The Recorded Music NZ Distribution Policy sets out our policy in relation to distribution and incorporates matters such as obligations of Master Rights Holders, licensing and collection of fees, data collection from radio and other users and distribution of royalties. The Policy is updated and amended from time to time with approval from the Recorded Music Board.
Effective from 1 January 2024, we have published an amended version of the Distribution Policy which has been approved by our Board.
In addition to some minor updates, the main change we have made to the Distribution Policy, following approval from our Board, relates to third party entities who are in the business of distributing sound recordings on behalf of rights holders (Distributors). The obligations of Distributors are set out in section 5, and the new text of section 5 is set out below in full.
In short, every Master Rights Holder, including those that are Distributors, is responsible for providing information to Recorded Music confirming the sound recordings for which that Distributor holds the relevant rights (i.e. broadcast, public performance and limited communication rights). Under the Master Rights Agreement, the Master Rights Holder provides a warranty to Recorded Music that it owns or controls the relevant rights, and agrees to indemnify Recorded Music in the case of any breach of this warranty.
While this remains the responsibility of the Master Rights Holder in each case, for the 2024 year, Recorded Music will be undertaking a process of requesting explicit confirmation from Distributors of the rights they hold in sound recordings. This is to ensure that our records are correct for the distribution of 2024 funds. There may be changes to the process ahead of the 2025 distribution.
Importantly, if a Distributor holds the rights to distribute sound recordings for the territory of New Zealand (i.e. to distribute physical product or make sound recordings available online), this does not of itself mean that Distributor can claim payments from Recorded Music NZ as the copyright owner or licensee may not have granted the Distributor the rights that Recorded Music handles.
The new Section 5 of the Distribution Policy is set out below:
Section 5
A copyright owner or licensee may choose to appoint another entity to distribute its sound recordings in the territory of New Zealand. Where that entity is primarily in the business of distributing sound recordings owned or produced by third parties it is often referred to as a Distributor.
If a Distributor holds the rights to distribute sound recordings for the territory of New Zealand (i.e. to distribute physical product or make sound recordings available online), this does not of itself mean that Distributor can claim payments from Recorded Music NZ as the copyright owner or licensee may not have granted the Distributor the rights that Recorded Music handles (as defined further below).
Recorded Music NZ can pay a Distributor on behalf of a third party on the same basis as it pays any Master Rights Holder, i.e. if that Distributor –
- owns or is the licensee of the Relevant Rights (as defined below) in specified recordings, and
- has signed a Master Rights Agreement as per section 3 of this policy to confirm that it controls such rights.
Like any Master Rights Holder, such Distributors must comply with their obligations under the Master Rights Agreement and as described in Section 8 of this Distribution Policy including the obligation to promptly notify Recorded Music NZ of any changes to the catalogue of recordings for which they control the Relevant Rights.
The Relevant Rights in respect of which Recorded Music NZ can collect revenue and pay distributions are set out in the Master Rights Agreement as amended from time to time and currently include broadcast, public performance and certain limited communication, reproduction, and related online rights.
Please direct any queries to memberservices@recordedmusic.co.nz