Table of ConTenTs:

Table of Contents:
WHY KODA?
02
Prime Mover in Online Services
04
International and National
Perspectives and Collaborations
06
HIGH MARKET COVERAGE 10
CULTURAL CONTRIBUTIONS 12
A MUSIC IMPORTING COUNTRY/COPYRIGHT PROTECTION 14
Statements from the Chairman of the Board
16
Accounts
18
Contacts 20
Annual report
Why KODA?
by Managing Director Niels Bak
Rights management :
past, present and future
We are prepared for the future. For some considerable time, we
have planned our development in the future scenario in which
all rights societies must deserve their repertoire by being
efficient and by collaborating with the music industry and the
rights societies. As well as through dialogue, transparency and
openness.
We excel in ensuring income as well as fast
and reliable settlements for music rights
holders. That is our business!
KODA is a well-known and consolidated brand in Denmark, but
mostly unknown outside our country’s borders. However, we
are more than ready to change this!
With the rapid changes in the international music business,
the main concern for the collective rights societies is to
optimise profits for rights holders. Choosing us to administer
your music rights is the only sensible decision seen from a
business perspective.
The best society
We are constantly looking for ways to expand and improve our
business. We have one of the highest incomes per capita, a
very high market coverage, an efficient technology base and
our administration costs stay at an extremely low 11 percent
each year. Now, we are looking forward to new, international
collaborations.
The essence of our business is to create value for the music
rights holders. But in today’s world, it is no longer enough to do
0 “
KODA is a serious and
competitive business partner and
we are not afraid to benchmark
ourselves internationally
as well or better than our sister societies. We also have to
obtain better financial results for our rights holders than they
are able to achieve themselves in order to attract repertoire.
Know-how, infrastructure and
collaboration skills
KODA has built up a considerable licensing know-how and a
valuable, efficient infrastructure, in collaboration with NCB
(Nordic Copyright Bureau) for the mechanical rights as well as
with our Nordic sister societies in general. We are ready to
collaborate with all publishers and rights societies and we do
not seek exclusive partnerships. We believe that partnerships
and collaborations which keep costs low and ensure efficient
service are the best ways towards increased competitiveness.
The world repertoire is crucial
There is nothing more crucial for KODA than the ability to have
access to the entire world repertoire of music, irrespective of
whether it is for offline or online usage. This is what matters for
us, and it is not important to us whether this is achieved through
reciprocity, direct representation contracts or member
contracts. This is what we will be working for in the near future.
The manner in which we present ourselves in this annual
report is new. Until now, we have concentrated on solving our
tasks in relation to the rights holders. Now, we have recognised
that we have to draw attention to the results that we obtain and
to persuade the multinational publishers and sister societies
that KODA, when it comes to music usage in Denmark, can
create far better results than alternative ways of administering
“
KODA´s administration costs (%) 1998-2007
We are privileged to live in exciting times and it
is our task to change the way rights holders
make money, so that they can make a living.
Breakdown of KODa´s Total Revenues for Performing RIGHTS 2007
%
25,000,000
14.0
12.0
20,000,000
10.0
15,000,000
08.0
06.0
10,000,000
04.0
5,000,000
1998
1999
2000
2001
2003
2002
2004
2005
2006
Annual income per Capita 1998-2007
2007
Radio &
TV
Satellite
& Cable
12.0
Private Copy General
Church
Remunera- Performance Services
tion
Licensing
License
Revenues
Affiliated
Societies
Interests
2006: 63,446,084
2007: 66,822,278
10.0
KODA: looking ahead – always!
Income in Euro
08.0
Five good reasons to choose KODA:
1) High income per capita
2) Low administrations costs
3) Efficient systems
4) Innovation
5) Collaboration
06.0
04.0
02.0
00.0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Annual income per capita
0
“
online licensing and registration
Prime mover in
We make it simple for our customers
across national borders – and therefore
profitable for our members.
The Internet has provided new opportunities for music
usage and as a result, new opportunities for music
licensing have arisen. At KODA we are prepared to license
any kind of music use, as long as the rights holders receive
fair compensation.
The Nordic collective rights societies have collaborated
in the field of online licensing for the past few years. As a
result, efficient online systems have been implemented for
the efficient and service-minded handling of customers
and members. We are currently working very closely with
our Norwegian sister society TONO on future IT systems.
Our Customers
We closely monitor Internet music use by Danish endusers and we have been licensing Internet music usage
with great efficiency since 1996.
Our IT development department provides us with online
systems for customers, and as a result we have
implemented an online licensing shop, where customers
can easily sign up for the most common Internet music
usages. This makes the licensing process simple for our
customers and highly cost-effective for us.
Licensing across borders
The Internet only reluctantly respects national borders and
international music users therefore have a great need for
0 KODA has a negotiated tariff with Danish
download stores. By international comparison
these stores give rights holders very high
payments (12 per cent of the end user price)
cross-border licenses. We always strive to facilitate crossborder online licenses with other societies.
Our Members
At KODA all desired services are available online – for
publishers, composers and songwriters alike. Several of
these online services have been developed in-house by
our own IT staff and are now shared with several other
Nordic rights societies and NCB (Nordic Copyright
Bureau).
Online services for composers,
songwriters and music publishers
Composers and songwriters can register any new song
directly at www.koda.dk in a service called “MyKODA”
and see their own archive of registered songs.
