SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Distribution Rules prescribing the fundamental principles for distributable income collected for the use of musical works with or without lyrics on behalf of all entitled rights holders Part I. Fundamental Principles Article1 Collective Management – fundamental principles for distribution of royalties and private copying remuneration Collective rights management adopts a unified approach to music rights management, for the benefit of all rightful authors and rights holders. Fundamental principles are stipulated by Act 185/2015 Coll. The Copyright Act as amended by later legal regulations (hereinafter referred to as “Copyright Act”), SOZA Statutes, Principles of collection, distribution and payment of income generated by collective rights management, Special principles for the use of licensing royalties, equitable remuneration and additional royalties collected by SOZA in case of which the rights holder to whom they belong cannot be identified or found, and private copying remuneration. Other principles applied in distribution of royalties are: 1. Verification: The Supervisory Board performs random checks before the end of the distribution cycle. The review of accuracy of input data is carried out by comparing the actual data and data from the previous distribution. 2. Examination of the Revenue Calculation: Data used for calculation of specific revenue will be made available to the rights holder upon his/hers request for examination. Written confidentiality agreement is mandatory for disclosure of confidential information required for such examination. If a confidentiality agreement cannot be reached, rights holder may appoint an elected Member of a SOZA Supervisory Board. Should SOZA have any doubts regarding the content of usage data submitted by a licensee, the Supervisory Board is authorised to contact the rights holder to rectify this situation, and if required to suspend royalties distribution for this work, even to remove the work from distribution. The Supervisory Board may reject any such listing, should the rights holder fail to prove such doubts to be unfounded, within the specified deadline; revenue will be then reassigned for unidentified revenue distribution. Supervisory Board of SOZA is entitled, for the needs of the distribution, to exclude all lists of performed works at events SOZA has been informed that they did not take place. The actual use of musical works is the subject to distribution. Should the consent with the use of musical works pursuant to Copyright Act (the licence) not be exercised by the user at all, or only partially, there is no entitlement to the distribution of notified musical works that have not been used. 3. Contractually non-represented author shall have the same extent of rights to remuneration and private copying compensation as authors contractually represented by SOZA. 4. Claims: Rights holder is eligible to submit a claim, in the event of erroneous calculation of his/hers royalties’ distribution or a mistake in input data. For input data amendment, rights holder is obliged to submit verifiable details on usage of work. Royalties collected based on individual claims are payable immediately. 5. Public performance of musical work by using playback or half-playback and the experimental music are distributed in the same way as life performance of the musical work. 6. List of performed musical works (list): Rights holder represented by SOZA shall not manipulate the correctness of the figures included in the list or to ask the user of musical works to include false information in the list. Should data be identified in lists of performed musical works as untrue pursuant to 1 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA the first sentence of this paragraph, prior to concluding the distribution of royalties and private copying remuneration, the Supervisory Board of SOZA is entitled to exclude such list of performed musical works from the distribution and at the same time it is entitled to request compensation of expenditures related to the distribution correction based on untrue data and possible damage compensation from the represented rights holder, who is responsible for untrue data based on his actions, and to charge the compensation payment by deducing it from the royalties of the represented rights holder in accordance with relevant legal regulations. Besides expenditures payment and damage compensation, in case the represented rights holder has already been paid his royalties based on untrue data pursuant to the first sentence of this paragraph, the represented rights holder is obliged to deliver the amount of royalties he has enriched himself based on untrue data pursuant to the first sentence of this paragraph without any delay. SOZA and its representatives (e.g. inspector) shall be allowed to access any public performance of works belonging to rights holder represented by SOZA in order to verify the correctness of the list provided by the user. In case SOZA representatives are not allowed to access the public performance of works belonging to rights holder represented by SOZA, the Supervisory Board is entitled to decide on the form of distribution of the royalties in question (e.g. full census distribution or distribution per analogy). By rights holder it is meant an author, an heir of copyrights and a person exercising property rights of the author pursuant to the Copyright Act. Part II. Article 2 SOZA’s Operating Costs SOZA shall deduct charges from relevant collected amounts from users for the current calendar year in compliance with the Copyright Act, SOZA principles and regulations and international agreements SOZA is bound by. Article 3 Collective Rights Management Provisions SOZA distributes royalties for musical works it has been granting authorisations for their use and collects royalties in respect of them: - Under Membership Agreements; - By virtue of the Copyright Act; - Under international agreements concluded with collective rights management organisations abroad. Duly and timely musical works registration and their classification by the Classification Committee, nonexclusion of collective management by the rights holder for the distributed collective management area and the royalty paid by the user, together with the relevant notification on musical works use, if necessary, are fundamental conditions to distribute royalties. In case of rights holders represented by SOZA exclusively by virtue of the Copyright Act, the condition to distribute royalties is also to submit an application for royalties’ distribution duly presenting data on their use in the relevant period of time and the notification of the user on the scope of works´ use. Article 4 SOZA Repertoire 1. SOZA Repertoire comprises of all musical works with or without lyrics, assigned by its authors and right holders to be represented by SOZA, in a signed Membership Agreement; provided that these works are documented in SOZA’s registrations with all details necessary for their identification. SOZA repertoire comprises also works of foreign rights holders represented by SOZA under international agreements concluded with collective rights management societies abroad, if the collective rights’ management was not excluded by those rights holders. SOZA repertoire comprises also of works made by authors represented exclusively by virtue of the Copyright Act. Specimen of a Work Registration Form and specimen of Work used in Film Cue Sheet can be found under Appendix no. 3 and 4 of this Distribution Rules. In addition to paper form of registration of works, authors can report new works also in electronic form via ISPA web portal (after meeting conditions for its use). The Distribution Rules set forth herein are also fully applicable to electronic registration. 