DISTRIBUTION POLICY RULES 2017 — Society of Authors, Composers and Publishers of Music

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SOCIETY OF AUTHORS, COMPOSERS AND PUBLISHERS OF MUSIC

PREAMBLE

This document provides an overview of SACEM Distribution Policy Rules.

The principles governing these rules are defined in the SACEM Articles of Association (Articles 9-11bis), chapter 2 on Distribution in the General Rules (Articles 52-77) appended to these Articles of Association and Articles 8-11 of the Audiovisual Regulations appended to the Articles of Association.

These distribution rules are regularly updated, on the one hand, to take into account the constant developments of means of dissemination and, on the other hand, to keep up with the decisions of the SACEM Board of Directors. There may, however, be a waiting period between the date of a decision, its enforcement and the updating of rules. In this case, members are informed by a specific communication. We invite you to consult the “What’s new?” page at createurs-editeurs.sacem.fr/en regularly and read the monthly newsletters sent to members at their e-mail address.

Note: Only the French version of the SACEM’s Distribution Policy Rules is legally authentic. TABLE OF CONTENTS

AUDIOVISUAL MEDIA 5 LIVE MUSIC 27 ‘Historic’ television channels 5 Concerts, performances 27 Cable, satellite, ADSL & DTT 9 Dancing events with bands 29 Radio 11 DISCOS 31 AUDIO, AUDIOVISUAL & Permanent and mobile MULTIMEDIA RECORDS 13 discos 31 Phonograms 13 Videograms 14 PUBLIC PLACES WITH Video games on multimedia 16 BACKGROUND MUSIC 33

INTERNET 17 CINEMA 35 ‘Pan-European’ Internet Movie theaters 35 services 18 Retransmission of concerts 36 ‘Local’ Internet services 20 Video on demand 21 WORKS EXPLOITED Institutional films online and web reports 21 ABROAD 37 Video games online 22 APPENDICES 39 PRIVATE COPYING 23 Distribution keys and royalty Audio private copying 23 splits 39 Audiovisual private copying 25 Distribution schedule 40 Payment deadlines and table of acronyms 41

3 4 AUDIOVISUAL MEDIA

‘HISTORIC’ TELEVISION CHANNELS

The ‘historic’ television channels - Revenue collected from cable and satellite operators (formerly terrestrial channels) include: and Internet service providers (ISPs) for the retrans- - public channels (France 2, France 3, mission of programmes belonging to the channel’s 1 ère offering. This revenue is allocated proportionally to France 5, Arte and Outre-Mer 1 ) the audience of each channel3. - private channels (TF1, M6 and Canal+) - Revenue from foreign CMOs after they collected for the broadcast of French channels in their territories. - Revenue from TV5 Monde for those programmes that ROYALTY SOURCE come from French public channels4 (France 2, France The amount of royalties for each television channel in- 3, France 5)5. cludes: - Revenue collected from the channel for its broadcasting activity2. - Revenue collected from public premises for their use of television programmes as background music. This revenue is allocated proportionally to the audience of each channel over the reference distribution period.

1. For Arte, only terrestrial broadcasts from 7pm to 3am are taken into account. The quality of the programmes does not make it possible to distribute twice a year for broadcasting from 3am to 7pm; this distribution is made in July in the Câble France family. 2. For TF1 and M6, the licence covers the repertoires of several societies: ADAGP, SACD, SACEM and S.C.A.M. The amount of royalties paid by each channel is then shared between these societies according to the importance and use of their repertoires. 3. According to Médiamétrie, whose Mediamat’Thématik permanently assesses TV viewing habits of people aged 4 and over in homes who subscribed to an expanded offering. More information at: mediametrie.fr. 4. The shares corresponding to the programmes of public channels in Belgium, Canada and Switzerland are sent to the CMOs in their respective territories (SABAM, SODRAC, SOCAN and SUISA) for royalty distribution. 5. TV5 Monde broadcasts programmes from public Francophone channels: those of the France Télévisions Group for France, RTBF for Belgium, TSR for Switzerland and Consortium de Télévision Québec-Canada (CTQC). CMOs from these countries signed an intersocial agreement specifying that royalties collected for TV5 Monde broadcasts be distributed as follows: 6/9 for SACEM, 1/9 for SABAM (Belgium), 1/9 for SUISA (Switzerland) and 1/9 for SOCAN (Canada).

5 - Revenue from catch-up or replay television are also CALCULATING DISTRIBUTION allocated to the main channels, as are royalties from time-shift (Canal+ Décalé) or derived channels Amounts paid by a television channel are allocated (Canal+ Family, Canal+ Cinéma, etc.) except for the based on the broadcast reports provided by the specific programmes not broadcast on the main channel. channel over the same period. The basis for distribution is the broadcast duration of the work in seconds. The broadcast duration of each work is then revised by applying two types of coefficients: COLLECTING BROADCAST - Coefficients associated with the type of use of the DATA work. - Coefficients associated with the day and hour of Channels provide reports detailing the works they broadcast to take audience ratings into account. broadcast on a monthly basis. These monthly broadcast Combining the three following elements - broadcast reports must be transmitted within two months after duration in seconds, valorisation according to genre their broadcast. and day and time of broadcast - gives each work its For the Franco-German channel Arte, revenue is distri- own share within the total amount of rights paid by buted by either SACEM or GEMA (the German CMO) the broadcasting channel. according to which national Management has scheduled the programmes: SACEM for programmes scheduled by the French direction (including Arte GEIE) and GEMA for programmes scheduled by the German direction, DISTRIBUTION SCHEDULE regardless of the programme’s nationality. Thus, for Biannual distribution: German audiovisual works scheduled by Arte’s French - in January (broadcasts in the first half-year direction, the revenues are distributed by SACEM while, of the previous year) for French audiovisual works scheduled by the German - in July (broadcasts in the second half of the direction, GEMA is responsible for distributing the previous year) revenue which will then be processed by SACEM based on distribution rules for works exploited abroad (see p.39).

COEFFICIENTS ASSOCIATED WITH THE TYPE OF USE OF WORKS SCALE FOR MUSICAL WORKS Coefficient Symphonic music with the performers’ visual presence 22 Instrumental or vocal pop songs with the performers’ visual presence 8 Pop songs videos Drama, serials and series 5,75 Music in commercials 5 Feature films 5 Documentaries, magazines and reports 4 Music illustrating TV shows such as light entertainment, game shows, talk shows (except 3 works with the performers’ visual presence) Signature tunes and trailers1 2

1. The music in trailers can generate a specific distribution of royalties when this music differs from that in the audiovisual work (film, drama, series and documentaries). To this end, it must be mentioned in the broadcast reports provided to SACEM or have been registered with SACEM by the composer and/or publisher along with the trailer’s audiovisual information sheet: - Before 15 March for broadcasts in the 2nd half of the previous year to be considered for the July distribution in the current year. - Before 15 September for broadcasts in the 1st half of the current year in order to be taken into account for the January distribution in the following year. If no information indicates that the music of the trailer is different from that in the audiovisual work, or if it is provided after the deadline for registering the audiovisual information sheet, the royalties are distributed for the original music in the audiovisual work for which the trailer was made.

6 DEGRESSION 1” to 5,000” no degression Degression applies to signature tunes, trailers (coeffi- 5,001” to 15,000” 50 % cient type of use 2) and background music (coefficients 2 and 3), based on the total half-yearly broad- 15,001” to 30,000” 66,7 % cast duration of each work used as a signature tune 30,001’’ to 60,000” 75 % and/or background music. 60,001” and more 87,5 %

SCALE FOR LITERARY WORKS Coefficient Poetry, sketches 6 Dubbing texts and subtitles for series, TV films, serials 1 5 Musical documentaries (including remuneration for the author of the narration and the 4,5 director’s contribution) Dubbing texts and subtitles for commercial films 1 4 Excerpts from dramatic works 3,5 Writing of texts for entertainment shows containing original editorial elements, coming under the categories of humorous portraits or columns when they entirely depend on the show in 3,5 which they are broadcast 2 Writing of introductory or transition texts for entertainment shows with limited originality and 0,75 entirely dependent on the programme in which they are broadcast 2

SCALE FOR TELEVISION CREATIONS Coefficient BARÈMECategory ADES - A RÉALISATIONSone-shot heritage workTÉLÉVISUELLES with a minimum duration of 13 minutes presenting the director’s very personal view of a creator, his/her work, of a performer or of a genre 2 belonging to the SACEM repertoire, in which the director had complete control over all elements for the direction of the work. Category B – A work for which the director had complete control over all elements of the 0,75 creation as well as the time and technical resources necessary for the direction of the work. Category C – A work for which the director’s control over one of the elements of the direction was limited by constraints on the time and technical resources imposed by the 0,6 producer. Category D – A work for which the director’s control over two elements of the direction was 0,45 limited by constraints on the time and technical resources imposed by the producer. Category E – A work for which the director’s control over three elements of the direction 0,3 was limited by constraints on the time, technical resources, preparation and post production. Category F – A work which required only minor or mechanical intervention on the director’s part, because of the structure and of the limited resources of the production, or because of 0,08 its repetitive nature.

