Rights for a given reference year are not paid out in one go but in two stages. In other words, there are two distribution times for one and the same reference year.
- First distribution: we link the declarations in our database against the titles on the national sales and broadcast lists for a specific reference year. Often not all artists will have declared their contribution when we perform our first calculations. To ensure that the rights for artists whose declarations haven’t been submitted yet are secure, we compile a “virtual cast” for each recording, depending on its nature. This virtual casting lists all the possible contributions to the recording, the number of A, B or C roles. On the basis of the virtual cast and the roles specified, the neighbouring rights for a specific contribution to a recording are then calculated. The rights are paid to those who submitted their contribution and are reserved for the “virtual artists”.
- Final distribution: three years after the first rights for any given reference year have been paid, we perform a final, concluding distribution. This means that artists who omitted to timely declare their performances can no longer benefit from their neighbouring rights in any recordings that were used during the reference year in question (even though they can still qualify for rights in subsequent years). When proceeding to a final distribution, all the remaining amounts are distributed amongst the artists who declared their performance. In these final calculations, the virtual cast no longer features, only the contributions that were effectively declared are taken into account.
This method ensures that all the artists concerned certainly have plenty of time to submit their declarations.