MANUAL for the administration of Copydan remuneration
The purpose of this manual is to clarify and ensure wide knowledge of the rules among those given responsibility for the distribution in the affiliated associations. This ensures that everyone administering COPY-DAN remuneration is aware of which provisions they have to observe when distributing the remuneration.
Copydan remuneration - distribution
Copydan REMUNERATION is remuneration collected according to the provisions of the extended collective licence of the Copyright Act or according to the exclusive right and ceded mandates.
1. Individual distribution
As far as possible individual distribution must be carried out. This means that the remuneration is distributed to the individual rights owners in relation to their rights and the extent to which these have been used.
The provisions of the Rules on individual distribution:
Rule 4.1. Any society affiliated to Copydan shall ensure that as far as possible the remuneration collected by the society as part of its administration of rights owners' rights is distributed individually to the rights owners. The distribution should reflect the actual use of the works and performances of rights owners within the administrative area.
Rule 4.2. The associations affiliated to the society or - at their discretion - the society, shall carry out the distribution.
Thus, individual distribution may be carried out by:
Copydan or the affiliated associations
According to decisions made by the respective Copydan societies, the situation is that
Copydan distributes remuneration individually within the areas:
Writing
Pictorial arts
The affiliated associations distribute remuneration individually within the areas:
AV Copies for Education
Cable TV
Blank Tapes
As far as possible the distribution should reflect the actual use of the works and performances of rights owners within the individual administrative area.
2. Collective distribution
In all circumstances collective distribution must be carried out according to rule 4.6 of the Rules
and only by the affiliated associations
Remuneration that is difficult or impossible to distribute (or is obsolete) may in the following cases be transferred to collective purposes:
a. Remuneration that is difficult to distribute (rule 4.4)
Where both the average and the highest individual disbursement is disproportionate to the costs involved in finding the individual rights owners.
The provisions of the Rules on remuneration that is difficult to distribute:
Rule 4.4. If the costs involved in individual distribution to rights owners are disproportionately high compared with the total remuneration received by an affiliated association, or if the number of individually entitled rights owners is so high that both the average and the highest disbursement to an individual rights owner will be very small, the affiliated association may decide to use the remuneration for the purposes stated in rule 4.6.
b. Remuneration that is undistributable (obsolete)
As mentioned above, the organisation administering the remuneration is as far as possible obliged to attempt to distribute the remuneration individually to the individual rights owners (cf. rules 4.1. and 4.2.)
If - three years after receiving the remuneration - the affiliated association has been unsuccessful in finding the actual rights owner, the remuneration shall be regarded as impossible to distribute and obsolete.
(Note: The Copyright Act contains a three-year period of limitation, which, however, does not apply to remuneration from Blank Tapes).
Such remuneration may then be transferred to:
collective distribution and must be distributed according to the provisions of rule 4.6 - or
be included in a pool, which is in the year after becoming obsolete used for individual distribution according to the provisions of rules 4.1. and 4.2.
See also Appendix 5 on reciprocity and foreign rights owners.
The provisions of the Rules on the conditions for collective distribution:
Rule 4.5 An affiliated association deciding to allow collective distribution in whole or in part shall prior to disbursement inform the society (i.e. the respective COPY-DAN society) of its decision with a detailed description of the reasons for the decision and shall document that the decision is in accordance with the above criteria for not carrying out individual distribution.
In case of disagreement on the interpretation of the provisions on collective distribution of the funds or transfer of funds for collective use, the case shall be submitted to the Committee of the umbrella organisation
COPY-DAN (see also Appendix 3).
c. Purposes that may receive support through collective distribution
Remuneration transferred for collective distribution may be used for:
Grants
Scholarships
Prizes
Training purposes
The legal interests of rights owners
Test cases
Meetings and seminars where the agenda is characterised by copyright issues
International work for the furthering of copyright schemes in countries where foreign colleagues are not paid for copying or other use of copyrighted material and/or for concrete support for the establishment of collective administration companies in such countries, including for membership fees payable to international organisations engaged in copyright issues.
Support for the dissemination of copyright issues etc. in the administering organisation's publications, including for the establishment and maintenance of a website, on the condition that non-members within the group of rights owners are also comprised by such dissemination.
Advertisements drawing the attention of non-members to a forthcoming distribution of grants - or advertisements for rights owners who have been impossible to find.
Support for new productions in which the rights owners participate
Support for projects of general cultural interest
The provisions of the Rules on purposes for which collective funds may be used:
Rule 4.6 In so far as a society accepts collective distribution, the affiliated associations may use the remuneration received for the following purposes:
support for training purposes, cultural or social purposes in the form of grants, scholarships or prizes for individual rights owners according to application or according to the decision of the affiliated associations
support for the handling of the legal interests, including especially copyright interests of the rights owners
support for cultural projects and activities in which the rights owners are engaged and which in the opinion of the affiliated associations should receive support."
d. Purposes for which collectivised COPY-DAN remuneration may not be used:
All rights owners must be treated equally regardless of whether they are members of the administrating association or not. Consequently, collective funds may not be used for purposes than only benefit members. The examples listed below are meant to clarify where the limit is.
