The term “extended collective licensing” is often misunderstood. It does not make collective licensing compulsory by law; nor does it mean that collective licensing should extend to all types of use.
The term “extended” simply means that the licence (authorisation for use), granted by a collective rights management organisation on behalf of its members, is extended by law to cover also all nonmember
rights holders of the same category. Thus the provisions of an ECL agreement cover not only the individual mandates given to them by the members in their membership agreement, but is extended by law to encompass also other rights holders of the same category which are not members of the collective rights management organisation.
In practice it is often used for clearing of rights for mass use. For instance authorisation for Internet use of a bunch of audiovisual programmes would be delivered to a broadcaster by an authors’ collective rights management organisation for all authors concerned, including those who are not members of that collective rights management organisation.