Gramex Autumn Meeting decided on deductions
Gramex members IFPI and the Finnish Musicians’ Union decided at the autumn meeting that from the beginning of 2024 Gramex will retain a processing fee of four percent of the remuneration collected from abroad and paid to performers and producers in Finland. In addition, a five percent deduction for social, cultural and educational activities will be introduced for all direct music performer clients.
The current deductions are familiar from several other international Gramex sister organisations and, in the case of the deduction for cultural, social and educational activities, also from Teosto in Finland. The possibility of deduction is based on the European law. The aim was to keep the level of deductions internationally moderate.
More remunerations from abroad
In future, a handling fee of 4 % will be deducted from all remuneration collected from abroad to Finland. In the past, the deduction has been made only on domestic remunerations, thus offsetting the processing costs of foreign claims.
The processing fee for remuneration collected abroad will be used to compensate, for example, for the technological development needed to process international claims. In recent years, there has been a record increase in payments from abroad, resulting in a significant increase in the processing workload.
The efficient and accurate collection of remunerations will also require future investments in technologies such as data and data transfer. This technology will enable faster and more accurate processing and settlement of remuneration for performers and producers.
Helping to promote music culture
From the beginning of 2024, there will also be a 5 % deduction from all remunerations paid to music performers and artists. This will also apply to Gramex’s direct foreign performer clients. The deduction will later possibly be extended to foreign artists represented through Gramex’s international sister organisations.
The deduction will be used entirely for social, cultural and educational activities such as grants and subsidies to music performers through The Finnish Music Foundation (MES). This deduction will strengthen the prospects for the cultural, social and educational activities among music industry – in a context where the financial outlook for various subsidies has significantly deteriorated. Gramex clients can apply to The Finnish Music Foundation (MES) for grants funded by the deduction.
Both deductions will appear for the first time in the summer 2024 statement and the statement of account for the week of 10 June 2024. The full use of the funds can be monitored annually in the Gramex Transparency Report and Annual Review.
