combine in-person audience engagement with simultaneous streaming or subsequent recorded distribution. This architectural shift extends the commercial lifespan of productions beyond traditional theatrical runs, creates new revenue streams through distributed content licensing, and introduces contractual complexity around performer consent requirements, union obligations and digital rights allocation that is absent from traditional live performance contracts.

Gaming and interactive entertainment is constrained by limited Colombian domestic venture capital and mobile-first distribution economics, but has nevertheless produced indie studios achieving international recognition. The distinct rights and talent management requirements for gaming (software licensing, developer work ownership, platform distribution agreements, interactive music and narrative licensing) differ substantially from both the audiovisual and traditional publishing frameworks.

Podcasting and audio-first content production has emerged as a distinct sector with specialised rights management requirements distinct from music production, audiovisual licensing and traditional publishing.

The strategic imperative: institutional investment framework evolution

Public rebate and investment incentive mechanisms for qualifying audiovisual expenditure have expanded substantially over the past decade, attracting a growing volume of international and streaming platform production into Colombia, professionalising the talent pool, and materially reshaping where production infrastructure and creative activity are concentrated.

Colombia’s entertainment investment landscape is shaped by multiple institutional mechanisms supporting private and corporate investment across the entertainment and cultural sectors. These mechanisms have operated with distinct eligibility criteria and incentive structures, creating complexity in multi-sector project financing and investment deployment.

Industry consensus has emerged around the need for institutional framework simplification, to consolidate fragmented mechanisms into streamlined structures, reduce administrative complexity, allow broader investor participation and improve incentive effectiveness in capital deployment. The incoming administration’s explicit cultural sector policy commitments create the most politically propitious moment in recent years for meaningful institutional reform.

However, reform complexity remains substantial. Required fiscal adjustments, institutional interests vested in current structures, and necessary transitional provisions protecting existing investment pipeline commitments have consistently delayed reform despite broad stakeholder consensus on necessity. Institutional developments will be closely monitored by international investment participants, and will likely reshape Colombian entertainment investment architecture materially if enacted.

Streaming consolidation: structural consequences for creators’ bargaining positions and rights management

The global consolidation of streaming as the primary distribution mechanism across all entertainment formats represents the most significant structural change in entertainment economics in decades. This transformation applies uniformly across all entertainment sectors, creating convergent structural changes across the entire industry.

A distinctive feature of the Colombian market, frequently misunderstood by international counterparties, is the absence of any guild-negotiated residual system comparable to the SAG-AFTRA, WGA or DGA frameworks in the United States.

Colombia does not impose contractual residual liability on producers or platforms for re-exhibition or streaming. Instead, the country operates a statutory remuneration right model, Law 1403 of 2010, which grants performers an unwaivable, inalienable right of remuneration for the public communication of audiovisual performances. Such remuneration is collected and distributed through the collective management society ACTORES Sociedad Colombiana de Gestión, while producers’ rights are managed through EGEDA Colombia.

These are statutory levies collected by the societies from the users that publicly communicate the work – broadcasters, pay-TV operators such as DirecTV, exhibitors and streaming platforms; they are not back-end participations negotiated in individual talent agreements, and critically not costs borne by the producer. The obligation attaches to the act of public communication and therefore falls on the communicating channel or platform. The active frontier is the extension of these public communication remuneration rights to on-demand streaming exploitation, where tariff-setting between the societies and global platforms remains unsettled. The cost is a statutory licensing obligation on the distributing platform – a category structurally distinct from US-style residuals and not interchangeable with them.

Sequential distribution windows (theatrical, home video, pay television, broadcast, physical sales), which historically provided multiple distinct monetisation opportunities for producers, have been replaced with simultaneous all-window platform acquisition, structurally eliminating sequential revenue potential. Global streaming platforms typically acquire comprehensive exploitation rights for defined terms (seven years or unlimited) in exchange for single acquisition fees or minimum guarantees. This buyout structure removes producers from subsequent revenue participation, except where explicit revenue share provisions have been contractually negotiated, which is statistically rare in current market practice.

For Colombian creators and producers, the consequence has been a material reduction in bargaining position. Platform-financed productions typically operate under development agreements granting platforms significant creative control, first-look rights for sequels and derivative works, and frequently right-of-first-refusal on future creator projects. Colombian producer IP ownership is often limited to producer credit, and contingent net profit participation is unlikely to be triggered due to the standard platform profit accounting methodologies.

The contractual response from sophisticated producers has been to increase the emphasis on protective mechanisms: sunset clauses on unexploited rights, territorial reversion provisions for geographies where platforms have not distributed within defined periods, and increasingly mandatory minimum reporting obligations giving producers the necessary granular data to verify revenue share accuracy. These provisions are becoming standard for experienced practitioners but remain absent from smaller productions whose creators lack negotiating leverage.

Artificial intelligence: operating in an unregulated contractual environment

The practical emergence of generative AI as a production tool, and simultaneously as a training data imperative for technology companies, has created a contracting environment in which Colombian practitioners must address risks for which the applicable legal framework (Ley 23 de 1982, Decisión 351, and general contract law) was not designed.

The most immediate practical issue concerns AI consent in talent agreements. Following 2023 SAG-AFTRA and WGA settlements, the global standard for talent agreements in productions destined for international distribution now includes explicit provisions addressing:

  • the producer’s right to create digital replicas of performers’ voices and likenesses;
  • the compensation payable for such use; and
  • the performers’ continuing approval rights over any AI-generated performances using their likeness.

