General principles for TONO's deductions from rights income (including "cultural assets") and any income from investment of rights income

Adopted by TONO's annual meeting on June 10, 2025.

1. General principles for deduction of administrative costs

TONO deducts an amount from the collected fee to cover its administrative costs. It follows from the Collective Management Act that the deduction cannot exceed TONO's justified and documented costs in connection with the rights management.

These costs include TONO's overall rights management activities, including licensing, settlement, works documentation, staff functions and daily operations.

The use of resources for the individual area and the associated processing shall be in reasonable proportion to the income in the individual area or the specific transfers.

The administrative costs are different for the different revenue areas. To reflect this, TONO may differentiate the deduction of administrative costs for different types of use and settlement areas, according to the cost level for the individual areas. This is stated in the annual transparency report.

2. General principles for deductions for cultural assets

a. Deduction for cultural funds

According to TONO's statutes §58, a total of up to 8 percent of TONO's net income is set aside each year for cultural purposes.

Deductions for cultural assets are not deducted from income from abroad, mechanical rights or private copying fees.

b. Distribution of funds

TONO's statutes, Section 58, state that the cultural resources shall be used as follows:

"a) 2/3 goes to the promotion of national musical cultural purposes through the group associations. In order to carry out tasks to promote Norwegian creative music and Norwegian musical works, as well as for other special purposes, the funds are distributed according to the following key: NOPA 45% – Norwegian Composers' Association 35% – Norwegian Music Publishers' Association 20%.
Before the amount is paid, the associations must provide a written account of the main features of how the funds will be used, and enclose accounts and annual reports for the last year. The board may request additional information before payment is made.

Control of the use of the funds falls under the control of the control committee, cf. Section 53 (5) c.

b) 1/3 goes to scholarship funds, of which 1/8 is distributed through the Norwegian Music Publishers Association's scholarship scheme and the remaining 7/8 through TONO.»