Distribution rules

Chapter I // General provisions

§ 1 Remuneration for performances

(1) Remuneration that TONO claims during a calendar year for performances licensed by TONO, less deductions for costs and assignments as mentioned in §58 of TONO’s Articles of Association (hereafter referred to as “the Articles of Association”), shall be distributed among the works of music that have been performed, in compliance with the provisions of Chapter III of the Distribution Schedule.

(2) The amount for distribution that TONO receives from similar foreign societies for works of music performed abroad is distributed without deductions for costs and assignments, cf. §58 (3) of the Articles of Association.

(3) The amounts which, according to (1) and (2), are to be allocated for the individual work of music, shall be distributed among the rights holders in the work in accordance with Chapter IV of the Distribution Schedule.

§ 2 Remuneration for recordings

(1) Remuneration for recordings that TONO receives from societies as mentioned in (4) is distributed among the rights holders in the work of music in accordance with the provisions in Chapter IV without deductions for costs, cf. §58(4) of the Articles of Association.

(2) The term ‘recording’ is understood in the Distribution Schedule to refer to the transfer of works of music to a device that can reproduce works in sound, or sound and images, and the replication and distribution of copies of such works of music.

(3) The amount for distribution is based on the price of the phonogramme, the duration of the work of music relative to the duration of the phonogramme, and the rights holders’ shares in the work of music. As regards the performance of recorded (audio) works, see §6.

(4) TONO’s management of audio recording rights to works of music can be transferred to the Nordic Copyright Bureau (NCB) or similar societies in accordance with the contract in effect at any given time between TONO and the society in question.

§ 3 Rights management contract

(1) For a rights holder in a work of music to receive a share of the amount for distribution, the rights holder must either:
a) have entered into a rights management contract with TONO and, following notification of the work of music, have received approval of his/her rights in the work of music pursuant to the provisions in Chapter II, or
b) have signed a rights management contract with an organisation with which TONO has a reciprocal agreement.

(2) TONO enters into rights management contracts (cf. §6 of the Articles of Association) with
a) composers and lyricists;
b) adapters, arrangers and translators (sub authors);
c) music publishers and others who have been assigned publishing, performance or audio recording rights;
d) heirs or representatives of heirs of rights holders, as mentioned in a or b.

Chapter II // Notification and registration of works of music

§ 4 Notification of works of music

(1) The rights holder shall, as decided by the Board, submit notification to TONO of works of music in which the person in question has rights. A music publisher can submit notification of works of music on behalf of other rights holders. If notification has not been submitted at the latest in connection with the work of music being made available to the general public, or by a deadline set by the Board, the right to be included in the distribution for the year in question no longer applies.

(2) Notification should include the following information:
a) The work of music’s title and genre, number of movements and independent segments;
b) Rights holders in the work of music;
c) Estimated duration of the entire work of music and independent parts of it;
d) Additional information that is considered necessary.

(3) Where there is doubt about whether a work can be registered as being entitled to a share of the amount distributed, cf. §5(1), TONO is entitled to request a copy of the work of music in written and/or recorded format. In such case, where documentation is not provided within a reasonable period of time, the matter will be decided based on the existing information. The decision can be appealed to the Music and Lyrics Committee, cf. §17(2). Consent shall be obtained from all rights holders in the work before notification is submitted for the work. TONO may, at any time, require documentation to show that such consent has been given. Where it is not possible to establish contact with a rights holder and it must be assumed that the rights holder would have given consent, the administration can approve the work without such documentation. The decision can be appealed to the Music and Lyrics Committee.

(4) Consent as mentioned in (3), second paragraph, does not give the right to a share in the amount to be distributed for the music unless there is  written verification from the rights holder or from his or her publisher that such a share has been granted (see also §11(2), §12(2) and §13(5), first paragraph).

(5) Intentionally incorrect information provided in connection with the notification of a work of music may entail:
a) that the rights management contract is terminated, cf. §6(5) of the Articles of Association, and/or
b) that the person in question is fined up to NOK 10 000. The fine can be offset against any amount due or future claim for distribution.

(6) For rights in works of music managed by an organisation with which TONO has a reciprocal agreement, the provisions stipulated in the agreement and CISAC’s regulations shall apply.

