About Gramex
Who is Gramex?
Gramex is an independent organization approved by the Danish Ministry for Cultural Affairs for administration of the financial rights of performing artists and record companies under Article 68 of the Danish Copyright Act.
Gramex was founded in 1963 by the Joint Council for Performing Artists and IFPI Denmark and is supervised by a Board composed of seven members. The seventh member is appointed by the other six members of the Board as an expert on copyright law.
The day-to-day management of Gramex is handled by a staff of currently 22 persons.
Each year Gramex distributes the funds received from TV and radio broadcasting as well as other public performances to approx. 23,000 Danish and foreign artists and about 600 Danish and foreign record companies.
Membership
Admitted for membership are all Danish and foreign artists and Danish and foreign record companies who are entitled to remuneration in accordance with Article 68.
When do rights exist?
Rights in pursuance of Article 68 come into force when a commercially protected phonogram is used publicly. Protected implies either that it has been recorded in a country party to the Rome Convention, in an EU / EEA member state, or that the record company, which the recording artist is on contract with, is based in a country party to the Rome Convention or in an EU / EEA member state. Most countries – including Denmark - give protection for 50 years.
How are the rights exercised?
In Denmark, artists and record companies are subject to a compulsory license, which means that public use of the sound recordings in which they hold rights cannot be prevented; however, the user of the sound recordings must pay a fee to Gramex, who then redistributes these fees to the performing artists and record companies.
Who uses sound recordings?
Radio
In Denmark, major users of sound recordings are Radio Denmark (the national public service broadcaster), and about 250 local and commercial radio stations. They are all registered with Gramex and pay according to their use of sound recordings in their broadcasts.
TV
Danish TV stations – both nationwide stations, regional stations, as well as about 34 local TV stations – pay a fee to Gramex for their use of sound recordings on TV.
Music Dramatic Performance
Any use of sound recordings in e.g. ballets, dance performances, ballad opera, and puppet theatre etc. redeems duty of payment to Gramex.
Other Public Performance
Any use of sound recordings at discothèques, in trains, on airplanes, in shops, at work sites, hotels, etc. also redeems duty of payment to Gramex. In this area Gramex cooperates with the composers' rights association, KODA, which collects fees on their own and on Gramex’s behalf for the use of sound recordings.
How are the fees distributed?
The reporting made by Radio Denmark, DR-TV, TV 2 and the commercial stations on the broadcasted sound recordings forms basis for distribution of the funds received.
After deduction of administration costs, Gramex distributes the funds received equally among the members - i.e. 50% to performing artists and 50% to record companies.
As for the artists, an effort is made to distribute the funds individually, whereas – as a general rule - also rock groups, large orchestras and choirs are registered on an individual basis. The funds are distributed based on actual airplay and a special point system. The point system is based on the artistic responsibility of the contributors, so that soloists and conductors are given a greater share than orchestral players and backing musicians. Funds that cannot be distributed are used to promote music and are distributed among the artists via their organizations.
As for the producers, fees received from the stations that report to Gramex are distributed according to actual airplay. Fees from other users who do not specify the sound recordings used are also distributed in accordance with the above airplay. For IFPI companies, the fee for airplay is combined with the companies' turnover and market shares.
Amounts which remain unclaimed after a period of three years will be added to a new distribution or used for collective purposes. The performing artists can apply for a share of these “Gramex funds” through the performers’ own organizations.
International Relations
Gramex also safeguards its members' interests internationally by cooperating with other organizations that safeguard the rights of performing artists and producers in other countries, and by entering bilateral agreements with the same.
Bilateral agreements with other organizations
As of October 2007 Gramex has entered bilateral agreements with the following organizations that safeguard the interests of performing artists and producers:
Under “Type of agreement” is listed whether Gramex has entered a type A or type B agreement with the organization in question and which group of right holders this agreement comprises (“K” for performing artists and/or “P” for record companies).
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Agreement Type "A" implies that individual remuneration is exchanged annually between Gramex and the organization in question.
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Agreement Type "B" implies that the accumulated remuneration remains in the country where it was earned. I.e. there is no exchange of remuneration.
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L/I means a letter of intent to enter an agreement.
Blank Tape Levy
A levy must be paid for all empty media suitable for recording pictures and sound. This levy is collected by the umbrella organization Copy-Dan. Part of the levies collected will be distributed among artists through Gramex.
ISRC
Gramex has been appointed to manage the national administration of the International Standard Recording Code ('ISRC'), which is encoded on digital sound recordings. This code which makes it possible to identify a digital phonogram internationally is transferred in connection with copying as well as digital transmission and contributes to future safeguarding of the rights of composers, performing artists and producers.