1. Dubbing texts and subtitles are deducted for 1/10 of the broadcast duration of the audiovisual work in which they are featured. 2. Sketches and texts of entertainment shows are classified by the Board of Directors on a proposal of Section 4 (Authors’ Committee). Coefficients for the writing of texts for entertainment shows as defined above apply to a fraction of the texts’ timing decided by the Board after the content of the show, registered in the SACEM repertoire, has been analysed. Unless there has been a change in the content, nature and/or authors of the registered texts, the timing and coefficient selected by the Board for the text of an entertainment show broadcast on a regular basis (daily, weekly, monthly, etc.) apply to the whole series of shows in question. On their request the authors of these texts are informed of the Board’s decision. In the event the authors consider the classification decision does not properly reflect their contribution, they can provide any additional elements or ask to meet with Section 4 to justify their position. After examining the validity of these arguments, the Committee will announce its proposal which becomes final after approval by the Board.

7 Television creations, registered in the SACEM re- On their request, directors are informed of the de- pertoire, are classified by the Board of Directors cision of the Directors’ Committee. In the event on a proposal of Section 4 after recommendation they consider the classification choice does not by the Directors’ Committee depending on their properly reflect their contribution, they may pro- inventive potential and the director’s degree of vide any additional elements or ask for a meeting responsibility at the time of their elaboration. One with the Committee to justify their position. The assesses the elements for this intellectual creation Committee will examine the validity of the ele- at the different stages of its elaboration: concep- ments submitted before announcing their decision tion, staging, shooting, post-production. which becomes final after approval by the Board.

COEFFICIENTS ASSOCIATED WITH DAY AND TIME OF BROADCAST

All categories of works benefit from hourly coefficients of valorisation. For programmes overlapping two time slots, the hourly coefficient is determined by the time slot corresponding to the maximum duration of the broadcast.

UNENCRYPTED ‘HISTORIC’ CHANNELS Monday to Saturday

x 1 x 1,5 x 1,2 x 2 x 4 x 2 midnight midday 2pm 6pm 7pm 9:30pm midnight

Sundays & bank holidays

x 1 x 1,5 x 1,7 x 2 x 4 x 2 midnight midday 2pm 6pm 7pm 9:30pm midnight Coefficient 4 continues to apply after 10:30pm for special Christmas Eve and New Year’s Eve programmes.

CANAL +

Monday to Saturday

x 1 x 1,5 x 1,2 x 2 x 3 x 2 midnight midday 2pm 6pm 7pm 9:30pm midnight

Sundays & bank holidays

x 1 x 3 x 1 x 2 x 3 x 2 midnight midday 2pm 6pm 7pm 9:30pm midnight

8 CABLE, SATELLITE, ADSL AND DTT CHANNELS

These rules apply to broadcasts by television - from processing the distribution of royalties from channels in programming accessible by: national channels for commercials3 and back- − Cable network ground music4; - from broadcast reports provided by members for − Satellite channels for which SACEM has no data, if they − ADSL (Internet) are validated by the channels5. − DTT (Digital Terrestrial Television)

These packages provide three main categories of television channels: INTERSOCIAL SPLIT - generalist channels, Licences granted to thematic channels, cable - thematic channels, and satellite operators and ISPs may cover the - foreign channels. repertoires of several societies: ADAGP, SACD, SACEM, S.C.A.M. The amount of royalties paid by each channel is split between these societies according to the level of the use of their ROYALTY SOURCE repertoire. Royalties collected from television or radio by cable, satellite, ADSL or DTT may include royalties from: - channels for their broadcasting activity; CALCULATING DISTRIBUTION - cable networks, satellite operators and Internet service providers (ISPs) for their programme offering; CALCULATION METHODS FOR - foreign CMOs for the broadcast of French ROYALTIES FROM TELEVISION channels in their territories.. CHANNELS Several operations are necessary before proceeding with the distribution of royalties from this broadcast sector. COLLECTING BROADCAST DATA Television/radio split: The first operation involves determining the share The channels provide monthly broadcast reports going respectively to radio stations and television for the works they schedule1. channels proposed by cable, satellite and ADSL ope- These monthly broadcast reports must be provided rators. A maximum of 3% is applied for the service within two months of broadcast of the programmes. providing access to radio stations for the operators When the broadcaster’s programmes are incom- proposing them: the remaining 97% go to broadcasts plete or lacking, SACEM must resort to using ad- by the television channels proposed. ditional data: - compiled by companies specialised in freelance programmes on thematic channels2;

1 - The list of channels concerned must be provided specifically for each royalty distribution from this sector. It can be consulted on the member page at createurs-editeurs.sacem.fr/en 2 - SACEM calls on companies specialised in audiovisual and musical freelance work to obtain the broadcast data necessary for distribution. 3 - Except commercials broadcast only on thematic and/or DTT channels. See “Special Rules’, p.10. 4 - For background music, the data considered are those from broadcast notifications from national television channels for the last four distributions. 5 - The amount of royalties for a work in the context of processing a broadcast report can in no case exceed what would have been received had the royalties collected for the channel on which it was broadcast been distributed on the basis of detailed broadcast reports.

9 Allocation of royalties to each channel: SPECIAL RULES APPLICABLE TO ALL Royalties from cable networks, satellite operators and CHANNELS Internet service providers (ISPs) for their programme offering are split as follows: Commercials - The share for each channel is calculated based Distribution conditions for music broadcast in com- on audience ratings provided by Médiamétrie mercials depend on the information received from (Médiamat’Thématik). channels or their agents, and the quality of the data. - The amount thus obtained is valorised by a Distribution is made on the basis of these data when coefficient which varies according to the nature their quality makes this possible with no extra cost for of the channel: COEFFICIENT 1 for thematic processing. channels with little musical content (e.g.: Otherwise, the data taken into account are from broad- Eurosport, iTele, Public Sénat, etc.) and national cast reports provided by national television channels channels (e.g.: TF1, France 2, etc.). for the last two distributions preceding the distribution COEFFICIENT 2 for thematic generalist channels of royalties from cable, satellite, ADSL and DTT chan- (e.g.: W9, RTL9, France 4, etc.). nels. COEFFICIENT 4 for thematic channels with For music used in commercials broadcast exclusively high musical or audiovisual content (e.g.: MCM, on cable, satellite, ADSL and DTT channels which do Ciné+, Gulli, etc.). not provide complete data, 16% of the royalties allo- To the amount thus determined for each channel cated to commercials are set aside to remunerate these must be added royalties collected directly from musical works based on broadcast reports verified with those making these broadcasts and royalties from data communicated by an external service provider foreign CMOs for retransmission abroad of certain specialised in commercials tracking channels. Degression Degressive rates are applied to signature tunes and CHANNELS DISTRIBUTED INDIVIDUALLY background music, taking into account the total bian- - having a national audience; nual duration of each work broadcast in signature - providing detailed broadcast reports in a format tunes and/or background music. The conditions for which optimises automatic identification of the applying this degression are identical to those for works and their broadcast; royalty distribution on ‘historic’ channels. - Aggregating for their activity, a significant annual amount of royalties1. Introductory texts Distribution is based on the broadcast report A weighting coefficient of 0.125 is applied to introduc- for works supplied by the channel without tory or transition texts in entertainment programmes applying a genre or hourly coefficient, except with limited originality and entirely dependent on the for specific conditions for introductory texts programme in which they are broadcast. and the degression applied to signature tunes and background music. The value per minute of broadcasting result, for each channel concerned, from the ratio of the sums distributed and the DISTRIBUTION SCHEDULE volume in minutes of works from the SACEM repertoire broadcast. Annual distribution : - in july (for all broadcast in the previous years)

CHANNELS DISTRIBUTED BY FAMILY Channels not corresponding to the above criteria are classified according to the type of each channel within 6 families: Cinema and drama, Discovery, Youth, Generalist and News, Musical, Other. Royalties assigned to each of the 6 families are allocated according to the broadcast data collected for all these channels; this procedure yields a specific value in minutes for each of the 6 families of channels.

