COLLECTION AND DISTRIBUTION OF ROYALTY

Under the local and international legislation, royalty means payments that collected from users on their using of recorded music and further distribution of collected royalty to the relevant performers and recording rightsholders. RAYS is the only organization in the Republic of Azerbaijan that entitled to represent interests of performers and recording rightsholders, collect royalties on their behalf and distribute to them.

The royalty has been received by RAYS on using of phonograms/recorded music within the specific fiscal year shall be distributed to the relevant performers and recording rightsholders, taking into account the deduction of administrative and operating costs. The calculation process of royalty received by RAYS under international agreements with foreign collective management organisations is made directly by such CMOs and at the end of the day RAYS has been provided by the final royalty amount to be distributed to local rightsholders.

TV, radio, business representatives and other users provides reporting and information on their used or played recorded music to RAYS. In order to make accurate and fair distribution to rightsholders, RAYS makes investments in the advanced IT technology and collaborate with the most important players in the international market that ensure verification of all information indicated in the users’ reports. In the practice, we match information provided by users with the data we have upon results of special IT system that monitors all recorded music played on radio, broadcasting on TV and used by business sector.

Only after finalization of our double checking system and taking into account how often recorded music is played in public or broadcast, we will make calculation of royalty and distribute to rightsholders.