2 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA 2. All eligible rights holders register with SOZA their relevant part of the musical work of which they are rights holders, whereas they are obliged to present other eligible rights holders, too. Rights holders of music used in a film submit at the same time also a film registration form. This requirement applies to all musical works composed for film (regardless of the genre - feature film, animation, documentary, distribution, TV...), including the use of archive music with copyright clearance from the author (synchronisation rights). Distribution of royalties for a musical work is executed by SOZA in compliance with all data on rights holders on the musical work available to SOZA, providing that data available are not in conflict, or in case the author did not dispute the co-authorship or an approval to merge works with respect to works that have already been notified to SOZA by other rights holders of the aggregate work. 3. In the event of conflicting details in registrations of a musical work, royalties will not be included in the distribution; SOZA will request rights holders to rectify this within one year, or to inform SOZA about taking the matter to court. If no further information is submitted within the period of one year, royalties are to be distributed according to the registration submitted at an earlier date, until proven otherwise. 4. The Classification Committee assigns each registered musical work into appropriate category. A musical work in one arrangement can be registered once and assigned to one category only. Should it be necessary for a duly classification of the work, the Classification Committee may interrupt the classification procedure of the work and request additional supporting documents and information. Should the notifier not provide the Classification Committee with necessary additional information, the work shall be assigned in the lowest possible category of the respective genre according to available supporting documents. 5. Every work assigned receives a point value based on the musical works’ points table for the repertoire of SOZA. Points Table can be found under Appendix 1 of this Distribution Rules Document. 6. Rights holders represented by SOZA are obliged to register their works immediately after their creation, prior to their publication. In February of the respective calendar year SOZA shall send an inventory of works registered within the last year to rights holders or another agreed procedure having the same purpose shall be applied. Works with missing SOZA notification and classification at the time of processing the royalties distribution shall not be included in SOZA distribution for the given distribution period; these works shall be exclusively subject to regime of additionally applied rights of noncontractually represented authors (Articles 8 and 9). Article 5 Exclusion of Collective Rights Management 1. Each SOZA member is obliged to inform SOZA in written about the exclusion of collective rights management at least one month before the contract with the user is concluded, through which he grants his approval to use his works, otherwise collective rights management shall be deemed as not excluded and the member as continuously represented in the extent previously agreed. 2. SOZA member shall specify in his written notification the area or areas of collective property rights management, in which he excludes the collective rights management. 3. Written form shall mean a document with rights holder’s signature certified by a notary to be delivered to the registered seat of SOZA in person or by mail. The written form is observed in case it is sent by an email from email address given by the member in the Representation Agreement, with an attached scan of the document with a certified signature. SOZA shall take the representation over in an area or areas in which the member excluded collective rights management, based on the written application no sooner than after 6 months after the rights holders’ will about the exclusion of collective rights management is delivered to the registered seat of SOZA. Should the rights holder excluded the collective rights management in some area of collective rights management, SOZA shall not distribute royalties in that area to him, nor the respective share in unidentified fees. 3 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Article 6 Revenue Distribution Schemes: Performing rights - Public performance of a work - concerts, Major Live Concerts (i.e. royalty paid to SOZA exceeds 650€) and other public performances - 2/3 of radio broadcasting, including transmission by cable retransmission; - 2/3 of TV broadcasting, including transmission by cable retransmission; - Other forms of a communication to the public, except of on-line transmission that is considered a separate category from the point of view of the distribution due to performing and mechanical rights’ use; - Film distribution Mechanical rights - production and sale of audio and audio-visual media - ½ of radio and TV broadcasting Private copying remuneration and other unidentified revenue - blank audio and audio-visual media, manufacture and import of devices for audio and audio-visual media production, rental fees for pre-recorded audio and audio-visual media, etc. Online - making available and communication to the public via internet or mobile networks The royalties are distributed for the relevant collective rights management area by course of the Copyright Act. Should there be more areas represented in the given way of use, they will always be rounded by ¼ (i.e. to be represented in values of 0, 25, 50, 75, 100%). Should SOZA be notified by the user about the proportional share of individual collective rights management area, that share will be used in the calculation (after the amount being rounded), if not, the corresponding share in the table “Standard share of representation of collective rights management areas in corresponding way of musical works’ use” will be used. Rights holders who excluded collective rights management in the given collective rights management area, shall not participate in distributed royalties in relevant proportion. In case of foreign rights holders, relevant “IPI” rights notified by respective foreign collective rights management organisation shall be decisive. Article 7 Revenue Distribution Provisions 1. Broadcasting (Radio, TV), cable retransmission and other forms of communication to the public Broadcasting duration is registered for every musical work to compile statistical documentation for broadcasting on radio and television. Minutes in excess for works and its variations within the category of special functions’ music used over 1000 minutes in one calendar year by one broadcaster are calculated using a constant of 0.5. Should the time of 10.000 minutes be exceeded, the constant of 0.1 shall be used for distribution. Revenues for retransmission of broadcasters licensed by SOZA are distributed in the very same way as the royalties collected from these broadcasters. Revenues for retransmission of works on behalf of foreign broadcasters are passed by SOZA to be distributed to relevant foreign partner organisations that granted licenses for the first broadcasting or to those that offer the most precise distribution, in compliance with CISAC binding rules, to rights holders whose works were actually used in broadcasting of the localised programme version of the given broadcaster. In case such an offer does not exist or the offer does not provide for an identified distribution exactly corresponding to the broadcasted programme, SOZA shall distribute the corresponding royalty as unidentified revenues. 