1. The minimum is €500,000 royalties a year, although the quality of the programmes on certain channels may make it possible to lower this threshold.

10 RADIO

Radio includes different sectors: COLLECTING BROADCAST − national radio stations in the public DATA sector (Radio France Group, RFI, ère 1 National radio stations in the public (Radio France Outre-Mer 1 , etc.) Group4, RFI, Outre-Mer 1ère, etc.) and private sectors − national radio stations in the private (Europe 1, RMC, RTL, Sud Radio, etc.) and FM networks sector (RTL, Europe 1, RMC, etc.) (NRJ, Nostalgie, Fun Radio, Virgin Radio, RFM, Skyrock, − networks on FM (NRJ, Skyrock, RTL2, Rires & Chansons, Chérie FM, MFM, RCI, Radio Fun Radio, etc.) Orient, etc.) provide monthly broadcast reports listing − radio stations in the Groupement des the works they schedule. They must transmit these monthly broadcast reports at the latest within two Indépendants (Ado, Vibration, Contact months of broadcast of the programmes. FM, etc.)2 For GIE Les Indés radio stations (regional stations), − local private radio stations SACEM considers, excluding all other information, the broadcast reports prepared continuously by Yacast from radio stations in the GIE5 with the largest audience and programming considering musical diversity ROYALTY SOURCE (French and international variety, pop-rock, RnB, dance, techno, etc.) in a representative way. These The amount of royalties to be distributed for each radio stations also report on programming of their radio station includes royalties from different specific repertoires (station identification and sources: broadcasts of local or regional artists). - Royalties collected from the radio station for its Local private radio stations (RLP) do not provide broadcasting activity. broadcast reports because of the practical difficulty, - Royalties collected from public places for them, of preparing them accurately and, for SACEM, broadcasting radio stations as background music. of processing them without disproportionately exces- These royalties are allocated according to the sive cost given the sums to be distributed. Similarly, radio stations’ ratings measured by Médiamétrie3. the diversity and large number of these radio stations - Royalties collected from cable and satellite make it hard to use survey techniques. operators for retransmission of radio stations in A few radio stations provide complete broadcast their programme offering. These royalties are reports: those belonging to the Ferarock and Quota6 allocated proportionally to their ratings during the groups. Moreover, some local private stations also reference distribution period. supply data on the broadcast of their musical station identification, jingles, etc. Finally, in order to do their best to reflect the diversity of programming featuring artists popular on the local INTERSOCIAL SPLIT scene, SACEM distributes royalties from local private When the licences granted to radio stations radio stations which do not provide detailed broadcast cover several CMOs’ repertoires (SACD, SACEM reports, on the basis of: and S.C.A.M), the amount of royalties paid by - data on the repertoires of local ‘Author-Compo- each radio station is split between societies ser-Performers’ (ACI)7 for whom there are setlists for according to the use of their repertoire. their concerts and performances, - data provided in SDRM licence requests for ‘self- production’8.

1 - These royalties collected from the Radio France Group are split among the different stations according to their individual budgets. 2 - L’Observatoire de la Musique revealed the importance of the hundred or so radio stations in the GIE Les Indés Radio stations, most of which are ‘leaders’ in their regions and their programming is representative of the diversity of the music offering on radio. 3 - 126000 Radio was developed by Médiamétrie to keep constant track regularly of the listening habits of individuals age 13 and up (more information at Hmediametrie.fr). 4 - France Inter, France Info, France Culture, France Music, France Bleu, FIP and Le Mouv’. 5 - To which must be added Radio Latina which reports on all the programmes of works it broadcasts. 6 - The same is true for the Arc-en-Ciel, Cristal, Néo and Païs radio stations. 7 - See the rules for ‘Live Music > Concerts, Performances’, p.27. 8 - See the rules for ‘Audio, audiovisual and multimedia > Phonograms’, p.13.

11 CALCULATING DISTRIBUTION - Broadcast reports provided by Ferarock and Quota. In this case, the value per second broadcast is deter- Royalties collected from radio stations with na- mined according to the overall duration of all the tionwide audience are allocated to broadcasts re- works concerned in the programming and the ported by these radio stations. amount distributed for these radio stations. Royalties collected from Radio France are allocated to the Group’s different stations on the basis of the bud- DEGRESSION get of each one. The broadcast duration of each work can be modified For GIE Les Indés radio stations (regional radio), all by degression rules based on certain specifics of the royalties collected from these stations are allocated broadcast. using broadcast reports supplied by Yacast and those Degression applied to music used for station identifi- relating to data on the programming of their specific cation and/or background concerns all radio stations repertoires. Only works listed in these broadcast re- and takes into account the total duration of the bian- ports are taken into account for the distribution of nual broadcast of each work used for station identifi- royalties from radio stations in this Group. cation and/or background music. For local private radio stations, all royalties collected from local radio stations are allocated: - 50% of the works broadcast by national radio sta- 1’’ to 112 500’’ no degression tions proportionally to their audience on the basis of Médiamétrie surveys; 112 501’’ to 225 000’’ 50 % - 50% on the basis of data SACEM uses to take into 225 001’’ to 450 000’’ 66,7 % account musical diversity and promotion of local repertoire. 450 001’’ and more 75 %

INTRODUCTORY TEXTS DISTRIBUTION PRINCIPLES Introductory or transition texts, with limited originality and entirely dependent on the programme in which Nationwide radio stations benefit from individualised they were broadcast are considered for 1/10 of the distribution. Royalties collected from each station are broadcast duration. distributed according to the broadcast duration of each work by the station. The basis for distribution is the broadcast duration of the work in seconds. DISTRIBUTION SCHEDULE GIE Les Indés Radio stations (regional radio) do not benefit from individualised distribution. The value per - in January (broadcasts in the first half-year second broadcast is determined according to the of the previous year) overall duration of all the works listed in broadcast - in July (broadcasts in the second half reports and the amount distributed from these radio of the previous year) stations. For local radio stations and to consider musical diversity and the promotion of local repertoires, SACEM takes into account: - Works from ACI setlists and SDRM licence requests relating to ‘self-production’ are assigned a lump-sum value1. To be selected, the works must be listed in an ACI setlist having yielded less than €100 in royalties or available as self-produced’ media with less than 2,000 copies over the reference half-year period corresponding to the period for which royalties from local private radio stations (RLPs) were distributed.

1. Approximately €15.

12 AUDIO, AUDIOVISUAL AND MULTIMEDIA RECORDS

PHONOGRAMS

These rules apply to the distribution of COLLECTING DATA ON THE royalties collected for the reproduction of WORKS REPRODUCED works in the SACEM repertoire on such media as CDs, vinyl records, etc. Producers provide for each recording: - The list of works reproduced and their respective duration in the recording. - Information on the number of recordings ROYALTY SOURCE manufactured or taken from stocks for a given period. Royalties linked to phonographic exploitation have se- - The selling price (the official wholesale price for veral origins depending on whether they are collected: retailers). - in the context of licences for reproduction granted on a ‘work by work’ (OPO) basis, such as ‘self-produced’ media; - from French producers having signed BIEM/IFPI or CALCULATING DISTRIBUTION CTPI independent producers’ model contracts; - in the context of phonographic central licensing The number of recordings produced or taken from agreements for sales in France, whether these stocks and the selling price determine the amount contracts are managed by SDRM or other CMOs. of royalties to be allocated to the protected works reproduced in the recording. Distribution then entails assigning to each protected work the share due proportionally to its duration on the recording. The amount allocated to the work is then distributed to the rights holders according to the distribution key for mechanical reproduction rights on the registration form filed with SACEM or in the documentation provided by foreign CMOs or sub- publishing contracts for foreign works.

13 DISTRIBUTION SCHEDULE Biannual distribution: - in January (sale in the first half-year of the previous year) - in July (sale in the second half of the previous year) Additional sums may be distributed in April and October with possible regularisation with producers. For licences granted on a ‘work by work’ (OPO) basis or a CTPI (independent producers’ model contract), distribution is quarterly: - in January (sums collected in the third quarter of the previous year) - in April (sums collected in the fourth quarter of the previous year) - in July (sums collected in the first quarter of the current year) - in October (sums collected in the second quarter of the current year)

VIDEOGRAMS CALCULATING DISTRIBUTION FILMS, TV FILMS OR TV SERIES

These rules apply to the distribution of Musical works royalties collected for the reproduction of Distribution entails assigning a relevant share to each musical work proportionally to its duration in the film, works in the SACEM repertoire on media TV film or series. as DVD, CD-ROM, etc. These rules concern different categories of Dubbing and subtitling audiovisual works: SACEM also represents the authors of dubbing texts - films, TV films, TV series and subtitles for films, TV films and series. Thus, it - documentaries, institutional films collects and distributes an addition share, independent of sums collected for musical works. For DVDs, 80% of - capture of concerts and humour, video this additional share is distributed to authors of dub- clips, karaoke, etc. bing and 20% to authors of subtitles.

