Distribution Policy 2021 Music Repertoire - SIAE
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Summary 1 INTRODUCTION ................................................................................................................................................................................................................... 6 1.1 Scope of application..................................................................................................................................................................................... 6 1.2 Main principles ................................................................................................................................................................................................ 6 1.2.1 Distribution of the amounts attributed to individual musical works ....................................................................... 7 1.2.2 Management policy of amounts non-attributable through ordinary distribution ............................................ 8 1.3 Application period ......................................................................................................................................................................................... 9 2 DANCING WITH LIVE MUSIC .............................................................................................................................................................................. 10 2.1 Distribution criteria..................................................................................................................................................................................... 10 2.2 Distribution cycles and frequency ........................................................................................................................................................ 11 2.3 Management of collections non-distributable through the ordinary distribution process ..................................... 11 2.3.1 Missing setlists .......................................................................................................................................................................................... 11 2.3.2 Unidentified music ............................................................................................................................................................................ 11 3 NIGHTCLUBS .............................................................................................................................................................................................................. 12 3.1 Distribution criteria...................................................................................................................................................................................... 12 3.2 Distribution cycles and frequency .......................................................................................................................................................13 3.3 Management of collections non-distributable through the ordinary distribution process .................................... 14 3.3.1 Missing electronic format setlists ................................................................................................................................................... 14 3.3.2 Paper format setlists ............................................................................................................................................................................ 14 3.3.3 Unidentified music ................................................................................................................................................................................. 15 4 RESTAURANTS, COFFEE SHOPS AND PUBS WITH PUBLIC MUSICAL PERFORMANCES ................................................... 16 4.1 Distribution criteria..................................................................................................................................................................................... 16 4.2 Distribution cycles and frequency ....................................................................................................................................................... 17 4.3 Management of collections non-distributable through the ordinary distribution process ....................................18 4.3.1 Missing electronic format setlists ...................................................................................................................................................18 4.3.2 Paper format setlists ............................................................................................................................................................................18 4.3.3 Unidentified music ................................................................................................................................................................................ 19 5 PRIVATE EVENTS................................................................................................................................................................................................... 20 5.1 Distribution criteria.................................................................................................................................................................................... 20 5.2 Distribution cycles and frequency ....................................................................................................................................................... 21 5.3 Management of collections non-distributable through the ordinary distribution process .................................. 22 5.3.1 Missing setlists (the following only applies to setlists submitted in electronic format).................................... 22 5.3.2 Unidentified music (the following only applies to electronic format setlists) ....................................................... 22 6 CONCERTS AND OTHER MUSIC EVENTS ................................................................................................................................................... 23 6.1 Distribution criteria.................................................................................................................................................................................... 23 2