4 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Revenue collected for the Slovak Radio and Television (RTVS) for the periods when the company still operated under two separate entities shall be divided in two parts by SOZA, one for to the television channels distribution and the other for the radio. 90 percent of revenue collected from RTVS radio channels is allocated for distribution payments for works used on the channels: Rádio Slovensko, Rádio Devín, Rádio Regina, Rádio FM, Rádio Patria, Rádio Slovakia International. Registrations from these selected radio channels will be used as a sample for distribution of unidentified works through per analogy method (Article 7, paragraph 7). The remaining 10 percent shall be distributed for musical works used by the other programming services of RTVS. Other radio programming registrations submitted by RTVS will not be used as a sample for unidentified works distribution through per analogy method (Article 7, paragraph 7).The above applies only in case that no internet or similar transmission is included in respective agreements. Royalties for other forms of communication to the public, except of making works available to the public (on-line) are distributed as unidentified royalties using per analogy method (as e.g. for radios and TV sets in public premises etc.). 2. Public performance of work (Music performed at concerts and other public performances) Each public performance is registered for every musical work in order to calculate total number of performances. Revenue from Major Live Concerts is distributed separately; SOZA considers that works performed by the Supporting act (performing artists) are equivalent to musical works performed by the Headline act (performing artists). Registrations from Major Live Concerts shall not be used for calculation of unidentified royalties using per analogy method (Article 7, paragraph 7). Other live performances are distributed in so-called “pools” according to the following rules: First pool includes live performances of musical works by performing artists during a concert. The essential part of a concert is the live performance of musical works by performing artist, which is dominant within the given event in terms of duration and importance. Should there be also a spoken part, short dancing element, visual effects or possible dining, etc., in comparison to the public performance of musical works these represent only a marginal part of the given event – the concert. Similarly, live performances of musical works performed by performing artists in other type of events as the concerts are distributed within this pool. These events includes, besides live performance of musical works by a performer, also a spoken part, dancing elements, visual effects, dining or any other way of presenting musical works and that part of the event, in comparison to concerts (point 1), represents a full valued part of the event. Examples of events in that category are e.g. dancing performance, ball, dancing party, other entertainment or competition programme, a talk show or a whole-day event, e.g. village fairs, markets, grape harvest feasts, etc. Notifications from this so-called pool shall be used as pattern for the distribution of unidentified revenues using per analogy method (Article 7(7)) with the constant of 1. First pool is divided in four parts for the purpose of full census distribution based on the amount of royalties paid by user to SOZA. First part comprises performances with the royalty paid to SOZA amounting up to 100€ incl., second part from 100€ to 200€ incl., third part from 200€ to 400€ incl. and fourth part from 400€ to 650€ incl. Authors´ royalties are subsequently distributed separately in every part of the pool by using the full census pooling principle. The second pool includes live performances of musical works used as background music at dining or other consumption. It is a special category of events where live performance of musical works has got primarily a role of accompanying other activities. The purpose of such live performance of musical works is especially to create an atmosphere where the performance of musical works itself is not the primary activity of the given event and in comparison to this primary activity it is mainly a marginal part of the event. Notifications from this so-called pool shall be used as an example for the distribution of unidentified means using per analogy method (Article 7(7)) with the constant of 0.2. 5 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Separate pool distribution includes (Article 7, paragraph 7) live performances, reported at least 50 times in one calendar year with minimum of 50% common copyright protected works or 20% common copyright protected works performed by the same performing artist or band at the same place. For the avoidance of doubt, this pool may include live performances reported without any common copyright-protected works but still having common copyright-protected works with other live performances in this pool (i.e. for every performance out of these live performances there exists at least one live performance in this pool that is accompanied by a report containing the requested number of common copyright-protected works). Other works eligible for this pool distribution are those performed live at the same place (hotel, spa, etc.) by the same performing artist or a band, with a playlist including at least 20% of common copyrightprotected works, performed more than 26 times in one accounting calendar year. Unprotected works, song repetition or change of order of the songs will not be considered for the purpose of distribution. Usage data coming from this joint pool shall not be used for distribution of unidentified works by per analogy method (Article 7, par. 7). The following rules apply for all public performances of musical works: Should the user of musical works deliver a list of performed musical works at public cultural events to SOZA several times a year and those events did not take place, without notifying SOZA about it, the Supervisory Board may decide not to include all lists of performed musical works of such user for the given year in the distribution. Distribution of the revenue collected from public performances and concerts is performed as follows: Based on information available to SOZA, partial uses of a work are added up for the respective calendar year, rounded up with preference for 1 performance. In the event of missing information about the length of work used, average is calculated from the overall length of the concert and number of works performed. Educational concerts are calculated using a 40 minute overall length, unless reported otherwise. Music installations are for distribution purposes considered as public performances and are distributed on individual bases. Use of work in a day is considered as one use and usage data for this use of work shall not be used for unidentified distribution using the per analogy method (Article 7, par. 7). Royalties for the use of musical works by public performance in form of technical performance, as for example the recording equipment in a restaurant, bar, café, etc., shall be distributed by SOZA as unidentified revenue using per analogy method. 