§ 5 Registration of works of music

(1) Works of music for which notification has been submitted in compliance with the requirements in §4, shall be registered as entitled to a share of the amount to be distributed, unless:
a) the work of music is not managed by TONO because there is no rights management contract with any rights holder that has rights in the work;
b) the work of music is not copyright-protected in Norway;
c) the work of music is plagerised or by other means runs counter to the rights of a creator or a publisher;
d) the work of music is of such a nature that it cannot be incorporated into TONO’s repertoire.

(2) Where a rights holder in the work of music is specified as being someone who does not have a rights management contract with TONO or with an organisation with which TONO has a reciprocal agreement, the person in question should be urged to apply for a rights management contract if it must be assumed that the person in question satisfies the requirements for entering into such a contract.

(3) Once a work of music is registered, TONO shall inform the party submitting the notification about this and about what registration entails. Where a work of music cannot be registered pursuant to (1), the party submitting notification shall be notified of this and of the reason the work cannot be registered.

(4) Works of music managed by an organisation with which TONO has a reciprocal agreement shall be entitled to a share of the amount to be distributed, unless the work falls under (1) b, c or d.

Chapter III // Stipulation of the amount to be distributed for performances

§ 6 Distribution for performances

(1) All performance areas are divided into distribution areas by the Board, which determines the extent to which distribution in the different distribution areas, in addition to the performance time (cf. §7), shall depend on performance factor(s) (cf. §9(1)).

(2) Remuneration that is claimed but has no identifiable rights holders, as well as funds not falling into any programme, are distributed through the distribution areas determined by the Board.

(3) When the estimated amount to be distributed for the performance of one or more works in a performance situation stands in obvious disproportion to the paid-in remuneration, regardless of whether it derives from the relevant performance or because the remuneration is part of a joint agreement that covers many annual performances, it is the duty of the Distribution Committee to stipulate the remuneration for the performances in question.

(4) The Distribution Committee’s decision can be appealed pursuant to the rules in Chapter VII.

§ 7 Duration of the work’s performance

Where the actual time of the performance of the work has been provided, this shall be used as the basis for distribution. Otherwise, the playing time specified in the notification of the work will be used. Where the playing time mentioned in the latter case above is not specified in the notification of the work, a standard time shall be used.

§ 8 Programme reports

(1) Programme reports received from the relevant organiser are used as the basis of distribution. On the recommendation of the Distribution Committee, the Board issues rules about which programme reports are to be used as the basis for distribution. The programme documentation submitted may be supplemented by other statements or reports. Where there is no programme documentation at the time of performances on cable broadcasts from stations outside of Norway, up to 15% of the net remuneration shall be set aside for subpublishers after the deduction of assigments and costs as mentioned in §1(1).

(2) Where the rights holder intentionally provides incorrect information in connection with programme notification, the provisions in §4(5) shall apply correspondingly.

§ 9 Distribution areas

(1) The adopted performance areas are divided into distribution areas based on adopted performance factors, if any. The division into distribution areas, as well as the performance factors, are subject to amendment by the Board based on a recommendation from the Distribution Committee.

(2) Distribution for the individual works of music that TONO manages the rights for, and which are entitled to distribution pursuant to the provisions in Chapter II, shall take place only when an approved programme notification is found to substantiate that performances entitled to remuneration have taken place. Remuneration must also have been paid. Even if remuneration has not been paid, under exceptional circumstances, the Board may nevertheless grant distribution. This distribution must nevertheless not be estimated using a higher performance factor than the work of music would otherwise have received, and under any circumstances, not using a higher performance factor than the lowest category of concert group. In connection with special events where the box office goes to humanitarian causes, the Board may grant exceptions from the payment of remuneration. In connection with distribution for such events, the provision in the second paragraph, final sentence, of this point shall apply correspondingly.

(3) The Board stipulates the more detailed rules on the amount to be distributed within the distribution areas for the individual year, if need be, based on a recommendation from the Distribution Committee, cf. §16.

Chapter IV // Rights holders’ share of the amount to be distributed for the work of music

§ 10 General rules

(1) The creator’s share of the distribution for a work of music due constitutes the amount to be distributed for the work less the share, if any, allocated to the publisher pursuant to the provisions in §14.

