Adopted by Gramos' board on 1.2.2008 with changes and additions from 20.11.2013, 27.10.2014 and 30.6.2016

Contents:

1. Main principles of distribution

2. Key concepts

3. Determination of the distribution pot

4. Remuneration calculation

5. Foreign settlement

6. Payment of remuneration

7. Processing of settled, unpaid remuneration in the period up to the time of limitation

8. Collective funds - limitation of individual remuneration claims

9. Double requirements


Appendix 1 - Score of perfomers

Appendix 2 - Rules on transfer and payment via proxy

Appendix 3 - Case processing rules for double claims

Appendix 4 - Management of remuneration funds


1. Main principles of distribution

  • The distribution only includes recordings that enjoy protection in accordance with the provisions of the Copyright Act

  • The funds are distributed equally between producers and performers

  • All distribution takes place on an individual basis

  • All musical genres and styles are equal

  • Settlement takes place for the entire calendar year (consideration year)

  • All distribution is based on exact performance reporting, or according to reports from comparable performance areas

  • The distribution shall not take into account audience interest (listener numbers), but revenues from each channel or channel group (comparable channels) shall be settled separately.

  • Norwegian and foreign licensees shall be treated equally. This also includes foreign rights holders without independent protection via convention affiliation, but which are nevertheless settled because recordings they participate in are protected.

  • Settled remuneration falls outside the scope of the regulations, and is dealt with in special regulations. This includes remuneration for hard disk copying by broadcasters, remuneration for use on WEB (on demand / reruns of broadcast broadcasts), copying in TV broadcasts and distribution assignments of funds for others *)

*) Gramo can process and distribute funds to others against full cost coverage. Examples of such funds are private copying fees. Rules for such distribution are agreed between Gramo and the external party.


2. Key concepts

Remuneration year
The calendar year in which the performances take place

Recording
Single audio recording regardless of release format

Main settlement
The distribution that is carried out when all carry-over in a consideration year has been registered, and which will normally be run the following spring / summer.

Post-settlement
Distributions that are carried out when new remuneration income has been added and paid in and / or changes in underlying databases (recording and licensee registers) have been made. Post-settlement is normally run once or twice per carry-over year.

Final Settlement
Latest settlement before obsolescence

Channel group
A settlement (possibly also invoice-based) merging of channels based on similarities in program content, distribution and / or transmission method, such as NRK's ​​district offices and NRK's ​​digital test broadcasts.


3. Determination of the remuneration pot

Calculation of the remuneration pot for the main settlement takes place as follows:

Gross remuneration

(3.1.)

-

Common settlement costs

(3.2.)

=

Profit before sector expenditure

shares 50/50

+/-

Sectoral costs

(3.3.)

=

Profit before financial items

+/-

Financial items

(3.4.)

-

Any provisions

(3.5.)

+/-

Sectoral dispositions

(3.6.)

=

Net distribution pot per sector

(3.7.)

3.1. GROSS REMUNERATION FUNDS

For broadcasters who are invoiced in arrears in accordance with reported use (NRK, Radio Norge, P4), a sober estimate of the income must be kept in the main settlement. For broadcasters without detailed music reporting and for other public performances, booked income is used as a basis after these have been adjusted for losses on receivables.

3.2. COMMON SETTLEMENT COSTS

Costs directly related to collection and individual distribution are borne jointly by the performer and producer sector, and primarily include personnel / administration as well as depreciation.

3.3. SECTORAL COSTS

The result is reduced for the sectors' costs for own meeting activities, travel and fees.

3.4. FINANCIAL ITEMS

Until the main settlement, all income is considered as joint consideration and the return on this is distributed equally between the sectors after deduction of any financial expenses.
After the main settlement has been made, unpaid remuneration is regarded as the sectors' funds, and the return on these is distributed proportionally. The average return for the financial year shall be used as a basis - with the exception of special investments made in collaboration with the individual sector. The return follows the remuneration year, so that the return for a financial year is added to the remuneration pot for the same year.