3. Film: TV-Film, Cinema-Film and Video Number of screenings is registered for every musical work to compile all the statistical documentation. Share of the revenue is calculated from the number of seconds of works belonging to respective rights holders in proportion with the total duration of the film music, according to the Distribution Keys of SOZA. It means that the classification of works and their value of assigned points are not taken into consideration when calculating the royalty. 4. Mechanical rights - sound and audio-visual carriers Revenue collected for mechanical rights is fixed per carrier; sum is then distributed to each work included on the sound carrier. Distribution Keys of SOZA (Appendix no.2) apply to revenue distribution to rights holders. 5. Online Distribution Distribution of revenue collected from online usage of works is performed according to one of the following three methods: a) Full census distribution according to usage reports. Revenue is divided before distribution in two parts: first part is to be distributed according to Distribution key applicable for performing rights; second part is to be distributed according to Distribution Key applicable for mechanical rights in accordance with the usage of works: 6 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Performing rights’ split (%) Mechanical rights’ split (%) Download, ringtones 25 75 Tethered download 50 50 Streaming, webcasting 75 25 Usage of works Royalties are subsequently calculated on the basis of sums paid by the user for the respective individual work. If it is not possible to determine the sum in question (e.g. in case of lump sum payment by user) or SOZA is not able to determine this sum during the distribution period, royalties shall be distributed according to statistics related to number of usages of individual works. Duration of work and its classification are not taken into account similarly to film distribution. b) Indirect attribution by using per analogy method. The respective revenue is distributed as unidentified revenue. c) Mixed distribution. Revenue collected for the most used works are to be distributed in full census according to rules set in par. 5a) above. Revenue collected for works with usage ratio that does not reach the limit set with respect to specific user and usage of works is distributed as unidentified revenue according to rules set in par. 5b). Limits are defined by the Supervisory Board pursuant to the principle of effectiveness. In case of the licence model where SOZA has to claim royalties for the works included in SOZA repertoire, also the royalties for the works where the extent of use did not reach the defined limit may be distributed in full census. Rules for online distribution may be changed in particular cases e.g. due to atypical agreements, new forms of usage of works, multi-territory nature of agreements and users or international agreements with collective rights management societies abroad. 6. Non-distributable royalties Non-distributable royalties are those royalties collected by SOZA where it is not possible to identify or find the rights holder to whom they belong. When dealing with non-distributable royalties SOZA follows the provisions of Copyright Act, Special principles for the use of licensing royalties, equitable remuneration and additional royalties collected by SOZA in case of which the rights holder to whom they belong cannot be identified or found and private copying remuneration, and other SOZA regulations. 7. Private Copying Remuneration and other Unidentified Revenue Private Copying Remuneration and other unidentified revenue are distributed proportionally and analogically with the distribution of similar usage of works according to statistical usage data from broadcasters and organizers of live events and public performances of musical works. If not stipulated otherwise, the Supervisory Board of SOZA adopts decision which royalties shall be distributed as unidentified, based on criteria of economical and effective collective rights management. In case of processed statistical usage data for live performances, coefficients according to Article 7, par. 2 of Distribution Rules shall apply for distribution of unidentified revenue. Coefficient of 1 shall apply in case of processed statistical usage data from television broadcasting organisations. Processed usage data from all radio broadcasters used for full census distribution shall be used also for distribution of unidentified revenue with a final coefficient attributed to every radio station resulting from fulfilment of the following criteria during the given distribution period: (1) Share of the repertoire in Slovak language. (2) Share of classical music, jazz music and extraordinary works from other genres – more specifically, works belonging to categories V1 to V10, P5, P6, L6, H6, X of Distribution Rules and equivalent categories from the former distribution rules, i.e. A1 to A9. 7 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA (3) Broadcasting share of original and custom production. (4) Broadcasting share of live production or more precisely of live recordings. (5) Share of subedited music related contributions. (6) Share of regional repertoire. (7) Share of all other genres except popular music in overall broadcasting transmission. (8) Share of repertoire of young authors/composers (age below 30 years). (9) Share of proper music events in connection with broadcasting (festivals, concerts, etc.) (10) Heterogeneity of program measured according to number of different works used by radio station. Final coefficient for broadcasting station is calculated by division of radio station´s fractional coefficients with the number of criteria. Criteria (1) and (2) are awarded with the following fractional coefficients based on level of their fulfilment: - Level 1: 1 point - Level 2: 3,5 points - Level 3: 6 points - Level 4: 8,5 points - Level 5: 11 points Criteria (3) to (10) are awarded with the following fractional coefficients based on level of their fulfilment: - Level 1: 1 points - Level 2: 3 points - Level 3: 5 points The Supervisory Board of SOZA adopts decision on the fulfilment of particular criteria and on the level of fractional coefficients with respect to every radio station. In case of insufficient information on fulfilment of the particular criteria, Supervisory Board of SOZA can apply the value of 1, average value of the given criteria, maximal value of given fractional coefficient or value from the previous distribution (if known). All program services of RTVS used as a sample for distribution of unidentified revenue through per analogy method shall be assigned with one joint final coefficient. If it is not possible to evaluate figures for given distribution period, figures from previous distribution are used for calculation. 8. Unauthorised adaptations, reduced use of works SOZA considers unauthorised adaptations as a use of the original work including lyrics, unless there has been a reduced version registered with SOZA by the author. 9. Distribution of royalties from abroad Royalties received from affiliated collective management societies from abroad are distributed based on received distribution information. Distribution is subject to the rules of the affiliated society and the Reciprocal Representation Agreement in place between SOZA and the affiliated society. 