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Distribution Rules

In accordance with the article 24 of the Statute of Sokoj - Serbian Music Authors' Organization, Assembly of Sokoj has, on the day of November 2, 2008, adopted Amendments to Distribution Rules, so that revised text is worded like this:


Distribution Rules contain general principles and criteria on the basis of which Sokoj distributes royalties to authors and right holders collected as remuneration for use of music works from the users of music works on the basis of the law and international agreements, in accordance with the Statute and enactments of Sokoj.

Basic criteria for distribution are the way and scope of use of the music work, depending on the kind, performing composition and complexity of the work, based on the principles of proportionality, adequacy and equity of distribution, all in accordance with Distribution Rules and other enactments of Sokoj.
Distribution principles contained in these Distribution Rules are applied in the same manner on all rights of authors and right holders whose rights are being managed by Sokoj.

According to Distribution Rules, authors are composers, lyricists and arrangers of music works; and right holders are successors in accordance with the law, publishers and sub-publishers:
Composer is a physical person who created music work;
Arranger is a physical person who, upon written consent of the composer or his successor, when the music work is protected, has changed or altered original music work (written alteration of form of the work, its harmony, rhythm, performing composition, etc.) in the way that his contribution to the new form of the work, is obvious;
Lyricist of the music work is a physical person who has written a text of certain music work, upon consent of a composer of the work, or upon whose consent and after his text, music work has been created;
Co-Authors of a music work are the persons who are authors of one music works; co-authors of music, text or arrangement, are the persons who have jointly created music, text of a music work or arrangement of a music work;
Publisher is a legal entity which has, on the basis of the contract with the author, acquired publishing right of a certain work within the scope in accordance with Sokoj' s enactments, and which appears before Sokoj as holder of a right on the work, instead of author or together with the author;
Sub-publisher is a legal entity which contractually acquired publishing right on a certain music work from the foreign repertoire from the original publisher abroad, and for its exploitation in the Republic of Serbia.

Distribution Rules also define following concepts:
Used music work is music work which was broadcasted, performed, publicly communicated or in some other way made available to the public;
Play list is a list of used music works by a certain user for the certain period or for the certain event;
Remuneration is an amount which Sokoj, in the form of remuneration for use of music works, collects from users of music works;
Royalty is a share from collected remuneration which, through the system of distribution, belongs to the certain music work (work's royalty), i.e. to the certain author or right holder
(author's royalty).

Artistic music work, as a work of high cultural value, according to these Distribution Rules,
is a music work which satisfies following criteria:
- it is formed so that it relies on some specific, creative use of forms, way of structuring the material, composition procedures and techniques, developed within evolution of (European) professional music creativity, and
- academic professional standards in creating material and form of the work, development of music parameters and realization of their collaboration, in relation to the mode of media use and to adequacy of written notes.

Jazz music work, according to these Distribution Rules, is a music work which satisfies following criteria:
- it is formed so that it relies on evolution of kind of music originating from completely or partially improvised folklore Afro-American music, in which elements of European harmony and European-African study of melody combine with African rhythm and intonation, and
- it uses form of improvisation, melodic, harmonic and rhythmic content, reflection and instruments which are characteristic for some styles of jazz music.

Realization of rights of the author, i.e. right holder, who has cancelled or to whom Sokoj has cancelled management of rights, ends with the expiry of the fiscal period in which cancellation of management of rights, occurred.

Realization of rights within Sokoj, to the publisher and sub-publisher starts at the beginning of fiscal period in which it contractually transfered its rights to Sokoj, and ends by the expiry of fiscal period in which that contract expires.

Documentation of Sokoj consists of:
- documentation of the work
- documentation of the author and right holder
- documentation of foreign works, authors and right holders
Sokoj applies documentation which is uncontroversial and complete, i.e. which contains all relevant data necessary for establishing royalties and is applying it from the fiscal period in which it was submitted until the conclusion of documentation.

Music work is reported to Sokoj on an official form and contains all the information significant for collective management of author's rights.
Music work is reported by the author of the work. If the music work contains protected text, composer may report the work only upon written consent of the lyricist, i.e. right holder on the text.
Lyricist may report the work only upon written consent of the composer, on condition that he is an author of the text of the music work which is being reported.
Arranger may also report the music work, upon written consent of composer and lyricist if the work is protected, on condition that arranger of music work is reporting the work.

