"Premium" rates

The present schedule and conditions apply to phonograms (commonly called "special project" or bonus "premium" records) provided to the public free of charge with another product or service as:
 

• incentive to purchase the product or service
• promotion for the company offering the product or service, excluding in-house communication operations. 

The schedule therefore does not cover advertising for and/or liquidation of stocks of phonographic formats previously placed on the conventional retail market.

The present conditions and schedule apply only to audio recording formats reproducing:

• either original works of music (created specifically for the advertising operation)
• or works of music reproduced on records already marketed for at least one year at the time of the advertising operation.

In addition to the standard compulsory references (work title, rights-holder names, SDRM logo, etc.), these phonograms must be indelibly marked (recording format and sleeve) "Offert par... - Interdit à la vente" [Free gift from … not for sale]. When the end user receives the phonograms, there must be no mark-up on the standard retail price for the product or service and no financial payment of any kind. The end user must also receive the items in compliance with regulations on sales including direct (and non-deferred) bonuses.

This schedule applies to recorded audio formats that are audio-only and non-recordable, e.g. CDs and audio cassettes and does not cover formats that are not audio-only (e.g. CD-ROM, CD EXTRA, DVD) for which SDRM has other licensing conditions (contact us). Blank recording formats (e.g. CD-R, CD-RW, DVD-R) are also excluded.

If any of the condition listed above or below is not fulfilled, the present schedule cannot be applied. Authors’ rights due for the mechanical reproduction of works protected by copyright will then be calculated on the basis of SDRM "work by work" conditions for the sale of phonograms in the conventional retailing market.

SDRM manages only the mechanical reproduction rights on recording formats for the works it represents. When the "premium" recording format refers specifically to brands, products or services (e.g. an advertisement inserted with the record, or a record sleeve displaying the brand, product and/or service), written authorization must first be obtained from the music publishers (or, if there is no publisher, from the rights-holders of the works reproduced).

The producer must complete a license application form, listing the works of music intended to be reproduced, and forward it to SDRM. Please note that any incomplete application form that cannot be properly processed will be returned to the sender for completion, with further delay in processing the license.

The form must include:

• the producer’s name and/or corporate name
• the record manufacturer’s name and, if applicable, contractor’s name
• the reference number given to the "special project" record
• the total playing time of the recording and the length of each work
• the title of each of the works reproduced, plus the names of the authors and composers of the works
• the total number of records manufactured
• the brand, trade name or product associated with the "special project" record.

On receiving the form, SDRM determines whether the works belong to the repertoire it administers or not, identifies the rights-holders (authors, composers and publishers) and calculates the relevant license fee.

Producers submitting applications must also enclose all the written authorizations obtained from the music publishers (or, if there is no publisher, from the rights-holders of the works reproduced) confirming that the relevant works can be reproduced on the bonus "premium" record.

Publishers will do their best to provide a response within fifteen days of receiving the application (note that if there is no response that does not mean the application has been accepted).

Because of special features of the retail network and the type of phonographic catalogue used, an adjustable fee scale is available, decreasing as the number of copies manufactured increases. SDRM has a fee calculated "by the minute" for works protected by copyright and reproduced on an audio recording format and decreasing as the number of copies manufactured increases.

FEE PER CD
1 – 100,000 units: €0.0076 (excluding VAT)
100,001 – 500,000 units: €0.0061 (excl. VAT)
over 500,000 units: €0.0046 (excl. VAT)

 

FEE PER AUDIO CASSETTE
1 – 100,000 units: €0.0061 (excl. VAT)
100,001 – 500,000 units: €0.0046 (excl. VAT)
over 500,000 units: €0.0046 (excl. VAT)

The total fee for a given number of units is calculated by adding the amounts for each of the fee categories.

Every part of a minute of music less than 60 seconds included on the bonus "premium" record incurs the standard fee for a full minute. This schedule is valid for twelve months and subject to annual review.

When lodging the license application with SDRM before manufacturing, the producer pays the rights due for all the units manufactured.

The present conditions only cover the calculation of the fee for mechanical reproduction rights for the authors, composers and publishers of the works reproduced. The authors’ and composers’ moral rights are expressly reserved. Adaptations, arrangements or translations may not be made without authorization from the authors, composers or their rights-holders, and must comply with the conditions set in agreement with them.

The license issued by SDRM does not exempt producers from the obligation to obtain authorizations from other categories of rights-holders, and specifically from record producers and performing artists (see the French Intellectual Property Code, Book II on related rights: “Les droits voisins du droit d'auteur”).

The conditions and schedules detailed above apply jointly and cannot be separated. They comprise the prerequisites for obtaining a license from SDRM for the reproduction of works on phonograms (e.g. CDs and audio cassettes, but excluding recorded formats reproducing audiovisual works as part or all of the recording), for works belonging to the repertoires administered by SDRM. All provisions presented in the SDRM booklet entitled: 

• “la production de phonogrammes. Droits d’auteurs: autorisation de reproduction oeuvre par oeuvre”
• and on the back of the license application form apply unless cancelled by the conditions detailed above.