6.2 Distribution cycles and frequency ..................................................................................................................................................... 25 6.3 Management of collections non-distributable through the ordinary distribution process .................................. 26 6.3.1 Missing setlists .................................................................................................................................................................................. 26 6.3.2 Unidentified music ......................................................................................................................................................................... 26 7 BACKGROUND MUSIC .......................................................................................................................................................................................... 27 7.1 Distribution criteria.................................................................................................................................................................................... 27 7.1.1 Public performances carried out through TV, Radio and wire broadcasting ................................................... 27 7.1.2 Public performances carried out by virtue of other subscription-based mechanical reproduction media 27 7.1.3 Radio in Store.................................................................................................................................................................................... 28 7.2 Distribution cycles and frequency ..................................................................................................................................................... 28 7.3 Management of collections non-distributable through the ordinary distribution process .................................. 30 7.3.1 Missing reports (Radio in Store only) .................................................................................................................................... 30 7.3.2 Unidentified music (Radio in Store only) ............................................................................................................................ 30 8 CINEMA .........................................................................................................................................................................................................................31 8.1 Distribution criteria......................................................................................................................................................................................31 8.2 Distribution cycles and frequency .......................................................................................................................................................31 8.3 Management of collections non-distributable through the ordinary distribution process .................................. 32 8.3.1 Missing cue sheets ......................................................................................................................................................................... 32 8.3.2 Unidentified music ............................................................................................................................................................................... 32 9 TELEVISION............................................................................................................................................................................................................... 33 9.1 Distribution criteria.................................................................................................................................................................................... 33 9.1.1 Analytical distribution method ................................................................................................................................................. 34 9.1.2 Sampling-based distribution method .................................................................................................................................. 37 9.2 Distribution cycles and frequency ..................................................................................................................................................... 37 9.3 Management of collections non-distributable through the ordinary distribution process .................................. 38 9.3.1 Missing reports ................................................................................................................................................................................. 38 9.3.2 Incomplete reports ........................................................................................................................................................................ 39 9.3.3 Reports carrying programming irregularities................................................................................................................... 39 9.3.4 Missing cue sheets ......................................................................................................................................................................... 40 9.3.5 Unidentified music ......................................................................................................................................................................... 40 10 RADIO ............................................................................................................................................................................................................................. 41 10.1 Distribution criteria...................................................................................................................................................................................... 41 10.1.1 Analytical distribution method ..................................................................................................................................................42 10.1.2 Sampling-based distribution method ................................................................................................................................... 44 10.2 Distribution cycles and frequency ...................................................................................................................................................... 44 3