Bonus For the distribution of royalties between film, TV film COLLECTING DATA ON THE and series (main programme) and bonuses (trailers, WORKS REPRODUCED commercials, interviews, ‘making of’, filmography, etc.), royalty splits are made in proportion with dura- The producer of audiovisual media must specify for tion, with a maximum of 18% of the share assigned to each product: the bonus. - the type of media used; Thus, in all events, music in the main audiovisual work - the title of the product; on a DVD receives a minimum of 82% of sums collected - the duration of the recording; for this. - the original title of the film, series or documentary The distribution of royalties for dubbing and/or sub- and the French title for a foreign-language film, series titles in the main programme and the bonus is subject or documentary; to the same split. Inside, the sums allocated to dubbing - the list of works reproduced with their duration and and/or subtitles are as follows: 90% for those in French; the rights holders’ names. 10% for other languages.

14 DOCUMENTARIES, INSTITUTIONAL FILMS, Live recording of concerts and humorous LIVE CAPTURE OF CONCERTS AND shows, video clips HUMOROUS SHOWS, VIDEO CLIPS, ETC. SACEM also represents directors of music videos, Distribution entails assigning to each work in the comic videos, video clips, etc. In such cases, it collects SACEM repertoire the appropriate share proportional- and distributes an additional share, independent ly to its duration in the videogram. of that collected for the other works in the SACEM repertoire. Institutional films For the specific case of capture of humorous perfor- Musical works reproduced on institutional audiovisual mances2, the split of royalties between the perfor- media may also be uploaded to the sponsor’s Internet mance and bonuses is proportional to the duration, site and the licence granted in such cases takes this with a maximum of 10% of the share of royalties into account. In such cases, distribution concerns both assigned to the bonuses. When sketches reproduced the reproduction of works in the SACEM repertoire on in comic videos are entirely registered with SACEM, audiovisual media and those uploaded to the spon- the share for pre-existing music used in the main sor’s Internet site1. programme is calculated in proportion with duration with a maximum of 15%.

DISTRIBUTION KEY The amount allocated to a work is distributed to rights holders according to the distribution key for mechanical reproduction rights on the registration form or according to the documentation provided by foreign CMOs and the publishers representing these works in France.

DISTRIBUTION SCHEDULE Biannual distribution: - in April (sums collected in the second half of the previous year). - in October (sums collected in the first half-year of the current year). Special cases: • Music videos, comic videos and video clips in the context of centralisation contracts for licences for sales in France. Royalties are distributed in January (sums collected in the first half-year of the previous year) and July (sums collected in the second half of the previous year). • Institutional films Quarterly distribution: in January (sums collected in the third quarter of the previous year), April (sums collected in the fourth quarter of the previous year), July (sums collected in the first quarter of the current year) and October (sums collected in the second quarter of the current year).

1.See the rules for ‘Institutional films online and web reports, p.21. 2.The duration of ‘interactivity’ music illustrating DVD menus taken into account for distribution is limited to 2 minutes maximum per DVD.

15 VIDEO GAMES ON MULTIMEDIA

These rules apply to the distribution CALCULATING DISTRIBUTION of royalties collected for the use or reproduction of works in the SACEM The distribution of royalties collected for SACEM entails allocating for each work the appropriate share repertoire on multimedia (CD-ROM, game proportionally to its use and duration in the game. consoles, etc.). The sum allocated to the work is distributed to rights holders according to the distribution key for mechanical reproduction rights on the registration form. COLLECTING DATA ON THE WORKS USED DISTRIBUTION SCHEDULE Producer of multimedia recordings must specify for each product: Quarterly distribution: - the title of the product; - in January (sums collected in the third - the type of media used; quarter of the previous year) - the list of works reproduced, with all the data on their - in April (sums collected in the fourth quarter use in the game and the rights holders’ names. of the previous year) - in July (sums collected in the first quarter of the current year) - in October (sums collected in the second quarter of the current year).

16 INTERNET

These rules apply to the distribution of ‘LOCAL’ LICENCES royalties collected from legal online music As an exception to the above provisions, licences services. granted to operators with no cross-border activity or National and pan-European platforms, most of whose activity remains limited to SACEM ter- Internet sites in general and web ritories will continue to be granted, as in the past, for these territories alone and for all repertoires. radio stations in particular (Amazon, To this end, rights holders having withdrawn their on- Dailymotion, Deezer, iTunes, Spotify, line rights from CMOs will sign so-called ‘reaggrega- YouTube, etc.) have offers that may be tion’ mandates with SACEM, entitling our society to multiple: interactive or non-interactive represent them with local operators for their repertoire. streaming, download, access to works offline, etc. THE DIFFERENT SERVICES THE DIFFERENT LICENCES DOWNLOAD SERVICES These services allow for pre-listening and purchase ‘PAN-EUROPEAN’ LICENCES ‘work by work’ or ‘by album’ which become the buyer’s The European Commission recommendation dated property (iTunes, etc.). This category includes sites October, 18th 2005 on cross-border collective mana- providing for the download of videos and those provi- gement of authors’ rights/copyright and neighbouring ding their download in the form of products for custo- rights for legal online music services is at the origin of mising mobile phones (ringtones, ringback tones, a new management model for Internet rights. voice mail, etc.). Before that, CMOs collected royalties for the exploitation of all repertoires only in their own territory. Now, for operators with cross-border (pan-European) activity, the only royalties a society may collect and distribute are from repertoires for which it has obtained/retained representation for this purpose but it may do so over a much broader area territory than its own specific territory.

17 STREAMING SERVICES 3. For-pay interactive streaming services 1. Non-interactive streaming services For-pay services, most of them involving monthly These are web radios and Internet sites with back- subscriptions, enable consumers to access to list ground music provide free listening of works on the of works and choose which ones to stream online Internet with no interactivity, i.e. the possibility of or offline throughout the duration of the subscription choosing which works to listen to (Amazon, Napster, or for a limited period (Deezer, Apple Music, Spotify etc.). Premium, Netflix, etc.).

2. Semi-interactive streaming services 4. Free interactive streaming services Some sites offer limited interactivity, such as being These free services enable web users to access lists of able to interrupt streaming of a track to move on in the works and select those they wish to hear and/or view programme without being able to select the next one. with no offline access. They are funded in whole or in part by the viewing of commercials which generate revenue during streaming and/or viewing of the works (Spotify Basic, Deezer Basic, YouTube, etc.).

‘PAN-EUROPEAN’ OR ‘INTERNATIONAL’ INTERNET SERVICES

These rules apply to the distribution of COLLECTING DATA AND royalties collected from legal online music PROCESSING THRESHOLDS services whose activity is essentially cross- border or pan-European, whether on web These operators provide reports on the works down- radio or download or streaming platforms loaded, streamed and/or viewed in each of the countries covered by the licence on a monthly (iTunes, (Amazon, Napster, iTunes, Spotify, Deezer, Spotify, etc.) or quarterly (YouTube) basis using an Dailymotion, YouTube, etc.). international file format designed for this purpose. For all these operators, SACEM is present For so-called ‘by the act’ contracts (iTunes), the ope- in multiple territories (over a hundred rator also specifies the price charged to web users for for YouTube) but for a limited number of each download or streaming. In the other contracts, collection is global and based on the relative impor- repertoires (SACEM, UMPI, WIXEN, etc.) tance of the repertoire represented by SACEM. The which vary according to the mandates operator indicates only the number of acts relating to entrusted to it for each territory. each work and the associated advertising revenue.

SACEM’s Automatic Identification Engine proceeds with the identification of the works registered in the files, regardless of the number of times they are downloaded, streamed or viewed. Nonetheless, for all works not automatically reco- gnised, SACEM proceeds with manual identification only above a threshold which takes into account the cost of the operations to be undertaken in relation with the sums to be allocated to the work and its rights holders.

18 CALCULATING 2. For-pay interactive streaming services DISTRIBUTION AND ROYALTY (Deezer, Apple Music, Spotify Premium, Netflix, etc.) SPLITS FOR PERFORMANCE Distribution, by operator(s), entails allocating to each AND REPRODUCTION work streamed the appropriate share of royalties according to the number of streams and/or views of this The split between public performing rights (DEP) and work. mechanical rights (DRM) varies with the countries. SACEM applies the following split: 25% of royalties are For collections made for the exploitation in countries collected for public performing rights and distributed other than its territories, SACEM applies the split com- according to the distribution key for this right, while municated by the CMO in the country concerned. 75% are collected for mechanical rights and distributed In SACEM territories, the splits are as follows: according to its distribution key.