Colombian talent associations have adopted these provisions as negotiating positions, effectively establishing US union standards as a de facto global baseline even without domestic union requirements.

The second AI challenge concerns the licensing of existing copyrighted works as training data for generative models. Colombian copyright law contains no specific statutory exception for AI training use. Strict legal interpretation of Ley 23 de 1982 suggests that the incorporation of copyrighted audiovisual works, musical recordings, published literature or visual art into training datasets would require rights-holder consent. In practice, licensing is in a nascent stage: collective management organisations (SAYCO, ACINPRO) have not yet developed standardised tariff schedules for AI training, and individual rights-holders negotiate licences in an environment of substantial price uncertainty.

The third AI challenge concerns the copyright status of AI-generated output. Colombian law requires human authorship as a condition for copyright protection; works generated entirely by artificial systems without meaningful human creative input do not qualify for protection under current legislation. For creators incorporating AI-generated elements into entertainment works, this creates IP estate uncertainty and potential chain-of-title complications for subsequent distributors and investors.

International entertainment investment transactions as strategic opportunity

International entertainment investment transactions operate across multiple jurisdictions with distinct institutional frameworks and incentive mechanisms. Colombian producers and investors engaging in multi-jurisdiction projects must navigate diverse regulatory contexts, each imposing distinct qualification and documentation requirements.

Cross-border entertainment investment presents both opportunities and structural challenges. Multi-jurisdiction transactions benefit from co-ordinated incentive deployment and regulatory compliance across all participating jurisdictions simultaneously.

Key structural requirements include:

  • clear IP ownership allocation across all jurisdictions and all entertainment sectors represented in the project;
  • spend qualification and documentation across multiple currencies and jurisdictions;
  • tax residency and withholding compliance; and
  • simultaneous satisfaction of all applicable institutional requirements.

Regulatory and legislative horizon

There is no statutory residual system for cultural workers in digital exploitation, and that absence remains a recurring theme in debate within the sector. Were such a framework ever to be adopted, it would likely look to the SAG-AFTRA and WGA settlements as precedent, and favour residual-based models over reliance on collective licensing alone. For now, however, the protections available to Colombian talent in streaming exploitation rest on the statutory remuneration right system and on individually negotiated contract terms, not on any residual legislation.

Industry advocacy has coalesced around structural reforms:

  • the consolidation of incentive regimes;
  • stronger transparency requirements for platform reporting to creators;
  • formal recognition of residual and AI consent frameworks across entertainment sectors; and
  • the development of collective licensing mechanisms for AI training across all entertainment sectors.

The sector’s strategic position in 2026

The Colombian entertainment sector enters 2026 at the convergence of three forces:

  • a reform opportunity centred on simplifying and consolidating the incentive architecture, which the incoming administration has signalled is a policy priority;
  • technology disruption, in the form of practical AI deployment; and
  • market consolidation, driven by streaming dominance.

This convergence creates both material opportunity and significant risk, depending on how legal and policy frameworks adapt to digital-first, multi-format entertainment realities.

Practitioners and industry participants should prioritise:

  • structuring current entertainment investments to survive potential regulatory change while capturing transitional benefits;
  • developing standard AI consent and licensing provisions appropriate to Colombian law rather than simply importing US union precedents; and
  • building contractual infrastructure in platform and distribution agreements that protects Colombian creator and producer interests in revenue visibility, reversion rights and sequel/derivative participation.

The sector’s trajectory will be determined not by individual format success (music, publishing, audiovisual, gaming), but by the sector’s capacity to develop integrated, multi-format legal and business frameworks that recognise entertainment as a coherent ecosystem of parallel, interdependent creative industries.

JGA Abogados S.A.S.

Calle 33 # 15-39 of. 201
Bogotá D.C.
Colombia

+57 300 667 49 56

a.jaramillo@jgaabogados.com www.jgaabogados.com
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Law and Practice

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JGA Abogados S.A.S. is a boutique business affairs and investment firm based in Bogotá, Colombia, operating across Latin America, Europe and the United States. Led by founding senior partner Andrés Jaramillo, the team of six specialises in audiovisual co-production structuring, capital deployment and international entertainment transactions, with particular depth in Colombian cinematographic incentive frameworks, including Ley 814, CINA and CoCrea. The team advises producers, financiers and distributors on cross-border co-productions, music and image licensing, IP clearance and talent agreements. Recent mandates include handling business affairs on a Netflix documentary series (JAMES.), co-production structuring for Chile-Germany-Colombia-Spain projects, executive producer services for feature film slates, and CIC investment structures under Ley 814 for multiple film portfolios. JGA also advises on institutional cultural policy and regulatory reform initiatives affecting the Colombian audiovisual sector.

Trends and Developments

Authors



JGA Abogados S.A.S. is a boutique business affairs and investment firm based in Bogotá, Colombia, operating across Latin America, Europe and the United States. Led by founding senior partner Andrés Jaramillo, the team of six specialises in audiovisual co-production structuring, capital deployment and international entertainment transactions, with particular depth in Colombian cinematographic incentive frameworks, including Ley 814, CINA and CoCrea. The team advises producers, financiers and distributors on cross-border co-productions, music and image licensing, IP clearance and talent agreements. Recent mandates include handling business affairs on a Netflix documentary series (JAMES.), co-production structuring for Chile-Germany-Colombia-Spain projects, executive producer services for feature film slates, and CIC investment structures under Ley 814 for multiple film portfolios. JGA also advises on institutional cultural policy and regulatory reform initiatives affecting the Colombian audiovisual sector.

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