• FI
  • SV
  • True or not?

    24.01.2025
    Sometimes, in conversations or on social media, people share ideas or beliefs about how Gramex collects and distributes remunerations that may not be entirely accurate. Here, we explain some of the most common ones as clearly as possible.

    1. Gramex collects and distributes remunerations to Finnish rights holders, including musicians and record producers.

    Yes, but remunerations are also distributed to foreign musicians and producers, either through direct membership with Gramex or via foreign sister organizations.

    Each year, over 20,000 foreign artists receive payments, supported by more than 30 reciprocity agreements with organizations in different countries. Additionally, in recent years, Gramex has collected an average of €1.1 million annually from abroad, with around €1.0 million of that being artist remunerations. In fact, Gramex’s operations are quite international.

    2. Gramex distributes remunerations retroactively for the past three years.

    Yes, more specifically, remunerations are distributed for three years following the end of the usage year. For example, in 2025, payments will cover the years 2022–2025. Remunerations also accumulate for three years, and distributions are made once the total amount exceeds the minimum threshold, which is €5.

    3. All radio stations pay the same fee for using recordings.

    No. The fee paid by Yleisradio (the Finnish Broadcasting Company) is based on a specific agreement with them, while private radio stations’ fees are determined by their advertising revenue and the amount of protected music they use. For private radio stations, the remuneration percentage of their turnover is calculated by dividing the share of protected music in their airtime by 8.5. Additionally, temporary license holders and online radio stations have their own tariffs.

    4. The distributions take into account the music reported by each radio station or other user.

    Yes and no. By default, the distributions are made using the music reported by each user, with the collected remunerations being allocated to those specific tracks. The distributions include, among others, all plays by Yleisradio, plays from about 25 private radio stations, background music operators’ plays, monitoring data from restaurants, and various data on the use of recording copies. If usage data is unavailable, for example, radio plays can be used as the basis for the distribution.

    This approach is applied to the smallest businesses, online radios, and partly to background music as well. Background music refers to music used in places like restaurants, stores, or workplaces.

    5. There is no charge for the use of American audio recordings.

    Yes and no. In traditional radio broadcasts, so-called “American” (U.S.) recordings are exempt from remuneration, but when recordings are copied for use in TV broadcasts, a fee must be paid. Similarly, in online broadcasts, protection also covers American recordings. A recording is considered a U.S. recording if it was made in the United States and its original producer is based there. The protection of recordings is based on several international agreements, and the level of protection varies between countries according to each country’s agreements and practices.

    Some perceptions or beliefs can be difficult to change once they become ingrained in people’s minds, especially if things have developed or changed over the years from what was previously heard or learned. With this information and clarifications, we move forward.

    Read the frequently asked questions here.

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