Teosto’s distribution rules determine the principles on the basis of which we pay performance royalties. The distribution and division rules are approved by the association’s general meeting.
In a collective management organisation, such as Teosto, the distribution rule is one of the most important documents: it contains the principles according to which work-related data is processed, work distribution calculation is carried out and distributions are made to the rightholders.
Teosto’s new distribution rule entered into force at the beginning of 2022.
The aim of the distribution rule reform project in 2018–2021 was to make the document clearer and more understandable. In the new document, the regulations have been updated to correspond to the current legislation, and the decision-making related to the distribution has been clarified: for example, the distribution responsibilities of Teosto’s CEO and Board of Directors in terms of the distribution have been more clearly recorded. The terminology used has also been harmonised and a separate vocabulary has been attached to the distribution rule in order to improve the readability of the document.
The practice related to the arrangement shares has changed. In the new distribution rule, the criteria for the arrangement shares is recorded so that they correspond better with the regulations already previously in force. The new distribution rule specifies the section according to which the arranger’s share cannot be more than one-sixth for the remuneration distributed to the whole work (16.67%). If a larger share should be distributed to the arranger, the arranger must be entered as a composer.
On November 9, 2022, the Board of Teosto made a decision on the administration of grand right works. The decision was based on the mandate given in the Distribution Rules. It lays down respective case-specific licensing mandates of Teosto and rightholder. The decision entered into force on January 1, 2023.