A. General terms and conditions

1.   Remuneration for public transmission (Transmission), public performance (Performance) and mechanical reproduction (Mechanisation) payable by STIM, under the terms of its statutes and applicable affiliation contract, to copyright holders and music publishers, hereinafter referred to collectively as 'rights holders', shall be distributed in accordance with the following distribution rules. Distribution shall be effected diligently, correctly and without unreasonable delay.
 

2.   STIM's management assignment entails that STIM shall calculate and distribute the funds collected on behalf of rights holders deriving from the utilisation of the works which STIM represents. This calculation and distribution is based on established settlement areas. STIM strives to calculate and distribute collected funds to the greatest extent possible with the guidance of a music report document, which describes the repertoire which the user of music has utilised. It is possible that STIM, in exceptional cases, may be forced to calculate and distribute funds to rights holders on the basis of a statistical sample, in the event that the assessment is made that the total repertoire quantity can be representatively extrapolated from a selection of the repertoire. In the event that distribution information is lacking for an individual performance, and STIM does not expect such information to be forthcoming, or when the estimated cost for managing distribution information is deemed to be unreasonably high, distribution shall take place on the basis of an analogy. Distribution information from similar musical utilisation, or via supporting information which, through statistical compilation in general, may be considered to represent the utilised repertoire, is thus used to distribute the remuneration to the rights holders with consideration given to accuracy, cost-effectiveness and transparency.
 

3.   Distribution is primarily based on the areas for settlement established by the Board. When establishing these settlement areas, the Board shall consider the following criteria:

• The settlement area shall be defined in such a manner that this facilitates, to the greatest extent possible, a distribution which is considered relative to the utilisation of the rights which STIM represents.
• The settlement area shall be defined in such a manner that this facilitates, to the greatest extent possible, the application of transparent distribution principles and avoids ambiguity in the matter of to what the remuneration refers.
• The settlement area shall be defined in such a manner that this facilitates the administration of calculating and distributing the rights revenues collected for payment to the right holders.

4.   The nature of the utilisation of the music shall serve to determine how revenues derived from Transmission, Performance and Mechanisation shall be distributed to the relevant rights holders. The utilisation of the music is identified with the use of the distribution information determined for the respective settlement area. The distribution information for the respective settlement area is determined at all times by the Board.

5.   The amount available for distribution is determined for each settlement area after the deduction of administrative expenses.

6.   Distribution takes place on the basis of four settlement periods per year and, in accordance with these distribution rules, comprises two processes: the distribution process and the settlement process. The distribution process involves the distribution of the amount calculated as available for distribution in the respective settlement area for each identified musical work in proportion to the utilisation of the music or other parameter constituting the basis for licensing. This calculation is supported by music reports, or other supporting information approved by the Board pursuant to these rules, whereby the length of the utilisation and, in certain cases, the work's stated duration are considered, as well as the character of the Transmission/Performance.

7.   In the settlement process, the respective rights holders to the musical works for which remuneration has been registered are identified, and the allocation of the revenues takes place according the registered share of ownership for the musical work.

8.   In the event that information for distribution is lacking (music reports), or that STIM cannot identify the correct recipient, or that the utilisation of the music is so comprehensive that it would require an unreasonable amount of work for STIM to identify the rights holders in question, STIM reserves the right to calculate and distribute the established amount for the settlement area in the manner determined by the Board in accordance with these general principles for distribution.

9.   Payment to rights holders takes place according to STIM's settlement cycle for the settlement area, on the condition that there is no obstacle to payment. Under normal circumstances, STIM distributes remuneration on four payment dates per calendar year, even if remuneration for a given settlement area is not necessarily calculated and paid on each such date.

10.  An obstacle for payment is seen to exist when, for example, the total allocated remuneration falls below the minimum amount payable as determined by STIM, or if the shares of ownership in the work are disputed.

11.  The distribution of remuneration to music publishers presented in the general distribution keys below can be amended to lower percentages, on the condition that an application to do so is received from the music publisher.

With regard to remuneration for musical drama works based on a separate supplementary agreement between the affiliate and STIM, the distribution is determined on a case by case basis after consultation between STIM and the relevant parties.

12.  Remuneration to original publishers affiliated with STIM is payable when an agreement has been reached between the publisher and the copyright holder of a work with regard to the right to control a work, by producing copies thereof and making these available to the public (music publishing contract), on the condition that the agreement gives the publisher the right to remuneration for Transmission, Performance and/or Mechanisation.

In the event that the publisher has not, within the contractually stipulated time frame, fulfilled its obligation to make the work available to the public, the copyright holder is entitled to report this circumstance to STIM. Should it prove impossible to reach an agreement by any other means, the matter shall be referred to a tribunal appointed in the same manner as in the case of a dispute (refer to A.7, paragraph 2). This tribunal determines how both earned and future remuneration attributable to the work is to be managed by STIM. In the event that the tribunal's decision implies that the music publisher has not fulfilled its contractual obligation, and the publisher does not comply with the decision of the tribunal, STIM is entitled – by making deductions from the publisher's future settlements – to collect the requisite funds to provide compensation to the copyright holder for payment owed.