Changing the data in registration form may be carried out at the request of author of the work, upon written consent of co-author or right holder on the work, or on the basis of the court decision.
Request for changing the data which satisfies requirements and is submitted after the conclusion of documentation, will be realized from the next fiscal period on.

When a work which does not have adequate documentation appears in the play list, and author of the work or a right holder is identified as a member of Sokoj, Sokoj will advise author or right holder to submit necessary documentation, or if the work is identified as the work from domestic repertoire, Sokoj will try to advise author i.e. right holder to submit necessary documentation.
Royalty of the work from the previous paragraph is being blocked until submission of necessary documentation, in which case royalty is being calculated on the basis of the delivered documentation, i.e. until expiry of a reasonable period of time for delivery of that documentation determined by Managing Board of Sokoj, and after that royalty is being distributed into extra income.

Author may report the work only after he has concluded contract on exclusive transfer of his rights in favor of Sokoj. After conclusion of the contract, author is obliged, under full financial and criminal liability, to state correct data on an official form, as well as to inform Sokoj promptly about each change of those data in written form.

Author is obliged to deliver to Sokoj one copy of each publishing contract, one copy of each contract which he concludes with a producer of the commercial film, TV film or TV series about the use of music in the film, i.e. in TV series, one copy of any other kind of contract about ordering or use of music works which he concluded with third parties.
If author does not act as foreseen in the paragraph 1 if this Article, Sokoj will proceed in accordance with the documentation at its disposal.

Co-authors may establish their shares on music work by the contract.
If mentioned contract is not delivered to Sokoj, Sokoj will apply corresponding code of scheme of shares from Distribution Rules.

Co-authors of music, text and arrangement may establish their shares on royalty of the author by the contract.
If mentioned contract is not delivered to Sokoj, it is presumed that co-authors of music, text and arrangement have the equal shares.

For published works, in distribution classes 3C and 4, agreed on part of royalty of the work belongs to the publisher, and remaining share is distributed to the co-authors in accordance with their mutual relation.
Co-authors of music work may also establish by the contract publisher's share on that work, but publisher's share, in distribution classes 1 and 2, must not exceed 50%.

Co-author's shares and shares of co-authors of music, text and arrangement are established by the contract in percents.
Contract about establishing shares of co-authors on music work, as well as the contract on establishing shares among co-authors of music, text and arrangement are the integral part of documentation of the work, if they have been submitted to Sokoj.

Authors' successor is obliged to state correct personal data on the official form, to deliver to Sokoj a copy of the irrevocable decision about succession in which he is designated as successor of author's right, as well as to present for inspection the original of irrevocable decision about succession.
Authors' successor may conclude with Sokoj, as a right holder, contract about transfer of rights to Sokoj on exclusive basis.

Publisher is obliged to conclude contract about exclusive transfer of rights to Sokoj as well as to submit to Sokoj the copy of its registration, catalogue of its repertoire in adequate form, updated within time limits from the contract, and other necessary documents.
Sub-publisher is obliged to conclude with Sokoj a contract about exclusive transfer of rights to Sokoj as well as to submit to Sokoj the copy of its registration, certified copy of contract with publisher and to present for inspection the original of the contract, catalogue of its repertoire in adequate form and updated within time limits from the contract, and other necessary documents.

In accordance with regulations of International Confederation of Societies of Authors and Composers (CISAC) and regulations of International Bureau of Mechanical Rights Societies (BIEM), and on the basis of bilateral international reciprocal representation contracts which Sokoj concludes with foreign author's societies, documentation of Sokoj also includes foreign documentation, international cards (Fiche International), lists of authors and members (CAE, IPI), publisher's lists (GAF, CWR) and list of music works (WWL, WID, CIS, NET) as well as corrections of statements, modification cards and reports and other documentation received from foreign author's societies.

Distribution process for works with foreign elements is realized equally as for domestic music works, inclusive the phase of fixing royalty of the work.

When fixing author's royalty on works which contain foreign element, Sokoj applies its schemes of shares on royalties of work in the following cases:
- if co-author or publisher of the work is a member of Sokoj,
- if shares have not been established in foreign documentation,
- if foreign documentation about shares is contradictory or incomplete.