(2) The composer’s share constitutes the creators’ share of the distribution for a work of music less the share, if any, allocated to other creators of the work of music pursuant to §§11, 12 and 13. When lyrics are set to music that is not copyright-protected in Norway, the composer’s share is generally 1/6.

(3) The rules for the distribution of the shares in the work of music apply unless a different distribution has been agreed among the rights holders.

(4) A rights holder is entitled to a share of the amount distributed once notification has been given for the work and it has been registered pursuant to §§4 and 5.

§ 11 The adapter’s share

(1) An adaptation is approved as entitled to a share of the distribution when it entails changing the original work to contain a significant degree of newly composed material, without losing the identity of the original work. Changes in the format of the original work, harmonisation  and/or instrumentation, etc., will be accepted as an adaptation only if the change is of an especially innovative nature.

(2) The adapter’s share constitutes 1/2 of the composer’s share.

(3) For the adaptation of works of music that are not copyright-protected in Norway, the Music and Lyrics Committee can stipulate the adapter’s share as the full composer’s share. For recordings, the adapter’s share is automatically increased to the full composer’s share.

(4) For the adaptation of works of music with copyright-protected lyrics, and where the lyrics follow the adaptation, consent is also required from the lyricist (author). §4(3), second paragraph, applies correspondingly.

§ 12 The arranger’s share

(1) An arrangement is approved as entitled to a share of the amount to be distributed when it contains elements of an innovative nature, but which do not significantly change the format of the original work, the harmonisation or the thematic/rhythmic material. The following changes to the original work do not qualify for an arranger’s share:
a) Additions or changes in dynamics, phrasing, ornamentation, fingering, etc.;
b) Simplifications, abbreviations or editing-related changes;
c) Transpositions or pure transcriptions;
d) Instrumentation of a non-innovative nature;
e) Other similar changes.

(2) The arranger’s share constitutes 1/3 of the composer’s share.

(3) For the arrangement of works of music that are not copyright-protected in Norway, when a work is recorded, the arranger’s share is automatically increased to the full composer’s share.

(4) For the adaptation of works of music with copyright-protected lyrics, and where the lyrics follow the adaptation, the author’s consent is also required. §4(3), second paragraph, applies correspondingly.

§ 13 The author’s shareOriginal lyrics 

(1) Authors of original lyrics get a share in the amount to be distributed for the work of music pursuant to §15, also when the work of music is performed/recorded without lyrics, cf. however, (2), (3) and (4).

(2) If the lyrics were written for already existing music, the author is entitled to claim a share only when the work of music is performed/recorded with the author’s lyrics.

(3) Where there are several sets of lyrics to the same work of music, the author’s share is given only to the author whose lyrics are performed/recorded. As regards translation (subauthorship), see (6), litra a and (7).

(4) Where a work of music with lyrics has been subject to approved adaptation or arrangement without the use of the lyrics, there shall be no share for the lyrics.

(5) The author’s share constitutes 1/2 of the creators’ share. Where lyrics are written for music that is not copyright-protected in Norway, the author’s share is automatically increased to the full creators’ share upon being recorded.

Translations and adaptations of original lyrics in the public domain

(6) As a general rule, the share for the use of lyrics that are not copyright-protected in Norway constitutes 1/6.
a. Translations (subauthorship) of original lyrics in the public domain
For the translation of original lyrics that are not copyright-protected in Norway, the sub author is granted the author’s share. Where neither the music nor the original lyrics are copyright-protected in Norway, the sub author’s share is automatically increased to the full creator’s share upon recording.
b. Adaptations of original lyrics in the public domain
For the adaptation (rewriting) of original lyrics that are not copyright-protected in Norway, the Music and Lyrics Committee may grant the author’s share to the person that has made the adaptation (rewriting). In cases in which the adapted lyrics are perceived as new original lyrics, the Music and Lyrics Committee may grant the full author’s share, see (5). Where neither the music nor the original lyrics are protected in Norway, the share for the adaptation (rewriting) is automatically increased to the full creator’s share upon recording.

Translations (subauthorship) of copyright-protected original lyrics

(7) Where a translation of original lyrics is approved by the original lyricist or his/her publisher, the sub author shall be granted 1/3 of the author’s share. For works of music that have been created or are assumed to have been created in cooperation between composer and author, the translation shall also be approved by the composer.

