According to article 28 (1) Collecting Societies Act (VGG) CMOs are legally obligated to distribute their revenue under the following requirements adopted in the terms and conditions in 2016:
- Revenue must be distributed no later than nine months after the end of the financial year in which they were collected.
- If the revenue was received from a sister society, it has to be distributed within six months after receipt in accordance with Section 46 (3).
Whereas the payouts of the direct distributions (reproduction rights, resale rights, etc.) have been vastly on schedule, the payments of the distributions for collective rights (public lending rights, private copy royalties, etc.) have been delayed since 2018, due to the following reasons:
- In 2018, Bild-Kunst had to distribute substantial additional funds of private copy royalties to its beneficiaries. The personnel resources required for this additional work were missing whilst processing the regular distributions.
- The newly introduced distribution schemes, part of the new distribution plan, were adopted for the first time for the revenue distribution in 2017. Developmental changes in the software and the introduction of new processes needed to be implemented.
- In the second half of 2019, Bild-Kunst started a major project to renew its IT infrastructure. This work requires the involvement of the software admins, resulting in the reduction of the work hours invested in the current distributions.
The payout of the collective distribution for the year 2017 should have been made by September 30, 2018. Here unfortunately, the following significant delays occurred:
- PG I: The distribution for art presentations was disbursed in April 2019, the distribution for surcharge in September 2019.
- PG II: The distribution for websites was disbursed in February and March 2019, the distribution for books and periodicals in June and July 2019.
- PG III: The distribution for film creators was disbursed in November 2019, the distribution for producers in December 2019.
Due to the above-mentioned delays, unfortunately, the payout of the collective distribution for the year 2018 will be delayed as well, which should have been made by September 30, 2019. However, the administration has managed to reduce these delays:
- PG I: The distribution for art presentations (part 1) was disbursed during the week before Christmas. The distribution for surcharge (Zuschlagsverteilung) (part 1) is planned to be disbursed in January 2020. Part 2 of the before mentioned distributions can only be made if the value-added tax procedures for the proceeds of private copy royalties have been changed.
- PG II: The distributions PG II are currently planned for the end of the first quarter of 2020.
- PG III: The distributions are planned for the end of the second quarter of 2020.
In addition to these regular payouts of the collective distribution, Bild-Kunst already disbursed an extracurricular distribution for private copies (2002 to 2016) for PG III at the beginning of December 2019. The complementary subsequent distribution PG I / II will take place in February 2020.