When fixing author's royalty for the works with foreign element, Sokoj applies shares from foreign documentation when all shares belong to foreign authors and right holders and when documentation about shares is complete and clear in the foreign documentation.

In case that all shares on used music work belong to foreign authors and right holders, and foreign documentation is contradictory, Sokoj requests explanation through the enquiry list (circular) which is being sent to all foreign author's society; royalty of the work is being blocked until situation is resolved.

If all shares on used music work belong to foreign authors and right holders, and foreign documentation is incomplete, but the original author was identified as a member of a certain
foreign author's society, Sokoj will pay total royalty of the work in distribution classes 1,2,3A and 3B to that author's society, which will carry out further distribution on the basis of the documentation in its possession (Warsaw Resolution), i.e. if the author or publisher is identified as a member of a certain foreign author's society, Sokoj will pay total royalty of the work in distribution classes 3C and 4 to that author's society, which will perform further distribution on the basis of the documentation in its possession (Rome Resolution).

If all shares on used music work belong to foreign authors and right holders, and Warsaw/Rome Resolution cannot be applied, Sokoj requests explanation through the enquiry list (circular) which is being sent to all foreign author's society; royalty of the work is being blocked until situation is resolved.

Circular will not be sent for royalties of the works which do not exceed the equivalent of $10,00 in RSD for one fiscal period.

Assumption is being applied that foreign documentation may not be amended if valid reply to enquiry list, accompanied by appropriate documentation, has not been received within reasonable period of time.
Upon expiry of reasonable time period, blocked royalties of the work are directed into extra income and are that way included into royalties distribution system.

For works of domestic authors published abroad or created in cooperation with foreign authors, the data reported by foreign author's societies will be accepted as correct, if the author i.e. right holder does not deliver necessary documentation (statement about the work, publishing contract) within the period of 60 days, from the day when Sokoj sent its request to submit such a documentation.

Publisher may be exempt from payment of remuneration for production and distribution of author's edition of audio/visual carriers, on domestic territory, on the following conditions:
1. that the author is an owner of all author's shares on that audio carrier or audio/visual carrier or of most of the shares, in which case is being exempt proportionally, in the amount of his total share on that audio carrier or audio/visual carrier,
2. that author has concluded contract about exclusive transfer of rights to Sokoj,
3. that publisher submits to Sokoj all the information about production and distribution of that
audio carrier or audio/visual carrier,
4. that author signs the statement to Sokoj that remuneration was regulated directly with the publisher and that there are no claims on his behalf on that ground.

Organizer of a concert may be exempt from payment of remuneration for author's concert
on domestic territory, on the following conditions:
1. that the author is an owner of all author's shares on mentioned concert or of most of the shares, in which case is being exempt proportionally, in the amount of his total share on mentioned concert,
2. that author has concluded contract about exclusive transfer of rights to Sokoj,
3. that organizer of the concert submits to Sokoj all the information about the mentioned concert,
4. that author signs the statement to Sokoj that remuneration was regulated directly with the organizer of the concert and that there are no claims on his behalf on that ground.

For concerts and music festivals in distribution classes 2B and 2D which have 15.000. reported visitors, administrative costs are 15% and payment of royalties is performed within 28 days from the delivery of the complete documentation and final payment.
In distribution classes 2B and 2D, distribution of royalties from concerts and music festivals is 20% for works performed as supporting acts and 80% for works performed as headlining acts.

Distribution of royalties from internet is performed in relation of 70% on the basis of broadcasting, public performance and communication (performing rights) and 30% on the basis of production and distribution of audio carrier or audio/visual carrier (mechanical rights).
In case of ringing tones or other internet use of the work without lyrics, distribution is carried out between composers and arrangers, and in case of real tones or other internet use of the work with lyrics, distribution is carried out between composer, lyricist and arranger.

Distribution of royalties is realized on the basis of collected remuneration, gathered play lists and documentation at the Sokoj's disposal, within time limits and in the manner foreseen by these Distribution Rules.
Distribution procedure has the following phases:
1. determining the General settlement - distribution of collected remuneration and establishing funds for distribution of royalties, as per distribution classes,
2. determining royalty of the work - distribution of funds per used music works within each distribution class using point system, program system or in some other way foreseen by these Distribution Rules,
3. determining royalties of authors - distribution per authors and right holders within music work on each used music work,
4. determining Individual settlements - addition of royalties of the author which one author and right holder realized in all distribution classes.