10.3 Management of collections non-distributable through the ordinary distribution process .................................. 46 10.3.1 Missing reports ................................................................................................................................................................................. 46 10.3.2 Incomplete reports ........................................................................................................................................................................ 46 10.3.3 Reports carrying programming irregularities....................................................................................................................47 10.3.4 Unidentified music ..........................................................................................................................................................................47 11 RECORDINGS FOR TV AND RADIO BROADCASTING ............................................................................................................................. 48 11.1 Distribution criteria.................................................................................................................................................................................... 48 11.2 Distribution cycles and frequency ..................................................................................................................................................... 49 11.3 Management of collections non-distributable through the ordinary distribution process .................................. 50 11.3.1 Missing reports ................................................................................................................................................................................. 50 11.3.2 Incomplete reports ........................................................................................................................................................................ 50 11.3.3 Reports carrying programming irregularities................................................................................................................... 50 11.3.4 Missing cue sheets ........................................................................................................................................................................... 51 11.3.5 Unidentified music ........................................................................................................................................................................... 51 12 WIRE BROADCASTING ......................................................................................................................................................................................... 52 12.1 Distribution criteria.................................................................................................................................................................................... 52 12.2 Distribution cycles and frequency ..................................................................................................................................................... 52 13 MUSIC REPRODUCTION ON AUDIO AND VIDEO MEDIA....................................................................................................................... 53 13.1 Distribution criteria.................................................................................................................................................................................... 53 13.2 Distribution cycles and frequency ..................................................................................................................................................... 53 13.3 Lump-sum payments ...............................................................................................................................................................................54 14 REPRODUCTIONS OF DJs’ WORK COPIES OF COPYRIGHTED MUSIC .......................................................................................... 55 14.1 Distribution principles .............................................................................................................................................................................. 55 14.2 Distribution cycles and frequency ..................................................................................................................................................... 55 15 ONLINE MUSIC REVENUE .................................................................................................................................................................................. 56 15.1 Collections’ allocation process ............................................................................................................................................................. 56 15.2 Distribution criteria.................................................................................................................................................................................... 56 15.3 Lump-sum payments .............................................................................................................................................................................. 57 15.4 Collections for multi-territorial licences......................................................................................................................................... 57 15.5 Residuary collections................................................................................................................................................................................ 57 15.6 Audio-visual services ............................................................................................................................................................................... 58 15.7 Missing cue sheets ..................................................................................................................................................................................... 58 15.8 Management of collections non-distributable through the ordinary distribution process .................................. 58 15.8.1 Non-processable or missing reports .................................................................................................................................... 58 15.8.2 Unidentified music ......................................................................................................................................................................... 58 15.9 Distribution cycles and frequency ..................................................................................................................................................... 59 4
