Distribution Rules
Under the terms of its Memorandum and Articles of Association, the Society is empowered to collect royalty fees from the exploitation of the works of its Members (as defined in Article 1) and other rightsholders in the UK and overseas. These Rules set out the types of use involved and the methodology applied in the distribution of the resulting payments.
The ALCS Board is permitted to vary these Rules, subject to the approval of the Members and Corporate Members in a general meeting.
(A) Print Media
Photocopying & Scanning
Photocopying revenues are derived from licences entered into with users in the UK by the Copyright Licensing Agency (CLA) on behalf of ALCS and the Publishers Licensing Society (PLS) under the terms of the ALCS/ PLS Agreement dated the 5th September 2005, and the Authority to Act signed by ALCS, PLS and CLA and dated the 16th November 2005. Further income is derived from reciprocal agreements entered into by CLA with overseas reproduction rights organisations. Certain CLA licences also permit the digital reproduction of works (‘scanning’).
Public Lending Right
Although UK fees are administered directly under the Public Lending Right scheme, ALCS has concluded agreements with organisations in other EC countries to receive the share attributable to UK authors for public lending in those countries. These payments are subject to the distribution rules applied in the country of collection.
Public Performance of Poetry
A blanket licence is issued annually to the British Federation of Music & Drama Festivals. As the revenues received from this source are insufficient to pay individual writers, a proportion of the un-distributable photocopying fees from multiple-authored poetry anthologies are used to top-up this source. Individual payments are calculated according to the number of times a work is recited over
a twelve-month period at festivals in the UK.
Allocations
All fees received from UK and overseas print media sources are divided between the contributors in the shares set out in Table 1.
Contributor Percentage allocation
Author 100% to a sole writer, or
100% divided between co-writers in equal shares, or
according to contractual shares by agreement of the Society and all the co-writers.
Editor* 30% to a sole editor or 30% divided in equal shares between co-editors
Adapter 50% to adapter or 50% divided in equal shares between multiple adapters. For edited adaptations the overall splits are original author - 50%, adapter - 35%, editor – 15%.
Translator 50% to a sole translator or 50% divided in equal shares between co-translators. For edited translations the overall splits are translator – 40%, original author - 30%, editor - 30%.
Table 1
*Series editors and general editors do not qualify for distribution purposes.
Serials
The distribution of revenue from the photocopying / scanning of journals, magazines and similar publications (serials) shall be determined from time to time by the Board. The present system is based on claims submitted by authors. The system is subject to continuing review.
Reproduction of Works for Visually Impaired Persons
In the UK the CLA operates a licensing scheme to enable authorised bodies to make accessible copies of works for visually impaired persons where no suitable commercial edition is available. The licence fee rate is zero. Any revenue arising out of similar schemes operated overseas is distributed in accordance with the survey or other data provided by the overseas societies or, if no data is supplied, on such basis as the Board shall direct.
(B) Broadcast Media
Retransmission of Broadcasts
Certain UK TV and radio signals are subject to a number of secondary broadcasts including re-transmission by cable or satellite and streaming on the Internet. Through licensing agreements with broadcasters, re-transmission operators and overseas collecting societies ALCS collect the fees due to UK writers for such uses.
Off-Air Recording
ALCS is a member of the Educational Recording Agency (ERA). ERA is certified by the Secretary of State to operate a licensing scheme for off-air recording of broadcasts of UK channels by educational establishments in the UK. ALCS collects the writers’ share of these payments and collects revenues for equivalent schemes operating overseas through reciprocal agreements.
Revenues from the sources described above are allocated in accordance with Table 2.
Work | Percentage allocation x Minuteage rate |
Script | 100% to a sole writer or 100% divided in equal shares between co-writers |
Underlying work (dramatised) | 40% |
Underlying work (adapted) | 60% |
Adaptation | 40% |
Dramatisation | 60% |
Concept / Storyline | 10% |
Abridgement | 25% |
Translation | 30% of the fee allocated to the script, underlying work, adaptation or dramatisation |
Re-Allocations
While ALCS always endeavours to allocate the correct share due to writers for the use of their works, the data accompanying payments from certain broadcast sources is not always conclusive. Consequently the Society undertakes considerable work to identify and contact the writers concerned. To account for those fees that remain unallocated even after this process, the following system is applied:
• Where revenue from broadcast retransmissions or off-air recording remains unallocated to a Member or unclaimed by any writer three years after the date on which such monies were received by the Society, such revenue shall be re-allocated and distributed to those entitled to income derived from the corresponding retransmissions in the calendar year preceding the re-allocation.
• Any claims arising out of these re-allocations shall be subject to the Appeals Procedure set out in Part C of these Rules. Substantiated claims shall be met out of the Undistributed Royalties, as defined in Part C.
For the purposes of Table 2 a scriptwriter is a writer of an original dramatic work. A dramatisation involves the conversion of an existing literary work (such as a novel) into a dramatic work (such as a script), while an adaptation involves the conversion of an existing dramatic work (such as a theatre script) into a new dramatic work (such as a script for TV/radio). A concept is the origination of a programme idea.
Work Percentage allocation x Minuteage rate
Script 100% to a sole writer or 100% divided in equal shares between co-writers
Underlying work (dramatised) 40%
Underlying work (adapted) 60%
Adaptation 40%
Dramatisation 60%
Concept / Storyline 10%
Abridgement 25%
Translation 30% of the fee allocated to the script, underlying work, adaptation or dramatisation
Table 2
Private Copying and Small Rights
Under its agreements with overseas bodies, ALCS is paid the UK writers’ share of remuneration fees collected in those territories for levies charged on recording media and equipment, and for other small rights uses. Payment from these sources shall be distributed based on the data provided by the overseas societies or, if no data is supplied, on such basis as the Board shall direct.
(C) General Rules
• Distribution Statements
Every payment will be accompanied by a statement detailing the gross, the ALCS deductions and the net sum payable, the source of the revenue and, where the information is available to the Society, the work(s) against which the fees were collected.
• Minimum Threshold for Payment
Members and those registered with the Society who reach the minimum payment threshold (as determined from time to time by the Board) will be paid during the next scheduled distribution. Any sums below this threshold shall be carried forward until the aggregate reaches the payment level.
• Undistributed Royalties
These are the royalties due to writers who are designated as Creditors within the Annual Accounts
• Commission
A commission in respect of administration, subject to current VAT charges, will be deducted by the Society at the point of distribution. The level and extent of this commission shall be determined by the Board.
• Withholding Tax
Withholding tax determined at the UK basic rate in force at the time of distribution shall be deducted on a UK source of income payable to foreign writers where applicable.
• Payment Corrections
Any overpayments to any writer made by the Society in error, shall be repaid on demand or (at the Society’s entire discretion) may be recouped from future payments. Repayment may not be demanded more than twelve months after the date of the relevant distribution, but this shall not affect the Society’s right to recoup overpayments from future payments. ALCS will always endeavour to rectify any substantiated underpayments or non-payments at the earliest possible opportunity.
• Appeals Procedure
In the event of any writer disputing any amount payable or paid, the matter shall be referred to the Company Secretary for determination. If the matter remains unresolved, it shall firstly be referred to the relevant subcommittee of the Board of Directors and then to the Board of Directors for decision. If the writer remains aggrieved, the matter shall be referred to an independent arbitrator appointed by the Chairperson or Vice-Chairperson of the Board of Directors, whose decision will be final and binding upon the writer and the Society.