3.5. PROVISIONS

Provisions for unforeseen claims are determined by the board following a recommendation from the director.

3.6. SECTORAL DISPOSITIONS

The result is adjusted for any sectoral appropriations as well as for any return of public funds to individual settlement. The fee income can not be used for anything other than tasks directly related to collection and individual distribution to performing artists and producers.

3.7. NET DISTRIBUTION POT

Settled to individual distribution for the remuneration year


4. Remuneration calculation

The net distribution pot for the sectors is divided into channels and channel groups based on their percentage share of the total pot for the remuneration year. Based on the registration of playlists, a points calculation is carried out for recordings that are protected in accordance with Norwegian law. In the calculation, unreported transmission time and the proportion of invoiced residual list (unprocessed broadcast reports and recordings) shall be taken into account.

For the area without player reporting, or where processing reports would be unreasonably expensive in relation to revenues, the sector committees decide which comparative statistics to follow and weighting this. At present, the following applies equally to both sectors:

  • Public broadcasting - a rate for public broadcasting is calculated by settling the area's distribution pot in accordance with the distributed remuneration on all reporting broadcasting channels. As of the settlement for 2017, remuneration for other public performances shall, to the greatest possible extent, be settled on the basis of actual use of music.

4.1. PRODUCER SECTOR

Settlement to phonogram producers is based on the registered performance time and the licensees' share of the recording. Second points per recording and channel are accumulated per licensee.

Claims procedure The
producers themselves make claims for the recordings or record labels (labels) they believe are entitled to remuneration to directly or as a representative / representative. Gramo may demand written documentation (contract) for the claim for compensation when the administration finds the claim questionable. The general manager of a production company must sign a written declaration to Gramo stating that the company represents all the rights they require, and at the same time on behalf of the company undertake to repay to Gramo any incorrectly paid remuneration (cf. section 7.5).

The following applies to channels / groups with player
reporting : The second rates are calculated separately for each channel / channel group by dividing each distribution pot by the number of registered seconds.

Separate rates are currently calculated for:

  • NRK's ​​national channels (P1, P2, P3)

  • NRK's ​​district offices

  • mP3

  • NRK's ​​DAB channels (Classical, Jazz, Folk music, Sami)

  • P4

  • Radio Norway

  • Selected larger local radios (so-called A-radios)

For non-reporting local radios, a rate is calculated by the area's distribution pot being settled after distribution of the consideration by 1/3 on each of the channels NRK P1, NRK P3 and P4. As of 2018, all local radio stations are required to report. The remuneration will then be distributed according to playing time reports from the local radios.

4.2. PERFORMANCE SECTOR

4.2.1. Settlement to performers is based on the performer's role on the individual recording. Three roles are distinguished, so that the individual performers on each recording are defined as either:

  • A - Soloist (= featured artist, permanent member of band / group / ensemble) or

  • B - Musician (= studio musician / accompanist / orchestra musician / chorister) or

  • C - Conductor / musical leader (= performer who leads and makes decisions for interaction, tempo, dynamics and performance for an orchestra, a choir or a group of musicians)

4.2.2. No one can be registered with more than one role per recording. Performers with multiple roles on the same recording will be registered in the most favorable in terms of points, unless they ask for something else.

4.2.3. Gramo's role registration is primarily based on written info and documentation from publication / publishing and reporting. For undocumented roles, the following applies:

  • Performers who claim to have an A-role on a recording with a main artist other than themselves must submit confirmation from the main artist.

The sector determines point values ​​for these, varying according to the number of participants. The current points table is included in Appendix 1 .

For channels / groups with player
reporting , the following applies: A minute point rate (base rate) is created for all reported use. Before calculating base rates, 10% of the remuneration is deducted for distribution on NRK's ​​DAB channels.