16 PRIVATE COPYING ................................................................................................................................................................................................ 60 16.1 Distribution criteria.................................................................................................................................................................................... 60 16.2 Distribution cycles and frequency ...................................................................................................................................................... 61 17 INTERNATIONAL REVENUE .............................................................................................................................................................................. 62 17.1 Distribution criteria.................................................................................................................................................................................... 62 17.2 Distribution cycles and frequency ..................................................................................................................................................... 62 17.3 Management of collections non-distributable through the ordinary distribution process .................................. 62 17.3.1 Unidentified Music ..................................................................................................................................................................................... 62 17.3.2 Missing reports ........................................................................................................................................................................................... 63 18 FUND FOR ASSISTANCE PURPOSES AND TO ENCOURAGE NATIONAL ARTS ........................................................................ 64 19 EXCEPTION HANDLING ....................................................................................................................................................................................... 64 5
1 INTRODUCTION 1.1 Scope of application SIAE’s Music Division is in charge of managing public performance rights relating to musical works1, including film screenings, communication to the public by radio and television broadcasting and mechanical reproduction rights with regard to such musical works. Distribution of copyright collections is carried out net of the shares due to SIAE (hereinafter also referred to as the "Society") and net of any amounts allocated to welfare purposes and encouragement of the national arts referred to in section 18. Processes, criteria, and timelines relating to the distribution of revenues collected by the Society, following the use of works that belong to the Society’s managed music repertoire, are laid down by the following principles. 1.2 Main principles Revenues distribution criteria are established by SIAE's Management Board, having heard the Music Committee's opinion, in accordance with the Society Articles of Organization: Article 18 (7) and Article 22 (1). The distribution process is aimed at determining, and consequently attributing, the amounts due to the rightsholders in compliance with the principles of effectiveness, efficiency, cost-effectiveness, and transparency, in other words as accurately as possible and within reasonable cost and time limits. In order to proceed correctly with the collection distribution, the Society needs specific information relating to the exploitation of the protected works to which the collections themselves refer. 1 SIAE’s Music Division is in charge of managing rights relating to musical works, with or without accompanying words, of both classical and pop genres. Operas, ballets, oratorios, operettas, revues, etc. are instead entrusted to the protection of the Opera and DOR Sections: in such cases, SIAE’s Music Division only manages the "detached musical pieces", that is, used independently with respect to the full version dramatic-musical works 6
The Society distributes the net revenue primarily by using the analytical method, based on detailed information included in the setlists submitted by users, in the reports submitted by TV/Radio broadcasters or in different kinds of documentation (e.g., online music consumption reports). In the event that the user is unable to provide complete information or supply data in a format manageable by SIAE, the Society may resort to alternative methods in order to acquire the information needed to carry out the collection distribution, including electronic format fingerprinting techniques. In order to pursue the cost-effectiveness of its work, the Society may also use alternative methods for acquiring information, such as sampling the setlists received and sample surveys carried out by qualified experts. The Management Board, after consulting the Music Committee and while considering the collections volume, management cost-effectiveness criteria, as well as the availability of the information necessary for the distribution purposes, may derogate from the allocation criteria set out in this document, approving specific rules by resolution, still ensuring a just, equitable and efficient distribution of the amounts due to the rightsholders. 1.2.1 Distribution of the amounts attributed to individual musical works The amounts which, following the operations laid down by these criteria, are attributed to the different musical compositions, are distributed, and paid to the rightsholders on the basis of the allotment shares stated in the statement reports deposited and acquired in the Society's works database, in compliance with art. 33 of the Society’s General Regulations. The above- mentioned reports state the allotment shares due to the individual holders, owners of the works. The amounts credited to each musical composition by foreign copyright collecting societies (affiliated societies), are listed, on the reports issued to SIAE’s members, separately for each foreign Society, and to such an extent that, taking into account any shares withheld by said Societies, the distribution share is 7
equivalent to the percentages set out by the declaration of copyright ownership and/or authorship form, without prejudice to the effects of the special regulatory arrangements with regard to the assignment of works abroad. 1.2.2 Management policy of amounts non-attributable through ordinary distribution Before and during the ordinary distribution process, the arising of a variety of reasons, not dependent on the Society, could make it impossible to proceed with the distribution of the amounts in favour of the rightsholders, for example: amounts that cannot be included in the ordinary distribution process due to extraordinary reasons (e.g., unsent programming reports from television and radio broadcasters). amounts placed in ordinary distribution that cannot be attributed to members because it was impossible to identify the relative work and/or the rightsholder (e.g., unidentified music). The amounts not attributable through the ordinary distribution process and criteria are therefore distributed in a proportional way, according to the amount stated in the rightsholders’ analytical reference reports, as specified in the following sections and with different timelines depending on the cause that prevented the ordinary distribution from taking place. Any complaints received after the extraordinary proportional distributions referred to above, yet submitted within the statutory limitation period, shall be accepted, provided that the ownership of the works by the complainant is ascertained and the Society has received all the information required for the purposes of quantifying the amount to be paid in reason of the exploitation of the above-mentioned works. 8