13.  In the event that an agreement between the copyright holder and the orderer of a musical work, known as an order contract, entails that the orderer receives the music publishing rights to the ordered work, the publisher shall not receive any settlement for the Transmission and Performance which is the subject of the order and which takes place in the course of the orderer's own operations. This rule is, however, only applied when a written notification of such a contractual relationship is received by STIM from one of the rights holders.

14.  Remuneration payable to a rights holder belonging to a foreign organisation with which STIM has a mutual agreement is calculated first as an amount payable to the respective organisation, which then, in turn, is responsible for distribution of the remuneration to its member rights holders.

15.  The term 'sub-publisher' in these rules refers to music publishers to which the original publisher has transferred its right to publish a musical work in a specific territory and during a specific period of time, including the right to receive the publisher's share of remuneration for Transmission, Performance and/or Mechanisation. The right to receive such a share of remuneration cannot, however, be transferred to a STIM-affiliated sub-publisher with regard to remuneration deriving from Transmission and Performance in Sweden, or Mechanisation referring to Sweden and applying to a work originally published by a Swedish publisher.

16.  In the event that an agreement on distribution contravenes STIM's statutes, distribution rules, affiliation contract or other specific provisions issued by the Board, or STIM/NCB's agreement with foreign sister organisations, the Board reserves the right to resolve on the application of the established distribution rules. A distribution of remuneration between the copyright holder and publisher established through a music publishing contract and the applicable distribution rules shall, however, unless otherwise agreed, remain applicable for the duration of the contract, even if the distribution rules were to be amended thereafter.

17.  In the event of a dispute regarding the share of ownership of a work, STIM reserves the right to hold the earned and future remuneration attributable to the work in escrow until such time as the dispute is resolved. If a rights holder wishes to demand that remuneration shall be temporarily withheld for a work, this demand shall be addressed to STIM in writing, providing references to the reason for the demand. STIM shall apply the regulations applying to disputes and disputed ownership shares at the time of the dispute. Disputes related to the interpretation and application of these distribution rules shall be referred for resolution to a special tribunal, consisting of the two Board members appointed jointly by FST, SKAP and Musikförläggarna and two impartial individuals with expert knowledge in the area to which the dispute pertains, specially appointed by the Board, and who may be Board members.

18.  It applies to both public performance (Performance) and mechanical reproduction (Mechanisation) that rights holders do not inherit each other’s shares of ownership simply because they own shares of the same work. This regulation does not affect a rights holder’s option to inherit another rights holder’s right to co-ownership of a work through inheritance or a last will and testament.

For co-written works, i.e. when music and lyrics are created for joint use, if a rights holder’s protection period expires, said rights holder may still retain his/her share of ownership and receive remuneration for this until the last deceased rights holder’s protection period expires.

For works that are not jointly written, the music and the lyrics are entitled to separate protection. At the expiry of the music’s protection period, the music is free, and the writers may not inherit the shares. At the expiry of the lyrics’ protection period, the lyrics are free and the composers may not inherit the shares.

If the music of a work that is not jointly written may be regarded as co-written by multiple composers and if one composer’s protection period expires, said composer may continue to retain his/her share of ownership and receive remuneration for said share until the last deceased composer’s protection period expires.

If the lyrics of a work that is not jointly written may be regarded as co-written by multiple writers and if one writer’s protection period expires, said writer may continue to retain his/her share and receive remuneration for said share until the last deceased writer’s protection period expires.

B. General distribution key for remuneration deriving from Transmission and performance

The distribution keys below specify a few main types of distribution and shall apply unless otherwise agreed pursuant to section D (Separate rules for free distribution of remuneration among rights holders) or pursuant to the music publisher’s registration pursuant to A.11.

The keys specified below for works in which the music or the lyrics are free indicate the distribution that applies if the shares of the work are already free when the work is created.

With regard to published works, the examples below refer to the original publishing only. For information regarding sub-published works, etc., see the provisions under B, notes 3 and 4.

