DISTRIBUTION POLICY RULES 2017 — Society of Authors, Composers and Publishers of Music 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 broadcas- ting 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 (coeffi- cients 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.