How are percentages allocated between a work’s creators?
The creators of a work are free to agree upon a split which is then reported to TONO. If an agreed split is stipulated in the work notification submitted to TONO, that split will apply irrespective of the role the individual has played in the creation of the work.
Please note that the work notification submitted to TONO must reflect who has written the music and lyrics, not the performers when the work is performed or released. Although these may very well be the same people, e.g. in a band, it is important to keep the roles of creator and performer separate.
If no particular split is agreed, the Distribution Plan’s §15 applies. In that case, the role played by each contributor to the creation of the work is decisive.
According to the Distribution Plan, 100 per cent will go to the work’s composer(s) if it is a new and original instrumental piece. The percentages are allocated equally between the composers named in the work notification submitted to TONO.
If an original work contains lyrics, 50 per cent will go to the composer(s) and 50 per cent to the lyricist(s), according to the Distribution Plan.
If the work notification includes an arranger, the arranger(s) will receive 1/3 of the composer(s)’ percentage.
If the work notification includes a translator, the translator(s) will receive 1/3 of the lyricist(s)’ percentage.
The work notification must specify both performance rights percentages and mechanical rights percentages. Performance rights percentages govern TONO’s distributions with respect to, for example, concerts and radio/television broadcasts, while mechanical rights percentages govern NCB’s distributions with respect to, for example, CD releases and synchronisation royalties.
In general, work notifications normally specify equal allocations for performance rights and mechanical rights percentages.
Please note that for partially copyright-free works, the agreed split between protected rights holders may be applied only to the protected percentages. See Table II a and b, as well as Table III a and b in TONO’s Distribution Plan.
The income from Streaming services (e.g. Spotify, Tidal etc.) is distributed with a 70/30 weighing between the work’s performance shares (70%) and mechanical shares (30%).
Streaming of music is regarded to be an exploitation of both performing and mechanical rights. Most of the works will be registered with equal performance and mechanical shares, but if a rights owner is e.g. entitled to a 100% performance share and 50 % mechanical share, the rights owner will be payed out for a total of 85% share for the work:
(100 % * 70 %) + (50 % * 30 %) = 85 %
The income from Download services (iTunes etc.) is distributed with a 30/70 weighing between the work’s performance shares (30%) and mechanical shares (70%).
(Role codes used in work notifications to TONO: C = Composer, A = Lyricist, CA = Composer and Lyricist, AR = Arranger, SA = Translator).