1.3 Application period The following criteria apply to distribution processes relating to year 2021. Distribution cycles and frequency along with their relative timelines are outlined in the following sections. Table 1: Royalty sources and reporting classes of payments to rightsholders SECTION ROYALTY SOURCE PAYMENT CLASS 2 DANCING WITH LIVE MUSIC CLASS I 3 CLUBS CLASS I 4 RESTAURANTS, BARS, PUBS WITH PUBLIC MUSICAL PERFORMANCES CLASS I 5 PRIVATE EVENTS CLASS I 6 CONCERTS AND OTHER MUSICAL EVENTS CLASS IV 7 BACKGROUND MUSIC CLASS IV 8 CINEMA CLASS II 9 TELEVISION CLASS II and III 10 RADIO CLASS III 11 RECORDINGS FOR TV AND RADIO BROADCASTING CLASS V 12 WIRE BROADCASTING CLASS III 13 REPRODUCTIONS ON AUDIO AND VIDEO MEDIA CLASS V 14 REPRODUCTIONS OF DJs’ WORK COPIES CLASS V 15 ONLINE MUSIC REVENUE CLASS VI 16 PRIVATE COPYING PRIVATE COPYING 17 INTERNATIONAL REVENUE REMITTANCES BY CMO 9
2 DANCING WITH LIVE MUSIC 2.1 Distribution criteria Dancing events accompanied by live music are distributed 100% analytically based on the information stated in the submitted setlists. Notably, collections relating to each dancing event and entertainment event accompanied by dancing with live musical performances are allocated by share among the musical compositions listed in the corresponding setlist submitted to the Society by the license holder of the relevant entertainment event. The music pieces listed more than once in a setlist that relates to the same entertainment event, will be calculated as if they had been performed only once. EXCLUSIONS Music pieces performed for less than thirty seconds are excluded from the analytical distribution. The following are also excluded from the analytical distribution: A. setlists relating to private events B. setlists relating to performances that have taken place on ships and other means of transport (with the exception of those entertainments for which it is possible, also in terms of cost-effectiveness of management, to carry out checks) C. setlists with programming irregularities as per implementation of article 38 of SIAE’s General Regulations D. setlists with filling out irregularities (for example, failure to subscribe, missing, incorrect or untrue indication of the data of the performer or subscriber and/or setlists that, following investigations, turn out to be signed by a person other than the actual director of performances). Collections relating to setlists for private events (point A) are distributed according to the rules outlined in section 5 below. Collections relating to the setlists listed above (points B, C and D) are distributed within the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution 10
of the rights relating to "Dancing events accompanied by live music", in proportion to the amount of the analytical reports relating to the reference period. 2.2 Distribution cycles and frequency Distribution of rights collections relating to dancing events and entertainments events with dancing accompanied by live music, reported with electronic format setlists, is carried out no less than once every six months: revenues collected up to 30 April each year are distributed by July of the same year provided that the relative electronic format setlists are returned by 30 April the same year revenues collected up to 31 October each year are distributed by January of the following year provided that the relative electronic format setlists are returned by 31 October the same year revenues collected in November and December each year, are distributed by July of the following year. 2.3 Management of collections non-distributable through the ordinary distribution process 2.3.1 Missing setlists Collections relating to setlists which, despite all diligence by the Society, have not been delivered in time to proceed with the distribution process relating to the relevant semester, are distributed in the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to “Dancing events accompanied by live music”, in proportion to the amount of the analytical reports relating to the reference period. 2.3.2 Unidentified music Collections relating to unidentified music used in "Dancing events accompanied by live music" are distributed in the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to "Dancing events accompanied by live music", proportionally to the analytical reports amount with regard to the reference period. 11
3 NIGHTCLUBS 3.1 Distribution criteria Nightclubs’ copyright collections are distributed 100% analytically based on the information contained in the relative electronic format setlists. In particular, collections relating to each musical performance using a mechanical instrument for both dancing and entertainment events accompanied by dancing, for which electronic format setlists are filled out and returned (through the "mioBorderò" – “mySetlist” online service), are allocated by share among the musical pieces listed in setlist. Music pieces listed more than once in a setlist that relates to the same entertainment event, will be calculated as if they had been performed only once. EXCLUSIONS Music pieces performed for less than thirty seconds are excluded from the analytical distribution process. The following are also excluded from the analytical distribution process: A. setlists relating to private events B. setlists relating to performances that have taken place on ships and other means of transport (with the exception of those entertainments for which it is possible, also in terms of cost- effectiveness of management, to carry out checks) C. declared setlists with programming irregularities as per implementation of Article 38 of SIAE’s General Regulations. Collections relating to setlists for private events (point A) are distributed according to the rules described in section 5 below. Collections relating to the setlists listed above in points B and C are included in the distribution carried out by sampling and surveys described in paragraph 3.3.2 below. 12
3.2 Distribution cycles and frequency Distribution of rights collections relating to musical performances with a mechanical instrument for dancing and entertainment events accompanied by dancing, reported with an electronic format setlist, is carried out not less than every six months: revenues collected up to 30 April each year are distributed by July of the same year provided that the relative electronic format setlists are returned by 30 April the same year revenues collected up to 31 October each year are distributed by January of the following year provided that the relative electronic format setlists are returned by 31 October the same year revenues collected in November and December each year, are distributed by July of the following year. 13