Collected remuneration is distributed by the origin of collection per distribution classes.

Following distribution classes are established by these Distribution Rules:
1 Broadcasting
A Radio broadcasting
B TV broadcasting
C Cable and satellite broadcasting
2 Public performance
A Concerts of artistic music
B Concerts of popular music
C Hotels and restaurants with live music
D Other public manifestations
3 Public communication
A Public communication of the works which are being broadcasted
B Public communication of the works from audio carrier or audio/visual carrier,
C Internet
4 Production and distribution of audio carrier or audio/visual carrier

In case that remuneration from one broadcaster is collected as joined amount for all radio and TV broadcastings of that user, total amount is distributed as follows:
- 60% into the distribution class of the corresponding radio broadcasting,
- 40% into the distribution class of the corresponding TV broadcasting.

Distribution class 1B is proportionally being increased by collected remuneration in distribution class 1C, if application of play lists in that class causes disproportionately high costs.

Distribution classes 1A and 1B are proportionally being increased by collected remuneration in distribution class 3А and 3B.

Remuneration collected during general settlement period goes into distribution for that financial period.
Remuneration which refers to one general settlement period and was collected after the expiry of that period, goes into distribution for general settlement period in which it was collected.

Extra income realized from the activity of the company, is included into the funds for distribution of royalties in the way which is, for each general settlement period, established by Managing Board of Sokoj.

Funds for distribution of royalties per distribution classes are established by general settlement, in general settlement period.
General settlement per distribution classes must contain:
a) amount of collected remuneration,
b) administrative costs,
c) fund for distribution of royalties,
d) point value, in distribution classes in which royalties of the work are established by application of system of points,
e) settlement periods and advance payments paid in distribution classes in which are royalties for work established by application of program system.
Fund for distribution of royalties is obtained after deduction of administrative costs from the collected remuneration in a distribution class.
Administrative costs include costs of collection of remuneration, costs of determining royalties and other costs of collective management of author's rights.
Administrative costs are being charged from each distribution class individually, in corresponding amount which is determined by Managing Board of Sokoj and is stated in percents from collected remuneration in that distribution class.
General settlement is determined by Managing Board of Sokoj.

General settlement period is once a year and is fixed by Managing Board of Sokoj.
In distribution classes 2, 3C and 4 settlement period may be shorter and calculation of royalties is performed after deduction of administrative costs which are, upon fixing settlement period for those distribution classes, approximately determined by Managing Board of Sokoj.
Payment of royalties to authors and right holders calculated this way, is carried out upon effected settlement and is considered as advance payment in those distribution classes, so that
Individual settlements contain possible corrections of effected advance payments, after in General settlement are fixed real costs in those distribution classes.

Cultural and social withholdings are charged from collected remuneration after tax deduction, in all distribution classes except for part of the class 3C where the remuneration is distributed on the basis of production and distribution of audio carrier or audio/visual carrier and class 4 (mechanical rights).
Amount for cultural and social withholdings in percents for each statement period is fixed by the Managing Board in accordance with the Statute of Sokoj, i.e. by bilateral contracts with foreign societies about reciprocal representation.

After establishing the Fund for distribution of royalties and processing all gathered play lists, documentation for distribution is being concluded and royalties for work are being established, in certain distribution class for certain statement period.

Establishing royalties of the work by applying point system is realized in the following manner:
1. total number of points in distribution class is obtained so that point number from categorization of the work is multiplied by total effective duration of that work in that class for certain statement period, and then sum of calculated points of all used works in that class is taken;
2. fund for distribution of royalties of a certain distribution class, obtained by General settlement, is being divided with the total number of points realized in that class and that way the value of one point in that class is being obtained;
3. gathered number of points of one music work in a certain class is multiplied by the value of one point and that way a royalty of a certain music work in a certain class is being obtained;
Royalty of work is established in distribution classes 1 and 2A in General settlement period by applying point system.

Establishing royalties of the work by applying program system is realized by division of distribution fund on works stated in the play list, in proportion of the duration of their performance to the amount which was paid for that program.
Royalty of work in certain distribution class for which programs have been gathered, is proportionally increased by collected remuneration in a certain distribution class for which programs have not been gathered and royalty for work is calculated this way.
By applying program system royalties of a work are established in distribution classes 2B, 2C, 2D, 3C and 4, at least once in General settlement period.

