General rules of distribution
General Assembly of 8th June 2008
These rules set out the terms and conditions under which individual distributions are made and remuneration paid in respect of:
- audio private copying
- equitable remuneration
- audiovisual private copying
The rules are based on the provisions of the French Intellectual Property Code, international conventions and ADAMI’s Articles of Association.
These rules cancel and supersede the previous rules approved by the 2001 General Assembly. They constitute an authoritative document with regard to the rules governing distribution and cancel and supersede, for all intents and purposes, any rules that may conflict with them.
1.1 The scope of ADAMI’s authorisation
In accordance with the arbitration award of 11th July 1987, ADAMI has exclusive authorisation to collect and distribute remuneration to beneficiaries who are performers whose name, or the name of whose group, is stated on the medium label or in the credits of an audio or video recording or live broadcast of a performance of the work.
1.2 Collection sources
Via collection societies, ADAMI receives remuneration from manufacturers and importers of recording media, for audio and audiovisual private copying, and from radio stations, television channels, discotheques and public places where commercial audio recordings are played.
1.3 Objective of distribution
The distribution system is designed to provide remuneration, as far as possible, for all broadcast works and all audio recordings broadcast, released and sold, that fall within the scope of application of the French Intellectual Property Code.
The objective pursued is to distribute remuneration that corresponds as closely as possible to the production of private copies and the use of commercial audio recordings by broadcasters and in public places where recorded music is played. However, this objective must make allowance for two major constraints:
– the use of available records;
– the need to maintain a reasonable ratio between the processing costs and the amounts to be distributed.
1.4 Selection of audio and video recordings
Audio and video recordings recorded for the first time in France or another member state of the European Union or European Economic Area (EEA) up to 50 years prior to the current year confer entitlement to remuneration for audio or audiovisual private copying.
Commercial audio recordings recorded for the first time in France or another EU member state or in a country that is party to the Rome Convention (provided that the producer of the audio recording is also a national of a signatory country) up to 50 years prior to the current year confer entitlement to equitable remuneration. Audio recordings that fail to comply with the criteria regarding the recording location are classified as “non-distributable” recordings.
Where applicable, if it is difficult to ascertain the recording location, particularly in the case of a recording made in several countries, criteria that are as close as possible to the recording location criterion may be applied.
Furthermore, in the case of audiovisual private copying, certain types of non-artistic programmes may either be excluded from the scope of distributions (e.g. news broadcasts, stock market analyses and game shows) or be subject to specific weighting, for example only the soundtrack in which performers take part (e.g. documentaries or cartoon films).
1.5 Distribution periods
In general, remuneration is distributed to performers with a six to twelve month delay, depending on the time required to obtain the broadcasting records and other information required for calculating the amounts to be distributed.
2.1 Audio and audiovisual private copying
Pursuant to Article L 321-9 of the French Intellectual Property Code, 25% of the amounts collected for private copying is deducted and allocated to initiatives designed to promote artistic creation, the broadcasting of live performances and performer training.
The remaining 75% comprises the gross amount for distribution.
A deduction referred to as the “deduction from remuneration” is made from this gross amount. This deduction, the percentage of which is set by the Administrative Council, is designed to partly offset the expenses incurred by ADAMI.
The remaining amount comprises the net amount for distribution.
2.2 Equitable remuneration
Pursuant to Articles L 214.1 and L 321.9 of the French Intellectual Property Code, all amounts collected comprise the gross amount for distribution.
The net amount for distribution is calculated on the basis of the gross amount in the same manner as for private copying remuneration, as described in the previous paragraph.
However, amounts collected for “non-distributable” audio recordings, as described above in section 1.4 “Selection of audio and video recordings”, are not distributed individually but are allocated to initiatives designed to promote artistic creation, the broadcasting of live performances and performer training, pursuant to Article L 321.9 of the French Intellectual Property Code.
The remuneration due to performers is then calculated on the basis of the remuneration applicable to their works and audio recordings according to the rules set out below.
