Here is an explanation of how the royalties payable for various types of concert are calculated.
First, we need to solve two separate equations:
1: Concert points (a) * the duration of the work (b) / the duration of the concert (c) = work points (d)
2: Work points (d) * point value (e) * percentage in the work (f) = distributable amount (g)
a) Concert points
The first thing we need to know is how many points the concert has been awarded. The points depend on the licence fee that the customer has paid and correspond to the fee divided by the number of concerts, with the amount rounded up to the nearest NOK 100. The minimum points allocation is 1,000 and the maximum is 10,000. Please note that the number of concert points will be reduced in cases where the same performers have played four or more concerts at the same venue, when the starting point is the lowest points allocation, i.e. 1,000 points.
Example: If a total of NOK 1,750 in licence fees has been paid for a single concert, the number of concert points will be 1,800.
b) Duration of the work
The next thing we need to know is the length of time it took to play the work we are calculating the royalties for.
Example: From start to finish, it takes three minutes to play the work.
c) Duration of the concert
The last thing we need to calculate a points total for the work is the concert’s overall playing time.
If the concert’s overall playing time is less than 40 minutes, the reported works will be distributed as if the concert’s playing time is 40 minutes.
Example: The overall playing time of the concert is 40 minutes.
d) Work points
In our example, the number of work points is 1800 (a) * 3 (b) / 40 (c) = 135 (d)
If the sum is a decimal number, the number of points is rounded to a whole number.
e) Point value
The next thing we need to know is the point value in the licensed concert category. This is calculated on the basis of how much money is available for distribution in the category, divided by the total number of points. For performances in 2016, the point value was 1.56737
f) Percentage of the work
The last thing we need to know is the percentage of the work that falls to the individual rights holder.
Example: Your share of the work is set at 50 per cent.
g) Distributable amount
The distributable amount is therefore 135 (d) * 1.56737 (e) * 0.5 (f – your percentage of the work, converted into a decimal) = NOK 105.80 (g)
These are concerts for which, in principle, the customer is not required to submit a report due to a particularly low tariff (e.g. hotels and restaurants). In cases when members do submit reports for the performance of music at such venues, the concert is allocated 300 points by default. The rules otherwise follow the same principles as for licensed concerts.
These are concerts whose main repertoire TONO has, for reasons of cultural policy, decided to support with additional funds. The calculation is otherwise the same as for licensed concerts, with two exceptions:
1) The point value is higher, and 2) A reduction factor applies if the work has received distributions in the subsidised category two or more times previously.
For consecutive concerts with a performer in the subsidised category, performing the same repertoire for all these concerts, only the first two concerts will be distributed in the subsidised category. The following concerts will be distributed as regular licensed concerts.
Religious services and musical prayer meetings
In principle, religious services and musical prayer meetings receive a standard 1,000 points. From then on, the calculation is based on the same principles as for licensed concerts.