In order to reflect larger differences in the areas' remuneration income, the sector committee weighs down some reporting channel areas. The following currently applies:

  • Minutes from NRK's ​​district offices (incl. Sami FM) count 1/5

  • Minutes from mP3 count 1/15

Based on this, each athlete's total number of minute points is calculated, and the total sum of all these. The krone rate per minute is thus:

  • Minute point rate = net distribution pot (for channels with reporting divided by the total sum of minute points for the remuneration year

  • Individual remuneration = practitioner's number of minute points multiplied by the minute point rate

**) This form is assumed to be prepared in consultation with the performer sector, and to counteract fixation, the form must capture which ensemble has been conducted, and the number of musicians at the conducted performance.


5. Foreign settlement

5.1. A-AGREEMENTS (BILATERAL AGREEMENTS ON EXCHANGE OF REMUNERATION)

When entering into an A-agreement, the organizations undertake to exchange individual remuneration to members of the other organization for performances in which the member participates. The organizations must have a system for exchanging member data and recording data, so that individual settlement can be made.
Remuneration from abroad under such an A-agreement is paid by Gramo in full, as expenses with the calculation of the remuneration are expected to be in the country of collection.


6. Payment of remuneration

6.1. MINIMUM LIMIT

for payment of remuneration, NOK 300 has been accumulated for non-obsolete remuneration years.

6.2. ADMINISTRATION FEE

An administration fee is charged to all practicing members who are not members of an approved Norwegian licensee organization at the time of Gramos' general meeting in the settlement year. The fee amounts to 10% of earned remuneration (cf. regulations and board decisions).

Payments to foreign licensee organizations via A-agreements are not normally charged with such a fee - unless otherwise agreed with the relevant agency. Administration fees are also not calculated on remuneration collected from abroad through A-agreements (cf. section 5.1) unless otherwise agreed.

The administration fee will be abolished in its entirety as of the main settlement for 2017.

6.3. TRAITS

When paying out, Gramo will take into account claims that may be made against individual members of public authorities and courts. This includes technical cooperation with the Norwegian Collection Agency on the identification of debtors.

6.4. REMUNERATION PAYMENT PRODUCER SECTOR

In the producer sector, payment can be made via the member's licensee organization by proxy or by this being laid down in the licensee's articles of association. Rules for changing organizations are set by the sector so that you are considered a member of a licensee's organization until the end of the year you opt out of it.

6.5. HERITAGE

The right to remuneration pursuant to Åvl § 45b may be inherited. Heirs apply for membership in Gramo on their own prepared form, and are admitted as affiliated members. Probate must be attached to the application.


7. Processing of settled, unpaid remuneration in the period up to the time of limitation

After the main settlement for a remuneration year has been run, unpaid remuneration until limitation is treated as follows:

7.1. SETTLEMENT

Post-settlement takes place on the basis of new remuneration income for the performance year or by Gramo's database being continuously supplemented with information about licensees and recordings. There are normally one to two subsequent calculations per carry-over year. Any new income that relates to an already completed settlement year is entered in the oldest unfinished settlement year.

7.2. FINAL SETTLEMENT

Last settlement before limitation, which may consist of both additional and correction settlement.

7.3. POST PAYMENTS

Settled remuneration without a previously known payment addressee is paid continuously as soon as sufficient information flows to Gramo. The same applies to payments abroad when new A-agreements are entered into.

7.4. NEGATIVE SETTLEMENT

The athlete sector. If correction settlements in the practitioner sector should lead to a negative total settlement, the relevant licensee shall not be required for this either via set-off or via direct claims. Such negative balances are covered by Gramo via the provisions (cf. section 3.5).
Excluded from this are negative correction settlements due to misleading reporting from the licensee.
The manufacturing sector. If corrective settlements in the producer sector should lead to negative settlements for individual recordings or labels - for example because the company has been credited to others' remuneration - Gramo shall charge the relevant licensee via set-off or direct claims.
Excluded from this are negative correction settlements where Gramo must bear the main responsibility for the original error, for example if the correction shows that the paid recording is still not protected.