3.3 Management of collections non-distributable through the ordinary distribution process 3.3.1 Missing electronic format setlists Collections relating to electronic format setlists which, despite all diligence by the Society, have not been delivered in time to proceed with the distribution process relating to the relevant semester, are included in the distribution carried out by sampling and surveys described in paragraph 3.3.2 below. 3.3.2 Paper format setlists Collections relating to musical performances using a mechanical instrument for dancing and entertainment events accompanied by dancing, reported with paper format setlists, are allocated and distributed according to the following criteria and methods: 1. for a 70% share, on the basis of a sample consisting of direct, even partial, surveys carried out under confidentiality in the semester to which the distribution refers, of musical performances in dancing and entertainment events with dancing performed accompanied by a mechanical instrument; the methods of sampling surveys are governed by specific technical provisions. The total amount of the aforementioned share of revenues is therefore allocated by share among the music pieces identified in the sample. 2. for a 30% share on the basis of a sample consisting of 1/5 of the setlists delivered by event organizers and identified with statistical selection criteria as per specific technical provisions. The overall amount of the aforementioned share of collections is allocated among the music pieces listed in the sampled setlists, by giving each music piece listed in the same setlist, an equal number of points obtained by the ratio between the collections relating to the setlist in question and the total number of music pieces reported therein. The value consisting of one point is equal to the quotient between the aforementioned overall amount and the total number of points attributed to all the music pieces, reported in all the setlists included in the sample. Musical pieces listed more than once in a declared setlist relating to the same entertainment event, will be calculated as if they had been performed only once. EXCLUSIONS From the samples referred to in points 1 and 2 above, the following music performances are excluded: 14
A. performed during private events B. performed for less than thirty seconds C. performed during entertainment events that have taken place on ships and other means of transport (with the exception of entertainment events for which it is possible - also in terms of cost- effectiveness of management - to carry out checks) D. listed in setlists that, as a result of checks, reveal filling out irregularities such as failure to sign or irregular or false indication of the requested data E. setlists with programming irregularities as per implementation of article 38 of SIAE General Regulations. Collections relating to setlists for private events (point A) are distributed according to the rules described in section 5 below. DISTRIBUTION CYCLES AND FREQUENCY Distribution of rights collections relating to musical performances with a mechanical instrument for dancing and entertainment events accompanied by dancing, reported with a paper format setlist, is carried out no less than once every six months: revenues collected during the first semester of the year are distributed by January of the following year revenues collected during the second semester of the year are distributed by the month of July of the following year. 3.3.3 Unidentified music Collections relating to unidentified music used in "Dancing events with mechanical reproduction on media" are distributed in the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to "Dancing events with mechanical reproduction on media", in proportion to the analytical reports amount with regard to the reference period. 15
4 RESTAURANTS, COFFEE SHOPS AND PUBS WITH PUBLIC MUSICAL PERFORMANCES 4.1 Distribution criteria Revenues collected from restaurants, coffee shops, pubs and similar venues are distributed 100% analytically based on the data reported in the relevant electronic format setlists. In particular, collections relating to any event with live musical performances or with non-subscription based mechanical reproductions in restaurants, coffee shops, pubs, and similar venues (public places not undertaking entertainment activities), for which electronic format setlists are filled out and returned (through the "mioBorderò" – “mySetlist” online service), are allocated by share among the music pieces listed in each setlist. Music pieces listed more than once in a setlist that relates to the same entertainment event, will be calculated as if they had been performed only once. EXCLUSIONS Music pieces performed for less than thirty seconds are excluded from the analytical distribution process. The following are also excluded from the analytical distribution process: A. setlists relating to private events B. setlists relating to performances that have taken place on ships and other means of transport (with the exception of those entertainments for which it is possible, also in terms of cost- effectiveness of management, to carry out checks) C. setlists with programming irregularities as per implementation of Article 38 of SIAE’s General Regulations. Collections relating to setlists for private events (point A) are distributed according to the rules described in section 5 below. Collections relating to the setlists listed above in points B and C are included in the distribution carried out by sampling and surveys described in paragraph 4.3.2 below. 16
4.2 Distribution cycles and frequency The distribution of rights collections relating to musical events covered by this section reported to the Society with electronic format setlists, is carried out no less than once every six months: revenues collected up to 30 April each year are distributed by July of the same year provided that the relative electronic format setlists are returned by 30 April the same year revenues collected up to 31 October each year are distributed by January of the following year provided that the relative electronic format setlists are returned by 31 October the same year revenues collected in November and December each year, are distributed by July of the following year. 17
