PAM CG collects the royalties on behalf of domestic and foreign rightholders. Our IT and Documentation Sector calculates collected royalties. The calculation of royalties for domestic and foreign rightholders shall be governed by regulations on Distribution Rules.
Legal basis for the royalties:
- Small rights (public performance of musical works)
- Mechanical rights (reproduction and distribution of recorded music)
Royalties granted on the basis of so-called Small rights
Small rights are one of the rights granted to creators of copyright-protected works, such as composers, lyricists and arrangers. It is the right to perform music works in public, or to communicate them to the public (primaliry by broadcasting). PAM CG’s members assign this right to us so that we can administer it for them. Our relationship with users shall be subject to a presumption that we are authorized to manage the rights of all music rightsholders with regard to protected matter, which is included in our activity. A rightsholder who decides to manage his/her rights individually shall notify us of such a decision.
For each public use of copyrighted musical work (whether by broadcasters, concert organizers, discoteques, hospitality facilities etc.), author is entitled to royalties. Therefore, users of copyright works in the public collect royalties fees. Fees collected shall be entered, depending on the type of use in matching funds reparticijskih class from which is paid royalties in accordance with the Regulations on the distribution and royalty. Users shall conclude with the PAM CG a contract on non-exclusive use of protected matter prior to their use. Royalties are collected from users. Royalties that are collected are entered into the appropriate funds. Collected remuneration are distributed by the origin of collection per distribution classes, in accordance with Distribution Rules.
Foreign music authors’ copyright protection
Copyright protection of foreign music authors is provided through the reciprocal representation agreements that our organization concludes with related organizations from all over the world, by ratified internatonal agreements and Copyright and Related Rights Act of Montenegro. Foreign rightholders shall be treated as domestic authors in regard to their royalties. Amount of royalties for the foreign authors shell be calculated pursuant to the provisions of the Distribution Rules and on the basis of documentation (cards) that related foreign organizations submit for the repertoire they represent.
We transfer money to foreign organizations for all authors they represent. We pay amounts of royalties collected in appropriate currency. We also forward the list of authors as well as the list of works to foreign organizations putting indication of amount of belonging royalty that is collected for each author represented by that organization.
Royalties granted on the basis of so-called Mechanical rights
Authors’ mechanical rights are rights that are given by the written power of attorney. These include that rightholders (authors or music publishers) licensing users, such as phonogram producers to record the music by means of mechanical reproduction (CDs, etc..).
International organization BIEM
Royalties for music works recorded on phonograms are charged under the provisions of typical contracts that PAM CG concludes with phonogram producers and on the basis of reports on recorded music works and number of sales that phonogram producers submit to our organization. The revenue collected from the remuneration of one sold phonogram shall be divided in proportion and distributed to authors according to the duration of each work recorded on the sound carrier. Concluding reciprocal representation agreements with sister organizations, PAM CG shall manage the rights of Montenegrin music authors in all countries of the world. In fact the sister organizations collect royalties in their home countries for each use of musical works of Montenegrin authors and such collected royalties shall be paid to our organization. So dear members, PAM CG makes additional efforts in order to ensure the best monitoring of the use of your musical works abroad and ensure the payment of royalties that belong to you. However, we always welcome your help and cooperation while preparing requirements to foreign organizations.
Authors of musical works enjoy the so called synchronization right. The right to use the music in timed relations with other visual elements in a film, video, television show/commercial, or other audio/visual production. In other words, the right to use the music as a soundtrack with visual images. Synchronization licenses are obtained from the rightholder. Therefore, if one wants to use the work in a new audio / visual work must have the license of the author or copyright holder. If you are the author you can authorize PAM CG to protect your rights by concluding agreement on synchronization conditions, to collect royalties and to provide you with any legal assistance. Such the authorization you may give us only in writing. For any additional information we are at your disposal.