Categorization of the work is based on evaluation of creative effort during creation of music work and on cultural value of the work and it means granting a certain number of points to a music work on the basis of given criteria.
To music work points are awarded as uniform points, regardless whether it is performed with lyrics or without.

One point is awarded to each reported music work as a start and the final number of points of the work is obtained by application of the following criteria:
- kind of music: beginning point of artistic and jazz music work is multiplied by coefficient 3,00.
- performer's composition: beginning point of music work, depending on performer's composition, is multiplied by adequate coefficient, and that is:

Code	Description of performer's composition	Coefficient
1	Work performed by at least 5 instrumentalists, with or without vocal part, i.e. artistic or jazz music work for 3 to 5 instruments, with vocal part or without, i.e. instrument and four-voice choir, four vocal soloists, i.e. four-voice choir	1,50
2	Work performed by ensemble of at least 10 instrumentalists, with vocal part or without, i.e artistic or jazz music work for ensemble of  6 or 11 instruments, with vocal part (i.e. choir) or without it, for 5 to 8 vocal soloists, i.e. five to eight voice choir	2,00
3	Work performed by ensemble of at least 15 instrumentalists, with vocal part or without, i.e artistic or jazz music work for string and chamber orchestra, with vocal part or without, for vocal structure of over 8 soloists, i.e. choirs with more than eight-voices, work of electro-acoustic music	2,50
4	Work performed by orchestra of at least 25 instrumentalists, with vocal part or without, i.e artistic or jazz music work for symphony orchestra with vocal part (i.e. choir) or without it	3,00

Electronic music instrument (synthesizer, sampler, "plug in" of computer program, etc.) is treated as:
a) acoustic, i.e. as one instrument,
b) several instruments, according to real number of sound lines or virtual instruments which are, through prepared sequences or preliminary recording, used in the work in the form of special parts.

In relation to mode of use of ensemble, work with the code 2 which is in a score shown with 12 to 16 independently lead parts, is considered as if it was under code 3, i.e. the work with the code 3 which is in score presented as 17 or several independently lead parts, is considered as if it was under code 4.

Change of code and application of higher coefficient of performer's composition is realized on the basis of the decision of Author's Council upon author's or his successor's request for change of code of performer's composition.

- complexity of the work: taking into consideration the complexity of reported music work, obtained number of points of the work, which within the kind, genre or structure, harmonic contents and development of greater number of independently lead parts, or at least two of mentioned characteristics, is multiplied by the coefficient 1,25.
Application of mentioned coefficient is realized only upon request of the author of the work. Author's Council decides about author's request, within 60 working days from the day of submission of the request accompanied by the corresponding documentation. Decision of Author's Council is final.

- use of the work:
a) Taking into consideration of period of use, for the reported music work which is being broadcasted or publicly communicated
* 10 years after creation of the work, obtained number of points is multiplied by the coefficient 1,20,
* 20 years after creation of the work, obtained number of points is multiplied by the coefficient 1,40;

As the moment of creation of the work is considered the date when the work was reported to Sokoj, i.e. its first broadcasting noted in Sokoj, if it comes earlier;

b) Taking into consideration mode of performing and use of the work, reported music work which is predominantly improvised on the basis of instructions from the score i.e. note (jazz music, music graphics, etc.), radiophonic work, multimedia, mixmedia and intermedia work and music theatre, obtained number of points is multiplied by the coefficient 0,60;

c) Taking into consideration mode of use of the work and quantity of the music in a work, reported music work, which is used as:
* introductory music i.e. use of music motives for announcing and/or closing the program or broadcast (news, report, drama, etc.), for separation of the parts of the same program (sound screens, jingles or music effects in advertisements) or more different programs, obtained number of points is multiplied by the coefficient 0,10;
* background music, i.e. use of music works or their fragments as background music in non-artistic (talk) shows (news, reports), as well as accompanying music in the programs from other artistic genres (poetry, prose, drama, TV series, film), obtained number of points is multiplied by the coefficient 0,20.

0,30 points are awarded to non-reported work or to the work for which documentation does not exist.

Request for change of categorization of the music work may be submitted by composer or arranger of the work.
Author's Council decides about the request within 90 days from the day when request was submitted accompanied by the corresponding documentation. Decision of Author's Council is final.