4.3 Management of collections non-distributable through the ordinary distribution process 4.3.1 Missing electronic format setlists Collections relating to electronic format setlists which, despite all diligence by the Society, have not been delivered in time to proceed with the distribution process relating to the relevant semester, are included in the distribution carried out by sampling and surveys described in paragraph 4.3.2 below. 4.3.2 Paper format setlists Revenues relating to live musical performances or by mechanical reproduction on a medium, reported with a paper format setlist, not provided with a subscription, carried out in restaurants, coffee shops, pubs, and similar venues (public places not undertaking entertainment activities), with the exception of private events (as per Section 5), are distributed according to the following criteria and methods: 1. for a 75% share, on the basis of a sample made up of direct, even partial, surveys carried out under confidentiality in the semester to which the distribution refers; the methods of sampling surveys are governed by specific technical provisions. The total amount of the aforementioned share of collections is therefore allocated by share among the music pieces identified in the sample. 2. for a 30% share on the basis of a sample consisting of 1/5 of the setlists delivered by event organizers and identified with statistical selection criteria as per specific technical provisions. The overall amount of the aforementioned share of collections is distributed among the music pieces listed in the sampled setlists, giving each music piece reported in the same setlist an equal number of points obtained by the ratio between the collections relating to the setlist and the total number of music pieces reported therein. The value of one point is equal to the quotient between the aforementioned overall amount and the total number of points attributed to all the music pieces listed in all the setlists included in the sample. Musical pieces listed more than once in any declared setlist and relating to the same entertainment event, will be calculated as if they had been performed only once. 18
EXCLUSIONS The following are excluded from the samples referred to in points 1 and 2 above: A. music performances carried out during private events B. music performances carried out for less than thirty seconds C. music performances carried out during entertainment events that have taken place on ships and other means of transport (with the exception of entertainment events for which it is possible - also in terms of cost-effectiveness of management - to carry out checks) D. music performances listed in setlists that, as a result of checks, reveal filling out irregularities such as failure to sign or irregular or false indication of the requested data E. music performances reported on the relevant setlists with programming irregularities as per implementation of Article 38 of SIAE’s General Regulations. Collections relating to setlists for private events (point A) are distributed according to the rules described in section 5 below. DISTRIBUTION CYCLES AND FREQUENCY Distribution of royalties relating to live musical performances or by mechanical reproduction on a medium, provided with a paper format setlist and carried out without a subscription in restaurants, coffee shops, pubs and similar venues is carried out no less than once every six months: revenues collected during the first semester of the year are distributed by January of the following year revenues collected during the second semester of the year are distributed by July of the following year. 4.3.3 Unidentified music Collections relating to unidentified music of musical performances covered by this section are distributed in the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to musical performances in restaurants, pubs, and coffee shops, in proportion to the amount reported on the analytical reports relating to the reference period. 19
5 PRIVATE EVENTS 5.1 Distribution criteria Revenues from private events are distributed 100% analytically based on the information reported in the relative electronic format setlists when organized by organizations that signed a specific agreement with SIAE. The proportional distribution method is used for other types of private events. In particular, collections relating to each private event organized in circles by organizations that signed a specific agreement with SIAE, relating to checks to be carried out confidentially, and for which electronic format setlists are filled out and returned (through the “mioBorderò” “mySetlist” online service) are allocated by share among the musical compositions listed in each setlist. Music pieces listed more than once in a setlist that relates to the same entertainment event, will be calculated as if they had been performed only once. Collections relating to dancing and other private events2 with music performed live or by mechanical reproduction on a medium, are distributed according to the criteria and methods outlined below: 1. collections relating to private dance entertainment events with live music are distributed in proportion to the amount reported in the analytical reports relating to the reference period of the corresponding public entertainment events referred to in Section 2 2. collections relating to private dance entertainments events with music performances by mechanical reproduction on a medium, are distributed in proportion to the amount reported in the analytical reports relating to the reference period of the corresponding public entertainments events referred to in Section 3 3. collections relating to private entertainments events with music performances (carried out without a subscription) in restaurants, coffee shops, pubs and similar venues are distributed in proportion to the amount stated in the analytical reports relating to the reference period of the corresponding public entertainments referred to in Section 4. 2 Regardless of the venue: in public places, private homes, or open spaces, offered by private individuals to guests on the occasion of weddings, ceremonies, or anniversaries in general, congresses, gatherings, corporate meetings, etc.; from private clubs with access allowed only to members and possibly to family members; from managers of public premises to guests on the occasion of club openings, opening of a new season, etc. 20