Upon signing a contract with a composer/songwriter,
music publishers simply report all new songs
electronically. The registration of entire song catalogues in
various formats is also an option.
When a song is played publicly on TV or radio, the
reports are automatically registered online.
Live concerts are easily registered online for both
national and international concerts.
Invoicing is done directly to the user’s bank account and
all relevant information regarding what, and how often,
songs have been played is listed on MyKODA.
The search function in KODA’s song database is
available to everyone.
“
KODA´s profits 1998-2007
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
We collect greater revenues by ensuring that
clearing music rights for online use is not an
obstacle for our customers
“
80 pct. of our members’ song registration is
carried out in our online system MyKODA. The
system also provides confidential royalty
statements for each member
“
In 2007, 23,000 concerts were registered through
our online system MyKODA. This constitutes 88
pct. of all potential concerts for online registration
and 65 pct. of all reported concerts
15,000,000
10,000,000
5,000,000
1998
1999
2000
2001
2002
2003
2004
2005
Radio/TV and Satellite/Cable
General Performance Licensing/Private Copy Remuneration
Other profits
2006
2007
“
As per April 1st 2008 MyKODA had 14,000 unique
online users. This is a very high figure compared to
the fact that only 12,769 members received
remuneration from KODA in 2007
0
International
perspective and collaborations
KODA is an active player in
international collaborations and debates.
With the increased international focus on collective rights
management, we feel a need to inform multinational music
publishers, international rights holders and our sister societies
about KODA’s work and, more importantly, about our ability to
efficiently administer rights and with very high payments to the
rights holders in return.
International collaborations
Our international work also involves participation in the
international copyright organisations. Through NCB
(Nordic Copyright Bureau) we participate in the work
carried out by BIEM. We take an active part in the debate
on copyright at all levels – both internationally with regard
to discussions with EU politicians and officials, as well as
nationally where we always defend copyright and our
members’ rights.
Initiatives from the
European Commission
In 2005, the European Commission issued its music online
recommendation, under which rights holders were
encouraged to exercise their online rights in new ways.
KODA fully respects the choice of rights holders in the
administration of their rights. The natural consequence for
us is to focus even more on being the favourite partner for
rights holders and rights managers with regard to licensing
in Denmark. We can only achieve that goal by having the
0 highest standards for licensing music users and by
maintaining a high degree of transparency and dialogue
with rights holders and rights managers.
In 2008, the Commission has launched a public
consultation on online content. The Commission’s goal is
to issue a recommendation regarding new ways of
achieving a single market for online content. KODA
participates actively in this consultation because we
acknowledge that it is of great importance to help
provide music users with legal access to the rights they
need. On the other hand, we have a duty towards the
rights holders to ensure that the value of the rights that
are entrusted to us is not diminished.
The CISAC Statement of Objections
In 2006, the European Commission launched a case against
the European collective management societies and CISAC
– the worldwide umbrella organisation for collective
management societies. In a nutshell, the European
Commission is in favour of giving music users a greater
choice of where to obtain the necessary licenses, which
preferably should be as broad in scope as possible.
CISAC and the collective management societies are
working on future models that address the issues that have
been raised by the Commission. Obviously, KODA is also
part of this process, and our objective is once again to
balance the need for music users to have easy access to
the rights they need, while at the same time making sure
that the value of the rights is not diminished.
“
We are very proud to be on
the top 10 once again and we rejoiced when
we heard the news. To be on the top 10 two years in a row is very impressive and it is especially exciting since
we are about to release our first single from the follow up album to “From Paris to Berlin”. Being a member of
KODA is a gift to us artists. KODA does a great job to ensure that we get money when our music is used.”
Lina Rafn, Infernal (on top 10 most played artists abroad in 2006 as well as in 2005)
Pr Photo
Photo: Klaus Holsting
“
Our contract with KODA means that we can offer the Danish population a far more extensive selection of music on
radio, TV and new media in the coming years. Within DR, we are pleased with the collaboration with KODA because it
benefits the music makers as well as our listeners and viewers. This way, the artists are ensured correct and efficient
payment for their music and DR – as well as other radio and TV stations - have access to play the music they wish.”
Kenneth Plummer, CEO Danish
Broadcasting Corporation (DR)
Photo: Bjarne B. Hermansen
“
I am one of KODA’s supporters. I believe in the idea of collective copyright management. In Denmark we have a
strong tradition for collective copyright administration. I believe that KODA and similar organisations in other
countries do an important job, not just for the copyright owners but also for music users so that they
have an easy and legal access to the world music repertoire. I appreciate the job done.”
Brian Mikkelsen, The Danish Minister for Culture
(at the opening of the CIAM conference 2003).
The 10 most frequently played Danish compositions abroad (based on 2006 registrations)
NO.