The underlying data used for calculating distributions consists mainly of various broadcasting records, supplemented by surveys and other kinds of records, primarily declarations.
3.1 Audiovisual private copying
In the case of audiovisual private copying, works are evaluated according to duration of broadcast and on the basis of measurements, or according to a statistical model related to recordings made of each individual work by a sample of individual users on the main TV channels.
A number of points is allocated to each work on the basis of this recording rate multiplied by the duration of broadcast. Then the remuneration is divided proportionally into five packages corresponding to five categories of broadcast subject to remuneration. Some categories may be weighted according to a coefficient defined by the Administrative Council:
- dubbing of foreign feature films broadcast in French;
- dubbing of foreign television drama programmes broadcast in French;
- cartoon voice-over;
- music videos;
- visual performances in films, TV drama, pop music broadcasts, theatre, opera and ballet, classical music concerts, short films, pop and jazz concerts and circus broadcasts.
For the purposes of calculating remuneration for works in the last category, “visual performance”, the recording rates are weighted in order to exclude programmes with low recording rates.
In the case of film dubbing and cartoon voice-over, distribution is based on a semi-declaratory system based on a record of broadcasts sent to the performers identified as dubbing artists.
3.2 Audio private copying
On the basis of audience surveys that focus on the sources of recording, part of the remuneration, calculated on the basis of the percentage of copies made from broadcasts, is distributed between the broadcasts made by a representative sample of radio stations. The portion allocated to each radio station is calculated in accordance with its audience ratings.
On the basis of the same surveys, the remaining portion of the remuneration corresponding to copies made from pre-recorded media is distributed, according to the percentages of copies made per musical genre, between audio recordings released or sold during the year corresponding to the remuneration distributed and all audio recordings released and distributed over a limited number of previous years. The respective proportions of the remuneration to be distributed between audio recordings released and sold during the current year and recordings from previous years are set by the Administrative Council.
3.3 Equitable remuneration
The underlying data used to calculate equitable remuneration consists largely of broadcasting records.
Nevertheless, if such records are lacking or only partly complete, a sample of similar radio broadcasting records and/or records of previously broadcast audio recordings may be used.
These samples are designed to be as representative as possible of broadcasts of the works in question.
The remuneration allocated to audio recordings is proportional to their annual broadcasting time.
3.4 General rules for calculating audio distributions
A pro rata principle is applied to all audio distributions, whether based on broadcasts, sales or releases of audio recordings.
Firstly, part of the amount for distribution is distributed equally between all the audio recordings benefiting from the distribution, in order to ensure minimum remuneration for each one. The percentage of this portion is set by the Administrative Council. The rest is then distributed between the same audio recordings in proportion to their respective broadcasting times, sales figures or the length of the recording, depending on whether the distribution is made on the basis of broadcasts, sales or releases.
The performers participating in beneficiary works may be identified from the credits or on the basis of audio recording covers, external databases, documentation sent by producers or other audiovisual sector organisations or declarations made by the performers themselves.
4.1 Audio private copying and equitable remuneration
The portion of remuneration due to each performer is calculated on the basis of the remuneration allocated to each recording, depending on (i) the musical genre – pop, jazz, classical or opera – and (ii) the nature of the performer’s performance.
Specialist groups consisting of performers appointed by the Administrative Council check the list of solo performers entitled to remuneration and the nature of their performance. Then, depending on the genre (e.g. opera), they establish a differentiation between the roles performed. Coefficients are then applied and the remuneration assigned to the audio recordings is distributed accordingly between the soloists.
4.2 Audiovisual private copying
A specialist group consisting of performers sorts the roles of the performers participating in beneficiary works into a number of categories.
There are three caregories of role: principal, secondary and other. A coefficient defined by the Administrative Council is then applied to each category. However, in the case of pop music broadcasts, performers may be remunerated either equally or in proportion to the number of songs they perform during the broadcast.
