Before we can distribute funds to copyright owners, we first need to know what has been copied.
If you want to understand how we report on what has been copied by licence-holders, you can read more about this on our 'Knowing what is copied' page.
Paying copyright owners
We represent publishers and authors whose works are copied under our licensing schemes and copyright clearance services operating in New Zealand. We also have mandate agreements with New Zealand publishers and reciprocal agreements with Reproduction Rights Organisations (RROs) overseas that provide the repertoire that can be copied under their licensing and clearance services.
Once we know what works have been copied and we have received all variations of licensing revenue, the funds are then held in different distribution pools ready for us to process.
Calculating the allocated amount
Distribution of funds are based on the copying records provided by our licence-holders and overseas RROs.
Funds are then allocated to copying records on a 'per page' basis by dividing the distribution pool by the total number of copy pages in the copying records. These are collected from each licence sector to calculate the page rate and then multiplying the copy pages for each record by the page rate:
Sector Distribution Pool $
--------------------------------- (divided by)
Total # copy pages
= Page rate X copy pages per record
The allocation of revenue from copyright clearance services is based on copying records provided by licence-holders.
For a full understanding of the distribution process, check out our Distribution Policy here.
The revenue we collect from licensing, after operating costs, is distributed to the owners of the works copied. A small percentage amount is deducted from the gross distributable funds we receive each year. These fees and costs are detailed in our Distribution Policy and vary based on a number of factors (eg. source of revenue, mandated/non-mandated etc). These fees are for operating costs incurred in the processing and distribution of revenue from copyright clearance services and overseas RRO's.
We also allocate 2% of revenue to the Copyright Licensing Cultural Fund and 1% of revenue to the Copyright Licensing Legal Reserve Fund from blanket licensing schemes.
For detailed information about our administrative charges and other costs, please read our Distribution Policy here.