TITLE
COMPOSER/SONGWRITER
ARTIST
1
SUPERSTAR
HANSEN MICH HEDIN, SIGVARDT MIKKEL, BELMAATI JOSEPH
JAMELIA/CHRISTINE MILTON
2
FROM PARIS TO BERLIN
LAGERMANN PAW, RAFN LINA, POWERS ADAM
INFERNAL
3
PLAYED ALIVE
SAVERY UFFE, FRIIS MORTEN, PARSBERG MICHAEL
SAFRI DUO
4
SOMETHING ABOUT YOU
JAMELIA, BIKER PETER, SOULSHOCK
JAMELIA
5
TANGO JALOUSIE
GADE JACOB
DIVERSE KUNSTNERE
6
NO PROMISES
SCHRØDER JONAS, SIEBER LUCAS
BRYAN RICE
7
BARBIE GIRL
RASTED SØREN, NORREEN CLAUS, DIF RENE, NYSTRØM LENE
AQUA
8
MOVE YOUR FEET
MORTENSEN JESPER
JUNIOR SENIOR
9
THANK YOU
SOULSHOCK, BIKER PETER, JAMELIA
JAMELIA
10
SUNSHINE REGGAE
GULDBERG JOHN, STAHL TIM
LAID BACK
0
National
collaboration in licensing
Strength through partnerships
It is a fundamental part of KODA’s work to collaborate with
other performing rights and mechanical rights collective
management societies around the world, as well as to
collaborate within our national boundaries.
Collaboration and dialogue is a very important tool for
KODA, because it helps the music users to license all
necessary rights and thereby also enable us to collect
royalties for the rights holders. In addition, this kind of
collaboration also gives us strength in the political
processes. We have always had a very close collaboration
with NCB which manages mechanical rights in the Nordic/
Baltic countries. Regarding anti-piracy we also have an indepth collaboration with other categories of rights holders in
the music and film industry.
Making it easy for the music users
The purpose of the collaboration across different rights
categories is to make it easier for music users to legally obtain
all the rights they need for the service they wish to launch. By
developing joint licensing models we create true one-stopshops for music users, covering all rights.
These models make it simple for music users to acquire
rights, and the more music users are able to acquire the rights,
the more money KODA will be able collect for the benefit of the
rights holders. Another positive side effect of this kind of
collaboration is that it makes rights management more efficient
because the cost of licensing to music users is divided
0 amongst the involved organisations. KODA collaborates with
other neighbouring rights organisations such as IFPI Denmark,
Gramex and Copydan on licensing rights for public
performances, cable retransmission, online music usage for
public performance rights as well as for mechanical rights
(with NCB) and a number of other areas.
Deals on archive digitalisation and on free
music through telco subscription
In 2007, KODA was one of the main driving forces behind a colicensing deal which involved all relevant rights holders for
radio and television broadcasts that have been broadcast by
the Danish Broadcasting Corporation (DR). The new agreement
makes it possible for DR to digitise all of their archives and
present the material online. The agreement is unique insofar as
all relevant rights holders are included in one single agreement
with DR. If the negotiations had failed it is very unlikely that the
archives could have been made available to the public and, as
a result, the rights holders would lose the royalties derived
from the service.
In April 2008, Danish company TDC was the first telco in the
world to present a free music license for all their customers
with phone or broadband subscription. KODA managed to
obtain an agreement with TDC which during the next two years
more than triples online music remuneration for the rights
holders we represent. We expect to expand the collaboration
with TDC as well as enter into similar deals with other
companies in the future.
“
Top10 on Danish Broadcasting Corporation 2007 DR Radio P3; (equivalent of BBC Radio 1)
Collaboration creates invaluable synergies to the
benefit of both rights holders and music users
No.
Title
Artist
Music/Lyrics
Publisher
Label
1
Makes Me Wonder
Maroon 5
Adam Levine, Mickey Madden, Jesse Carmichael
Universal/MGB Scandinavia AB
Universal Music
2
Golden Skans
Klaxons
Jamie Oliver Reynolds, James Nicholas Righton, Davies Simon Taylor
Universal/Polygram Music Publishing
Universal Music
3
10.000 Nights Of
Thunder
Alphabeat
Anders Bønløkke
Good Songs Publishing
Copenhagen Records
4
Ruby
Kaiser Chiefs
Andrew White, Nick Baines, Nick Hodgson, Ricky Wilson, Simon Rix
Universal Musica Publishing
Polydor
5
Lommen Fuld Af Guld
Torrpedorr
Adam Svendsen, Emil Ekelund, Rasmus Eshøj
6
A Blast Beat
Dúné
Mattias Kolstrup, Ole Bjørn Sørensen, Anne Cecilie Dyrberg, Piotr Wasilewski,
Malte Aarup-Sørensen, Simon Troelsgaard, Danny S Jungslund
Iceberg Publishing A/S
Iceberg Records
7
The Sweet Escape
Gwen Stefani/Akon
Gwen Stefani, Aliaune Thiam, Giorgio Tuinfort
Kobalt Music Publishing, Misty Music A/B, Sony ATV
Music Publishing Scandinavia
Interscope
8
Grace Kelly
Mika
Dan Warner, Jodi Marr, John Merchant, Michael Holbrook Penniman
Universal Music Publishing, Universal/Polygram
Music Publishing, Sony/ATV Music Publishing
Island Records
9
What Goes Around
Justin Timberlake
Nate Hills, Timothy Mosley, Justin Timberlake
Warner/Chappell Music Scandinavia AB, Universal
MGB Scandinavia
Sony/BMG
10
Mexico ligger I
Spanien
Nephew
Simon Kvamm, Søren Arnholt Rasmussen, Kristian Riis, Kasper Toustrup, René
Munk Thalund
Example showing how many rights holders there are for each song on
Danish National Radio’s top 10 2007: At present, all a KODA customer needs to do in order to start an Internet radio
with the above 10 songs, is to fill out an online form at KODA.DK and contact
Gramex (the collective rights management society for Danish record
companies). When an agreement is signed, the Internet radio can be launched.