3. Free interactive streaming services (Spotify DOWNLOAD SERVICES Basic, YouTube, etc.) Distribution, by operator(s), entails allocating to each Distribution, by operator(s), entails allocating to each work downloaded the appropriate share of royalties work streamed the appropriate share of royalties ac- according to the number of downloads of the work and cording to the number of streams and/or views of this the price paid by the web users (or the minimum fee work and monetisation data, if applicable. depending on the case) for each download. SACEM applies the following split: 50% of royalties are The share of collections for pre-listening of the work collected for public performing rights and distributed is included in the amount of royalties allocated to the according to the distribution key for this right, while work downloaded. 50% are collected for mechanical rights and distributed SACEM applies the following split: 10% of royalties are according to its distribution key. collected for public performing rights and distributed according to the distribution key for this right, while 90% are collected for mechanical rights and distributed according to its distribution key.1 DISTRIBUTION SCHEDULE STREAMING SERVICES 1. Non-interactive streaming services Quarterly distribution: (web radios) SACEM practises quarterly distribution Distribution, by operator(s), entails allocating to each after having received exploitation data from work streamed the appropriate share of royalties ac- operators and collected the royalties. cording to the number of broadcasts of this work and the resulting advertising revenue. SACEM applies the following split: 75% of royalties are collected for public performing rights and distributed according to the distribution key for this right, while 25% are collected for mechanical rights and distributed according to its distribution key.

1. See details of distribution keys, p.39.

19 ‘LOCAL’ INTERNET SERVICES

These rules apply to the distribution of OTHER LOCAL OPERATORS royalties collected from legal online music services whose activity is essentially For other local operators (web radios, download, streaming and/or viewing sites, etc.) with the obliga- national: web radios (except exact tion to register programmes, royalties are distributed reproduction on the web of existing using the same methodology as for comparable radio programmes), sites providing for ‘pan-European’ services. download and/or streaming of musical SACEM has a role, however, for all repertoires whene- works or illustration of online commercial ver it obtains mandates for reaggregating all these or non-commercial sites. repertoires. Distribution is individualised for each operator but its results are grouped by exploitation sector (downloads, streaming, mobile ringtones, etc.) on members’ PACKAGE RATES WITHOUT distribution reports. REPORTING PROGRAMMES Websites with background music: - Sites belonging to private individuals or local communities (<2,000 inhabitants). DISTRIBUTION SCHEDULE - Sites belonging to self-employed persons, Quarterly distribution: microbusinesses, liberal professions, non- SACEM practises quarterly distribution commercial cultural organisations. after having received exploitation data from - Sites belonging to local communities (2,000- operators and collected the royalties. 5,000 inhabitants) and associations. - Sites belonging to retailers, brands, commercial firms and local communities (>5,000 inhabitants).

Web radios run by associations or private individuals.

Package rates for single downloads and streaming. All these operators benefit from package rates in full discharge adapted to the situation of each of the types listed, with no requirement to provide registration statements. By analogy with background music in public places, which are also processed on the basis of lump-sum royalties and are not required to provide broadcast reports, these royalties are distributed by replenishing the catalogue of background music.

20 VIDEO ON DEMAND

These rules apply to the distribution CALCULATING DISTRIBUTION of royalties collected from sites either in exchange for payment by the act of Distribution entails allocating to each musical work used in the audiovisual work downloaded or viewed an permanent downloading of the audiovisual amount determined by: work of their choice (iTunes), or availability - the number of downloads of the audiovisual work for viewing for a period of 24 to 48 hours concerned, (Orange, Canal Play, TF1 VOD, etc.), or - the price paid by the web user for each download, in through a subscription which makes it the case of contracts ‘by the act’, available throughout its duration (Netflix, - the duration of the musical work in relation with the total duration of music in audiovisual work. Zive, etc.). For films, series and documentaries available with dubbing or subtitles, royalties are reserved for the authors of dubbing texts and subtitles. COLLECTING DATA ON WORKS DOWNLOADED OR VIEWED Video on demand providers must provide detailed biannual reports on all audiovisual works down- DISTRIBUTION SCHEDULE loaded or viewed with the number of downloads or Quarterly distribution: views relative to each one. SACEM practises quarterly distribution after having received exploitation data from operators and collected the royalties.

INSTITUTIONAL FILMS ONLINE AND WEB REPORTS

These rules apply to the distribution CALCULATING DISTRIBUTION of royalties collected for the use or reproduction of works belonging to the The distribution of royalties collected by SACEM re- quires allocating to each work the appropriate share SACEM repertoire in institutional films proportionally to the duration of use. accessible online or in web reports. The sum allocated to the work is distributed to rights holders according to the distribution key for mechanical reproduction rights on the registration form or ac- COLLECTING DATA cording to the documentation provided by foreign ON THE WORKS USED CMOs and publishers representing these works in France. The producer must give SACEM: - the title of the audiovisual work, - the URL address used, - the list of works reproduced, with their duration and the rights holders’ names.

21 INSTITUTIONAL FILMS DISTRIBUTION SCHEDULE Institutional films accessible online may also be reproduced on physical media, something which is taken Quarterly distribution: into account by the licence granted in such cases. In - in January (sums collected in the third this event, the distribution made for this includes both quarter of the previous year) the reproduction of works in the SACEM repertoire on - in April (sums collected in the fourth quarter audiovisual media and their availability online on the of the previous year) announcer’s website1. - in July (sums collected in the first quarter of the current year) - in October (sums collected in the second quarter of the current year)

VIDEO GAMES ONLINE

COLLECTING DATA ON THE WORKS USED DISTRIBUTION SCHEDULE Producers of interactive games must inform SACEM Quarterly distribution: of: SACEM practises quarterly distribution - the title of the game, after having received exploitation data from - the URL address used, operators and collected the royalties. - the list of works reproduced, with all the data on their use in the game and the rights holders’ names.

1. See rules for ‘Videograms > Institutional films’, p.15.

22 PRIVATE COPYING

AUDIO PRIVATE COPYING

The remuneration for audio private INTERSOCIAL SPLIT FOR copying is collected by the non-trading THE AUTHOR’S COLLEGE entity Copie France from manufacturers and importers of analogue and digital The sums collected for audio private copying cover recording media able to copy works. the repertoires of several CMOs (SACEM, SACD and S.C.A.M.). The amount of remuneration paid by ma- It is made up of 3 colleges each nufacturers and importers is split according to the represented by one or more non-trading use of the CMOs’ repertoires on the basis of surveys. entities: SACEM has entrusted SDRM to receive the share for - authors the authors’ college. - performing artists For audio private copying, surveys determine the intersocial split between CMOs. The nature of the co- - producers pies, audio recordings exclusively, reveal the impor- The fixed split between colleges (50% tance of SACEM repertoire. for authors and 25% each for performing Finally, each society must use 25% of the amounts artists and producers) is defined in Article received for actions in support of creation, the dis- L.311-7 of the Intellectual Property Code. semination of live performances and training for artists (Article. L.321-9 of the Intellectual Property Code).

23 PROCESSING OF To distribute for 18% of recordings made from radio ELEMENTS NECESSARY broadcasts, SACEM takes into account information from the previous half-year’s distribution for radio. FOR DISTRIBUTION Each work broadcast on these radio stations benefits on the one hand from audio private copying taking into SURVEYS account total broadcast time listed in the broadcast Article L.311-6 §2 of the Intellectual Property Code reports supplied by radio stations over the reference provides that the remuneration for private copying period. is distributed among rights holders, according to the private copies of each work. In order to respect this To distribute for 82% of recordings made from works obligation, Copie France undertakes surveys on the available through phonographic exploitation in France, nature of the copies made. SACEM takes into account information from the The surveys conducted by a specialised audience ra- previous half-year’s distribution of phonographic tings agency on behalf of Copie France keep SACEM royalties. Each work reproduced receives a share for informed on the sources of copied works, namely: audio private copying corresponding to the number of - radio broadcasts, times it was reproduced. A discount table applies for - commercial recordings. reproductions exceeding 100,000, thereby decreasing the difference in revenue for the works most and least exploited. CALCULATING DISTRIBUTION For SACEM, distribution is based on: - 18% for programmes broadcast on radio for which the sums for distribution are shared out between the different radio stations according to elements from surveys1, - 82% for the works used in phonographic exploitation in France.

