Internal rules for the management and distribution of remuneration

Most recently changed by the Council of Representatives 30 November 2022.

The guidelines will in several instances
point to Kopinor’s by-laws

1 Introduction

These rules describe the general principles for the management and distribution of remuneration funds at Kopinor, cf. by-laws § 5–6, second paragraph, and rules as stated in the act of collective management of copyright. These rules can be changed by Kopinor’s Council of Representatives.

The Council of Representatives determines procedures for the distribution of collective remuneration to different categories of rightsholders, as a supplement to the internal rules. In addition, the board issues directives for the work done by the Distribution Committee, cf. by-laws § 7–3, third paragraph.

2 Distribution and payment

2.1 Remuneration to Norwegian rightsholders, individual data

Remuneration which can be tied to individual rightsholders based on usage information will be distributed individually by Kopinor. When relevant, the split between authors and publishers is fixed through a similar procedure as when the distribution of collective remuneration to different categories of rightsholders is determined, cf. section 2.2.

The distribution of funds shall be made without undue delay, at the latest nine months after the end of the year in which the funds were collected. The Board can set a minimum amount for payment. A rightsholder can however still claim payment of funds below this minimum amount.

If the correct recipient of the individual remuneration has not been located, information regarding the work in question is to be made available to all rightsholders represented by Kopinor, as well as the general public, as described in the collective management of copyright act.

2.2 Remuneration to categories of Norwegian rightsholders

When the Board considers that remuneration funds can not be tied to individual rightsholders based on information about usage, Kopinor shall conduct studies to establish a basis for distribution to those categories of rightsholders on whose behalf Kopinor collects remuneration. Distribution of these funds shall be made quarterly without undue delay.

For each remuneration area the Board determines, based on statistical surveys or other methods, the distribution split between Norwegian and foreign material and the distribution split between authors and publishers, unless this is a part of negotiations between representative member organisations. cf. by-laws § 6–7.

Based on statistical surveys or other methods, the Board will also determine the split of the remuneration into content categories approved by the member organisations, for use in the distribution of funds to these organisations. The member organisations enter into a distribution agreement following the procedures for distribution of collective remuneration decided by the Council of Representatives and according to by-laws § 7–3 og § 9–3.

Pending a distribution agreement, payment on account may be made on the recommendation of the Distribution Committee and after a Board decision. Such payments on account are contingent on possible refunds when the distribution process is concluded. The Board determines whether interest is added, and whether security should be provided for the amounts paid out.

Payments to a member organisation are done on the prerequisite that claims from unorganised rightsholders in that category shall be covered by the organisation in question. On the occasions that Kopinor make payments following such claims, the amount will be reclaimed from the relevant organisation.

2.3 Remuneration to foreign and Sámi rightsholders

Funds collected for foreign rightsholders are transferred to foreign organisations, according to representation agreements made with these. Payment is to be made as soon as possible, but no later than nine months from the end of the year the funds where collected.

Similarly, funds collected for Sámi rightsholders will be transferred to an organisation representing these through a separate agreement.

3 Undistributable remuneration

3.1 Remuneration for individual rightsholders

If the rightsholder, after repeated inquiries and announcements, has not been located within three years from the end of the fiscal year in which the funds were collected, the remuneration funds are redistributed to the member organisations based on previous years’ distribution.

3.2 Remuneration for unrepresented publisher groups

Remuneration funds for publisher groups not represented by Kopinor’s member organisations, is held back for three years to meet any claims. After three years these funds are considered barred and are put at the disposal of the Board, cf. cection 3.4.

3.3 Remuneration abroad  

Remuneration for rightsholders from countries where Kopinor does not have a representation agreement with a relevant organisation, as well as remuneration for works where the country of origin is not identifiable, will be held back for three years pending an agreement and to meet any claims. After three years these funds are considered barred and are to be at the disposal of the Board cf. section 3.4.

3.4. Barred remuneration

Remuneration funds that are barred, cf. section 3.2 and 3.3, are disposed by the Board for international solidarity work and for measures meant to strengthen the position of rightsholders and increase the understanding of copyright. Such funds may also be distributed amongst the member organisations based on previous years distribution. The Board sets the guidelines for the use of these funds and reports this use in the annual accounts.

4 Deduction from the remuneration

Kopinor may deduct from the payment to cover administration and operation costs. The level of these costs is determined by the Council of Representatives as part of the annual budget review. The final accounts are presented in the annual report.

5 Investment of funds

Questions of security, liquidity and yield are to be considered in connection with the placement of remuneration funds, and the placements are to be diversified to avoid disproportionate dependency and concentration of the portfolio.

Funds that are still to be distributed will preferably be placed with a low risk profile and for a short commitment period, mainly in the form of bank deposits, certificates of deposit and government bonds.

Long term surplus liquidity may be placed with a slightly higher risk profile in bond funds, combination funds or equity funds. Placement in bond funds has a time horizon of at least one year, while other long term investments have a time horizon of at least three years.

6 Risk management

The Board will annually consider an analysis of the risk and vulnerability attached to any relevant aspects of Kopinor’s operation, including risks concerning the investment of remuneration funds.