10. Distribution of royalties to be paid abroad Collection, management and distribution of royalties for all types of use of musical works on behalf of foreign rights holders, members of affiliated societies SOZA has entered into representation agreements with, is subject to distribution rules applicable to SOZA Members. Documentation (e.g. CIS-Net data, fiche international, cue-sheet) and statistical data received from abroad are used to assign point values to respective musical works. Point value to all foreign musical works is assigned by the Classification Committee of SOZA. Distribution of royalties for works with incomplete documentation is subject to international provisions for royalties’ distribution (so-called CISAC Binding Resolutions). In case of foreign rights holders where the postal charge and bank transfer fee are higher than royalties themselves, SOZA does not pay the royalties immediately but only after the royalties exceed those amounts. 8 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Pursuant to the Copyright Act and international agreements concluded with collective rights management societies abroad SOZA is entitled to deduce up to 10% from the royalties for the use of performing rights of foreign collective rights management societies on the territory of the Slovak Republic and to use them for social and cultural purposes pursuant to the Copyright Act and the Statutes of SOZA Social and Cultural Fund. Article 8 Distribution Schedule and Royalties Payments Distribution period for all types of use of musical works is usually one calendar year. Royalties’ payments for performing rights (live music performance, TV, radio and film) are distributed to represented rights holders once a year, usually by the end of June of the following year and not later than by the end of September of the following calendar year in which the royalties were collected, for foreign rights holders no later than till the end of September of the following calendar year in which the royalties were collected. Royalties’ payments for performing rights (live music performance, TV, radio and film) are distributed to non-represented rights holders once a year, usually by the end of September of the following year. Submission of the Application for Royalties’ Payments and registration of the works submitted to SOZA no later than March 31 of the corresponding calendar year is a prerequisite for royalties’ payment to a non-represented rights holder. Distribution of revenue from Major Live Concerts is paid on individual basis, according to time required for data processing in accordance with provisions of the Copyright Act. Royalties’ payments for mechanical rights – sale of sound and audio-visual records - of the represented rights holders are paid at least once a year, usually every 6 months, no later than till the end of September of the following calendar year in which the royalties were collected. Royalties are distributed in group payments, after all balance due has been received from the sound and audio-visual records’ producers. Distributed royalties and publisher´s shares are credited to personal accounts of represented rights holders maintained in SOZA accounting. After all necessary deductions are withheld; royalties shall be transferred without any delay in an agreed way (bank account, postal money order, etc.) The rights holder shall be notified at least once a year mainly about the following scope of information (separately for the use in the Slovak Republic and separately abroad): - name and international code of the rights holder; identification of type of distribution; names of individual musical works; rights holders´ percentage share in the given musical work; share in unidentified revenues; all information the collective rights management society used to identify and find the rights holder; amounts of attributed royalties and other payments; amounts of paid royalties and other payments divided by collective rights management areas; amounts of other attributed royalties and other payments that were not paid; period in which subjects of protection were used for which royalties and other payments were attributed and paid to the rights holder; amount of efficiently spent costs pursuant to the Copyright Act, if the payment of these costs was made by deduction from royalties and other payments; amount of the contribution to the fund to support social, cultural and educational needs for the benefit of members and rights holders; whereas the scope of information on distribution from abroad may be reduced, taking the availability of foreign supporting documents into consideration. Authors are entitled to receive royalties from SOZA only in case SOZA has received the respective royalty payment from the part of the user. Should there be an obstacle on the side of the user or the rights holder hindering the distribution and payment of revenues from the exercise of collective rights management in the period till the end of 9 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA September of the calendar year following the calendar year in which the royalties were collected, SOZA shall pay that revenue within six months after that obstacle is eliminated. Article 9 Reserve Fund, Claims and Non-represented Authors’ Rights Enforcement SOZA is continuously creating a Reserve Fund for the purpose of reconciliation payments of royalties for musical works based on validated claims of rights holders and additionally claimed rights of nonrepresented authors. Reserve Fund is formed and managed as specified by its Statute. Article 10 Distribution Claims Details about forms and procedures of claims are specified by the Claims Rules of SOZA, available to every rights holder. Distribution claim procedures are applied mutatis mutandis also to non-represented authors’ rights enforcements. Article 11 Musical Work Classification Disputes and Claims Details about forms and procedures of work classification disputes and claims are specified by the Claims Rules of SOZA and SOZA Articles of Association which are available to every rights holder. Article 12 Correlation between Distribution Rules and Other Internal Regulations of SOZA SOZA Regulations derived from Distribution Rules cannot be in contradiction. Distribution Rules cannot contradict the Copyright Act and SOZA Statutes. Article 13 Transitional and Final Provisions 1. Distribution Rules become effective as of the day when approved. st 2. Distribution Rules become effective as of January 1 , 2017 in relation to royalties collected since st January 1 , 2017. Article 7, paragraph 7 of Distribution Rules shall be effective in relation to royalties st distributed after January 1 , 2017. 