If the present reciprocal agreements between the rights societies are
Various compilations
Copenhagen Records
deemed illegal by the EU and if the music publishers withdraw all online
agreements from the societies, a future scenario is:
A KODA customer has to contact all rights holders for each song. – A time
consuming job - and the result may well be that the customer decides
against starting an Internet radio. KODA’s aim is to make access to music
easy and legal - and therefore we do not believe that this potential future
scenario is profitable for our members or our customers.
0
High
market coverage
Efficient customer service
The market for background music in shops and restaurants is growing and the market for online music use is exploding.
These are important markets and new ways of using music to give
added value to businesses arise continuously. Therefore, it is important to
facilitate easy and legal access to the music – and to update tariffs that
reflect the value of the music.
KODA recognizes that it is crucial to promote music and the value of
music. We give high priority to creating a good customer relationship with
efficiency, quality and service as the key words. We offer efficient online
registration systems as well as personal service by phone or at our reception
front desk. In addition, we stage customer events and workshops where our
expert consultants provide guidance in the commercial use of music.
Easy to be legal
It has to be simple to be legal as far as music use is concerned. And we
make it simple through a unique collaboration with IFPI Denmark and the
performing musicians’ society Gramex. This way, our customers pay in one
place only – at KODA. Thus, we collect payment for music publishers,
composers and songwriters; but also for the musicians and the record
companies.
The effect of this simplicity is that the use of music increases and our
market coverage widens. And – most importantly – it minimises our
administration costs. This ultimately collects more money for our members
- the music publishers, the composers and the songwriters.
Music through the eyes of the customers
Our customers are radio, TV, Internet, shops, workspaces, concert halls,
restaurants, hotels etc. The commercial value of music is of great interest
to our customers because music adds value to a product. Therefore, we
invest considerable resources in analysing the use of music in public
10
10
“
We have the highest market coverage
in the world per capita
spaces. In this way, we are able to guide our customers to use music in
ways that enhance their products and generate added value.
Simultaneously, we ensure that our members’ music is “sold” at the right
price.
By collecting revenues with the customers in mind, we get the best
financial results. Our customer database is large – not because there are
proportionally more music users in Denmark than in other countries - but
because we are able to make quality agreements which benefit our
customers. Creating awareness about the value of music among our
customers gives customer satisfaction and this in turn affects the level of
income for our members.
We have excellent online services for contracts and registration, but we
also meet our customers in person and at eye level at tailor-made
workshops and events that focus on how music determines the
atmosphere in their businesses and reflects the desired image in a shop or
restaurant. In short, how music positively affects our customers’ business
profits.
Extensive market coverage
Our market coverage is among the highest in the world compared with
other rights societies. And we have more customers per capita than any
other rights society. We now have more than 66,000 customers in our
database, which is one of our most valuable tools. We have negotiated
many fixed collective contracts with chain stores, unions, societies and
other groups.
Through various simple initiatives we are able to monitor the
development of the market and quickly spot new business areas. Among
other things, we employ travelling consultants who are trained to give
quality advice on the use of music for new as well as old customers.
Advice from our consultants on music simply equals added value for the
customer’s business.
“
KODA income 2007 - other public performances
Annual income per Capita 1998-2007
12.0
Total: 21,536,089
30.4%
19.0%
10.0
08.0
Income in Euro
We analyse the value of music, and thus
we ensure that our members’ music is
“sold” at the right price
17.9%
06.0
5.0%
04.0
2.7%
1.6%
02.0
Restaurants, hotels etc.
00.0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Cinema
Music in shops
Musik in work spaces
2007
Annual income per capita
Other background music
Concerts
Entertainment
Remuneration from concerts
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2000
2001
2002
Classical concerts
2003
2004
2005
2006
2007
23.4%
6,553,255
1,074,082
5,041,708
348,953
567,417
3,855,108
4,095,566
Facts
In 2007, our six consultants drafted 856 contracts with new
customers (shops, restaurants and hotels) in Denmark ,
which has a mere 5 million inhabitants.
Our consultants visit approx 45 customers daily, throughout
the country.
We have more than 66,000 customers in our database.
Our market coverage is 40 percent of all hotels, restaurants
and shops – a very high coverage considering that many of
these do not use music in their localities.
Other concerts
11 11
Cultural
Contributions
- A tool for national branding, leading
to good reasonable tariffs.
Each year, 10 percent of KODA’s net result is allocated to
Cultural Contributions. The sum is invested in national
upcoming artists in Denmark – a small country and a
“small” language. The end result is more money for all
rights holders, national as well as international.
KODA invests in Danish music culture through Cultural
Contributions that support the image of copyright and
increase user willingness to pay for music. Thus, Cultural
Contributions is an investment that strengthens our
national image and – in particular – ensures and
strengthens the political support for our cultural function in
society. This acceptance, in effect, enables us to ensure
reasonable tariffs for our members.
Big international rights holders
make money due to our Cultural
Contributions. Why?
Our support for national music culture shows legal and
political authorities that we are a democratic organisation
with great significance for Danish culture. If we were
instead perceived as a commercial organisation, the
general acceptance of paying for music would decrease
significantly.