Collective funds may not for instance be used for:
§ the operation of an affiliated association
§ the purchase of real property or payment of rent
§ industrial disputes etc.
§ tax and collection cases, employment tribunal cases for members or other administrative cases
§ insurance for members
§ loans or operational guarantees
§ establishment capital where the support means that the donor has a legal claim on the contributed capital.
4. The collective third in Blank Tapes
Efforts shall be made to distribute two thirds of the remuneration from Blank Tapes individually, cf. rules 4.1. and 4.2. of the Rules.
Special rules apply to the share of the Blank Tapes remuneration normally called "the collective third".
The rules on the use of this remuneration are similar to COPY-DAN's own rules, but are not completely identical. The rules are dealt with in the legislative history of the Act and are reproduced as follows by the Ministry of Culture:
It is the responsibility of COPY-DAN Blank Tapes to make any disbursement of the collective funds to the organisations conditional upon the funds only being used for the following purposes:
a) Support to individual authors and artists within all genres, including especially those making substantial and innovative contributions to Danish music and film but who are unable to make a living from their art.
b) Support for the recording of records, films or videograms within all genres in cases where difficulties are expected with regard to retrieving publishing and distribution costs etc. through means such as sales revenue.
c) Support in special cases of other projects and purposes of a general cultural nature, including educational purposes.
The support must be granted without regard to nationality or membership.
On request, COPY-DAN shall submit a report to the Ministry of Culture on the use of funds disbursed according to the above.
3. Administration of remuneration by affiliated associations
Affiliated associations or their administrative departments (e.g. Filmex/CAB/Filmret/the affiliated association's copyright fund) may cover the costs of administering the remuneration distributed by them to the rights owners. This applies to both individual distribution and collective distribution of the remuneration.
See also Appendices 1 and 3
The provisions of the Rules on administrative costs:
Rule 4.3. If the affiliated associations are in charge of the distribution, they shall be entitled to have any expenses necessary for this purpose covered by the remuneration. The remuneration collected shall not be used for the ordinary operation of affiliated associations.
4. Reporting
Collective distribution of COPY-DAN remuneration shall be carried out in accordance with the provisions of the Rules and shall be specified in the annual reports from the individual affiliated associations to COPY-DAN regarding the disbursements of the year.
The provisions of the Rules on reporting:
Rule 4.7. An affiliated association who has on this basis carried out collective distribution shall each year report in writing to the society on the purposes for which the remuneration received by the affiliated association has been used. The auditor of the affiliated association shall certify this report.
(Associations administering less than DKK 20,000 per year are exempt from reporting.)
See also Appendices 1,2 and 3
Annual reporting requirements
Approval of the report is conditional upon COPY-DAN receiving:
Annual reports accompanied by an extended auditor's declaration (see Appendix 1)
If no clear distinction has been made between the affiliated association's operation and the copyright remuneration administered by the association, the material cannot be approved. (see Appendix 2)
The report shall show the addition of interest to deposited remuneration. Reports not showing the addition of interest to remuneration cannot be approved.
The notes shall specify the administrative costs in relation to the administration of remuneration (Appendix 2). (Here no distinction is made between the administration of individual and collectivised remuneration).
All COPY-DAN remuneration shall be reported - also in cases where all remuneration is distributed individually, cf. the auditor's declaration.
All remuneration transferred and used for collective purposes according to rule 4.6 shall be reported.
According to current rules the affiliated associations shall endeavour to distribute and disburse all individual remuneration no later than in the calendar year following the receipt of the remuneration.
Funds not disposed of - including collectivised remuneration - and remuneration deposited according to the rules on obsolescence - may not exceed the equivalent of two years' remuneration received from COPY-DAN.
If an affiliated association has transferred copyright funds to a fund or another similar body, the report shall also include a statement of the use of such funds.
In case of missing or insufficient reporting, COPY-DAN's administration is obliged to withhold subsequent disbursements of remuneration.
Adopted by the Committee of the umbrella organisation COPY-DAN
9. March 2005
APPENDIX 1
AUDITOR'S DECLARATION
on remuneration from COPY-DAN for the remuneration year ___________
As auditor for
____________________________________________________________
(name of affiliated association)
I hereby declare that the remuneration mentioned below has been disbursed in accordance with rule 4 of the Rules of the umbrella organisation COPY-DAN:
I have been made aware of the MANUAL for the Administration of COPY-DAN Remuneration and have, among other things, checked that:
The individual remuneration has been distributed according to rules 4.1 and 4.2.