DISTRIBUTION SCHEDULE Quarterly distribution: - in April (the sums collected for audio private copying in the second half of the previous year are distributed on the basis of distribution data for the first half-year of the previous year, radio, phonographic exploitation and downloads) - in October (the sums collected for audio private copying in the first half-year of the current year are distributed on the basis of distribution data for the second half of the previous year, radio, phonographic exploitation and downloads)

1. Results of a survey by a specialised polling Institute on individual audio recording habits.

24 AUDIOVISUAL PRIVATE COPYING

Remuneration for audiovisual private These two guilds along with many producers with copying is collected by the non-trading American films in their catalogues joined SACEM to entity Copie France from manufacturers obtain distribution of the remuneration for audiovi- and importers of analogue and digital sual private copying corresponding to these rights. recording media able to copy works. This remuneration, which is paid by SACEM for It is made up of 3 colleges each audiovisual private copying of American films and represented by one or more non-trading series, includes two distinct shares: entities: - the ‘music’ share, which is part of SACEM’s - authors standard distributions, the only difference being that these sums are distributed to producers; - performing artists - the ‘literary’ share, which concerns other rights - producers holders (producers, screenwriters and directors), The fixed split between colleges (1/3 is split between producers (50%) on the one hand each for authors, performing artists and and the guilds (50%) on the other hand. producers) is defined in Article L.311-7 of Finally, each society must use 25% of the sums received for actions in support of creation, the the Intellectual Property Code. dissemination of live performances and training for artists (Article. L.321-9 of the Intellectual Property Code). INTERSOCIAL SPLIT FOR THE AUTHOR’S COLLEGE

The sums collected for audiovisual private PROCESSING OF ELEMENTS copying cover repertoires of several CMOs NECESSARY FOR DISTRIBUTION (SACEM, SACD, S.C.A.M. and ADAGP). The amount of royalties paid by manufacturers and importers is split according to the use of these SURVEYS CMOs’ repertoires on the basis of surveys. Article L.311-6 §2 of the Intellectual Property Code provides that the remuneration for private copying is distributed among rights holders, according to the SACEM and ADAGP have entrusted SDRM to receive, number of private copies of each work. In order to jointly with SACD and S.C.A.M, the share going to the respect this obligation, Copie France undertakes authors’ college. SACEM receives the sum corres- surveys on the nature of the copies made. ponding to private copying of the works in its repertoire. The surveys conducted by a specialised audience SACEM also manages repertoire for other rights ratings agency on behalf of Copie France indicate that, holders. SACEM repertoire being made up of its in fact, most audiovisual private copies are made from members’ works, traditionally authors, composers television. Thus, SACEM uses programmes broadcast and publishers of music, for audiovisual private on television as the sole basis for distribution. These copying another category of members must be surveys, conducted ‘continuously’, give precise infor- added: producers of American films and the mation on copying by television channels and copies American screenwriters and directors guilds. for each genre in each channel: French, American and foreign (other than American) films; French, American American film producers hold rights: this concerns and foreign (other than American) series, variety rights for the music in American films (SACEM shows, sketches, concerts, etc. repertoire) as well as ‘literary’ rights for these film’s direction and screenplays. Regarding the ‘literary’ share, these producers have signed agreements on the split for the remuneration for audiovisual private copying with the DGA (Direc- tors Guild of America) and WGA (Writers Guild of America).

25 CALCULATING DISTRIBUTION - by considering the number of works and the Thus, the sums collected for private copying are duration of their broadcast (all valorisation allocated for works already distributed for broadcast coefficients for ‘genre’ and ‘time slot’ specific to on television: distribution for television are excluded, after polls - by channel1, according to survey results, demonstrated their irrelevance for private copying). - by genre specified in the surveys and having an equivalent in distribution for television (the remainder, which is minimal, goes to works, whose listed genres have no equivalent).

DISTRIBUTION SCHEDULE Quarterly distribution: - in April (the sums collected for audiovisual private copying in the second half of the previous year are distributed on the basis of distribution data for the first half-year of the previous year) - in October (the sums collected for audiovisual private copying of the first half-year of the current year are distributed on the basis of distribution data for the second half of the previous year)

1. So-called ‘historic’ television channels.

26 LIVE MUSIC

CONCERTS, PERFORMANCES

The following rules apply to the CALCULATING DISTRIBUTION distribution of royalties from: - concerts and performances with live As a general rule, royalty distribution for live is as music follows: - tours — artists and groups performing - Royalties for concerts, occasional performances, etc. are allocated to works on the broadcast report pro- in opening act for concerts and variety vided by the event organiser. galas - Royalties for a concert, performance, etc. organised - performances by author-composer- in the context of a permanent establishment are as- performers (ACI) and groups signed to detailed reports on the works performed - jazz concerts with improvisations proportionally to the royalties produced during the concert or performance or, otherwise, according to its relative duration. - Each work receives royalties proportional to its COLLECTING BROADCAST broadcast duration or, otherwise, the number of REPORTS shares assigned to it on registration in the SACEM repertoire3. Royalties collected from concert and tour organisers and permanent establishments1 offering Special measures apply however in the following cases: shows, concerts, galas, recitals, attractions, etc. with the participation of musicians, artists or orchestras are distributed according to broadcast reports2 provided by the organisers of these events or the managers of venues where these artists perform.

1. Nightclubs, casinos, hotels, bars, etc. 2. Pursuant to Article L132-21 of the Intellectual Property Code, ‘Show organisers are held to inform authors or their representatives of the exact schedule of performances and provide them with a justified statement of their revenue.’ 3. In compliance with Article 53 of SACEM General Rules appended to the Articles of Association.

27 Tours – artists or groups performing opening Electronic music performances acts of concerts and variety galas During occasional performances in discotheques Royalties collected for these different concerts in a or electronic music festivals, DJ-composers who are tour by an artist or group are allocated to a setlist of SACEM members remixing pre-existing musical works works performed. Those performed in opening acts for or their own compositions must provide SACEM with a concerts, variety galas receive no more than 10% of the certificate for the dissemination of ‘electronic music’ royalties collected. If the duration of the works perfor- with reference to a setlist of the works used. This med in the opening act does not exceed 10% of the certificate specifies the performance date, venue and duration of the show, this duration is taken into account duration. for the allocation of royalties. The amount of royalties for each performance is allocated to the setlist of works communicated by the Festivals DJ to SACEM. Royalties collected for festivals whose tickets are not The DJ, a composer who is a SACEM member, receives sold individually by artist are allocated to each artist or a share of 1/12 of the royalties collected for this contri- group on the basis of the budget for each scene. bution, the remaining 11/12 going to the works used.

Shows by author-composer-performing (ACI) and groups SACEM offers its members who are author-composer-performers or members of a group, when they perform the same programme in each concert, to provide a setlist of the works performed for a period they DISTRIBUTION SCHEDULE determine themselves. The setlist may be registered Biannual distribution: online by ACI SACEM members on their member page at - in January (sums collected in the first half-year createurs-editeurs.sacem.fr/en. They can also download of the previous year) a certificate and register the schedule of their performances (concert, show, ball, set, etc.). - in July (sums collected in the second half of the Each setlist is identified by a setlist number assigned by previous year) SACEM to the ACI. For each performance, the ACI fills in a schedule certificate (specifying the setlist number) to be delivered to the SACEM regional office for the performance venue or the organiser of the show to be transmitted to SACEM. This certificate allows to allocate royalties for the works on the programme.

Jazz concerts with improvisation To obtain the status of jazz improviser, composers who are SACEM members must submit to the Board of Directors a commercial recording of at least one of the improvisations. Composers who are SACEM members and have obtained this status receive one-third of royalties going to the original improvised work, the remaining two-thirds going to the rights holders of the original work.

To obtain this distribution, jazz improvisers must identify the works involving improvisation with the words “impro jazz” on the programme.

