The license fee for producing a record

General system, rates and base for calculating fees
The rate is 8% of the retail price or, if no retail price is set, 11% of the published wholesale price for retailers.
The base used is the price of the record excluding VAT, when the recording format manufacturer (who presses or duplicates the recordings) has signed a standard contract for manufacturing phonograms with SDRM, which means SDRM can monitor the manufactured output. However, if the manufacturer has not signed a contract with SDRM, the base used is the price including VAT.

Important: For any declaration containing inaccurate information, the base used is the price of the record including VAT.

Discounts
The above rates are discounted when the base used is:

• the retail price – 7.5%, to offset the cost of packaging.
• the wholesale price - 9%, for rebates and volume discounts offered by the wholesaler, and -10%, to offset the cost of packaging.

Net fees

Fee based on retail price	8% - 7.5% (packaging discount), i.e. 7.4%
Fee based on wholesale price	11% - 9% (rebates and discounts) – 10% (packaging discount) i.e. 9.009%

Minimum Fee
If, after applying the rates, calculation base and discounts as detailed above, the fee due is less than the minimum set for each recording format category, a minimum fee must be paid to SDRM for each copy manufactured. The amounts set for each recording format category are listed in the table below.

When calculating the minimum fee, any use of a work of music for less than the normal playing time, and not more than 1 minute 45 seconds, is considered as an “excerpt”.
A proportional increase can be applied to the minimum fee when the number of works reproduced or the total playing time of the recording format is above the minimum levels set for each recording format category (as detailed in the table).

Recording format category	Minimum fee (excl. VAT)
CD single < 23 minutes (5 works or 12 excerpts)	0.2287
LP CD < 80 minutes, 20 works or 40 excerpts (for compilations* 24 works/48 excerpts)	0.4955
DCC 20 works or 40 excerpts (for compilations* 24 works/48 excerpts)	0.4955
Minidisc 20 works or 40 excerpts (for compilations* 24 works/48 excerpts)	0.4955
Cassette < 16 minutes, 4 works or 12 excerpts	0.1235
LP Cassette < 60 minutes, 16 works or 28 excerpts (for compilations* 24 works/48 excerpts)	0.3201
LP Cassette > 60 minutes, 32 works or 56 excerpts	0.3201
Normal 45 rpm/17 cm (7”) < 8 minutes, 2 works or 6 excerpts	0.1235
EP 45 rpm/17 cm < 16 minutes, 4 works or 12 excerpts	0.1235
Maxi Single 45 rpm < 16 minutes, 4 works or 12 excerpts	0.2454
33 rpm/30 cm (12”) < 60 minutes, 16 works or 28 excerpts	0.2988

* 24 works protected by copyright or 48 excerpts of works protected by copyright may be reproduced in a compilation album on CD, DCC or MD, if the content includes at least 50% re-releases of recordings of works protected by copyright.

The number of works or excerpts protected by copyright which can be reproduced on an analog cassette with the same recordings as a CD, DCC or MD album, is the same as can be reproduced on the equivalent digital format.

VAT and Social Security Charges
The rates listed do not include VAT (5.5%) or Social Security charges for authors (1%). To calculate the fee including VAT, simply multiply the fee excluding VAT by 1.065.

Example: 300 CDs x €7.62 (excl. VAT) x 9.009% = €205.92 (excl. VAT) X 1.065 = €219.30 including VAT

Means of payment:

• cash
• check
• credit card, only available through DRIM (Department of Reproduction Rights, Internet, Media) - 225 avenue Charles de Gaulle - 92528 Neuilly sur Seine Cedex.

Two scenarios:
all records are distributed free of charge: the minimum fee applies and each record and sleeve must be marked “Interdit à la vente” [not for sale]
a certain number of records are distributed free of charge: the fee charged is 2/3 of the fee on copies intended for sale (and must not be less than the minimum fee for the relevant recording format); each record and sleeve must be marked “Interdit à la vente” [not for sale]

Example (calculation for a manufacturer who has signed the standard contract):

400 LP CDs are manufactured at the wholesale price of €7.62 (excl. VAT) per unit; 100 of these are to be distributed free of charge, the fee per unit applying to the free copies is €7.62 (excl. VAT) (wholesale unit price) x 9.009% (rate on wholesale price) = €0.6864 (excl. VAT) x 2/3 = €0.4576 (excl. VAT).

Here, €0.4576 (excl. VAT) is less than the minimum fee for the LP CD category. The minimum will then be applied, i.e. €0.4955 (excl. VAT) per copy distributed free of charge.

Specific conditions apply to:

• "Premium” bonus records provided free of charge with another product or service for advertising purposes
• records "inserted" for no extra charge in periodicals sold to the public in newsstands or by news dealers (magazines, publications and/or journals)
• record/booklet sets sold in newsstands
• records imported into France