7.5. INTEREST

Interest on post-payments and correction settlements is not credited.


8. Collective funds - limitation of individual remuneration claims

8.1. EXPIRATION

Claims for individual remuneration become statute-barred after three years from the time the licensee can claim remuneration at the earliest. ****)

8.2. TRANSITION TO COLLECTIVE FUNDS

Settled, unpaid remuneration remuneration funds are, at the end of the limitation period, converted into collective funds within each sector. The same applies to settled remuneration below the minimum limit for payment (cf. section 6.1).

8.3. USE OF COLLECTIVE FUNDS

Organizational support
Parts of public funds can be granted as operating support to the licensee organizations in the area. The distribution between them can be based on discretionary decisions or on the organizations '(members') share of settled remuneration. It is assumed that the organizations operate with annually updated and auditor-approved lists of paying members who are also members of Gramo. Membership without a requirement for a membership fee, or an annual membership fee lower than NOK 400 does not qualify.
A lower membership fee, limited to NOK 200 per year, can be accepted for pensioner members who have previously been a member for at least five years and paid an ordinary membership fee for membership in the organization.

Offsetting as payment of membership fee is permitted when: The licensee organizations can document that a set-off has been made against already identified individualized funds to which the member is entitled regardless of membership in the licensee organization, for example Gramo and TONO remuneration. Offsetting against unidentified individualized funds (collectively received remuneration) is not accepted.


Measures for the benefit of Norwegian performing arts
Project support from the sectors shall be provided within the goals described in regulations and draft legislation. The sectors may, to a certain extent, transfer the allocation of such project funds to the licensee organizations, which in these cases are awarded project support based on discretionary decisions or on the organization's (members') share of settled remuneration. Before granting project support, a simple project description and budget must be submitted.

Feedback and accounts
For organizational support and project support from Gramo from and including NOK 100,000, the following reporting requirements apply:

  • Signed, accounts approved by a state-authorized or registered auditor

  • Signed annual report

  • Signed general meeting minutes, or signed minutes from the organization's highest body, for the previous year

The documents are sent to Gramos' auditor for inspection before payment can take place.

In order to receive organizational support or project support of less than NOK 100,000, accounts must be submitted that have been approved by a competent body in accordance with the articles of association of the organization.

Allocation of project funds also presupposes that the recipient sends an implementation report to Gramo, and that Gramo is credited in the project material. These provisions also include the allocation of project funds via the licensee's organization, and this in turn will report back to Gramo on individual allocations and implementation.

A account organizational support

Support can be granted for a-account payments with a nominal value of up to 50% of previous years' support to organizations that have submitted information in accordance with the terms of the last two years. In addition, the board-approved budget for the current year must be submitted. If the conditions for the current financial year are not met, the a-account amount will be refunded.

Cost coverage in later settlement years Permission
is granted to use parts of collective funds to strengthen the settlement pot for subsequent settlement years.

Lending
Collective funds shall not be made the subject of lending.

Advances Advances
can not be paid on potential public funds.

Non-discrimination on grounds of nationality The
use of public funds, including the possible return of public funds to individual distribution, must not contravene Article 4 of the EEA Agreement.

The board's control of the allocations
The board shall control the sector's allocations, and the sector decisions are confirmed by being included in the board minutes. Further procedures for approval and payment are prescribed in the board's rules of procedure.


9. Double requirements

In cases of double claims where there is little doubt about who is the rightful holder, Gramo decides who will receive payment. In complex cases, the dispute is left to the parties or the courts. Special instructions on case processing in the event of double claims etc. are included as Appendix 3 to the regulations.