3. Principle stipulated in paragraph 3 of Appendix no. 2 of Distribution Rules on the maximum amount of publisher´s share amounting to 50% shall be effective for publishing agreements concluded after st January 1 , 2016. The following Appendices form an integral part of these Distribution Rules: Appendix no. 1 – Points Assignment to Musical Works & SOZA Points Table Appendix no. 2 – Repartition Rules and Distribution Keys of SOZA Appendix no. 3 – Specimen of Work Registration Form Appendix no. 4 – Specimen of Work Registration / Work Used in Cinema, Documentary or TV Film 10 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Appendix no. 1 of Distribution Rules of SOZA POINTS ASSINGMENT TO MUSICAL WORKS IN SOZA’S REPERTOIRE 1. Enforcement of the Copyright Act (CA) Assigned works must comply with the following Copyright Act provisions, i.e.: Section 3(1) of the Copyright Act regulates a condition related to all works, namely that the work is a result of a creative and artistic activity of author, perceivable by senses; Section 8(1) of the Copyright Act regulates that in case of alternation of a work being subject to the copyright, it is a new work created by alternating another work. Pursuant to the Copyright Act the written consent provided by the author(s) of the original work is an inevitable condition to classify the alternated work. For the needs of correct distribution made by SOZA, also information about the proportion shares of individual rights holders in work´s revenues has to be submitted together with the consent for work alternation. Compliance with the legal requirements is determined by the Classification Committee, as a prerequisite for any decision on work assignment (Article 23.7 of SOZA Articles of Association). Should the Classification Committee find that legal requirements had not been met, person registered as the author of the work will be notified of this decision. 2. Definitions of terms For the purpose of this table: • sub-arrangement AR is understood to be an alteration of a work for the purpose of adapting it for requirements of an orchestra, or other specified music instrument, voice or subject to the “CISAC’s Categorisation of Rights holders”, while meeting the relevant provisions on work alternation of the Copyright Act. • The term arrangement SC used herein, refers to altering work in compliance with the relevant provisions on work alternation of the Copyright Act. • Term autonomous musical work, with or without lyrics, defines musical work designed for standalone use as is, without any additional visual or audio context, such that is original work, and it does not form a part of other musical work or adaptation of a musical work (musical works assigned to any category of this table, except the special functions’ music category). • Term special functions’ music applies to the following: a) musical work with or without lyrics designed for use in visual or audio context, or b) use of musical work in a visual or audio context. • Term opening and closing songs refers to songs with lyrics, used at the beginning or end of a particular TV, radio programme or of a public event. • Term signals refers to songs with lyrics, used at the beginning or end of a particular TV, radio programme or of a public event, characteristic for a specific TV, radio programme or public event. • Term jingle stands for a short tune used for segmenting blocks of TV, radio or public event programming. Also are used for the so called sound branding. • Term music in advertisement and trailer describes music used in advertising spots or trailer for a TV or radio programme. • Term background music refers to music used as audio background. Typically used as a background for the main action, spoken word or written text, etc. • Term loops refers to short sections of music material, free of any musical development, designed for seamless repetition. • Term large instrumentation describes in category P4, large dance or symphonic orchestra. • Term brass band ensemble is defined in categories H2 & H3 as music for up to 17 instruments; term large brass ensemble refers to a brass instruments orchestra consisting of 18 and more players, falling under categories. H4 & H5. • The term genre shall mean the area of classical music, popular music, musical folklore, brass music, experimental music or special functions’ music pursuant to this Annex to Distribution Rules. 11 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA 3. Point Allocation to Musical Works Points are allocated to a musical work as a whole, comprising a sum of points for all of its entitled rights holders (refer to Appendix no. 2 - Distribution Keys of SOZA). • Radio, TV, cable retransmission and other types of communication to the public, except of on-line: Value of points in distribution of radio and TV broadcastings of musical works is assigned according to classification of the musical work lasting 1 minute in the broadcasting. • Musical works used for TV broadcast, in films, television series, etc., are calculated from the actual duration used, with a coefficient of 0.2. • Classification of works and respective value of assigned points are not taken into consideration in case of distribution of musical works used on-line. • Public performance – music performed live: Points for public performances are allocated for each individual work according to its classification and its duration. Revenue is distributed according to the total number of performances. Classifications of musical works according to precedent distribution rules of SOZA remain unchanged. • • For the use of any work classified within any of the categories in this table and used in radio or TV broadcasting or as a special functions’ music, the revenue distribution is calculated by using the point value according to the applicable point allocation in categories U2 to U8: Opening and Closing Songs Signals Jingles Loops Advertisement and Trailer Music Background Music Point values of musical works 2 0,3 0,05 0,01 2 0,3 • Autonomous music used as background music is the exception, distributed with value of points equal to 10% point value of the musical work already classified to any of categories, except of special functions’ music. • Works assigned to the P1, L1 to L5 & H1 to H4 categories receive point value specified by the Distribution Keys (Appendix no. 2). 12 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA V – CLASSICAL MUSIC RADIO TV for 1 minute V-1 V-2 Simple composition, including the arrangement or adaptation of an existing work. Composition for one solo voice or instrument 2 Public performance up to 5 min. & for every additional 5 minutes 10 4 20 V-3 Composition for one or more solo voices or instruments. Solo vocal composition with and instrument. Instrumental Duet. l 10 50 Composition for A Cappella/Choir for up to 3 voices. V-4 Instrumental or vocal-instrumental composition for 3 voices. Composition for A Cappella/Choir for 4 to 6 voices 18 90 V-5 Instrumental composition for 4 to 6 voices (including combinations for instruments variations with polyphonic 30 150 instruments, e.g. piano, harp, etc.) Vocal Chamber composition / A Cappella 4 to 6 voices V-6 Composition for String Orchestra for to10 movements Vocal Chamber composition / A Cappella for 6 plus voices 36 180 vocal-instrumental composition up to 6 voices V-7 Instrumental or vocal-instrumental chamber composition for 6 and more voices 40 200 Composition for solo instrument and orchestra V-8 Composition for orchestra Orchestral composition with solo part (parts) 48 240 V-9 Vocal symphonic composition (oratorio, cantata, part of an opera, etc.) 52 260 V-10 Composition not meeting criteria for allocation to categories V1 to Individual allocation by the V9 Classification Committee into one to the existing categories specified in this table P – POPULAR MUSIC RADIO Public TV performance for 1 minute up to 5 minutes & for every additional 5 minutes P-1 P-2 Simple composition, including the arrangement or adaptation of an existing work. Acoustic or Dance Music Instrumental composition for a small cast P-3 Song with lyrics P-4 Instrumental or vocal-instrumental composition for a large cast P-5 Instrumental Jazz or vocal composition for a small ensemble P-6 Composition not meeting criteria for allocation to categories P1to P5 13 2 10 4 6 20 30 8 10 40 50 Individual allocation by the Classification Committee into one to the existing categories specified in this table SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA L – FOLK MUSIC RADIO Public TV performance for 1 minute up to 5 minutes & for every additional 5 minutes L-1 L-2 L-3 L-4 L-5 L-6 Simple composition, including the arrangement or adaptation of an existing work. 2 10 Folk music arrangement, involving changes to the structural elements of the original work. 4 20 More demanding arrangement of a folk music piece, adding thematic material for instruments and/or vocal elements 6 30 Stylised folk music with compositional development of instrumental and vocal parts 8 40 Original composition working with a folk material, orchestral composition for solo, instrumental and vocal ensembles. 