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 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
The MPO enters into agreements with and pays out funds for radio and TV stations' own use of music videos and music. The funds cover the use of music videos on flow and on demand as well as the use of music on demand.
In the rights year 2024, the funds in this area accounted for 38% of the MPO's total revenue received.
Distribution keys
The distribution of funds is based on a main distribution key adopted by the board. The key is based on a broad and representative basis by including TV and radio reporting, streaming service statements and music video use.
VAT
The funds are subject to VAT.
Onward settlement
Music producers must generally pass on the artist royalty of the funds, unless otherwise provided in the agreement between the music producer and the artist.
For funds related to the use of music videos, MPO passes 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 stated in the agreement between the music producer and the artist.
Specifically in relation to international artists
The share that MPO passes on to DMF and DAF for music video use only includes 1) performers signed to a Danish company and 2) performers signed to a company where the collaboration mainly takes place in Denmark via an MPO member. Music producers must therefore pass on any music remuneration remuneration 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 rights year 2024, 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 main distribution key adopted by the board. The key is based on a broad and representative basis by including TV and radio reporting, streaming service statements and music video usage.
VAT
The funds are subject to VAT.
Onward settlement
Music producers must generally pass on the artist royalty of the funds, unless otherwise provided in the agreement between the music producer and the artist.
Overview
Retransmission of radio and TV channels
The MPO pays out 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 the MPO, after which the MPO redistributes them to the music producers.
In the rights year 2024, the funds in this area accounted for 30% of the MPO's total income received.
Distribution key
The distribution of funds is based on a main distribution key adopted by the board. The key is based on a broad and representative basis by including TV and radio reporting, streaming service statements and music video usage.
VAT
The funds are not subject to VAT.
Onward settlement
The artists themselves receive funds from Copydan Verdens TV, and music producers are therefore not required to pass on 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 the relevant educational institutions, museums and companies. Copydan AVU distributes the funds to the MPO, which then redistributes them to the music producers.
In the rights year 2024, the funds in this area accounted for 2% of the MPO's total income received.
Distribution key
The distribution of funds is based on a main distribution key adopted by the board. The key is based on a broad and representative basis by including TV and radio reporting, streaming service statements and music video usage.
VAT
The funds are not subject to VAT.
Onward settlement
The artists themselves receive funds from Copydan AVU, and 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 called "blank tape funds"). The compensation relates to the legal copying of music made by private individuals on storage media such as computers, CDs, phones, etc. The funds are collected by the management organization Copydan KulturPlus, which enters into agreements with the relevant distributors of the storage media. Copydan KulturPlus distributes the funds to the MPO, after which the MPO redistributes them to the music producers.
Two thirds of the funds are distributed individually, while the remaining third is distributed collectively.
In the rights year 2024, the funds in this area accounted for 13% of the MPO's total income received.
Individual funds
Distribution key
The distribution of individual funds is based on a distribution key adopted by the board. The key is based on a broad and representative basis by including TV reporting (), radio playtime statements and streaming service statements.
VAT
The funds are not subject to VAT.
Onward settlement
The artists themselves receive funds from Copydan KulturPlus, and music producers are therefore not required to pass on remuneration to the artists.
Overview
Collective funds
One third of the compensation funds for legal private copying must be used in accordance with § 39 of the Copyright Act to support purposes that are common to music producers. The MPO supports broad 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". distributed via the MPO's support scheme to support purposes that are common to music producers. Read more here.
DR's archive materials
MPO disburses funds for DR's use of archive 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 the MPO, after which the MPO redistributes them to the music producers.
In the rights year 2024, the funds in this area accounted for 15% of the MPO's total income received.
Distribution key
The distribution of funds is based on a main distribution key adopted by the board. The key is based on a broad and representative basis by including TV and radio reporting, streaming service statements and music video usage.
VAT
The funds are not subject to VAT.
Onward settlement
The artists themselves receive funds from Copydan Arkiv, and music producers are therefore not required to pass on 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 the MPO, after which the MPO redistributes to the music producers.
In the rights year 2024, the funds in this area amounted to 1% of the MPO's total revenue received.
Distribution key
The distribution of the funds is based on VH1's reporting for the use of music videos and thus reflects actual consumption.
VAT
The funds are not subject to VAT.
Onward settlement
MPO passes on a share of the funds to DMF and DAF in accordance with the distribution agreement concluded with, among others, DMF and DAF. As a general rule, the music producer must therefore not pass on remuneration to the artists, unless otherwise stipulated in the agreement between the music producer and the artist.
Specifically in relation to international artists
The share that MPO passes on to DMF and DAF for music video use only includes 1) performers signed to a Danish company and 2) performers signed to a company where the collaboration mainly takes place in Denmark via an MPO member. Music producers must therefore pass on any music remuneration remuneration to international artists themselves.
Overview
Music video on Uptown TV and Classic
MPO pays out funds for music video use on Uptown TV and Uptown Classic. 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 rights year 2024, the funds in this area amounted to a total of 1% of the MPO's total annual revenue.
Distribution key
The distribution of the funds is based on Uptown's reporting for the use of music videos and thus reflects actual consumption.
VAT
The funds are not subject to VAT.
Onward settlement
As a general rule, music producers must pass on the artist royalty of the funds unless otherwise stated in the agreement between the music producer and the artist.
Overview
Unallocable funds
The MPO always strives to find the individual rights holders so that the rights monies received are paid to the right music producers. Sometimes this is not possible if no rights holders have claimed the rights within 3 years from the end of the financial year in which the amounts in question were collected. These funds are categorized as "non-distributable funds", which means that the rightful rights holders generally forfeit 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 to which management area the funds are to be allocated 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 required, may 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 the area from which the funds originate.
Onward settlement
Whether remuneration must be passed on to artists depends on the area from which the funds originate.