Interpretive renderings

(8) Interpretive renderings that are perceived as new and independent works of poetry can be approved as original lyrics by the Music and Lyrics Committee.

Works of music with great differences in the amount of the lyrics and music used

(9) For a work in which there is a great difference in the amount of the lyrics and music used, the rights holders can ask TONO for advice about the distribution between the music and the lyrics in the work. When larger parts of a work of music include music without lyrics, TONO can reduce the author’s share relative to the playing time of the music. Lyrics without music are normally not counted in the playing time.

The author’s share for the performance of dramatic musical theatre

(10) Even though there are performances of the work of music that qualify for remuneration, there is no author’s share for the performance of dramatic musical theatre when the author is a percentage-based co-worker in the musical theatre, or when he receives direct payment by other means. Where the lyrics are performed in a context other than dramatic musical theatre, or recorded, the author’s share is paid in accordance with the normal rules.

§ 14 The publisher’s shareA. Original publisher

(1) For a publisher to be entitled to a share of the distribution for a work of music, the publisher is required to have signed a publishing contract for the work of music in question with its creator(s). Where the publisher does not have a contract with all rights holders in the work of music, the party with whom the publisher does not have a contract shall receive his/her full share with a corresponding reduction in the publisher’s share. The composer and author of protected works can sign a publisher’s agreement jointly or separately. The share the publisher receives under TONO’s Distribution Schedule is to be based on such a contract, and cannot be taken from the publisher through publisher’s agreements that the adapter/arranger/translator signs with his/her publisher without the consent of the composer’s/author’s publisher. The publisher must also have a rights management contract with TONO or another organisation with which TONO has a reciprocal agreement, cf. §3.

(2) The publisher’s contract must grant the publisher the right to a share in the amount to be distributed for the work of music pursuant to this clause, and must grant the publisher both the exclusive right and the obligation to publish the work of music for the agreed period of time, as well as for the agreed geographical area.

(3) The publisher shall give notice of its rights in the work of music to TONO at the time the publisher’s share is to be allocated, cf. (4). The report is to be attached to a copy of the work.

(4) In connection with performance, the publisher’s share is allocated as from the year in which the work is published, unless otherwise agreed between the creator and the publisher. Such contracts are to be sent to TONO along with the notification of the work of music. In connection with recording, the publisher’s share is to be allocated as from the distribution period in which the contract was signed. Allocation of the share as mentioned can only take place when notice of the work of music has been submitted prior to completion of the distribution work for the distribution period in question.

(5) Publication is considered to have taken place when the work of music is presented in such a large number of printed/published copies that it is assumed to cover the need of the general trade, and in a form that makes it possible to perform the work of music as presented from the rights holder’s hand.

(6) The publisher’s share constitutes:
a) Performance: − Original work: 1/3 of the amount to be distributed for the work of music. − Adaptation of works of music that are not copyright-protected in Norway: 1/3 of the amount to be distributed for the work of music. − Arrangement of such works of music that are not copyright-protected in Norway: 1/6 of the amount to be distributed for the work of music.
b) Recording: − Original works, adaptations and arrangements of works of music that are not copyright-protected in Norway: 1/3 of the amount to be distributed for the work of music. − The publisher’s share can be increased to up to 1/2 of the amount for distribution when the creator and the publisher agree to do so (see (8)).
c) In works of music where only the lyrics are copyright-protected in Norway: − 1/6 of the distribution amount when the work is performed with the lyrics, and 1/3 of the distribution amount when the work is recorded with the lyrics.

(7) Where the publisher has a contract with the creator covering parts of a work of music, the publisher’s share is allocated only for those segments for which the publisher has contracts. The publisher can nevertheless be allocated a share of the entire work in the event the publishing contract states this expressly.

(8) Where the publisher has paid the rights holder in advance, the publisher can be paid the rights holder’s distribution share until the advance payment has been recovered. In such case, the rights holder and the publisher must notify TONO of this. Where the advance payment refers to specific compositions, the statement shall also include the titles of the compositions. TONO will continue to send distribution statements to the rights holder even though the advance payment has not been recovered. Once the advance payment has been recovered by the publisher, the publisher shall notify TONO. For countries in which NCB considers that special conditions apply, the Music and Lyrics Committee can give permission to derogate from these provisions.

