Fees

As a not-for-profit organisation, the Copyright Agency funds its operations by deducting its costs from the licence fees received each year.

Every financial year, the Copyright Agency prepares a revenue and expenditure budget, within which it must operate. The funds used to run the Copyright Agency are then drawn down from the Trust Fund as required throughout the year.

MOST DEDUCTIONS ARE based on ACTUAL OPERATING COSTS

Our deductions for administrative costs vary from licence scheme to licence scheme, and from distribution to distribution.

For a small number of schemes, the deductions are fixed. For example, our administrative fee for the artists’ resale royalty scheme is 15% of royalties collected.

For most schemes, however, the deductions are based on actual costs. This means that the net amount deducted will vary from distribution to distribution.

As a guide, expenses as a proportion of revenue and investment income in recent years have been around 14%.

MAJOR FACTORS CONTRIBUTING TO COSTS

The major component of the costs for a distribution is the staff costs. Other costs include the surveys of use (to determine what is being copied) and the IT systems used to process data.

CULTURAL FUND DEDUCTION

The Copyright Agency allocates up to 1.5% of licence fees to the Cultural Fund, which grants funds for cultural purposes as approved by the Board. The current percentage of licence fees allocated to the Cultural Fund was voted on and approved by members at the 27 November 2010 AGM.

4 April 2016