Money flows in joint tariffs
In a joint tariff, a collective rights management organisation undertakes the money collection for all participating societies and all rightholders. In this way, the administrative effort is considerably reduced for the user as a kind of ‘one-stop-shop’. The society entrusted with collecting the monies is reimbursed for the cost of the work done out of the income. Finally, the net distribution amount is remitted to the participating societies in accordance with an agreed ratio. Each society makes deductions from their share to finance their cultural and social foundations and their administrative costs. The balance is distributed to the rightholders.
Money flows in repertoire-specific tariffs
In the case of an individual tariff, the initial distribution between the societies does not apply. After allowing for their expenditure and the deduction for culture and provident care / welfare, the society distributes its income to the entitled rightholders on the basis of its distribution regulations.