B. Subpublisher

(9) For a subpublisher to be entitled to a share of the amount to be distributed for a work of music, the subpublisher must have signed a contract with the original publisher for the work of music in question. The contract shall  preferably be signed for a minimum of three years, and the subpublisher must be affiliated with TONO or an organisation with which TONO has a reciprocal agreement. The subpublishing agreement may either pertain to individual works or to so-called catalogue agreements.

Norwegian works subpublished abroad

(10) Based on a written agreement with the rights holder, a publisher can assign its rights under the publishing contract in whole or in part to a foreign subpublisher for specific territories and periods of time, cf. (9). In such case, the aggregate publisher’s share is increased to up to 1/2 of the amount for distribution for the work of music for the territory/period of time in question. Where the work of music is recorded in a new arrangement or translated lyrics are added in connection with subpublishing abroad, the aggregate shares of the original publisher and subpublisher can be raised to 2/3 under the agreement between the creator and the publisher. The assumption is that the share that goes to the arranger/translator in question is covered by the aggregate publisher’s share. In connection with advance payment from foreign subpublishers, upon recording (8), the same applies correspondingly.

Foreign works subpublished in Norway

(11) Foreign works of music that are subpublished in Norway and entitled to a share of the amount distributed are allocated the publisher’s share that has been approved by the relevant organisation with which TONO has a reciprocal agreement. Where the adaptation and arrangement of works of music that are not copyright-protected in Norway, or when only the lyrics are copyright-protected in Norway, the publisher’s share is allocated pursuant to TONO’s distribution rules, cf. §15, Table III a and III b, subpublished works.

Chapter V // The Distibution Committee and the Music and Lyrics Committee

§ 16 The Distribution Committee

(1) The Distribution Committee submits recommendations to the Board regarding:
a) changes in the performance areas, the distribution areas and any factors involved, cf. §§6 and 9;
b) items under §6(3);
c) other items deemed natural for the Distribution Committee to prepare for the Board of Directors;
d) amendments to the Distribution Schedule, cf. §21;
e) other matters as ordered by the Board, or that the Committee addresses on its own initiative.

(2) The Distribution Committee deals with appeals of the Distribution Department’s decisions relating to performances, cf. §19(2).

(3) The Board of Directors can assign the Distribution Committee the authority to take decisions that are final in certain cases. In such cases, decisions must be unanimous.

§ 17 The Music and Lyrics Committee

(1) The Music and Lyrics Committee states opinions and makes recommendations when so requested by the Board.

(2) The Music and Lyrics Committee handles appeals of the administration’s decisions as regards:
a) deciding whether Norwegian works of music for which notification has been submitted can be registered as being entitled to distribution, cf. §§4 and 5;
b) determining/adjusting the playing time of the works of music for which notification has been provided;
c) determining the shares of the adapter and arranger;
d) Taking other decisions not related to the performance, cf. §20(2), second paragraph.

(3) When dealing with works of music in which a committee member is a creator or music publisher, the person in question shall be recused. Likewise, a member of a committee shall be recused if there are other special circumstances that could undermine confidence in his or her impartiality. Decisions on the question of impartiality are taken by the Music and Lyrics Committee, without the participation of the committee member in question. Well in advance, the member shall report any factors that might make him or her biased. Before the issue is decided, a Deputy should be notified or called in to participate in the decision if that can be done without any significant waste of time or money. Decisions on cases involving doubts about legal competence shall be unanimous. In the case of dissent, the assessment shall be reported to the Board or the party designated by the Board, which will take the final decision.

(4) The Music and Lyrics Committee states opinions on questions involving music and lyrics that are submitted by the administration.

(5) If a rights holder so desires, the Music and Lyrics Committee can reevaluate cases in which the rights holders have asked TONO for advice about the distribution between the music and the lyrics in the work, cf. §13(11).

(6) The Board of Directors can assign the Music and Lyrics Committee the authority to take decisions that are final in certain cases. Such decisions must be unanimous.

Chapter VI // Documentation and distribution

§ 18 Documentation and distribution

All matters that involve specific documentation and distribution-related issues are initially dealt with by TONO’s administration.

