What are public funds?
Remuneration below the minimum limit
Remuneration that Gramo does not receive paid individually within three years
"Individual annual amount that amounts to less than 0.5 per cent of the National Insurance basic amount rounded up to the nearest whole tenth of a krone, is not paid. Amounts below this limit are used by the organisation for purposes determined by the organisation. Obsolete remuneration is disposed of in the same way ».
Remuneration below the minimum limit
With regard to the minimum limit, the regulations state that remuneration below 0.5 per cent of G per year shall not be paid. However, Gramo wants to pay out as much as possible, so we have decided that the consideration can be accumulated up to the minimum amount of NOK 300 over three years.
If you have earned NOK 300 per membership (practitioner and / or master owner) in the course of three years, you will receive the money anyway.
If the remuneration for 3 years per membership (practitioner and / or master owner) does not exceed NOK 300, this money becomes public funds.
The regulations state that obsolete remuneration also becomes collective funds. So what does this mean in practice? Everyone who is a member of Gramo gets their money directly when their songs (recorded music) have been used and earned remuneration. When there are Norwegian performers on these songs, who are not members, they are contacted and get the money paid out when they have registered with Gramo. In addition, on several songs, remuneration is settled to unknown performers who for various reasons have not been stated on the cover, in the file or have otherwise been reported to Gramo. This money is paid out when Gramo has identified the unknown practitioners, or becomes collective funds if Gramo during the limitation period of 3 years (cf. Åvl § 21, 3rd paragraph), is unable to find the unknown practitioners. This applies to both Norwegian and foreign licensees.
What are the collective funds used for?
According to the regulations, the funds must be used for "purposes determined by the organisation" . The preparatory work (Ot.prp. No. 36 1988/1989) states:
«The Ministry refers here to the distribution systems that have been developed in our neighbouring countries. Income on the performer side that does not provide a basis for individual distribution may be paid collectively to Norwegian performer organisations or for other purposes in the best interests of Norwegian performing arts (hereinafter referred to as collective purposes), in accordance with guidelines prepared by the organisation. To reduce the cost of administering the scheme, settlements should not be paid to practitioners when they do not exceed a minimum amount. The report suggests an index-adjusted size, e.g. a certain proportion of the National Insurance basic amount, as a minimum limit. The Ministry agrees with this, and proposes 0.5 per cent of the National Insurance basic amount as the minimum limit for annual payments. It currently amounts to NOK 155. Settlements below the minimum limit should go to collective purposes and be managed by the organisation. Uncollected settled consideration becomes obsolete after three years, in accordance with the general limitation period, and shall then be used for collective purposes ".
The Gramo Board's sectors (executive sector and producer sector) distribute the collective funds in Gramo in accordance with these rules.
Collective funds are regulated in Gramo's articles of association , and Gramo's annual report shows a detailed overview of what the collective funds have been used for.
Additional guidelines for public funds are set out in Gramo's distribution regulations, section 8.