10 50 Composition not meeting criteria for allocation to categories L1 to Individual allocation by the L5. Classification Committee into one to the existing categories specified in this table H – BRASS BAND MUSIC RADIO Public TV performance for 1 minute up to 5 minutes & for every additional 5 minutes H-1 Simple composition, including the arrangement or adaptation of an existing work. 2 10 H-2 Folk music arrangement for a brass band ensemble 4 20 H-3 Small musical composition (polka, waltz, march, etc.). for a brass band ensemble and brass band folk music adaptations. 6 30 8 40 H-4 H-5 H-6 Small musical composition (polka, waltz, match, etc.) and large brass ensemble folk music adaptations. Large brass ensemble composition (overture, rhapsody, concert movement, etc.). Composition not meeting criteria for allocation to categories H1 to H5 10 50 Individual allocation by the Classification Committee into one to the existing categories specified in this table X – EXPERIMENTAL MUSIC X Electroacoustic, alternative, conceptual, multi-genre music, Individual allocation by the etc. Classification Committee into one to the existing categories specified in this table 14 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA U – SPECIAL FUNCTIONS’ MUSIC RADIO TV for 1 minute 2 Public performance up to 5 minutes & for every additional 5 minutes 2 Signals Jingles 0,3 0,05 0,3 0,05 U-5 Loops 0,01 0,01 U-6 Advertisement and Trailer Music 2 2 U-8 Background Music 0,3 0,3 U-2 Opening and Closing Songs U-3 U-4 st (This U-chart becomes effective as of January 1 , 2014 and shall be used for categorisation of musical st works registered as of January 1 , 2014.) 15 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Appendix no. 2 Distribution Rules of SOZA REPARTITION RULES OF SOZA 1. Pursuant to international terminology, abbreviations with the following meaning are used in Distribution Keys of SOZA, SOZA Distribution Rules and in Work Registration Form: C composer A author of the lyrics (lyricist) SC arranger AR sub-arranger TR translator SA sub-author of a written part of a musical work E SE publisher sub-publisher 2. For folk music and public domain works arrangers, share of distribution shall be as follows: Arranger of the musical part and adaptor & translator of the written part of the work (SC, SA, TR) receive a 50% share of performing rights and100% share of mechanical rights from the work’s original author. Sub-arranger (AR) receives a 1/3 share of mechanical rights and 2/3 share of mechanical rights from the work’s original author. Represented rights holder´s share in merging public domain and protected works is defined by SOZA Classification Committee individually with each work, based on submitted score or sound record. 3. Generally, publisher’s share amounts to 25% of the work’s royalties, with a maximum amount of 50%. If a publisher enters into a publishing agreement only with the author of either music or lyrics, publisher’s share is calculated from the either the composers or author of lyrics’ shares respectively. If the agreement fails to stipulate publisher’s share, Distribution Keys of SOZA shall apply, i.e. publisher receives a 25% share of both performing rights royalties and mechanical rights. If a sub-publishing agreement is in place, publisher’s share may increase up to 50% for mechanical rights, given the original publishing agreements allows for such increase. Should the author become represented by SOZA during the distribution period in which SOZA should pay, according to the publisher´s agreement, royalties to the publisher, SOZA reserves the right to pay these royalties to contractually represented author. This limitation is applied in case of royalties for performing rights. 16 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA DISTRIBUTION KEYS OF SOZA 1. Distribution Keys of SOZA is applicable only when no other agreements between rights holders are in place. Written agreement, stipulating individual writer’s shares, must be presented to SOZA, detailing the works it applies to. 2. In the event of several composers credited for the musical element within a musical work or several lyricists credited for the lyrics, all of them will be granted an equal share within their respective categories, unless specified otherwise. 3. Fundamental principles included in this Distribution Keys apply to most frequent model situations and any unlisted examples shall be dealt with by applying a combination of existing provisions. 17 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA PERFORMING RIGHTS I. PROTECTED WORKS - UNPUBLISHED Musical Work C Work without lyrics Work without lyrics, musical arrangement SC AR A TR 100 66,67 Work without lyrics, musical sub-arrangement 33,33 75 Work with lyrics 66,67 Work with lyrics, musical arrangement 44,45 Work with lyrics, musical sub-arrangement 25 33,33 22,22 33,33 50 16,67 33,33 Work with lyrics, written word translated 66,67 16,67 Work with lyrics, lyrics adapted 66,67 16,67 II. PROTECTED WORKS - PUBLISHED Musical Work C Work without lyrics 75 Work without lyrics, musical arrangement 50 Work without lyrics, musical sub-arrangement SA SC AR 33,33 Work with lyrics, musical sub-arrangement 37,5 SA 25 E 25 18,75 50 Work with lyrics, musical arrangement TR 16,67 25 56,25 Work with lyrics A 16,67 16,67 12,5 25 25 25 25 25 25 25 Work with lyrics, lyrics translated 50 12,5 Work with lyrics, lyrics adapted 50 12,5 III. PUBLIC DOMAIN WORKS - UNPUBLISHED Musical Work SC Work without lyrics, musical arrangement AR 12,5 25 12,5 A TR 25 SA 50 Work without lyrics, musical sub-arrangement 33,33 Original work without lyrics, new lyrics 33,33 Work with public domain lyrics, musical arrangement 33,33 Work with public domain lyrics, musical sub-arrangement 22,22 Work with lyrics, public domain music, public domain lyrics translated Work with lyrics, public domain music, copyrighted lyrics translated Work with lyrics, public domain music, public domain lyrics adapted Work with lyrics, public domain music, copyrighted lyrics adapted IV. PUBLIC DOMAIN WORKS - PUBLISHED Musical Work 16,66 16,67 16,66 16,67 SC Work without lyrics, musical arrangement AR A 37,5 Work without lyrics, musical sub-arrangement Original work without lyrics, new lyrics 18 SA E 8,33 25 25 TR 16,66 12,5 25 Work with public domain lyrics, musical arrangement 16,67 8,33 8,33 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Work with public domain lyrics, musical sub-arrangement 16,66 Work with lyrics, public domain music, public domain lyrics translated Work with lyrics, public domain music, copyrighted lyrics translated Work with lyrics, public domain music, public domain lyrics adapted Work with lyrics, public domain music, copyrighted lyrics adapted 5,6 12,49 12,5 12,5 4,17 12,5 8,33 12,49 4,17 12,5 8,33 MECHANICAL RIGHTS I. II. - PROTECTED