Appendix 1 - Scorers of performers

At present, the following point values ​​apply:

A - soloist / band

Number A on the recording

Points per A

1

16

2

14

3

12

4

10

5

8

6

6

7

4

8

2

9 - 75

1

over 75

75 / number of A's

B - performer / orchestra / choir

Number A + B on the recording

Points per B

1

0

2

8

3

8

4

8

5

8

6

6

7

4

8

2

9 - 75

1

over 75

75 / number of Bs

C - Conductor / Musical Director

Points per C

5

C - conductor: a total of 5 points per. recording (possibly for distribution on several).


Appendix 2 - rules on transfer and payment via proxy

1. The right to remuneration is directly linked to the individual licensee.

The licensees may, however, be represented by a proxy / agent, however with the restrictions that the licensee must claim the fee (cf. the Ministry's regulations § 6 second paragraph), and that proxies cannot become members or affiliated members of Gramo.

2. The manufacturing sector follows common international practice in the field:

a) It is assumed that Norwegian organized licensees normally authorize their interest organization. Gramo will therefore pay the remuneration via the organizations, even if no written power of attorney from each individual licensee is documented.

b) Gramo will routinely update its registers prior to each main settlement with regard to the producers' membership in interest groups.

c) If a dispute arises between the licensee's organization and the licensee regarding payment of the consideration, Gramo shall relate to the licensee, and pay in accordance with his claim. Exceptions to this are cases where the rights organization can document a written agreement on a power of attorney. If there is reasonable doubt as to who is entitled to receive the payment, or that it will lead to disproportionate use of resources to take a position on the matter, Gramo shall freeze future payments until the parties inform Gramo in writing of the settlement of the dispute.

d) As a general rule, foreign producers receive their remuneration via a Norwegian representative (who has an agreement on license production or distribution).

e) Foreign producers without a Norwegian representative and from countries where Gramo has not entered into a bilateral agreement or countries where there is no corresponding remuneration agency, can be admitted as affiliated members and have their remuneration transferred directly. Payment via agency agencies that are neither representative via distribution nor license production is normally not accepted.


Appendix 3 - Case processing rules for double claims

1. Gramo clarifies the disputed amount, regardless of whether this has already been paid out by Gramo. Both parties are informed of the problem that has arisen. The parties are primarily advised to settle among themselves. Alternatively, Gramo advises the parties to inform the case as best as possible, so that Gramo can take a position on the case.

2. Simple cases are cases where there is no reasonable doubt as to who is the licensee. Gramo primarily relies on information from physical copies or contract provisions. Gramo will here pay to the party who in Gramo's assessment is without reasonable doubt the right holder. Rights holders who want to challenge such decisions are referred to the court system.

3. More complicated matters and matters that must be assumed to be disproportionately time-consuming to decide shall be reported to the board. The administration informs the parties that the rights relationship appears to be unclear and that Gramo will not resolve the dispute between the parties. The parties are referred to resolve the dispute themselves via negotiations, mediation, arbitration or the court system, and to notify Gramo of the final decision. Future payments are frozen pending this.


Appendix 4 - Management of remuneration funds

1. GENERAL
In order to secure the individual remuneration payments to the practitioners and producers, the remuneration funds shall be properly managed until the individual remuneration claims have become obsolete.

2. PLACEMENT OPTIONS
Location alternatives are given in the form of authorizations from the board to the administration.

3. LOCATION
RESTRICTIONS The funds may not be invested in companies where there is a risk that they contribute to human rights violations, individuals' rights in war, environmental damage, corruption and other violations of basic ethical norms. If there is any doubt about this, invested funds must be withdrawn.

4. RETURN
TARGETS Gramo's Board of Directors determines the current return target in Gramo.

5. RISK
In the case of bank deposits, the bank's upper limit of liability for deposits must be considered. The location of the remuneration funds shall otherwise be subject to appropriate diversification with regard to security and liquidity.
Without the consent of the general meeting, the funds cannot be invested in individual shares or similar securities.

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