General principles for settlement in TONO

Adopted by TONO's annual meeting on August 28, 2024.

Distribution of remuneration

TONO shall distribute and settle the fees paid for the use of works that TONO represents.

Remuneration for performance, transmission (making available) and sound fixation (making copies) that TONO, in accordance with its articles of association and management contract, shall pay to the rights holders shall be distributed in a satisfactory and accurate manner in accordance with adopted distribution rules, and without unreasonable delay. Remuneration shall be distributed individually to the greatest extent possible. Registered work shares shall be used as the basis for settlement.

Distribution shall take place within defined settlement areas that, to the greatest extent possible:

• • Facilitates distribution that is related to the use of the rights TONO represents,
  • Facilitates transparent distribution principles and creates clarity,
  • Simplifies the administration of billing and distribution of rights revenue.

The net amount to be distributed within each settlement area is determined after administrative costs and cultural funds have been deducted.

Equal treatment

Equal use and equal matters shall be treated equally, regardless of corporate affiliation, voting rights, association affiliation or nationality.

Billing based on actual usage

Remuneration shall be distributed to rightholders to the greatest extent possible on the basis of the actual nature and extent of the use of the work based on a complete reporting basis. Where the duration of the use is known, it shall be taken as the basis. Where it is not known, the playing time of the work shall be taken as the basis. If it is also not known, a standard time shall be taken as the basis.

Representativeness

Remuneration earned in one area shall be allocated within the same area. The basis for settlement shall be based on complete reporting of the music performed. In cases where it is not practicable or is disproportionately costly to obtain complete reporting, one of two methods of allocation and settlement shall be used:

• • A statistical sample may exceptionally be used if a sample of the repertoire is considered to show the total repertoire in a representative manner.
  • Where distribution data is lacking, analogies are used based on distribution data from nearby music usage.

The basis for reporting that is representative, as well as changes and adjustments in the distribution of such remuneration, shall be decided by the board, taking into account correctness, cost-effectiveness and transparency. Representative factors in this context may be the nature and extent of the music use, or other parameters that have been the basis for the licensing.