Remuneration transferred for collective distribution has been distributed according to rule 4.6.
The collective third of the remuneration from Blank Tapes has been distributed according to the provisions of the Danish Copyright Act.
I have also checked that the disbursements have been reported to the Danish customs and tax authorities according to current law.
Date ____________________ _____________________
Signature
APPENDIX 2: EXAMPLE
Specification of the costs in connection with the distribution of COPY-DAN remuneration
Remuneration year: 2003
Cost share cf. affil. associate.
Administration, cf. accounts or note
Salaries etc. DKK 500,000
External legal assistance (fundamental questions of copyright) DKK 50,000
Stationery and office supplies (paper, envelopes, postage etc.) DKK 50,000
Dissemination DKK 15,000
International activities DKK (questions of copyright) DKK 25.000
Meetings 10,000 (questions of copyright) DKK 10.000
Audit of copyright administration accounts DKK 10,000
Other costs that may be related to copyright administration DKK xx.xxx
Transferred to administration accounts for COPY-DAN remuneration DKK xxx.xxx.xxx
Copenhagen,
Appendix 3
Affiliated associations' administration of collectivised remuneration
Rule 4.6 of the Rules on collective distribution means that affiliated associations must administer collectivised remuneration with regard to both members and non-members of an affiliated association.
Both members and non-members must thus be taken into account in relation to:
training purposes, grants and prizes;
This means that the affiliated associations must ensure that also non-members have access to applying for and/or receiving grants and prizes and participating in for instance supplementary training.
the handling of the legal interests, including especially copyright interests of the rights owners;
This means that the use of collective remuneration for these purposes must be in the nature of handling the interests of a group of rights owners - i.e. clarification of legal matters concerning a specialist group, trade or specialist area.
support for cultural projects and activities in which the rights owners are engaged and which in the opinion of the affiliated associations should receive support.
This means support for new productions, projects and activities in which rights owners are generally engaged.
Reporting
All funds transferred for collective purposes must be reported to COPY-DAN.
The committee of the umbrella organisation COPY-DAN has ordered COPY-DAN's administration (Director and Financial Manager) to supervise that the rules of COPY-DAN's Rules and this MANUAL are observed.
The administration is ordered to ensure that the affiliated associations are updated with regard to Rules and provisions (Manual for the Administration of COPY-DAN Remuneration).
The reporting of affiliated associations must be clear and complete
The administration must decide whether the reporting fulfils the provisions and Rules
In case of doubt the matter must be submitted to the chairmanship of the umbrella organisation
The chairmanship may choose to submit a case to the Committee.
Appendix 4
Blank Tapes
The wording of the Danish Copyright Act - remuneration for the production of copies for private use
"39 -(1) Anyone who commercially produces or imports audiotapes or videotapes or other devices on which sound or pictures may be recorded shall pay remuneration to the authors of the works mentioned in subsection (2).
(2) The remuneration shall be paid for tapes etc. suitable for the production of copies for private use and only for works broadcast on radio or television or published on phonograms, in films, on videograms or the like.
(3) The administration and control, including the collection, shall be carried out by an umbrella organisation representing a substantial part of authors, performing artists and other rights owners, including producers of records etc. and photographers whose works, performances etc. are used in Denmark. The Minister of Culture shall approve the organisation.
The Minister may request all the information about the collection, administration and distribution of the remuneration.
(4) The organisation shall lay down guidelines for the disbursement of the remuneration to the entitled rights owners so that as far as possible the distribution is carried out in accordance with the copying taking place. However, one third of the annual amount for disbursement shall be used in support of purposes common to the authors etc. within the groups represented by the organisation, cf. subsection (3).".
Appendix 5
Foreign countries and reciprocity
All rights owners shall be treated equally
- regardless of nationality or organisational affiliation.
Efforts should be made to enter into reciprocal agreements with similar groups of rights owners abroad.
For Writing and Pictorial Arts reciprocal agreements shall always be concluded between the respective COPY-DAN society and the corresponding foreign sister organisations.
In Cable TV the organisations of authors and performers (excl. KODA) have requested that COPY-DAN Cable TV enter into reciprocal agreements on their behalf.
For the remaining part of Cable TV as well as Blank Tapes and AV Copies for Education reciprocal agreements are concluded directly between the three societies' affiliated associations and their sister organisations abroad.
If no reciprocal agreements have been concluded with foreign organisations, funds shall at any time be set aside/earmarked to cover demands for remuneration from countries with whom agreements have yet to be concluded. Such provisions shall be made if there is an obligation to conclude reciprocal agreements.