All reported music is awarded with points according to rules from this Distribution Plan and number of points of the work is integral part of documentation of the work, as categorization of the work.

Duration of music work is its effective duration stated in the playlist.
Total effective duration of music work is a total of all durations of its use in a certain distribution class for a certain statement period.
Duration is expressed in seconds.

If duration of the work may not be established from the playlist and if it is not possible to obtain the information about the duration of the work, then information about duration of work from Sokoj's documentation is being applied.
If duration of the work may neither be established from the play list nor from Sokoj's documentation, then duration is taken as follows:
a) 480 seconds for works of greater form (sonatas, symphonies, etc.),
b) 180 seconds for all other works.

For authentic folk songs and dances in simple arrangement, mass songs, gusle songs, as well as for rep music, hip-hop and other repetitive songs, duration of 60 seconds is being taken regardless to duration stated in the playlist.
For music works which are used as introductory music duration of 30 seconds is being taken, if the duration stated in the playlist is longer than 30 seconds.
Total effective duration of music work used as introductory music may not be longer than 9000 seconds in a certain distribution class for a certain statement period.

In the distribution class 1, except class 1C, duration of music work, with or without text, depending on the transmission territory, which is stated in a playlist is multiplied by the following coefficient:

Channel	Coefficient
National coverage	N
Provincial or regional coverage	R

Territory of coverage is established on the basis of broadcaster's license or other valid data and is recorded on its playlists.
Value of coefficients N and R is established by the decision of Managing Board for each statement period.

In the distribution class 1, except class 1C, for music work, with or without text, depending on the daily term of broadcasting, if it is broadcasted in the period from 7 p.m. until 12 p.m., duration stated in the playlist is multiplied by the coefficient 1,30.
If it is not possible to establish terms of broadcasting from the playlist for all broadcasted music works listed in the playlist, coefficient of term of broadcasting will not be applied.

In classes 2B, 2C and 2D duration of the work stated in the playlist is being applied. If duration of each music work is not stated in the playlist, it is considered that all performed works listed in the playlist have the same duration.

Playlists gathered from users are being completed with the information from Sokoj's documentation, when title of the work appears in the play list without stated name of the author or when some information important for establishing royalties, is omitted, except the information about duration of the work.
Playlists in distribution classes 3A and 3B are not gathered.
Playlist in distribution class 4 is registration of recording and sales report for a certain statement period.
For establishing royalties in a certain distribution class for a certain statement period are applied all correct, valid and acceptable play lists which have been gathered until conclusion of documentation.

Playlist in distribution class 1, except class 1C, is correct if it contains:
- daily program scheme,
- names of all broadcasted music works with names of authors and performers,
- date, term and duration of each broadcasted work,
- period covered by the playlist,
- seal and signature of the authorized person.

Playlist in distribution class 2 is correct if it contains:
- names of all performed music works with names of authors and performers,
- date, term and place of performance,
- seal and signature of the authorized person.

Playlist is valid if it is not:
a) obviously incorrect,
b) untrustworthy,
c) unclear or illegible,
d) so incomplete that it can not represent used repertoire.

Playlist is acceptable if collected remuneration for that playlist exceeds the limit, which is for each distribution class and statement period, established by the Managing Board of Sokoj.

If it is established that playlist is not valid, collected remuneration from class 2C Restaurants with live music, is distributed according to sample established by the Managing Board for each statement year, as per gathered playlists of commercial RTV stations.

Correct, valid and acceptable playlist which was gathered after conclusion of documentation, will be applied in the statement period, during which it was gathered before conclusion of documentation.

Each author and right holder is entitled to insight into gathered playlists.

After establishing royalties of the work within the distribution class, royalties of authors and right holders on each single music work, are being established.

Code	Author	For all distribution classes (in % from the total royalty of the work)
1	Composer	100
2	Composer	75
	Arranger	25
		Specially written text of the work	Existing text
3	Composer	68	75
	Text author	32	25
4	Composer	43	50
	Text author	32	25
	Arranger	25	25

As an exception from the previous article, to an arranger of native folk artistic creations 75% from the total royalty of the work is being calculated, if the work does not contain text, i.e. if the work contains text, 50% is being calculated to the arranger and 25% to the lyricist, from the total royalty of the work.