WORKS - UNPUBLISHED PROTECTED WORKS – PUBLISHED The same Distribution Keys apply as for the Performing Rights III. PUBLIC DOMAIN WORKS – UNPUBLISHED Musical Work SC Work without lyrics, musical arrangement 100 AR Work without lyrics, musical sub-arrangement A TR SA 66,67 Original work without lyrics, new lyrics 33,33 Work with public domain lyrics, musical arrangement 66,67 Work with public domain lyrics, musical sub-arrangement 44,45 Work with lyrics, public domain music, public domain lyrics translated Work with lyrics, public domain music, copyrighted lyrics translated Work with lyrics, public domain music, public domain lyrics adapted Work with lyrics, public domain music, copyrighted lyrics adapted 33,33 16,67 16,66 33,33 16,67 16,66 IV. PUBLIC DOMAIN WORKS – PUBLISHED Musical Work SC Work without lyrics, musical arrangement 75 Work without lyrics, musical sub-arrangement AR A TR SA 25 49,5 Original work without lyrics, new lyrics 16,5 25,5 Work with public domain lyrics, musical arrangement Work with public domain lyrics, musical sub-arrangement Work with lyrics, public domain music, public domain lyrics translated Work with lyrics, public domain music, copyrighted lyrics translated Work with lyrics, public domain music, public domain lyrics adapted Work with lyrics, public domain music, copyrighted lyrics adapted 19 E 8,5 49,5 16,5 33 11 25,5 8,5 12,75 12,75 8,5 12,75 25,5 8,5 12,75 8,5 SOZA DISTRIBUTION RULES OF SOZA Slovak Performing and Mechanical Rights Society Appendix no. 3 Distribution Rules of SOZA REGISTRATION OF MUSICAL WORK (Slovak Performing & Mechanical Rights Society) Title of the work: Opus: Name of the original work: Duration: FOR INTERNAL USE ONLY (to be completed by SOZA) Other name Associated with the work Reg. No: ISWC: Genre: Form: Instrumentation: Performing artist: Author / Authors /pseudonym / of Musical Work (C-Composer) Purpose of Usage (for Category T): Musical Work Parts: Duration: Sub-Composer (SC): Arranger (AR): Permission for sub-composition of the work (date): Author / Authors /pseudonym / of lyrics (A-author) Work is a part of: Registration Submitted by Author (Real Name): Sub-Author (SA): Date: Translator (TR): The undersigned hereby declares that all data given in the above list are correct, and he/she assumes the responsibility for all damages caused by incorrect completion of the list. Permission for sub-Authoring of the work (date)*: Signature: PLEASE FILL OUT THE APPLICATION FORM COMPLETELY USING CAPITAL LETTERS * This permission shall transfer a share of the distribution rights to the Sub-compositor, Arranger, Translator. Share amount is to be determined by the Distribution Keys of SOZA, unless agreed otherwise by the Authors’ of the Work. Non-represented authors shall include also date of birth: ………………………. and phone number: …………………………… TO BE COMPLETED BY THE COMPOSER / SUB-COMPOSER / ARRANGER Please include the main characteristic forms, rhythmic structures, themes, motives, OR a part of a work scheme for electroacoustic works you wish to register. Not applicable to works with filled scores or recordings. Sound recording must be submitted with registration of special functions’ music. Please specify the track number for a work submitted on a CD: TO BE COMPLETED BY THE AUTHOR OF REGISTRATION Score or recording has been filled Notes: TO BE COMPLETED BY SOZA TO BE COMPLETED BY THE AUTHOR / ADAPTOR / TRANSLATOR OF THE LYRICS Please include characteristic example from the lyrics, Not applicable to works with complete lyrics provided with registration PUBLISHER: AGREEMENT IN EFFECT FROM; CATEGORY: DATE OF REGISTRATION: Please feel free to enclose further details in attachments, as required Number of Attachments: 20 TO: R/TV PUBLIC PERF. SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Appendix No. 4 Distribution Rules of SOZA SOZA - Slovenský ochranný zväz autorský pre práva k hudobným dielam (SOZA - Slovak Performing and Mechanical Rights Society) Rastislavova 3, 821 08 Bratislava 2 Tel.: 02/50 20 27 16, Fax: 02/55 56 94 09 www.soza.sk, e-mail: [email protected] FILM CUE SHEET (List of musical works used in cinema, documentary, television films) Composer (pseudonym) of musical part: ………………………………………………………….. (Arranger, Sub-Arranger) Author (pseudonym) of lyrics: .................................................................................................... (Arranger, Translator) Film Title: ...................................................................................................................................... Director: ........................................................................................................................................ Producer: (company name)........................................................................................................... Representative*: ............................................................................................................................ Address*: ....................................................................................................................................... Phone number*: ............................................................................................................................. Reg. number*: ................................................................................................................................ VAT number*: ................................................................................................................................ Year of Production: ...................................................................................................................... Film Duration*: .............................................................................................................................. Duration of all musical works combined: .................................................................................. Did you provide consent for the exercise of economic rights to audio-visual recording to the record producer? yes no Notice: If you provided producer of audio-visual recording with consent for the exercise of economic rights with respect to this recording in writing and this producer fulfilled all remaining obligations stipulated in Section 86 of the Copyright Act, producer of audio-visual works exercises the economic rights. Kindly submit this completed sheet to the Film department of SOZA right after the film is finalised. Data marked with (*) are optional. 21 SOZA Slovak Performing and Mechanical Rights Society DISTRIBUTION RULES OF SOZA Works that will be used independently shall be registered by the author also by submitting of the “Registration of Musical Work” form. I. List of Musical Works – Compositions: (music created directly for audio-visual work) No. Title of musical work Composer (C) Arranger(SC) Sub-Arranger(AR) Lyricist (A) Translator (TR) Sub-author (AS) Indicate Duration abbreviation (C, A, SC, AR, SA, TR) II. I. List of Musical Works sorted by appearance – Archive Music (music created beforehand, which was inserted by producer in the audio-visual work) No. Title of musical work Composer (C) Arranger(SC) Sub-Arranger(AR) Lyricist (A) Translator (TR) Sub-author (AS) Indicate Duration abbreviation (C, A, SC, AR, SA, TR) The undersigned hereby declares that all data given in the above list are correct, and he/she assumes the responsibility for all damages caused by incorrect completion of the list. In ………………….. Date ………………….. 22 Signature …………….…
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