Distribution Scheme of the ZPÜ for Revenues as of 2018
I. BACKGROUND
On basis of distribution schemes the remuneration for the copying of works subject to remuneration for private or miscellaneous own use by use of suitable devices (e.g. PCs and mobile phones) or suitable storage media (e.g. hard disk drives or UBS flash drives) generated by ZPÜ pursuant to §§ 54 et. seq. UrhG will be distributed to the nine collecting societies holding ZPÜ after deduction of administrative expenses (cf. § 5 of ZPÜ articles of association).
ZPÜ distribution schemes do not represent the final stage of distribution to the beneficiaries but end with the distribution of a revenue share to the individual collecting societies. Each collecting society however, distributes the proportional revenue received from ZPÜ to the beneficiaries pursuant to its individual distribution scheme.
Since the reforming of the Copyright Law in 2008 (the so-called “Zweiter Korb” of the copyright law reform in the information society as of 01.01.2008) ZPÜ distribution schemes significantly base on empirical studies for the determination of the intensity of use of the products used for the processing respectively the storage of reproductions.
On this occasion since 2008 ZPÜ charged prestigious market research institutions (i.a. GfK, TNS) with overall 13 detailed empirical studies. More than 16.000 individuals participated in the latest survey so far in 2018, an online survey within the GfK consumer panel and answered questions on the use of overall 19 products for copying purposes.
The following describes the structure of the distribution schemes built on the results of these studies well representative of the population.
II. STRUCTURE OF DISTRIBUTION SCHEMES
Each of ZPÜ’s distribution scheme applies to concrete product groups and periods. To set up a distribution scheme it requires a resolution by ZPÜ shareholders. Revenues generated by ZPÜ for products of a concrete product group purchased in Germany within a concrete period will be distributed to the involved collecting societies in accordance with the ratio of distribution included in the respective distribution scheme.
The structure of the distributions for the years as of 2008 apply independent from product and period. The following comments on the systematics are a description of “the distribution scheme”. The ratio of distribution – meaning the percentage shares of the individual collecting societies on the total remuneration for the different products and periods - are also part of the distribution schemes. However, possible adjustments of the ratio of distribution for individual societies (e.g. for different products or in comparison with previous periods) only result from the application of empirical studies showing a changing user behaviour that differs depending on the product.
The first key factor of the distribution scheme is the total number of reproductions of certain types of work (e.g. music titles or movie films) subject to remuneration in the course of a concrete service life depending on the product group.
For example: The more music titles are copied with a mobile phone during its average service life, the higher the share of the total revenues generated from mobile phones for music creators and other music copyright beneficiaries
The definite number of copies will be valued in a second step considering two factors (playing time and evaluation factor) to generate comparability of values between the individual types of work in view of the fact that an individual copied music title cannot be equated with the copy of a movie film. Subsequently, the valuated number of copies can be proportioned. Thus, for each type of work valuated shares on the total copy volume of the considered product result.
In a third step for each type of work these shares will be divided between the entitled groups of beneficiaries (authors, copyright beneficiaries, performing artist and producers/event organizers) that are typically involved in the creation of works.
For example 50% of the shares attributable to music titles are distributed to music creators at GEMA and 50% to copyright beneficiaries at GVL (performing artists, producers and event organizers).
In Detail:
1. Product Groups
Each product group pools products that feature a similar use intensity in terms of the proportions of the types of work to one another. The following product groups have been defined on basis of the empirical studies’ results (latest update 2019):
|
PCs |
|
Tablets |
|
Mobiltelefone |
|
Hard Disks |
|
USB Sticks and Memory Cards |
|
External CD/DVD-Burners |
|
TV-Recorders |
|
Consumer Electronics Audio Devices |
|
MP4-Player |
|
Blanks |
2. Types of Work and Valuation
Within the scope of distribution ZPÜ pools different works in groups, so called types of work. For practical reasons in some cases, the empirical studies differentiate the individual works stronger within a certain type of work for when surveying the copying quantities. For example, the copies of individual music titles and the copies of complete albums are recorded separately and aggregated for the purpose of distribution in the type “music”.
Currently, ZPÜ distribution schemes base on empirically ascertained copying quantities for overall 11 different types of work:
A. Type of Work
|
Image and Text Works |
|
Music |
|
Audiobooks |
|
Audio-Podcasts |
|
Films |
|
TV-Shows |
|
Other TV Contents |
|
Video-Podcasts |
|
Musik Videos |
|
Pornographic Films |
|
Advertising Films |
B. Type of Work Valuation
For the purpose of comparability between those types of work, the definite numbers of copies have then been modified by the means of two criteria.
All audio and audio-visual works have the same criterion, the average playing time. Therefore, the average length for each type of work has been determined, resulting in the first factor, the so-called playing time. Thus, for music the measure of individual music titles is estimated with a playing time of 3.5 minutes for instance, for TV films the average playing time is 120 minutes.
