Teosto's Annual Report 2013

Working for the love of music

Teosto Income Statement 2013

Teosto had a busy year in 2013. Performing right royalties collected by Teosto in Finland increased to EUR 50.3 million. Beyond this, EUR 9.2 million in performing right royalties and mechanical reproduction right royalties were collected through other organisations. In all, rightholders will be paid out EUR 52.3 million in royalties for 2013. In addition to fulfilling our mission and developing our services, we celebrated our 85th anniversary, updated our strategy and engaged in closer cooperation with our partners. We were also more closely involved in events and public debate in the music sector.

The means and technologies for creating and distributing music are changing rapidly. New alliances are the way forward for copyright administration. One of the most significant joint projects anticipating the future of copyright administration is Polaris Nordic, established by Teosto, Koda in Denmark and Tono in Norway. The distribution system developed in the project was first used for the December distribution. Cooperation will help us cut costs, enhance our operations and pay out more royalties to music authors and publishers. In the next step, Teosto and the other Polaris Nordic organisations will adopt the works database developed by the Swedish-British company ICE in 2015.

The mission of Teosto is to enable successful professional music-making in Finland. We wish to offer our music author and user customers services that are up to date, easy to use, useful and simple. We have entered into closer cooperation with Gramex, which represents performing artists and record producers, to ensure that in the future music licences will be available on the one-stop shop principle.

We also continued our cooperation with other partners such as the creative workers’ and entrepreneurs’ association Lyhty and the Copyright Information and Anti-Piracy Centre in Finland.

The year 2013 was also a year of international changes. The European Union adopted a new Collective Rights Management Directive, which introduces European-level ground rules to the administration of copyright organisations and to cross-border music licensing for online services. National implementation of this legislation will probably necessitate changes to Teosto’s operations.

In Finland, the ‘Järkeä tekijänoikeuslakiin’ (Put some sense in the Copyright Act) initiative prompted public debate on copyright.  While we are in favour of open debate, we feel that amending the Act as proposed in the initiative would complicate the development of digital services and make Finland a haven for international online piratism.  A joint statement by the creative sectors on the matter is on Teosto’s website.

In the year under review, we focused on our mission and explored the potential of music authors to become professionals. We surveyed interest in entrepreneurship among music authors, and the results show that young music authors in particular are keen to set up enterprises. However, they cannot convert their copyright royalties into business income for their enterprises. Together with our member organisations, we will be drafting a proposal for amending tax legislation to correct this matter.

We actively promote other solutions for promoting creative work. As part of the Pumppu project intended to facilitate success in music and to improve the operating potential of music authors, we launched a school project: well-known music authors go to music and Finnish classes and encourage pupils not just to play instruments but also to create their own music.

In March 2014, we relocated from Lauttasaari to the city centre of Helsinki. We are being joined by other music and AV organisations in our new building, Kampin Huippu. We will thus also be physically closer to our customers and partners.

Katri Sipilä, CEO