How are collections from rights management distributed?

As a member, the income collected from issued licences are allocated to you on the basis of the GEMA distribution plan. The distribution plan  governs the allocation ratios (splits) between composers, lyricists and music publishers of a work.

In the performing and broadcasting rights categories, composers can decide themselves how they allocate the shares among themselves.  There is a minimum share for all composers of 35.20% and for all lyricists of 19.80%. This type of share division is also referred to as free negotiability. You can select these shares in our Online Portal by using the slider.

If composer and lyricist have not come to a freely negotiated the division of shares, the composer shall receive 64.00% and the lyricist 36.00%.

Example with free negotiability:

If a composer enters into a publishing agreement, a publisher share of 33.33% is calculated based on the creator’s share. 

Composer (K) and lyricist (T) agree that they split music and lyrics in a ratio of 50%: 50%.

After that, the lyricist enters into a publishing agreement with publisher A (VA).

The shares in the work are then split to K = 50%, T = 33.34% and VA = 16.66%.

If the composer enters into a publishing agreement with publisher B (VB), the shares are split like this: K = 33.34 %, T = 33.34 % and VA = 16.66 % and VB = 16.66 %.

Example without free negotiability: 

If a composer enters into a publishing agreement, a publisher share of 33.33% is calculated based on the creator’s share. 

Composer (K) and lyricist (T) agree that they split music and lyrics in a ratio of 64.00%: 36.00%.

After that, the lyricist enters into a publishing agreement with publisher A (VA).

The shares in the work are then split to K = 64.00%, T = 24.00% and VA = 12.00%.

If the composer enters into a publishing agreement with publisher B (VB), the shares are split like this: K = 42.67%, T = 24.00% and VA = 12.00% and VB = 21.33%.

In the mechanical reproduction rights categories, the rules provide that the shares between the composers and lyricists are distributed at equal shares in a 50/50 ratio.

Composer (K) and lyricist (T) therefore must not and cannot apply the free negotiability principle for their shares in this case.

If a composer enters into a publishing agreement, a publisher share of 40.00 % is calculated based on the creator’s share. 

Example:

First, the lyricist enters into a publishing agreement with publisher A (VA).

The shares in the work are then split to K = 50%, T = 30.00 % and VA = 20.00 %.

After that, the composer enters into a publishing agreement with publisher B (VB). This leads to the following share division: K = 30.00 %, T = 30.00 % and VA = 20.00 % and VB = 20.00 %.