Introduction
The MPO collects and disburses remuneration to music producers from many different areas where music and music videos are used. The funds that the MPO distributes are received from 1) music users based on agreements entered into by the MPO and 2) other management organizations (e.g. Copydan AV associations).
This overview aims to provide an overview of the revenue streams that flow through the MPO and out to the music producers. The overview shows on what basis the funds are received and how the funds are ultimately paid out to the individual rights holders.
Initially, the overview contains general information about which and how many funds are distributed by the MPO, which rights holders receive funds, how the funds are distributed and the onward settlement of artist royalties. Next, the overview contains a detailed mapping of the individual revenue areas.
At a glance
What funds does the MPO distribute?
MPO disburses funds in the following areas:
- Use of music and music videos by radio and TV stations
- Retransmission of radio and TV channels (Copydan Verdens TV)
- Use in education and cultural life (Copydan AVU)
- Private copying (Copydan KulturPlus)
- DR's archive materials (Copydan Arkiv)
- Music videos on VH1
- Music videos on Uptown TV and Klassisk
- Unallocable funds
Who receives funding from MPO?
As a starting point, MPO distributes remuneration to all music producers, regardless of whether they are members or not. In some areas where funds are received on the basis of direct agreements between music users and MPO, funds will only be distributed to music producers who are members of MPO at the time of distribution, unless the agreement has been entered into with a so-called agreement license, after which the funds are distributed to all relevant music producers regardless of membership of MPO.
How much funding does the MPO distribute?
Of the revenue received in the 2022 financial year, almost 90% relates to the same rights year. At the end of 2022, the 2022 funds amounted to a total of DKK 75.6 million for distribution to rights holders. Of this, revenue from the Copydan AV associations accounted for 69% of the revenue stream, while the remaining revenue came from MPO's direct agreements.
How are the funds distributed?
Incoming royalties are distributed on the basis of distribution keys determined by the Board of Directors and the General Assembly. The distribution keys are stated in MPO's distribution policy.
Should artist royalties be passed on?
Music producers pass on artist royalties in accordance with the agreement between the music producer and the artist.
Music producers have an obligation to pay remuneration on the direct agreements entered into by the MPO. As a starting point, this obligation also applies to mandate areas where other collective management organizations (e.g. Gramex and Copydan) conclude the agreements on behalf of the MPO.
In some areas, an agreement has been concluded with DMF and DAF on payment to artists, where the agreement replaces the music producers' royalty payments. However, this does not apply to international artists, as they are not covered by the payment under the agreement.
There is no royalty obligation in the classic Gramex and Copydan areas, where the organizations enter into agreements without a mandate (but with legal basis in the Copyright Act), as the artists themselves receive funds from the organizations in these areas.
Means
Radio and TV stations
MPO enters into agreements with and disburses funds for radio and TV stations' own use of music videos and music. The funds cover the use of music video on stream and on demand as well as the use of music on demand.
In the 2022 rights year, the funds in this area accounted for 35% of the MPO's total revenue received.
Distribution keys
The distribution of funds is based on a board-approved main distribution key. The key is based on a broad and representative basis by including TV and radio reporting, streaming service inventories and music video usage.
VAT
Funds are subject to VAT.
On-settlement
Music producers must generally on-settle artist royalties from the funds, unless otherwise stated in the agreement between the music producer and the artist.
For funds related to the use of music videos, MPO will pass on a share to DMF and DAF in accordance with the agreement between IFPI/MPO and DMF and DAF. The music producer must therefore not pass on remuneration to the artists for music videos, unless otherwise provided for in the agreement between the music producer and the artist.
Especially in relation to international artists
The share that MPO passes on to DMF and DAF for music video use only includes 1) performers who are signed to a Danish company and 2) performers who are signed to a company where the collaboration predominantly takes place in Denmark via an MPO member. Music producers must therefore pass on any music videoremuneration royalties to international artists themselves.
Overview
Other music users
On behalf of music producers, the MPO enters into agreements with music users other than broadcasters who use music and music videos. This includes use in private and commercial podcasts, in editorial videos, on websites, in B2B services with on-demand functions, etc.
In the 2022 rights year, the funds in this area amounted to 1% of the MPO's total revenue received.
Distribution key
The distribution of funds is based on a board-approved main distribution key. The key is based on a broad and representative basis by including TV and radio reporting, streaming service inventories and music video usage.
VAT
Funds are subject to VAT.
On-settlement
Music producers must generally on-settle artist royalties from the funds, unless otherwise stated in the agreement between the music producer and the artist.
Overview
Retransmission of radio and TV channels
MPO disburses funds for cable distributors' retransmission of radio and TV channels and digital TV services that include music and music videos. The funds are collected by the management organization Copydan Verdens TV, which enters into agreements with the relevant cable distributors. Copydan Verdens TV distributes the funds to MPO, after which MPO distributes the funds to the music producers.
In the 2022 rights year, the funds in this area accounted for 43% of the MPO's total revenue received.
Distributionkey
The distribution of funds is based on a board-approved main distribution key. The key is based on a broad and representative basis by including TV and radio reporting, streaming service inventories and music video usage.
VAT
The funds are not subject to VAT.
On-settlement
The artists themselves receive funds from Copydan Verdens TV, and the music producers are therefore not required to on-settle remuneration to the artists.
Overview
Use in education and culture
MPO distributes funds for the use of TV and film in education and cultural life, including music and music videos. The funds are collected by the management organization Copydan AVU, which enters into agreements with relevant educational institutions, museums and companies. Copydan AVU distributes the funds to MPO, after which MPO distributes the funds to the music producers.