Through reciprocal agreements it may be agreed separately that a certain pool (typically max. 10%) may be used for "national purposes". Such pools may only be used for Danish rights owners.
However, as regards countries without rights and copyright schemes similar to those in Denmark there shall be no obligation to distribute remuneration to rights owners in such countries. More information on this subject is available in the so-called foreign scheme (at present Regulation no. 1213 of 17 December 2002).
Appendix 6
Rule 4 of the Rules of the umbrella organisation COPY-DAN
4.1. Any association affiliated to COPY-DAN shall ensure that as far as possible the remuneration collected by the society as part of its administration of rights owners' rights is distributed individually to the rights owners. As far as possible, the distribution should reflect the actual use of the works and performances of rights owners within the administration area.
4.2. The associations affiliated to the society or - at their discretion - the society shall carry out the distribution.
4.3. If the affiliated associations are in charge of the distribution, they shall be entitled to have any expenses necessary for this purpose covered by the remuneration. The remuneration collected shall not be used for the ordinary operation of affiliated associations.
4.4. If the costs involved in individual distribution to rights owners are disproportionately high compared with the total remuneration received by an affiliated association, or if the number of individually entitled rights owners is so high that both the average and the highest disbursement to an individual rights owner will be very small, the affiliated association may decide to use the remuneration for the purposes stated in rule 4.6.
4.5. An affiliated association deciding to allow collective distribution in whole or in part shall prior to disbursement inform the society of its decision including a detailed description of the reasons for the decision and shall document that the decision is in accordance with the above criteria for not carrying out individual distribution.4.6. In so far as a society accepts collective distribution, the affiliated associations may use the remuneration received for the following purposes:
support for training purposes, cultural or social purposes in the form of grants, scholarships or prizes for individual rights owners according to application or according to the decision of the affiliated associations.
support for the handling of the legal interests, including especially copyright interests of the rights owners;
support for cultural projects and activities in which the rights owners are engaged and which in the opinion of the affiliated associations should receive support.
4.7. An affiliated association who has on this basis carried out collective distribution shall each year report in writing to the society on the purposes for which the remuneration received by the affiliated association has been used. The auditor of the affiliated association shall certify this report.
Appendix 7
The COPY-DAN societies and the basis for individual distribution
How to create the basis for individual distribution to rights owners:
Writing
For many years COPY-DAN Writing has developed a works and rights owners register where they register works (title specific) as well as publishers and all author rights owners: writers (fictional as well as academic and non-fictional), journalists, composers (music). Furthermore, all pictorial authors are registered. This register contains information about the extent of copying of individual works each year and the owners of the works.
The registration is based on a "copy set" where according to statistical methods a number of users is selected who are to submit an additional set of all copied material for a specified period. The registration forms the basis of the distribution of the remuneration within Writing's administrative area.
The respective affiliated associations may ask to be given a percentage of their members' remuneration, normally between 5 and 10%. This percentage is deducted in the disbursement to the individual rights owners, which will appear on the remuneration specification sent to the rights owners every year in January.
Pictorial Arts
In the Pictorial Arts area all remuneration is allocated to the individual rights owners proportionately to "droit de suite" and "the reproduction area".
Pictorial Arts also administers the remuneration collected by Writing for copying of pictorial works if it is impossible to identify the individual pictorial author due to lack of crediting. For instance, the rights owner's name is not always stated on the copied material or maybe it is impossible to find the address of the rights owner in question.
The individual distribution is carried out centrally in COPY-DAN as regards the Writing and Pictorial Arts administrative areas.
The AV area
In the AV area the administration of all remuneration is decentralised and carried out by the affiliated associations - either in separate accounts, in their copyright funds or via own administration companies set up for that purpose. In the three AV societies the general rule is that the affiliated associations are responsible for the distribution of the remuneration.
The distribution between the rights owner groups is either determined by agreement or in a few cases by arbitration.
The affiliated associations are thus responsible for the rules and laws being observed.
The individual affiliated associations choose whether - and to which extent - they wish to use the basic material offered by the COPY-DAN societies as a basis for the individual distribution. Thus a few affiliated associations have chosen to relate the remuneration to income or the popularity of the individual rights owner's works.
Distribution basis
In order to increase the possibility of individual distribution within the affiliated associations a decision has been made to seek to obtain a relevant basis for the individual distribution.
Cable TV and Blank Tapes have decided to let Gallup carry out the registration of the credit lists from the TV programmes shown on the Danish channels (basic registration). Furthermore, the individual affiliated associations may buy additional and more detailed information as a basis for their distribution. A few affiliated associations use a different basis for distribution such as earnings for the year from film and TV.
Every year AV Copies for Education draws up a "top list" of the programmes lent by the county centres for education. This material may serve as a basis for the distribution of AV Copies for Education's remuneration in the individual affiliated associations.
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