1.1 Allocation Keys
1) Actual Usage
The distribution of royalties is based on actual usage, as reported by the user or externally registered usage.
Rights registered as used are compensated proportionally according to the specific usage.
CRM Act § 21. Allocation and Payment, paragraph one:
"A collective management organization shall distribute royalty funds to rightsholders in a secure and accurate manner and in accordance with the general allocation principles, cf. § 12, paragraph four, letter a."
Special Motivation for the Provision:
"The starting point is that a collective management organization determines its general principles for the distribution of royalties to rightsholders themselves, but the requirements for secure and accurate distribution must be met. The collective management organizations must strive as much as possible to distribute the royalties individually. It is up to each collective management organization to assess what measures need to be taken to meet the requirements of the provision. The provision must be seen in conjunction with users' obligation to report, cf. § 31. The organization can also use analogies and knowledge from another similar area as a basis for distribution when it is impossible or very resource-intensive to obtain information about actual usage."
2) Analog Distribution Based on Reporting
In the absence of information about actual usage, the closest distribution based on actual usage is used.
In certain cases, it may not be possible to obtain information about actual usage. This may be because such information does not exist, or it would be very resource-intensive (e.g., economically or in terms of time) to provide information about actual usage for the specific area. In these cases, the board may decide to use an analogous distribution basis if there is another area where actual usage is known, and it is sufficiently connected to allow distribution based on that usage.
3) Analog Distribution Based on Previous Year's Payments
Distribution is based on the total payments from the previous year, calculated proportionally.
This distribution can be used when it is not possible to obtain information about actual usage. This may be because such information does not exist, or it would be very resource-intensive (e.g., economically or in terms of time) to provide information about actual usage for the specific area. In addition, there is no related area with actual distribution that can be used analogously. The distribution involves calculating the total payments from the previous year in such a way that a rightsholder's total percentage of the distributed royalties from the previous year is used as the distribution basis. In other words, the rightsholder's average share of royalties in the previous year is used as the basis for distribution.
1.2 Allocation Regulations
The board prepares and adopts standing allocation regulations based on the general principles for the distribution of royalties approved by the annual meeting.
2. General Principles for the Use of Undistributable Amounts
2.1. Undistributable amounts are:
2.1.1. Regulations under the Copyright Act § 31, which apply to organizations approved under the Copyright Act § 21, "An individual annual amount that is less than 0.5 percent of the National Insurance basic amount, rounded up to the nearest ten kroner, shall not be paid out."
2.1.2. Received copyright royalties that Gramo has been unable to distribute and which no rightsholder has claimed within a period of 3 years from the end of the fiscal year in which the respective amounts were collected.
2.2. When copyright royalties are categorized as undistributable amounts, a potential rightsholder's claim to demand royalties is generally forfeited.
2.3. Gramo may allocate 10% of undistributable amounts for cost coverage.
2.4. Copyright Act § 21 and Undistributable Amounts.
2.4.1. Undistributable amounts originating from Copyright Act § 21 and collected by Gramo may be used, among other things, for the financing of social, cultural, and educational activities for Gramo's rightsholders (collective purposes) - unless such use is in violation of national legislation.
2.4.2. The annual meeting shall, on an informed basis, approve the actual use of all these funds based on the recommendation presented by the board.
2.5. Other Copyright Domains and Undistributable Amounts.
2.5.1. Undistributable amounts from other copyright domains are redistributed within the same management areas from which they originated.
2.5.2. The redistributed amounts are distributed in connection with the next main distribution in the management area to which the royalties apply.
2.5.3. If a management area related to undistributable amounts ceases to exist, the board may decide which relevant management area the funds should be allocated to instead.
3. General Investment Strategy for Revenues from Rights and any Income from the Investment of these Revenues
3.1. Collected copyright royalties belong to Gramo's members and other rightsholders.
3.2. Gramo places collected copyright royalties in deposit accounts at banks, money market funds, and bond funds with low to moderate risk. All investments shall be liquid. The purpose of the investments is to achieve a satisfactory return relative to risk.
4. Risk Management Strategy
It is the annual meeting of Gramo that decides on the potential purchase, sale, or mortgaging of property, approves mergers or significant cooperation agreements, establishes subsidiaries, approves loans, provides loans, or provides security for loans.