Chapter VII // Appeals and corrections

§ 19 Complaints and appeals

(1) A decision taken by TONO’s administration, the Distribution Committee or the Music and Lyrics Committee can be appealed to TONO by a rights holder who is affected by the decision. The complaint must be lodged in writing, with attached documentation and by the deadlines mentioned below, calculated from the date on which the rights holder received notification of the decision. The body that adopted the decision being appealed can choose to reverse its decision.

(2) TONO’s administration takes decisions on a rights holder’s complaint about distributions and the like. The complaint must be lodged within six weeks after the distribution/notification has reached the rights holder. The administration’s decisions on complaints can, within three weeks, be brought before the Distribution Committee for appeal in matters involving performances, and to the Music and Lyrics Committee in matters that do not involve performances. In case of doubt, the Board shall decide which body is the correct appellate body. Within three weeks, decisions taken by the Distribution Committee or the Music and Lyrics Committee can be further appealed to the Board, which will hear and take a final decision on the matter.

(3) The time limit for filing a complaint on other decisions taken by the Distribution Committee or the Music and Lyrics Committee is six weeks. In the event the Distribution Committee or the Music and Lyrics Committee upholds its decision, the complaint is submitted to the Board, which will take a final decision on the matter.

(4) The author/sub author has the right of appeal only if the person in question is the sole protected creator of the work of music.

(5) Where the deadline is not met, the right of appeal ceases to exist.

(6) Where a rights holder has not given notification of a work of music to which the person in question has rights by the time the distribution work for the music report in question is completed, the right to appeal no longer applies for the performance in question, cf. §4(1), second paragraph. Where this has especially unreasonable consequences, the Music and Lyrics Committee may nevertheless submit an appeal to the Board, which will take the final decision in the matter, based on a recommendation from the Committee.

(7) Appeals from societies with which TONO has a reciprocal agreement are dealt with in compliance with the agreement in question and CISAC’s regulations.

(8) Where a rights holder is of the opinion that the distribution received from the society with which TONO has a reciprocal agreement cannot be correct, the query shall be submitted to the society in question.

(9) The grievance procedures that apply to the impartiality provision in §17(3) apply correspondingly insofar as appropriate. §20 Corrections (1) A correction made in response to a timely complaint from a rights holder shall take effect as from the distribution affected by the correction. If the original decision was based on incorrect or incomplete information provided by the rights holder, the correction will nevertheless enter into effect as mentioned in (2), first paragraph. (2) A correction based on one’s own initiative will take effect from the end of the distribution period that has yet to be completed when the correction is made. In special cases, and in particular when a mistake has been made on the part of TONO, the Board may, on the recommendation of the Music and Lyrics Committee, give the correction retroactive effect, but not for more than three completed distribution years.

§ 20 Corrections

(1) Rettelse foretatt etter rettidig klage fra rettighetshaver, får virkning fra og med den avregning som blir berørt av rettelsen.

Skyldtes den opprinnelige avgjørelsen at rettighetshaveren ga uriktige eller ufullstendige opplysninger, får rettelsen likevel virkning som nevnt i (2), første avsnitt.

(2) Rettelse foretatt av eget tiltak får virkning fra den avregningsperiode som ikke er avsluttet når rettelsen foretas.
I spesielle tilfelle, og særlig dersom det foreligger en feil fra TONOs side, kan styret etter innstilling fra musikk- og tekstfaglig utvalg gi rettelsen tilbakevirkende kraft, men ikke for mer enn tre avsluttede avregningsår.

Chapter VIII // Amendments, entry into force, etc.

§ 21 Amendments to the Distribution Schedule

(1) Decisions to amend the Distribution Schedule shall be taken by the general meeting. Such a decision requires the approval of at least seven-tenths of the votes cast.

(2) Amendments to the Distribution Schedule can be decided at the earliest at the Annual General Meeting in 2013, unless a quorum of the Board unanimously proposes something else, or a proposal for an amendment put forward by others (than a unanimous Board) is adopted unanimously by the general meeting.

§ 22 Entry into force and transitional provisions

* The Distribution Schedule was most recently amended by TONO’s General Meeting on 8 May 2010 (§§10, 12, 13 and 15), and applies in its current form to works for which notification has been given on or after 1 January 2011. Distribution for works for which notification was given up to and including 31 December 2010 will not change in response to these amendments.