The money allocated for national upcoming artists is
partly recycled in the “system” because the ventures
made possible by Cultural Contributions are given tariffs
which otherwise would not exist.
12
12
Supporting national music increases musical diversity
internationally. This diversity is important for the
development of the music business as a whole.
We make more money per capita than the majority of
collective rights management societies, in particular than
the societies without Cultural Contributions. This is again,
due to the national acceptance of our function.
Facts:
Our Cultural Contributions are provided for cultural
purposes only, and not for social purposes, pensions or the
like.
We provide full transparency in our accounts, also
regarding our Cultural Contributions.
There a no Cultural Contributions deducted from online
sale when substituting physical sale.
In 2007, our Cultural Contributions
amounted to 5.1 million euro. The
money went to direct member support
e.g.
Concert and tours, scholarships, promotion material,
courses and workshops etc. as well as events supporting
national music and festivals, for example:
A one day festival for Danish music “Spil Dansk
Dagen”.
An upcoming stage at Copenhagen Jazz Festival.
A two day festival for upcoming bands, SPOT Festival.
Workshops and seminars for songwriters.
Employment of KODA’s Cultural Contributions 2007 in Euro
Total: 5.11 mio.
23,347
274,924
273,360
806,992
178,022
1,219,598
662,824
351,052
261,088
112,869
954,562
Elderly and disadvantaged members (temporary subsidies)
Production, releases and/or distribution of recordings
Production of sheet music
Grants for studies, work or travel
Accomodation
Concerts
Prizes etc.
Courses, workshops etc.
PR activities etc.
Organisation and other administration expenses (max 20%)
Other purposes
The upcoming Danish band Oh no Ono has received Cultural
Contributions for their second album, and although their debut
album was relatively successful, sales only amounted to a few
thousand copies: ”We are in the middle of a very creative
process making our new album. We are working intensely with
our music and expression and this would not have been possible
without help from KODA’s Cultural Contributions
Singer, Aske Zidore, Oh no Ono
13 13
KODA sent
PAYMENTS TO AND FROM ABROAD
more than 26 million
euro abroad in 2007
A music importing country – with a strong music culture
and close collaboration on copyright protection.
On average, each and every Dane listens to music more than 2.5 hours a day – and
music therefore plays an important role in our society. Our national music is very
popular, and the most frequently played songs are often Danish. Copyright protection
is high in Denmark and the rights holders enjoy much respect in our political life.
This strong music culture is reflected in the large group of KODA-members,
amounting to no less than 32,000. A very high number compared to Denmark’s
mere 5 million inhabitants. However, only approximately one third of our members
are active and productive and, thus, receive payments from KODA each year.
Import much greater than export
Even though music is very popular in Denmark, we remain a music importing country.
This is reflected in our financial review in the distribution of remunerations in
Denmark and abroad. In 2007, KODA sent just over 26 million Euro to rights holders
outside Denmark, equalling approx 56 percent of the total remuneration. In the past
few years, the foreign share has increased slightly as a result of the growth that has
taken place primarily in areas with a high share of foreign repertoire.
As seen in the table to the right, KODA paid 26,056,207 Euro to foreign rights
holders while receiving only 4,294,226 Euro. In the next few years, we expect
an increase in revenues from abroad, partly because of a handful of very
successful Danish songwriters/bands and partly because of the international
success of Danish feature films.
Number of Danish musical works in KODA’s database
14 14
2000
2001
2002
2003
2004
2005
2006
2007
373,519
399,359
418,999
446,911
478,095
539,970
576,160
610,533
EUR
EUR
Received 2007
from
2006-2007
+ / -%
Distributed
2007 to
2006-2007
+ / -%
STIM, SWEDEN
848,196
-12%
9,014,252
-21%
PRS, UK
481,566
33%
5,155,327
8%
ASCAP, USA
112,877
-22%
3,496,101
-5%
BMI, USA
51,023
-1%
3,074,595
-13%
GEMA, GERMANY
463,315
-14%
1,437,590
3%
SACEM, FRANCE
307,001
-18%
1,200,842
6%
TONO, NORWAY
457,537
11%
662,149
2%
SOCAN, CANADA
34,751
-47%
437,337
-7%
210,776
20%
265,440
30%
-
0%
220,729
21%
66,581
5%
201,169
-21%
15%
SIAE, ITALY
SESAC, USA
APRA, AUSTRALIA
BUMA, THE NETHERLANDS
140,753
-3%
120,112
TEOSTO, FINLAND
332,250
16%
93,315
7%
SGAE, SPAIN
91,975
1037%
91,343
-25%
AKM, AUSTRIA
52,513
-13%
71,948
17%
SABAM, BELGIUM
98,206
76%
62,733
32%
SUISA, SWITZERLAND
43,983
17%
61,878
11%
IMRO, IRELAND
35,640
18%
60,454
-45%
JASRAC, JAPAN
97,223
-16%
37,906
-15%
SADAIC, ARGENTINA
8,868
38%
36,606
225%
STEF, ICELAND
9,380
100%
33,112
54%
OSA, CHECH REPUBLIC
8,892
26%
22,322
18%
RAO, RUSSIA
26,173
2%
20,954
60%
SAMRO, SOUTH AFRICA
20,479
-27%
20,448
175%
ZAIKS, POLAND
100,298
57%
19,456
15%
UBC, BRAZIL
19,139
-19%
11,943
11%
AEPI, GREECE
31,577
4%
10,796
89%
EAU, ESTONIA
6,069
100%
10,621
218%
LATGA-A, LITHUANIA
12,539
121%
7,884
1229%
MESAM, TURKEY
1,330
95%
7,263
-42%
SACM, MEXICO
1,915
-52%
6,773
11%
4,172,828
2%
25,973,399
-9%
Others
121,398
86%
82,808
-4%
TOTAL
4,294,226
3%
26,056,207
-9%
SUBTOTAL
The ANTI-PIRACY Group
– a collaboration on protecting copyright
We collaborate with the Danish
Anti-Piracy Group (APG) in its
concern for the illegal copying and
distribution of music and film.