Calculated author's royalty, which would represent composer's share or share of lyricist of music work, if it is about free and unprotected work or free or unprotected text, it is placed into extra income.
Calculated royalty of the work or author's royalty for which there is no documentation, is placed into extra income, as per the decision of Author's Council.
If in Sokoj's documentation there are several arrangements for one music work and it can be established from the playlists that the work was used as original, but it can not be established which arrangement was used, arranger's share of the royalty for that work is divided equally to all registered arrangers of that work.

To author of adaptation of protected text of the music work, upon written consent of author of the original text, is calculated 50% of royalty of lyricist, if by the contract between him and the author of original text is not foreseen differently.
To author of adaptation of unprotected text of the music work is calculated 50% of royalty of lyricist.

When overtures and orchestral intermezzos of one music - stage work (opera, operetta, musical) are performed separately, royalty of the work is considered as for work without text.

At the request of an author, Author's Council may determine greater share for arrangement, transcription, edition and instrumentation, if artistic or professional creation of greater importance is in question.

After establishing royalties, for each author and right holder appearing in statement in some distribution class, total output of that author or right holder is being established in distribution system, for certain distribution class and certain statement period.

Individual statement is being made for domestic authors.
In Individual statements have to be stated royalties of the work in which author or right holder appears, royalties of the author which author realized by distribution classes and potential payments, in general statement period.
Individual statement is being delivered to author, i.e. right holder, at the time of payment.

For foreign authors and right holders, foreign statement of a certain foreign author's society is being made, which contains realized royalties of members of that society on the territory of Republic of Serbia, by distribution classes for certain statement period.

Author, i.e. right holder, may submit request for subsequent statement or for correction of statement, if royalty has not been calculated to him or in case that it was calculated incorrectly.
Requests for subsequent statement or for correction of statement are submitted to Author's Council, which has to make a decision about the request within the time period of one month from the day when Sokoj received complete documentation.

All information about realized royalties of some authors and holders of author's right are business secret.
These information may be published only upon consent of author or holder of author's right to whom they refer, as well as upon request of the court.

Payment of realized royalties to domestic authors and right holders in Republic of Serbia is performed upon establishing Individual statements of authors and right holders.
Payment of advance payments is possible in distribution classes in which Managing Board establishes several statement periods within the general statement period, in
accordance with Distribution Rules and in a manner established by the Managing Board.

Payment of royalties of domestic authors realized abroad is performed upon payment and processing of foreign statements for Sokoj from the foreign author's society, upon deduction of administrative costs.
Administrative costs of processing of foreign statements for Sokoj are fixed by the Managing Board of Sokoj.
In case of incomplete or incorrect data in foreign statement for Sokoj, Sokoj will amend or correct those data while processing in accordance with documentation of the work and documentation of the author and right holder.
Processed foreign statement is delivered to author, i.e. right holder, at the time of payment.

Royalties from the previous Article are being paid off only if net amount for payment exceeds minimal amount established by the Managing Board of Sokoj.
Royalties below this amount are recorded in favor of author or right holder and are paid out in the statement period when their total exceeds fixed minimum.
Exceptionally, at the request of author or right holder, royalty may be paid out earlier.

Payment to foreign authors and right holders, is effected upon establishing foreign statements to a certain foreign author's society, within time limits and in the manner foreseen in a bilateral international contract about mutual representation on the basis of reciprocity which Sokoj has concluded with that society.

Amendments to Distribution Rules of November 2, 2008. go into effect on the eighth day from the day of its publishing on the bulletin board and web page of Sokoj, and will be applied from the statement year 2008.
All other provisions of the Distribution Rules of July 1, 2006. remain in force.

After going into effect of Distribution Rules, all competences of the Commission for Rule Book about Distribution of Royalties and of the Commission for Grading the Works and author's complaints are transferred to Author's Council.

Harmonization of the documentation of Sokoj with the Distribution Rules will be carried out within 6 months from going into effect of these Distribution Rules.

After going into effect of Distribution Rules, all matters from the distribution Rules in connection with establishing General Statement, Individual statements, statement periods and payments to authors, are in jurisdiction of Managing Board of Sokoj, and all matters referring to categorization of the work, author's complaints and requests of authors, are in jurisdiction of Author's Council.