There is no playing time for image and text works. Therefore, for these works the concrete amount of replications influences the valuation instead of the playing time. This procedure can be interpreted analogue to the application of one minute playing time on image and text works.
This second criteria is described by a so-called evaluation factor, representing the value of one replicated playing minute for each type of work. The value of one replicated playing minute is essentially determined by the economic circumstances e.g. the average production costs of a work of a certain type or the economic disadvantage arising from the replication permitted according to law.
Equally, cultural values or the question, how many different beneficiaries are involved in the production of a work, are included in this factor. Due to the lack of playing time for image works and texts, an evaluation factor has been determined applicable on the amount of works – taking into account empirical usage values.
3. Entitled Groups and Collecting Societies
The nine collecting societies represent the four entitled groups of beneficiaries (authors, performing artists, producers and event organizers), that are involved in the creation of works of the individual type of work based on their copyrights and neighbouring rights.
|
Type of Work |
Collecting Societies and Entitled Eroups |
|---|---|
|
Image and Text Works |
VG Bild-Kunst (authors) |
|
Music |
GEMA (authors) |
|
Audiobooks |
GEMA (authors) |
|
Audio-Podcasts |
GEMA (authors) |
|
Films |
GEMA (authors) |
|
TV-Shows |
GEMA (authors) |
|
Other TV-Contents |
GEMA (authors) |
|
Video-Podcasts |
GEMA (authors) |
|
Musik Videos |
GEMA (authors) |
|
Pornographic Films |
GÜFA (authors, performing artists, producers) |
|
Advertising Films |
GEMA (authors) |
The distribution of the shares allocated between the entitled groups for each type of work (except image and text works) basically follows the logic that one half is assigned to the authors and the other half to the right holders of neighbouring rights. Within the neighbouring rights in turn, principally one half is assigned to performing artists and one half to producers respectively event organizers.
Deviations respectively corrections have been made with regard to types of work of specific character to meet each individual case. For instance, producers of pornographic films as well as producers of advertising films receive higher shares for their reproduction than one quarter according to the aforementioned logic.
Within an entitled group of beneficiaries (authors, performing artists, producers/event organizers) quotas are applied for the single collecting societies as far as those are able to claim remuneration for the replication of a single type of work for the beneficiaries they represent. If an entitled group is represented by more than one collecting society – for instance in the case of film producers – the interior distribution - as already done to identify of the absolute number of reproductions - will be determined on the basis of empirical studies.
4. Ratio of Distribution
Applying the distribution scheme structure as described above in combination with the empirical determined usage value the following ratio of distribution are applicable for the periods as of 2018:
|
Society |
PCs |
Tablets |
Mobile Phones |
CD-DVD Burner |
Hard Disks |
USB-Sticks |
Blanks |
TV-Recorders |
Consumer Electronic Audio Devices |
MP4-Player |
|---|---|---|---|---|---|---|---|---|---|---|
|
GEMA |
21,5% |
22,9% |
32,5% |
16,2% |
18,2% |
25,9% |
20,5% |
13,1% |
46,4% |
30,6% |
|
GÜFA |
1,4% |
1,1% |
0,6% |
1,7% |
1,9% |
0,8% |
1,8% |
2,5% |
- |
0,8% |
|
GVL |
27,2% |
29,5% |
36,4% |
23,6% |
24,8% |
30,2% |
29,3% |
22,1% |
48,8% |
38,6% |
|
GWFF |
11,6% |
11,3% |
5,3% |
19,6% |
16,1% |
8,3% |
11,8% |
24,3% |
- |
8,1% |
|
TWF |
1,1% |
1,1% |
0,5% |
1,8% |
1,5% |
0,7% |
1,1% |
2,3% |
- |
0,8% |
|
VFF |
3,6% |
4,1% |
2,1% |
6,1% |
4,7% |
2,5% |
3,5% |
8,9% |
- |
2,5% |
|
VG Bild-Kunst |
12,4% |
10,3% |
7,5% |
12,3% |
12,8% |
11,7% |
9,7% |
11,2% |
- |
3,5% |
|
VG Wort |
19,9% |
18,7% |
14,5% |
16,9% |
18,3% |
19,0% |
21,0% |
13,2% |
4,8% |
14,3% |
|
VGF |
1,2% |
1,0% |
0,5% |
1,9% |
1,7% |
0,8% |
1,3% |
2,4% |
- |
0,8% |
|
TOTAL |
100,0% |
100,0% |
100,0% |
100,0% |
100,0% |
100,0% |
100,0% |
100,0% |
100,0% |
100,0% |
ZPÜ - Gesellschaft des bürgerlichen Rechts. Gesellschafter: die Verwertungsgesellschaften GEMA, GÜFA, GVL, GWFF, TWF, VGF, VFF, VG Bild-Kunst und VG Wort
© ZPÜ 2023