We participate actively in the fight against piracy
because it is in the long-term interest of our rights
holders. The Danish Anti-Piracy Group is the most
successful in Europe. It has successfully reduced
traffic on several of the widely known illegal file
sharing services by the launch of a large number of
lawsuits against private users and telephone
companies.
In 2007, APG has managed to force the
Danish telephone companies to block their
customers’ access to the Russian sites www.
allofmp3.com and www.mp3sparks.com. Both these
sites illegally sell music at very low prices causing
immense losses for the entire music industry. The
APG has also sent out damage claims in
approximately 250 end user cases concerning illegal
file sharing in peer-2-peer networks such as Gnutella
and BitTorrent.
The APG plans to send out approx 150 additional
damage claims in the spring of 2008. The APG has
seized more than 5500 pirated DVDs and CDs in 2007.
The material was seized in enforcement
proceedings concerning illegal physical sales
through various online auction sites. In 2007, the APG
won a trial case in the Danish Western High Court
concerning peer-2-peer file sharing. This case sets
an important precedent for future cases. During
2007, the APG has focused on closing down all of the
Danish hubs in the popular file sharing network
Direct Connect. These efforts have caused a major
decrease in the infringements taking place in this
network.
The Danish Anti-Piracy Group’s members are
artists, the recording industry, the film industry and
KODA/NCB. We believe that the formal participation
of composers, songwriters and musicians in the
APG group is of utmost importance.
We are certain that the best way to combat
piracy is by joining forces with all aspects of the
music industry. Our prime task is to support the living
conditions of the music publishers, the artists and
the record business. The voice of the composers
and musicians within this project gives credibility to
us all and therefore it is our strategy that KODA’s
spokespersons on anti-piracy are always wellknown artists with a strong credibility, never a
lawyer.
Money returned to its rightful owners
APG’s work is important. One of KODA’s focus
areas in our collaboration with APG is to ensure that
the money from illegal file sharing is returned to the
people who have lost their rightful income – the
artists. Therefore, a crucial element of the group’s
work and regulations is to ensure that the artists,
who lose earnings as a result of piracy, get their
share of the money that APG obtains from lawsuits.
In 2006, to ensure this, APG established a
charitable trust, which channels funding to new
artistic projects within music and film. So far, the
APG has distributed approx 95,000 Euro to upcoming
Danish artists and performers. APG works strictly
within the legal system and their cases are relevant
to and focused on seriously damaging file sharing.
This is of great importance for KODA.
Our members’ earnings
KODA
2007
Euro intervals
Authors
Publishers
1 - 134
6,152
152
6,304
215,498
135 - 671
2,932
56
3,106
1,029,854
672 - 1,341
Total
Euro
989
28
1,101
1,055,478
1,342 - 4,023
1,195
61
1,252
2,920,860
4,023 - 6,705
343
18
386
1,994,644
6,706 - 10,058
193
8
202
1,653,609
10,059 - 20,116
217
18
234
3,267,995
20,117 -
136
27
184
10,480,672
12,157
368
12,769
22,618,610
Total
NCB
2007
Euro intervals
Authors
Publishers
1 - 134
2,690
95
2,785
129,550
135 - 671
1,425
63
1,488
476,277
672 - 1,341
808
24
832
401,775
1,342 - 4,023
436
29
465
1,059,735
4,023 - 6,705
95
12
107
549,945
6,706 - 10,058
65
6
71
595,990
10,059 - 20,116
51
7
58
799,784
20,117 -
39
12
51
2,413,201
5,609
248
5,857
6,426,257
Total
Total
Euro
1515
Statements from
KODA’s Chairman of the Board, Klaus Ib Jørgensen
The goal for KODA is to remain the absolute favourite
licensing partner for Danish music users. But at the same
time we have higher ambitions. We also want to remain
the favourite partner for all the different rights holders.
Achieving these goals can only succeed if we show
transparency towards all our stakeholders and if we
engage in dialogue whenever we face major business
decisions.
KODA will only be in the business of managing collective
rights in the long run if we are able to collect more money
than the rights holders can collect themselves. That is why
KODA has a constant focus on generating income and at
the same time on keeping our administration costs among
the lowest in the world.
In 2007, we have taken several major steps to achieve
our goals: We formed a new structure for licensing by
appointing a Market Director for all licensing and we have
carried out important investments in order to increase
capacity and sales training. We are also working hard to
find new ways to build relationships with KODA’s more
than 66,000 customers.
