It is the party who receives the signals and instigates distribution, i.e. who retransmits the signals, who is required to enter into the Music Agreement and pay remuneration to the rightholders. A “retransmitter” (or distributor) includes everything from a commercial signal supplier to a housing cooperative, co-ownership, residents’ association, hotel, company, social institution, prison, asylum centre, military unit, school, and so forth.

Channels with international distribution

Broadcasters aiming at international distribution clear most of the rights for their broadcasting and for retransmission in cable TV networks in countries that are covered by the channel’s (the satellite’s) coverage area.

Exceptions for music rights

There is an exception to this rule, however, for the rights of composers, lyricists, and music publishers. These rights are always only cleared for broadcaster’s home country, while retransmission rights must always be cleared in the country where the retransmission takes place.

In practice, therefore, the agreement with Norwaco will supplement the one that is entered upon directly with the relevant broadcasters or their representative in Norway.

Supplementary claim

In summer 2007 Norwaco submitted a claim for supplementary remuneration in addition to what is collected through the Music Agreement. The claim was submitted on behalf of translators (all

translation/subtitling), actors (involved in dubbing movies to Norwegian) and rightholders in movies and music videos. The claim is in effect from January 1, 2008.

In 2008 Norwaco sent out an agreement for payments on account for these supplementary rights for channels included in the Music Agreement. This agreement is in effect until remuneration has been established through negotiations with the distributors’ representatives or through a ruling from the Cable Dispute Commission. With payments on account, the financial burden on the distributors and their customers will not be so heavy when the final remuneration rate has been established. Payments on account are deposited in a separate bank account pending a final determination of the remuneration rate.

Supplementary remuneration for these channels is partly a result of new exclusive rights for performers and producers that were introduced in the Norwegian Copyright Act in 2005, and partly it is a claim for rights that the broadcasters have not cleared.

Music rates for 2010

Calculation of remuneration
The remuneration rates for TV channels included in the Music Agreement comprise composer's remuneration (to composers, lyricists and music publishers) and remuneration to performing artists and producers of phonograms for use of their sound recordings. The number of hours of music and use of protected sound recordings determine the remuneration for each channel.

* Where there is a discrepancy between the number of hours broadcast and hours transmitted by satellite, remuneration shall be calculated according to the retransmitted alternative.

Remuneration for 2010

* Indicates those instances where the rights are not covered by the agreement, cf. the agreement’s subsection 1, paragraph 4, and where the distributor is therefore not currently required to pay remuneration for the channel.

0,000 Indicates those instances where the broadcaster has stated that the channel does not use audio recordings, or only uses audio recordings where the rights have been prepaid.

(1) 24-hour satellite version.

(2) Local TV where TVN’s programme line-up is part of the broadcast.

New channels

The agreement will be supplemented with new channels that the cable networks wish to retransmit. Remuneration will only be demanded for those channels which the cable network actually retransmits and for which the broadcaster does not pay remuneration.

Settlement for the music rights

The broadcaster will in some instances pay the remuneration for the music rights, while in other instances, the cable network itself must pay the remuneration. The cable network needs an agreement with Norwaco in both instances in order to confirm that the rights have been cleared.

Norwaco asks the broadcasting companies every year whether they wish to pay the remuneration on behalf of their subscribers. Roughly half of the companies settle up this way, but the number varies and companies change their practice from one year to the next. It is therefore not possible to state in advance which channels the cable networks will not have to pay for, but this will be regulated by having the invoices only include those channels that the broadcasting companies do not pay for themselves.

Download the Music Agreement

The Music Agreement, and other agreements as well, can be downloaded from the Agreements and Reports section (Norwegian only): Avtaler og rapporter