If musicians have contributed to the soundtrack of a broadcast, a portion of the remuneration assigned to the broadcast, as defined by the Administrative Council, is reserved for these performers. The distribution of this portion among the performers is also carried out in accordance with a set coefficient, depending on whether or not the music they play has been specifically recorded for the audiovisual work. Amounts not allocated to performers of the soundtrack of a given film or drama programme are redistributed between all the performers featured on the soundtracks of all the films and TV drama programmes covered by that particular distribution.
4.3 Payment conditions
The payment details of each performer must be provided to ADAMI in order for payments to be made. If the performer is neither an ADAMI member nor a member of a foreign collection society with which ADAMI has signed a reciprocal representation agreement, the performer must be registered with ADAMI, i.e. they must have provided ADAMI with their payment details.
Individual remuneration is paid to rightholders at intervals set by the Administrative Council. The length of these intervals may differ according to the type of distribution, and may also be different for members and non-members.
A minimum payment threshold, which may differ according to the payment method used, may be set by the Administrative Council. Similarly, an individual minimum payment threshold may be established at the request of a particular performer.
4.4 Unpayable remuneration
Remuneration for private copying or equitable remuneration that cannot effectively be paid to non-registered performers is partly reallocated to performers to whom the same rights have been assigned. This portion is determined by the Administrative Council. The remaining portion is credited to a provisions account for claims.
Thus remuneration due to performers who are neither ADAMI members nor members of a foreign collection society with which ADAMI has signed a reciprocal representation agreement nor registered with ADAMI, i.e. performers whose payment details have never been provided to ADAMI, is reallocated in the manner described above.
These allocations are not intended to obstruct any claims for payment made during the statutory period for filing such claims, nor do they have any such effect. The amounts due to each performer may be identified at any time during this period. These amounts are payable on request.
At the end of a five-year period, the Administrative Council may transfer a portion of the balance of the provisions for claims account to the artistic action budget, pursuant to Article L 321.9 of the French Intellectual Property Code. During the said five-year period, until claims are barred by statute of limitations, the provisions balance is managed on a global basis in order to settle individual claims after the request for remuneration has been reviewed.
4.5 Additional remuneration
Additional annual remuneration may be calculated within the scope of:
1) a fund for promoting under-represented musical genres;
2) supplements for low remuneration.
The amounts and the sources of funding this additional remuneration are decided by the Administrative Council.
4.6 Remuneration generated abroad
In accordance with the reciprocal representation agreements signed with a number of foreign collection societies, remuneration collected in foreign countries on behalf of ADAMI members is paid to them after an exchange of remuneration between the various societies.
4.7 Payment via an agent
Although ADAMI’s mission is to pay directly to performers the amounts due to them under legal licences, special arrangements may be accepted at the express request of a given performer (payment via an agent).
However, performers who use agents are not always clearly informed about their right to receive these amounts directly from ADAMI, without incurring any costs other than the administrative costs deducted by ADAMI. It is therefore important for ADAMI to be able to ascertain the current names and contact details of each performer so that it can inform them directly about their rights.
Any rightholder may submit a claim to ADAMI, before the expiry of the currently applicable limitation period, indicating that the remuneration paid to them does not correspond to the remuneration due. They may also claim remuneration for recorded performances that ADAMI has been unable to identify, provided that they supply documentary proof thereof.
All rightholders who are not registered with ADAMI may claim remuneration due to them in respect of previous distributions occurring within the limitation period.
After the claim has been reviewed, remuneration due is paid to the rightholder according to the payment conditions explained in section 4.3. The relevant amounts are deducted from the provisions for claims account established for this purpose.
6.1 Specific administrative fees
In consideration of the costs of maintaining existing accounts with no address, preserving records and searching for addresses, a specific administrative fee is debited annually from the accounts of performers with no address. The fee amount is set by the Administrative Council.
The Administrative Council also sets the amount of the specific administrative fees for claims processing which is deducted globally from the provisions for claims account.
6.2 Financial income
Financial income is allocated to ADAMI’s operating budget.