Last year, we began to strengthen our dialogue with the
major music publishers. Many music publishers are not
aware of KODA’s excellent performance on the market due
to a complicated money flow. At the same time, we have
an opportunity to explain that it is natural for KODA to see
music publishers as rights holders along with the other
rights holders.
16 16
In 2008, KODA’s Board will include one more music
publishing representative, making a total of three
publishers on our Board. With this initiative, we are
implementing the joint declaration “On management of
online copyrights in music works & governance in
collective management societies” which has been decided
between ICMP/CIEM and GESAC. At KODA, we fully support the initiatives for greater
transparency and good governance of collective rights
management societies. During 2008, we will launch a
debate among our members on how we can secure more
transparency and we will take initiatives to secure good
governance.
KODA’s profile among music users as well as music
makers is to be the company that helps people have easy
access to music by bringing together makers and users.
An important tool, of course, is the Internet. KODA has a
modern high capacity IT infrastructure and has created an
efficient online universe for customers and members. Each
member is able to register works and report concerts
online and at the same time see their available royalty
statements. Customers can easily enter standard
agreements from koda.dk
We do not see technological developments as a threat –
on the contrary we see them as a possibility for our
members to gain new income. This is an important
assignment in 2008.
Pr Photo
“
We are engaged in dialogue with the surrounding society that
we are a part of. We tell the story about why
music makers and rights holders should
receive payment – a salary - when their music
is performed in public
KODA´s administration costs (%) 1998-2007
%
14.0
KODA´s profits 1998-2007
40,000,000
35,000,000
12.0
10.0
08.0
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
06.0
04.0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
5,000,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Radio/TV and Satellite/Cable
General Performance Licensing/Private Copy Remuneration
Other profits
1717
BALANCE
AS OF 31st December 2007
Financial review for the year 2007
Note
1
3
2
Music Remuneration, Denmark
2007
2006
Assets
Note
59,164,735
56,579,219
Music Remuneration, Copying
860,488
1,134,128
Music Remuneration, Faeroe Islands
355,508
292,655
Music Remuneration, Greenland
289,033
302,680
4
Bonds
4,294,226
4,149,817
4
64,963,990
62,458,499
7,511,418
7,059,913
Music Remuneration, from abroad
Administration Expenses
Liquid Funds
Debtors
57,452,572
55,398,586
1,294,724
987,587
Result before Tax
58,747,297
56,386,174
Corporation Tax
0
0
Result for the year
58,747,297
0
45,002,262
5
Property
13,793,150
13,794,260
6
Fixtures and Fittings
535,120
354,690
Accrued Interest
4,294,226
4,149,817
Contributions for National Cultural Purposes
5,360,322
5,108,679
Collective Private Copy Remuneration
7
Remainder for Distribution
283,925
377,948
48,808,824
46,749,730
58,747,297
56,386,174
31,651
14,155
138,514
55,112
81,006,564
71,887,418
5,572,386
5,330,191
800,612
921,745
Liabilities
Contributions for National Cultural Purposes
Collective Private Copy Remuneration
Other Collective Purposes
56,386,174
Remuneration Affiliated Societies
412,258
45,029,687
Settled as follows:
3
7,253,713
Unit Trust Bonds
Total Assets
Net Interest Income
2006
12,254,681
0
Accruals
Result before interest etc,
2007
14,224,729
7
8
137,551
197,248
Remuneration Affiliated Societies
1,390,480
1,118,248
Un-distributed Amounts
9,653,094
8,318,480
Provisions for Write-up and Property
5,807,207
5,807,674
Accruals
5,729,224
942,467
Other Creditors
1,840,120
1,775,292
For Distribution
50,075,890
47,476,073
Total Liabilities
81,006,564
71,887,418
Contingencies etc.
18
18
Copenhagen, 4th March 2008
Management
Niels Bak
KODA’s Executive Board:
Klaus Ib Jørgensen (DKF, KODA’s Chairman) Franka Abrahamsen (DJBFA)
Hans Dal (DPA)
Ivan Pedersen (DPA)
John Frandsen (DKF)
John Rasmussen (DMFF)
Piet Breinholm Bendtsen (DJBFA)
Tine Birger Christensen (DMFF)
Account notes
1
2007
2006
37,719,420
35,908,280
618,637
484,174
Cinema and Film Showings
1,069,782
Background Music in Restaurants, Hotels
and Ships
6,461,868
Trading and Sales Premises
5,020,962
4,626,389
Music in Work Spaces
349,004
450,362
Music in Airplanes
184,129
122,712
Music in Coaches
90,640
92,347
Music Remuneration, Denmark
Radio and TV
Internet
Miscellaneous
33,743
Consultancy Fees
106,602
134,917
Appreciation and Depreciation at Start
0
212,547
Control and PR Costs
155,781
225,014
Appreciation and Depreciation 31 December
-2,348,304
-1,214,838
1,019,317
Travel and Representation etc.
214,468
203,214
Accounting Value as of 31 December
45,029,687
45,002,262
6,001,264
Cost of Premises
333,221
323,719
The holding consists of unit trust bonds in distributing unit trusts with
portfolios consisting of bonds and shares.