28 DANCING EVENTS WITH BANDS

These rules apply to the distribution For dances with bandleaders who are SACEM of royalties collected from organisers members of dances with bands (balls and dinner dances). Only royalties from such Royalties collected for these events are distributed on the basis of setlists provided by bandleaders each half- performances are taken into account for year which cannot include more than 60% of works of the application of these rules. Royalties their own composition. from other types of events which may include performances by bandleaders Bandleaders who are SACEM members may register including emceeing in discotheques online the setlist of works performed on their member page at createurs-editeurs.sacem.fr/en. They can also or casinos, entertainment, attractions, register the schedule of performances they will give. etc., are subject to the distribution rules applicable to live music performances , given their nature and the conditions of their organisation1. CALCULATING DISTRIBUTION If the duration of their performance remains unknown, pursuant to Article 53 of SACEM General COLLECTING BROADCAST Rules appended to the Articles of Association, DATA the works are taken into account according to the number of shares attributed to them with their Given the number of balls and dinner dances registration in the SACEM repertoire. organised every year and the practical difficulty for organisers to prepare accurately detailed broadcast For dances with bandleaders who are not SACEM reports and for SACEM to process them without members, the royalties collected are allocated to excessive cost for the amount of royalties, two works identified by the Music Department on the different methods are available to get the broadcast basis of half-year listenings. Each work performed data used as the basis for the distribution of receives royalties whose amount depends on the royalties from this activity sector. number of times it was identified over the period and the overall amount of royalties collected for For dances with bandleaders who are not these events. SACEM members Royalties collected for these events are distributed on For dances with bandleaders who are SACEM the basis of a maximum of 150 listening reports per members, the royalties collected are allocated half-year. To determine where to conduct listening, to works on the setlists provided by these SACEM uses a firm specialised in statistics and surveys bandleaders for balls in which they participated which, based on information on performances in the over the half-year. The amount of royalties half-year of the previous year, determine by region allocated to each work depends on the amount of and by amounts collected, the number of listening to royalties produced during these events. perform. Audio recordings of the performances made by SACEM staff are transmitted to its Music Department which identifies the works performed and draws up a report. These reports supply the broadcast data taken into account for distributing the royalties collected.

1. See the Rules for ‘Live Music > Concerts, Performances,’ p.27.

29 When the royalties collected for dances with After distribution, if a bandleader who is a SACEM bandleaders cannot be assigned to either category member observes that some of the dancing events (member/non-member) – in particular when it in which he/she performed have not been taken into was not possible to identify the bandleader – account, even though royalties were collected for the corresponding sums are assigned to both them, the ensuing regularisation cannot exceed the categories proportionally to their importance in amount of royalties that would have been distri- distribution for ‘dances with bands’. buted for these dances (including the provisions in the previous paragraph) if SACEM had been informed beforehand.

DISTRIBUTION SCHEDULE Biannual distribution: - in January (sums collected in the first half-year of the previous year) - in July (sums collected in the second half of the previous year)

30 DISCOS

PERMANENT AND MOBILE DISCOS

ROYALTY SOURCE Each report, made randomly, represents four hours a week per establishment. The royalties distributed are collected from discothe- The recordings are transmitted to the provider in the que managers and event organisers in mobile disco- form of IT files via a dedicated phone line. The provider theques. is committed to identifying a minimum of 95% of the works reported. The files containing the works broadcast are sent to SACEM every month. COLLECTING BROADCAST These broadcast reports are used for the distribution REPORTS of royalties for authors’ rights and neighbouring rights and have nothing to do with ranking (Club 40, Top Club France, DJ Top 100, etc.) whose purpose is completely PREMANENT DISCOS different. SACEM along with SPRE1 call upon a service provider2 For a given work, the number of broadcasts listed in to undertake a survey of broadcast reports from a the service ‘Consult your broadcast data’ accessible on panel of discos set by a polling organisation3. It must the member page on the createurs-editeurs.sacem.en take into account the diversity of musical repertoires site refers to the number of times the work is identified played for all permanent discos in France. in the context of this survey plan and in no circums- tances a total number of broadcasts of the work. This provider installs in discos selected by the polling organisation, an IT system for recording the played works. The panel is made up of 110 establishments: half of them will be polled the first week, the other half the following week and so on in alternation.

1. A society for the collection of fair remuneration made up of phonogram producers’ societies and CMOs. 2. Yacast 3. BVA

31 MOBILE DISCOS, DANCES WITH CALCULATING DISTRIBUTION RECORDED MUSIC The sums collected for fixed and mobile discotheques Given the large number of events organised with are added up. For each work, distribution takes into mobile discotheques and the practical difficulty for account the number of times it has been identified over organisers to prepare accurately detailed broadcast the half-year concerned and, pursuant to Article 53 of reports and for SACEM to process them without ex- the SACEM General Rules appended to the Articles of cessive cost for the amount of royalties, SACEM sets Association, the number of shares attributed to it when up a survey plan. Every year, 490 listenings (245 per it is registered in the SACEM repertoire. half-year) are undertaken by regional delegations to identify the titles of works and the duration of broadcast during three consecutive hours.

DISTRIBUTION SCHEDULE Biannual distribution: - in January (sums collected in the first half-year of the previous year) - in July (sums collected in the second half of the previous year)

32 PUBLIC PLACES WITH BACKGROUND MUSIC

In general, public places with background BACKGROUND MUSIC USING music make use of radio and television PROGRAMMES SUPPLIED BY A programmes or musical works reproduced SPECIALISED COMPANY Several specialised companies provide music on audio media. Some of them entrust the programmes: Mood Média, Cimax, Midis, Audiadis, supply of background music to specialised Radio Stationshop, etc. companies. The following rules concern Each specialised company provides SACEM the distribution of royalties from public a broadcast report for each music programme places using background music from works it provides its clients. reproduced on audio media or music programmes supplied by specialised companies. For background music provided CALCULATING DISTRIBUTION from radio or television programmes, please refer to the rules applicable to these media. BACKGROUND MUSIC USING WORKS REPRODUCED ON AUDIO MEDIA Royalties are collected from public places using background music. These royalties collected are grouped COLLECTING BROADCAST and distributed according to the following principles: DATA Each work reproduced on audio media with a minimum of 500 unit sales is registered for 10 years2 in a cata- BACKGROUND MUSIC USING WORKS logue of works that may be taken into account for the REPRODUCED ON AUDIO MEDIA distribution of royalties for background music; there The music providers in such establishments1 do not are some 800,000 different works in this Catalogue of supply broadcast reports given the practical difficulty Background Music (CMS). for them to prepare accurately detailed broadcast re- To be included in the distribution of royalties for back- ports and for SACEM to process them without incur- ground music, the works in this catalogue must already ring excessive cost for the amount of royalties or apply have had royalties distributed for concerts, occasional survey techniques which are hard to implement given performances and dances with bands or on radio. the heterogeneity and multiplicity of such venues. The amount allocated to each work results from the

1. Shops, cafés, restaurants, airports, railway stations, banks, bowling alleys, offices, telephone services, healthcare centres, clinics, hairdressers’, shopping malls, lobbies, hotels, hyper/supermarkets, retirement homes, libraries, museums, car parks, serviced apartments, waiting rooms, petrol stations, etc. 2. Even if it did not give rise to subsequent phonographic exploitation.

33 value of the royalties allocated to it in the previous BACKGROUND MUSIC PROVIDED BY biannual distribution for live music and/or the ongoing SPECIALISED COMPANIES radio distribution. The highest sum is the one selected Royalties collected from establishments using specia- to calculate this value. lised companies for providing musical programmes are With each distribution, over 150,000 different works distributed according to the data supplied by these are involved in royalty distribution according to these societies according to: modalities. - the number of different musical works, - the number of times each of these works are disse- minated, - the broadcast duration of each work as supplied by the company specialised in background music.

DISTRIBUTION SCHEDULE Background music using works reproduced on audio media Quarterly distribution: - in January (sums collected in the second quarter of the previous year) - in April (sums collected in the third quarter of the previous year) - in July (sums collected in the fourth quarter of the previous year) - in October (sums collected in the first quarter of the current year) Background music in public places with programmes provided by specialised companies Annual distribution: - in July (for all broadcasts in the previous year)

34 CINEMA

MOVIE THEATERS

The following rules apply to the SACEM collected royalties1 only for the works in its distribution of royalties from the screening repertoire, i.e. musical works used in the film and of films in cinemas. texts by authors of dubbing and subtitles for foreign films.

COLLECTING EXPLOITATION DATA CALCULATING DISTRIBUTION An agreement between FNCF and SACEM allows the The royalties (performing rights only) collected for CNC to provide information on the exploitation of a film are allocated for its exploitation in cinemas films in all cinemas. For each film exploited in France, per calendar quarter. the CNC sends SACEM a form including in particular Distribution entails allocating to each musical the: work the appropriate share proportionally to its - original title and the French title for foreign films, duration in the film. Several different situations are - name of the composer of the original soundtrack, possible: - length, - exploitation visa number, French film preceded by a short film - CNC code. - 18% of the royalties collected are distributed for musical works in the short film2. - 82% are distributed for musical works in the feature film.

1. Royalties from the collection of 1.50% (SACEM/FNCF agreement) on the ticket price, VAT and special additional tax excluded. 2. Article 9 of the Audiovisual Regulations appended to the SACEM General Rules.