• Note 1. In order to be eligible to receive remuneration for Transmission and Performance, the rights holder shall have reported their work in the manner prescribed by STIM.
• Note 2. Adapters of the work are entitled to receive a share of the remuneration for Transmission and Performance only if this has been consented to, in writing, by the rights holders. The share, in such cases, shall be set at a maximum of 25 % of the work. Adapters of a protected musical work receive their share from the remuneration payable to the composer, while adapters of protected text to a musical work receive their share from the writer's remuneration. For adaptations of a free musical work, with or without text, the adapter receives a share of 33.33 %. Adaptation – of both free and protected works – shall be reported to STIM and shall be presented on request.
• Note 3. In the event that a STIM-affiliated publisher acquires the right to publish a foreign work in Sweden through an agreement with a foreign publisher, and the terms of the agreement dictate that this STIM-affiliated publisher shall receive a share of the remuneration for Transmission and Performance as sub-publisher, a maximum of 50 % thereof, i.e. the maximum publisher's share, may be paid to the STIM-affiliated publisher in its role as sub-publisher, to the extent that this is consented to by the organisation representing the original publisher. With regard to a sub-published work, a total maximum of 16.67 % may, where applicable, be allocated to a STIM-affiliated adapter. The share of remuneration not payable to affiliates of STIM is allocated to the original publisher's organisation on this publisher's behalf, and to the respective copyright holders' organisations on their behalf. When fulfilling the role of sub-publisher, STIM-affiliated publishers are always required to disclose their obligations under the sub-publishing contract when requested by STIM, as well as the share of the remuneration for Transmission and Performance payable to them under the contract.
• Note 4. In the event that a STIM-affiliated publisher (original publisher) reaches an agreement with a foreign publisher (sub-publisher) regarding the granting or transfer of the right to publish a work made available by this STIM-affiliated publisher, a maximum of 50 % of the remuneration for Transmission and Performance shall be payable to these publishers together. A foreign adapter of a work is thus entitled to a total maximum of 16.67 % of the remuneration.

C. General distribution key for remuneration deriving from mechanisation)

The distribution keys below specify a few main types of distribution and shall apply unless otherwise agreed pursuant to section D (Separate rules for free distribution of remuneration among rights holders) or pursuant to the music publisher’s registration pursuant to A.11.

The keys specified below for works in which the music or the lyrics are free indicate the distribution that applies if the shares of the work are already free when the work is created.

With regard to published works, the examples below refer only to the original publishing. For information regarding sub-published works, etc., refer to the regulations under C, Note 3.

*) An adapter of a free work is also considered to constitute a composer

**) Composers/writers and publishers may agree on a different distribution, with a maximum of 50 % payable to the publisher.

• Note 1. Adapters of the work are entitled to receive a share of the remuneration for Mechanisation only if this has been consented to, in writing, by the rights holders. The share, in such cases, shall be set at a maximum of 25 % of the work. Adapters of a protected musical work receive their share from the remuneration payable to the composer, while adapters of protected text to a musical work receive their share from the writer's remuneration. For adaptations of a free musical work, with or without text, the adapter receives a share of 33.33 %. Adaptation – of both free and protected works – shall be reported to STIM and shall be presented on request.
• Note 2. In the event that a STIM-affiliated publisher reaches an agreement with a foreign publisher regarding the granting or transfer of the right to publish a work made available by this STIM-affiliated publisher, a maximum of 50 % of the remuneration for Mechanisation shall be payable to these foreign rights holders. However, a different arrangement may be agreed if specifically consented to by STIM. The portion of the remuneration contractually attributable to Sweden is distributed between the original rights holders to the work according to the general distribution key 2.

• Note 3. In the event that a music publishing contract refers to a foreign work, the STIM-affiliated sub-publisher is entitled to receive the entire share of the remuneration for Mechanisation to which they have the contractual right. If a work is recorded with Swedish text, the distribution of the share payable to the STIM-affiliated rights holders shall take place according to the agreement in place between the publisher and translator. With regard to the sub-publisher's obligations, refer to the applicable sections of the regulations under B, Note 3.

D. Separate rules for free distribution of remuneration between copyright holders

Copyright holders entitled to remuneration are entitled to conclude a separate agreement regarding the internal distribution of shares, deviating from the manner prescribed by the established distribution rules.

One prerequisite for such an agreement is that an agreement has been reached between all copyright holders entitled to remuneration. The party reporting the distribution of the work to STIM is responsible for ensuring that the information provided corresponds to the agreement reached between the copyright holders. STIM reserves the right to demand that the copyright holders sign, in person, the reporting of the work to STIM, in which the special distribution is stipulated, or that one of the music publishing contracts signed by the copyright holders entitled to remuneration, in which the distribution is stipulated, be presented to STIM.

The original publisher's share according to general distribution rules 1 or 2 or according to the music publisher's application pursuant to A.1, second paragraph, may not be affected by free distribution between the copyright holders.

E. Separate rules for distribution of remuneration from direct licensing of on-line services outside the Nordic and Baltic regions 

Regardless of the stipulations of STIM's distribution rules, STIM can, if approved by the original publisher, in order to facilitate the payment of remuneration deriving from direct licensing of on-line services outside the Nordic and Baltic regions for works in STIM's repertoire and which have a STIM-affiliated original publisher, allocate all remuneration to the STIM-affiliated original publisher for the publisher's share (both Mechanisation and Performance) which this original publisher has granted to one (or multiple) sub-publishers in each of the respective territories in question. Remuneration deriving from direct licensing of on-line services within the Nordic and Baltic regions is not affected by this addition.

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