200,150
215,380
71,135
48,062
292,625
299,432
5,591,242
Concerts
4,455,847
4,200,946
Indoor Entertainment <200 persons
298,600
308,457
Indoor Entertainment >200 persons
692,845
728,833
Outdoor Entertainment
112,138
159,193
99,270
112,571
5,658,700
5,510,000
26,866
30,230
Sports Events
783,441
726,497
Amusement Parks
425,506
386,124
44,908
40,328
Exhibitions/Conferences
Circus
Theatre Music
Schools and High Schools
Other Entertainment
Church Services
Provisions for debtor loss
Music Remuneration, Denmark
Administration Costs
Staff Expenses
535,002
Music Evaluation Committee
Legal Assistance
Stationery and Printed Matters
Telephone and broadband
394,710
393,422
2,210,433
1,881,986
0
182,956
-511,464
0
59,164,735
56,579,219
2007
2006
5,869,758
5,490,907
173,298
171,035
1,473
904
135,564
92,979
Cost Price 1 January
Year Start
2007
2006
7,308,553
7,309,142
2,271
4,660
0
0
4,352
11,843
Cost Price 31 December
7,308,553
7,309,142
237,480
268,038
Appreciation 1 January
6,506,404
0
30,220
28,512
0
6,506,928
6,506,404
6,506,928
-21,808
-21,810
Subscriptions
Appreciation for the Year
Appreciation 31 December
107,285
103,062
External Registers
22,789
39,790
Depreciation 1 January
IT, Operation Costs for Entries
33,359
36,633
Depreciation for the Year
259,809
301,174
IT, System Development and Installation etc.
88,880
57,227
Inventory, Maintenance and New Purchases
65,877
21,895
Miscellaneous
10,948
4,098
190,113
IT, Operation Costs
Depreciation
Cost Reductions
Administration Costs
License Revenues Affiliated Societies
Danish Radio and TV programmes Abroad
0
-21,808
-21,810
Accounting Value as of 31 December
13,793,150
13,794,260
Cash Value of Property as of 1 January
16,227,235
16,228,541
Fixtures and fittings
2007
2006
66,888
Cost Price 1 January
1,381,410
1,281,902
-839,255
-823,782
Additions in the Year
560,361
199,474
7,511,418
7,059,913
2007
6
Losses in the Year
2006
-910,967
-99,856
Cost Price 31 December
1,030,805
1,381,521
Depreciation 1 January
-1,026,748
-1,053,092
Disposals
276,127
409,366
Other Revenues Affiliated Societies
4,018,099
3,740,451
License Revenues Affiliated Societies
4,294,226
4,149,817
Bonds and Investment trust certificates
2007
2006
46,213,381
37,199,624
Annual Inflow
29,979,498
17,545,474
Annual Outflow
-28,814,888
-8,527,998
Cost Price 31 December
47,377,991
46,217,100
Appreciation and Depreciation 1 January
-1,214,740
-34,967
Cost Price 1 January
0
Depreciation 31 December
Music Revenues from Cable Distribution of
4
Property
-1,392,418
Bank Costs
Insurances
3
5
-1,133,565
Transportation
Postage
305,385
Fees:
Board
Years Appreciation and Depreciation
Office Expenses:
5,937,359
Association Agreements
2
35,841
Background Music
One-off Events
Auditors Fees
709,230
81,223
Depreciation of the Year
-178,166
-54,962
Depreciation 31 December
-495,684
-1,026,831
535,120
354,690
Accounting Value as of 31 December
7
2007
2007
48,808,824
46,749,730
Unplaceable Remuneration 1 January
948,726
394,395
Free Portion
318,339
331,948
50,075,890
47,476,073
For distribution
For distribution according to the profit and
loss account
For Distribution
8
The European Commission has launched a complaint against KODA and the other
European collective rights management companies regarding their observance of the EU
competition rules. The case is suspended, but not yet decided.
The estimated capitalised value of pension obligations is EUR 278,545.
Contracts have been entered into for the lease of computer equipment.
The obligation constitutes EUR 14,216 distributed between the next two years.
Obligations regarding rental property:
Interior maintenance in connection with lease is EUR 11,131.
A lease has been signed for Landemærket 27, 1st floor. The lease is irrevocable until May
1, 2008, and the rent obligation is EUR 13,277.
This year, a lease was also signed for Landemærket 27, 2nd and 3rd floor. The lease is
irrevocable until June 1st 2010, and the rent obligation is EUR 255,613.
Contingent liabilities etc.
19 19
KODA:
Always at your service!
Contact us to hear
more….
KODA Managing Director
Niels Bak
Tel: +45 33 30 63 01/nb@koda.dk
KODA Assistant Managing Director
Martin Gormsen
Tel: +45 33 30 63 03/mg@koda.dk
Jakob Hüttel
Head of International Legal Affairs
Tel: +45 33 30 63 69/jhl@koda.dk
KODA
Landemærket 23-25, P.O. box 2154, DK-1016
Copenhagen K.
Tel: +45 33306300, E-mail: info@koda.dk.
www.koda.dk
Membership Director Tine Eilskov
Head of Finance Bent Pedersen
Head of Communication Henrik Harring Jørgensen
Head of Research and Development Jens Juel Andersen
KODA Management:
KODA’s Executive Board
consists of eight members:
Managing Director Niels Bak
Assistant Managing Director Martin Gormsen
Licensing Director Trine Nielsen
Assistant Licensing Director Stig von Hielmcrone
20
Two people from each of the three member societies and
two music publishers (increased to three music
publishers in 2008).
Photos used in Annual Report: Anders Beier and colourbox.com