According to article 28 (1) Collecting Societies Act (VGG), CMOs are legally obliged to distribute their income under the following requirements adopted in the terms and conditions of Bild-Kunst in 2016:
- Proceeds must be distributed no later than nine months after the end of the financial year in which they were collected.
- If proceeds were received from a sister society, they have to be distributed within six months upon 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 copying royalties to its beneficiaries. The personnel resources required for this additional work were missing whilst processing the regular distributions.
- The newly introduced distribution schemes that are part of the new distribution plan first came into effect for the proceeds of the usage year 2017. They necessitated the implementation of developmental changes in the software and the introduction of new processes.
- In the second half of 2019, Bild-Kunst started a major project to renew its IT infrastructure. These works require the involvement of the software administrators, resulting in the reduction of the work hours invested in the current distributions.
Bild-Kunst is currently prioritising the 2018 distribution to film authors and film producers. In a first phase, the royalties calculated using the conventional VAT system are being paid. In both creation classes, i.e. cable retransmission and private copying, the total amount will be approximately 50 million EUR. Subsequently, the remaining funds for 2018 will be distributed. These will have to be calculated according to the new system.
Concurrently, the second part of the 2018 distribution for presentations of art is being prepared. The first part had already been distributed to beneficiaries of the professional group I in January 2020. The second part now relates to shares for which the new VAT system applies.
In addition, a resale right distribution is currently being prepared. Essentially, this will also benefit members of the professional group I and will be made under the new system.
Bild-Kunst intentionally prioritised the 2018 distributions for presentations of art and resale right because they are, from a technical point of view, the least difficult and are therefore well suited to be made according to the new distribution processes.
Please be advised that the implementation of the new software processes for distributions according to the new VAT system will take time. Thank you for your understanding. These processes are not trivial, and Bild-Kunst must guarantee that distributions are made correctly.
Overview of the distributions made since the beginning of the Corona crisis:
|19 June||Regular distribution for cable retransmission (image) 2018 for the professional group II amounting to 0.2 million EUR.|
|16 June||Regular 2018 distribution for periodicals (printed newspapers/magazines) for the professional group II amounting to 1.15 million EUR.|
|15 June||Regular distribution for the professional group II amounting to 1.9 million EUR. This relates to primary rights royalties. The distribution is spread over approximately 3,200 authors.|
|29 May||Regular 2018 distribution for websites for the professional group II amounting to 2.3 million EUR. This refers to two-thirds of the funds. The last third will follow once the “VAT” system conversion is completed.|
|18 May||Regular 2018 distribution for books for the professional group II amounting to 2.1 million EUR (public lending rights and analogue copying). This refers to two-thirds of the funds. The last third will follow once the “VAT” system conversion is completed.|
|27 April||Extracurricular distribution for the professional groups I and II amounting to 1 million EUR as a surcharge on regular distributions for 2016 and 2017.|
|20 April||Payouts of cable funds from Italy, Austria and Switzerland to film authors amounting to a total of 2.3 million EUR.|
|06 April||Extracurricular distribution 2008-15 amounting to 3.8 million EUR to more than 16,500 film authors, and a simultaneous distribution to film producers amounting to 220k EUR.|
|27March||Extracurricular distribution to more than 30,000 beneficiaries of the professional groups I and II amounting to approx. 11 million EUR. This was a surcharge on regular distributions for 2008-15.|