Individual licensing agreement (one-time production of a disk)
ACUM's recording license grants the right to record, produce, print and distribute a product that includes a work/works from the ACUM's repertoire.
The license is for one-time and is given for printing the product in a predetermined quantity.
ACUM issues a one-time individual license for a record only after the customer has submitted the necessary data such as: the name of the title,
the names of the included works and creators, promotions, the timing of the works, the quantity required for printing and the name of the manufacturing plant.
The license determines the quantity of discs to be produced (different from a blanket license which is according to the quantity sold).
Only after receiving the license will a printing permit be sent allowing the manufacturing plant to start production.
If the license applicant wishes to produce an additional amount of discs, he will have to obtain a new license.
Global Agreements (blanket license)
This license is intended for record companies or label producers who have an extensive activity scope of record production and sales. The "blanket" license permits the use of all works from the ACUM repertoire subject to the terms of the license, and is automaticallyrenewed every year. According to the terms of the license, the record companies report to ACUM on each title sold/distributed by their distribution, on its sale/distribution price and they pay the royalties in accordance with the report.
The record data is transferred in full to ACUM's Creation Documentation Department where it is registered in the database. After processing of the reports, the record data and the transfer of the payment, are the royalties transferred for distribution to the creators.
ACUM's tariff for Recording Rights
- Royalties for an album that is a sound recording only (audio works) – such as vinyl records, CDs and audio cassettes: 9.009% of the product’s store price without VAT, but no less than the minimal payment, with the addition of VAT.
- Royalties for an album that is a sound and image recording (audiovisual works) – such as DVD, VCD and video cassettes: 5.8% of the product’s store price without VAT, but no less than the minimal payment, with the addition of VAT.
- Royalty for a music disc that is a sound and image list - such as a DVD of live music performances, karaoke, concerts and/or music videos: 9.009% of the price of the product to the store without VAT, but no less than the minimum royalty plus VAT as per law.
- Royalties for a disc that combines works from the ACUM repertoire with images – 11.6% of the price of the product to the store without VAT, but no less than the minimum royalty plus the applicable VAT. This rate includes the reproduction rights and the rights to combine the works with the images.
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Royalty for a CD, which includes adding an additional file (audio/audio) -
- Audio rate (9.009% of PPD but no less than NIS 1.48) X (% of protected ACUM repertoire) + DVD file (6% of PPD but no less than 1.48 NIS) X (% of protected ACUM repertoire) = =>> Royalty "for the case" (no less than a minimum of NIS 2.68 per product X % of protected ACUM repertoire)
- Audio rate (9.009% of PPD but no less than NIS 1.48) X (% of protected ACUM repertoire) + CD file (9.009% of PPD but no less than NIS 1.48) X (% of protected ACUM repertoire) = =>> Royalty "for the case" (no less than a minimum of 2.96 NIS per product X % of protected ACUM repertoire)
- Royalty for the recording of a work for use by recording studios (a work within a presentation) involves a payment to ACUM of 11% of the price to the consumer, for each copy of a work in the video (non-commercial!).
- For uses for a private consumer - royalty for a record that is a sound reproduction only (sound works) - such as a vinyl record, a CD and an audio cassette: 9.009% of the price of the product for the final consumer, but not less than the minimum royalty for the total price of NIS 1.74 including VAT . Royalty for a record that is a sound and image reproduction (audio-visual works) - such as a DVD, VCD and video tape: 6% of the price of the product for the final consumer, but not less than the minimum royalty for the total price of NIS 1.40 including VAT.
- Music content providers for businesses: you can choose 2 options for reporting and payment:
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Option A - royalties calculated according to the amount of copied works for each business separately
- Payment - a one-time payment of 0.10 NIS plus VAT for each work that was copied by the supplier on a music transmitting system and transferred during the course of this agreement to any business
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Option A - royalties calculated according to the amount of copied works for each business separately
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Option B - royalties calculated according to playbacks in all businesses
- Payment - payment of 0.0032 NIS plus VAT, for each playback of each work in any business where the music transmitting system of the licensee operates.
- Audio CD up to 80 minutes – 1.48 NIS + VAT
- DVD / Video – 1.20 NIS + VAT
- Single CD, up to 20 minutes – 0.59 NIS + VAT
- A CD that combines works from the ACUM repertoire and picture - NIS 2.40 plus VAT
- Making a work available to the public by music content providers for businesses (according to the report) - NIS 0.10 or NIS 0.0032 plus VAT
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ACUM rate for a musical system integrated into a product - the royalties for granting this license are at the rate of 11% (eleven percent) of the price of the product to the final consumer plus VAT, but not less than the minimum royalty of NIS 1.48 per unit. All of this subject to the fact that the work will not be used in any advertising and subject to the other terms of the license
The rate is determined at the discretion of ACUM and solely under its responsibility
General comments:
- The rate of royalties for 100% of protected works will be no less than the minimum fee.
- An album intended for free distribution, without commercial intent, will be debited from the minimal fee.
- The rate of royalties will be calculated relative to the works protected by ACUM.
- If the number of works in a product is greater than the value defined, the rate of payment will increase in relative proportion.
- Audio CD – no more than 20 works or 40 segments or more than 80 minutes.
- Single on CD – no more than 5 works, maximum 23 minutes..
- All payments to ACUM will be with the addition of VAT as required by law.
General Conditions:
- The above tariffs are published by ACUM Ltd- the Authors, Composers & Music Publishers Society in Israel (hereinafter “ACUM”). The rates are determined at ACUM’s discretion and exclusive responsibility.
- These tariffs do not constitute license to use works from ACUM repertoire. To obtain a license, the client has to apply to ACUM in writing and prior the beginning of the usage of the work.
- The final license fees are calculated according to data and parameters relevant to each client. Any applicant for a license undertakes to provide ACUM with any information required for the calculation of feasible and appropriated license fees.
- ACUM reserves the right to change the tariffs from time to time.
- In case of contradiction between any terms of the published tariffs and those on the license agreed and signed by the licensee, the content of this license shall take precedence.
- The sums detailed on the tariffs do not include Value Added Tax (VAT). VAT will be added to any payment according to its legal rate, against a tax invoice as required by law.
- All the above is subject to the terms applicable to ACUM according to the determinations of the Competition Tribunal.