Changes in distribution for Common Tariff K and Z revenues

The CHF 20 limit for the distribution of revenues under Common Tariffs K (concerts) and Z (circuses) has been eliminated. As a result, amounts previously allocated to distribution category 4C will be otherwise regulated. The changes concern points 4.1, 4.2, 5.4 and 5.5 of SUISA’s Distribution Rules. Text by Irène Philipp Ziebold

Changes in distribution for Common Tariff K and Z revenues

SUISA has optimised its distribution rules for revenues from live performances. (Photo: Tabea Hüberli)

Revenues from CT K and CT Z had hitherto been allocated to two different distribution categories. Amounts over CHF 20 per work were allocated to DC 4B “Concerts and other performances with revenues of more than CHF 20 per work”. Distribution in this category was made on a per file basis. On the other hand, performance revenues of less than CHF 20 per work were allocated to DC 4C “Concerts with revenues of up to CHF 20 per work” and were then distributed on a flat-rate basis.

As is in the nature of flat-rate solutions which at best only approximate real circumstances, this practice did not always produce satisfactory results. In the case of DC 4C, a flat point value, calculated based on the revenues and programme information of all the events assigned to this distribution category, was applied.

Distribution based on actual usage is more advantageous

The flat point value actually applied could be higher or lower than the actual point value of an individual event. Therefore, it could happen that entitled parties would receive a higher amount than that actually paid by the organiser in respect of an event for which only the minimum fee under Tariff K had been paid. Naturally, the opposite was equally possible. The changes made in the Distribution Rules now eliminate the potential disadvantage or advantage for the beneficiaries of DC 4C.

In practice, these changes remove the CHF 20 limit and eliminate distribution category 4C altogether. Henceforth, all revenues from CT K and CT Z – regardless of amount or point value per work – will be allocated to and distributed in DC 4B. The rules for DC 4B itself remain unchanged; only the name of this category has been changed. It is now called: “Concerts & concert-like performances.”

The revenues previously allocated to DC 4C will henceforth flow into DC 4B as well. These consist in the allocations from revenues without programme information from Tariffs Hb, L, Ma, 3a, 7, 8, K and Z, as well as Tariff B revenues from orchestra consortia (with programme information).

Overview of changes in Distribution Rules

Here, in a nutshell, are the advantages of the changes in the Distribution Rules:

  • Even smaller amounts will be equitably distributed per file when programme information is available. This corresponds to a per-work distribution where the proceeds from an event will be distributed directly to the entitled parties.
  • Hitherto, only the entitled parties under DC 4C had the benefit of the above-listed allocations. Since both distribution categories (4B and 4C) relate to concert repertoires, there is no objective reason not to take into account DC 4B works in the distribution of allocations. Thanks to these changes, this will now be the case.
  • By introducing per-file distribution for all performances subject to Tariffs K and Z, settlement statements will be more transparent. Members will now be able to clearly see the make-up of their revenues from live performances under this Tariff.

The changes in the Distribution Rules will first be implemented in the September 2019 distribution.

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