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Distribution
Collecting Societies
Collecting societies similar to COTT exist in most countries in the world. Some of these societies administer both performing rights and mechanical rights (e.g. GEMA the German society) other societies administer either one or the other. Performing Right Society Limited (PRS) administers performing rights only and under its reciprocal representation agreement with COTT, the members of COTT are represented by PRS and its affiliated societies in the same way that PRS represents the interests of its own members and the members of its affiliates. Consequently if, for example, the musical works of a COTT member are performed in the USA, the US society will send the royalties to PRS who in turn will remit the royalties to COTT.
Where the Money Goes (distribution chart)
Performing Rights • Mechanical Rights
All licence fees and royalties received by COTT in respect of performing rights are placed in two "pools"
- The COTT Members Pool
- The International Repertoire Pool.
The COTT Members Pool is further sub-divided into 4 sub-pools for eventual distribution. Since COTT is a non-profit company all money collected is distributed after deduction of its operation costs only.
The four sub-pools are as follows:
- Special Events: all revenues received for events during and preceding Carnival in which the majority of musical works are those composed by COTT members or composers of West Indian origin;
- Broadcasting: all revenues received from radio & television stations and cable service operators;
- General: all revenues received from general licensees (bars, restaurants, shops etc.).
- Live Events: all revenues generated from licences issued for live concerts with a fee of $5,000 or more.
With regard to the broadcasting sub-pool, royalties are allocated on the basis of samples. Samples are used because the amount of income received from broadcasting stations means that it is not cost effective to do a complete analysis. Revenue from the general performance sub-pool is distributed to members pro rata to the amounts distributed to them from the broadcasting sub-pool. Revenue from the "live events" sub-pool are distributed directly to members whose works have been performed at the events on the basis of playlists collected for each live event.
Revenue from the International Repertoire Pool is remitted to PRS for distribution to members of PRS and its affiliated societies.
When COTT collects mechanical royalties it deducts a commission before distributing the balance to members.