In the 2022 rights year, the funds in this area amounted to 2% of the MPO's total revenue received.
Distributionkey
The distribution of funds is based on a board-approved main distribution key. The key is based on a broad and representative basis by including TV and radio reporting, streaming service inventories and music video usage.
VAT
The funds are not subject to VAT.
On-settlement
The artists themselves receive funds from Copydan AVU, and the music producers are therefore not required to pass on royalties to the artists.
Overview
Private copying
The MPO pays out compensation funds for private copying of music (traditionally referred to as "blank tape funds"). The compensation relates to the legal copying of music by private individuals on storage media such as computers, CDs, telephones, etc. The funds are collected by the management organization Copydan KulturPlus, which enters into agreements with the relevant dealers of the storage media. Copydan KulturPlus distributes the funds to MPO, after which MPO distributes the funds to the music producers.
Two thirds of the funds are distributed individually, while the remaining third is distributed collectively.
In the 2022 rights year, the funds in this area amounted to 16% of the MPO's total revenue received.
Individual funds
Distribution key
The distribution of individual funds is based on a board-approved distribution key. The key is based on a broad and representative basis by including TV reporting (), radio playtime inventories and streaming service inventories.
VAT
The funds are not subject to VAT.
On-settlement
The artists themselves receive funds from Copydan KulturPlus, and music producers are therefore not required to on-settle remuneration to the artists.
Overview
Collective funds
One third of the compensation funds for legal private copying must be used in accordance with section 39 of the Copyright Act to support purposes that are common to music producers. The MPO supports broadly aimed non-profit projects and initiatives via the "non-profit pool" as well as music production, international distribution, trade fair participation and other projects via the "application pool". is distributed via the MPO's support scheme to support purposes common to music producers. Read more here.
DR's archive materials
MPO disburses funds for DR's use of archival material that includes music and music videos. The funds cover DR's rebroadcasting and digital accessibility of cultural heritage material. The funds are collected by the management organization Copydan Arkiv, which enters into agreements with DR. Copydan Arkiv distributes the funds to MPO, after which MPO distributes the funds to the music producers.
In the rights year 2021 2022, MPO did not receive any revenue in this area due to ongoing negotiations with Copydan Arkiv on a new distribution key.
Distributionkey
The distribution of funds is based on a board-approved main distribution key. The key is based on a broad and representative basis by including TV and radio reporting, streaming service inventories and music video usage.
VAT
The funds are not subject to VAT.
On-settlement
The artists themselves receive funds from Copydan Arkiv, and music producers are therefore not required to on-settle remuneration to the artists.
Overview
Music video on VH1
MPO pays out funds for the use of Danish music videos on VH1. The funds are collected by the management organization Copydan Verdens TV (based on a mandate from IFPI/MPO). Copydan Verdens TV distributes the funds to MPO, after which MPO distributes the funds to the music producers.
In the 2022 rights year, the funds in this area amounted to 1% of the MPO's total revenue received.
Distributionkey
The distribution of the funds is based on VH1's reporting on the use of music videos and thus reflects the actual consumption.
VAT
The funds are not subject to VAT.
On-settlement
MPO on-settles a share of the funds to DMF and DAF in accordance with the distribution agreement entered into with DMF and DAF, among others. As a general rule, the music producer must therefore not pass on remuneration to the artists, unless otherwise provided for in the agreement between the music producer and the artist.
Especially in relation to international artists
The share that MPO passes on to DMF and DAF for music video use only includes 1) performers who are signed to a Danish company and 2) performers who are signed to a company where the collaboration predominantly takes place in Denmark via an MPO member. Music producers must therefore pass on any music videoremuneration royalties to international artists themselves.
Overview
Music video on Uptown TV and Classic
The MPO disburses funds for music video use on Uptown TV and Uptown Klassisk. The funds are collected by the management organization Copydan Verdens TV (based on a mandate from IFPI/MPO), which distributes the funds to MPO. Uptown and MPO disburse the funds to the music producers. The secretariat is working on - in the long term - managing the disbursement to all MPO members.
In the 2022 rights year, the funds in this area totaled 2% of the MPO's total annual revenue.
Distributionkey
The distribution of funds is based on Uptown's reporting of music video usage and thus reflects actual usage.
VAT
The funds are not subject to VAT.
On-settlement
Music producers must generally on-settle artist royalties from the funds, unless otherwise stated in the agreement between the music producer and the artist.
Overview
Unallocable funds
The MPO always strives to identify the individual rights holders so that the rights funds received are paid to the right music producers. Sometimes this is not possible if no rights holders have claimed the rights within a period of 3 years from the end of the financial year in which the relevant amounts were collected. These funds are categorized as "non-distributable funds", which means that the rightful right holders generally lose the right to claim the funds.
The non-distributable funds are redistributed within the same management areas from which they originate. If a management area related to the undistributable funds has ceased to exist, the Board of Directors may decide which current management area the funds should be allocated to instead.
The Board of Directors may also decide that a share of the individual undistributable funds is allocated to be distributed collectively.
The Board of Directors may also decide that a share of the undistributable funds, as needed, can be reserved and used to meet any claims that right holders may have or receive against MPO.
Distribution key
The funds are generally distributed according to the applicable distribution key within the administrative area from which they originate.
VAT
Whether the funds are subject to VAT depends on which region the funds originate from.
On-settlement
Whether to on-settle remuneration to artists depends on which area the funds originate from.