35 Foreign film preceded by a short film - 18% of the royalties collected are distributed for DISTRIBUTION SCHEDULE the musical works in the short film. For foreign Quarterly distribution: short films, the authors of dubbing texts or - in January (sums collected in the third quarter subtitles receive 12.5% of this share1. of the previous year) - 82% of the royalties collected are distributed for musical works in the film, with the authors of - in April (sums collected in the fourth quarter of dubbing texts or subtitles receiving 12.5% of this the previous year) share1. - in July (sums collected in the first quarter of the current year) Foreign film with no short film - in October (sums collected in the second - 12.5% of the royalties collected are distributed to the quarter of the current year) authors of dubbing texts and subtitles1. - 87.5% are distributed for the musical works in the film.

CONCERTS RETRANSMISSION

The following rules apply to the CALCULATING DISTRIBUTION distribution of royalties from the concerts retransmission in movie theaters. Royalties are assigned on the basis of detailed reports on the works performed and retransmitted. Each work receives a share of royalties proportional to its broadcast duration. COLLECTING EXPLOITATION DATA An agreement with FNCF allows SACEM to collect royalties for exploitation in cinemas ‘excluding films’ DISTRIBUTION SCHEDULE (hors films). Biannual distribution: The royalties collected are distributed according to - in January (sums collected in the first half-year broadcast reports provided by the organisers of such of the previous year) retransmissions or the person responsible for the retransmitted concert. - in July (sums collected in the second half of the previous year)

1. Article 10 of the Audiovisual Regulations appended to the SACEM General Rules.

36 WORKS EXPLOITED ABROAD

By virtue of agreements signed with DATA TRANSMISSION foreign CMOs, SACEM receives royalties from these societies for works by its Data are transmitted to SACEM via an electronic format respecting the standards defined by CISAC including members exploited in their territory. the CRD format. These reciprocal agreements determine, in particular: - the category of rights (performing rights, mechanical rights, etc.), FILES - the type of genre concerned (music, These payment records provide data on how the work poetry, audiovisual, etc.), was exploited. More specifically, for audiovisual works: - the rights holders (author, adapter, the foreign title under which it was broadcast along composer, arranger, etc.), with the original title; and for phonograms, videograms - the management territories (a country and multimedia: the brand and catalogue number, the 1 or group of countries), number of copies made or sold , the country where they were sold and the value of the licence for a copy. - the frequency of royalties payment and sending of payment records including documentation of the works exploited in their territory and the sum allocated to DISTRIBUTION SCHEDULE the work. Biannual distribution: SACEM distributes royalties from foreign CMOs on a biannual basis, in April and October, according to the deadlines for the societies to provide exploitation data and the corresponding royalties. Consequently, it is not possible to specify the periods concerned.

1. When available and exploitable.

APPENDICES

DISTRIBUTION KEYS

Performing rights1 Royalties from public places with background For radio, television, concerts, dances and all perfor- music mances of works in public, the distribution key for a 69.5% of royalties go to performing rights and 30.5% work whose rights holders are SACEM members is sta- to broadcast mechanical rights. For public places using tutory and invariable: for published works, 1/3 goes to exclusively for background music television and/or the author, 1/3 to the composer and 1/3 to the publi- radio broadcasts, all royalties go to performing rights. sher. For unpublished works, all royalties go to creators, split equally between the author and composer. SPLIT OF PERFORMING RIGHTS AND Broadcast mechanical rights using recorded MECHANICAL REPRODUCTION RIGHTS media (radio, television, discotheques, public FOR ONLINE EXPLOITATION places with background music)2 For works broadcast in this context, the distribution Download services key for works whose rights holders are SACEM 10% of the royalties collected are assigned to perfor- members is also statutory and invariable. For a publi- ming rights and 90% to mechanical rights. shed work, 25% of royalties go to the author, 25% to the composer and 50% to the publisher. For unpublished Streaming services works, all royalties are distributed to creators, split Non-interactive streaming equally between the author and composer. This key 75% of royalties collected go to performing rights and also applies for private copying. 25% to mechanical rights. Interactive streaming Mechanical reproduction rights for recorded - Free offer: 50% of royalties go to performing rights media (phonograms, videograms) and 50% to mechanical rights. In this case, the distribution key is contractual: based - Pay offer (subscription or pay-per-stream and/or on the agreement signed between creators and, where pay-per-view): 25% of royalties go to performing applicable, the publisher of the work. It appears on the rights and 75% to mechanical rights. registration form.

SPLIT FOR PERFORMING RIGHTS AND BROADCAST RIGHTS USING RECORDED MEDIA

Television royalties 75% of royalties go to performing rights and 25% to broadcast mechanical rights.

Radio royalties 67% of royalties go to performing rights and 33% to broadcast mechanical rights.

Royalties from discotheques 80% of royalties go to performing rights and 20% to broadcast mechanical rights.

1. Article 9 §1 and Article 57 of the SACEM General Rules appended to the Articles of Association. 2. Article 9 §3 of the SACEM Articles of Association.

39 DISTRIBUTION SCHEDULE

Origin of royalties Collection period Distribution1

JANUARY, JULY, APRIL & OCTOBER

– Phonograms, ‘work by work’ licences and model 3rd quarter of the previous year January contract for independent 4th quarter of previous year April – Video games on multimedia or online – Institutional films on videograms or online 1st quarter of current year July – Web reports – Movie theaters 2nd quarter of current year October

2nd quarter of previous year January

3rd quarter of previous year April – Background music in public places using works reproduced on audio media 4th quarter of previous year July

1st quarter of current year October According to the payment date and delivery of – Internet data by operators

JANUARY & JULY

– ‘Historic’ television channels – Radio stations – Phonograms BIEM/IFPI standard and central licensing 1st half-year of previous year January agreements - Music share in music videos, comic videos and video clips in the context of phonographic central licensing agreements for sales in France - Concerts, performances - Dances with bands 2nd half-year of previous year July - Permanent and mobile discos and electronic music sessions - Concerts retransmission in cinema

APRIL & OCTOBER

- Videograms 2nd half-year of previous year April - Share for directors of music videos, comic videos and video clips in the context of phonographic central licensing agreements for sales in France - Audio and audiovisual private copying 1st half-year of current year October

According to the payment date and delivery of – Works exploited abroad data from foreign society

JULY

– Cable, satellite, ADSL and DTT channels – Background music in public places provided by Previous year July a specialised company

1. Current year.

40 PAYMENT SCHEDULE

Payment of the sums distributed is issued according to the planned schedule in Article 55 §3 and §4 of the General Rules appended to the SACEM Articles of Association. [...] The sums distributed are payable on the third working day at SACEM in January, April 5th, July 5th and October 5th each year. When the 5th of the month is a Sunday or a bank holiday, payment is made on the 6th of the month; it is made on the 4th day when the 5th is a Saturday and on the 7th of the month when the 5th is a Sunday before a bank holiday.

LIST OF ACRONYMS

ADSL CRD RLP Asymmetric Digital Common Royalty Local private radio Subscriber Line Distribution format station

ADAGP CTPI SACD Society of Visual Arts Model contract Society of Dramatic Authors for independent Authors and producers Composers BIEM International DGA S.C.A.M. organisation Directors Guild of Society of Multimedia representing America Authors mechanical rights societies DTT SDRM Digital Terrestrial Society for the CISAC Television administration International of mechanical Confederation of FNCF reproduction rights for Societies of Authors National Federation of authors, composers and Composers French Cinemas and publishers

CMS IFPI SPRÉ Catalogue of International Society for the background music Federation of collection of fair phonographic industry remuneration CNC French national center ISP WGA of cinematography Internet Service Writers Guild of Provider America Copie France Society for the OPO collection of Work by work remuneration for audio and audiovisual private copying

41 Photographic credits: couverture > Christophe Urbain pages 13, 23, 35, 37 > Marc Chesneau page 5 > Lionel Pages pages 17, 31, 33 > Guy Erwood - Cristian Nitu - Zhu Difeng 43 under number 775675739 number under (société civile) registered withtheRCS Nanterre Non-trading open-stock company www.sacem.fr/en +33 (0)14715 92 528Neuilly-sur-Seine Cedex 225 avenue deGaulle Charles of Music Publishers and Composers ofSociety Authors, SOCIETY OFAUTHORS, COMPOSERS AND PUBLISHERS OFMUSIC

BELLEVILLE - IMPRIMERIEBELLEVILLE SACEM 2017 - -DS IMPRESSION - 314201 - MARS SACEM 2017 - JULY 2017