EXCLUSIONS The following are excluded from the analytical distribution process: A. music pieces performed for less than thirty seconds B. setlists with programming irregularities as per implementation of Article 38 of SIAE’s General Regulations. Collections relating to the setlists listed above (point B) are included, according to the type of event, in the three proportional distribution processes concerning private events. 5.2 Distribution cycles and frequency Distribution of rights collections relating to musical performances in dancing and other private entertainment events is carried out no less than once every six months and is moved up for events provided with electronic format setlists organized by organizations that signed a specific agreement with SIAE: collections for events organized by organizations that signed a specific agreement with SIAE, and carried out until 31 October each year, are distributed by January of the following year provided that the relevant electronic format setlists are returned by 31 October the same year collections for events organized by organizations that signed a specific agreement with SIAE, and carried out up to 30 April each year, are distributed within July of the same year, provided that the relevant electronic format setlists are returned by 30 April the same year revenues collected during the first semester of the year are distributed by January of the following year revenues collected during the second semester of the year are distributed by July the following year. 21
5.3 Management of collections non-distributable through the ordinary distribution process 5.3.1 Missing setlists (the following only applies to setlists submitted in electronic format) Collections relating to electronic format music setlists which, despite all diligence by the Society, have not been delivered in time to proceed with the distribution process relating to the relevant semester, are included, depending on the reported type of event, in the three proportional distributions concerning private entertainment events described in paragraph 5.1 above. 5.3.2 Unidentified music (the following only applies to electronic format setlists) Collections relating to unidentified music of musical performances are included, according to the declared type of event, in the three proportional distributions concerning private events described in paragraph 5.1 above. 22
6 CONCERTS AND OTHER MUSIC EVENTS 6.1 Distribution criteria Rights collections from concerts and other music events are distributed 100% analytically based on the information reported in the relevant setlists. In particular, collections for public performance rights relating to each of the following typologies of events: a) symphonic, chamber and opera concerts b) dance concerts c) jazz concerts and entertainment events accompanied by jazz music d) music performed to comment or accompany theatrical, dramatic, and similar works (so-called "stage music") e) thematic music performed by mechanical reproduction on a medium with sound commentary functions in amusement park attractions, museum itineraries, shows or exhibitions, toy libraries and childcare spaces are distributed among the musical works reported in the setlist relating to the specific event, in proportion to the time length of the respective performances. Music pieces listed more than once in the submitted setlist relating to the same entertainment event, will be calculated as if they have been performed only once with the exception of the previous point “d”. Collections for public performance rights relating to each of the following typologies of events: f) pop music concerts g) marching bands h) parties held in public squares, stand-up comedy and variety shows i) other musical events in places open to the public (not included in the previous sections and paragraphs) 23
are distributed by share among the music works reported in the submitted setlist relating to the specific event. Musical pieces listed more than once in any submitted setlist and relating to the same entertainment event, will be calculated as if they had been performed only once. EXCLUSIONS Music pieces performed for less than thirty seconds are excluded from the analytical distribution process. The following are also excluded from the analytical distribution process: A. setlists relating to performances that have taken place on ships and other means of transport (with the exception of those entertainments for which it is possible, also in terms of cost- effectiveness of management, to carry out checks) B. setlists reporting filling out irregularities (for example, failure to subscribe, missing, incorrect or untrue indication of the data of the performer or subscriber and/or setlists that, following investigations, turn out to be signed by a person other than the actual director of performances). C. setlists reporting programming irregularities as per implementation of Article 38 of SIAE’s General Regulations. The amounts relating to the setlists listed above are distributed within the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to "Concerts and other musical events", in proportion to the amount of the analytical distribution reports relating to the reference period. 24
6.2 Distribution cycles and frequency Distribution of rights collections relating to musical performances carried out during concerts and other musical events, reported with electronic format setlists, is carried out no less than once every six months: revenues collected up to 30 April each year are distributed by July of the same year, provided that the relative electronic format set lists are returned by 30 April the same year revenues collected up to 31 October each year are distributed by January of the following year, provided that the relative electronic format set lists are returned by 31 October the same year revenues collected in November and December each year, are distributed by July of the following year. Distribution of rights collections relating to musical performances carried out during concerts and other musical events, reported with paper format setlists, is carried out no less than once every six months: revenues collected during the first semester of the year are distributed by January of the following year revenues collected during the second semester of the year are distributed by July of the following year. 25
6.3 Management of collections non-distributable through the ordinary distribution process 6.3.1 Missing setlists The amounts relating to setlists which, despite all diligence by the Society, have not been delivered in time to proceed with the distribution process relating to the relevant semester, are distributed during the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to “Concerts and other musical events”, in proportion to the total amount of the analytical distribution reports with regard to the reference period. 6.3.2 Unidentified music The amounts relating to unidentified music are distributed in the semester following that of the ordinary distribution, in favour of the parties entitled to participate in the distribution of the rights relating to "Concerts and other musical events", in proportion to the amount of the analytical reports relating to the reference period. 26
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