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Merlin - Reduction in Administration Fees for members of national associations

London, 8th February 2016

 

 

The Merlin Board has approved a further significant reduction in Merlin's Administration Fee as follows:

 

Reduction in Administration Fee

 

On commercial deals - commencing in respect of all reporting processed as from February 2, 2016, Administration Fees have been reduced as follows:

 

- from 2.5% to 2% - This represents a reduction of 20% on our current Administration Fees on commercial deals.

 

To put this into context, Merlin’s administration fees over the past four years have reduced as follows:

 

Feb 2012 – from 7% to 6%
Feb 2013 – from 6% to 4%
Jul 2013 – from 4% to 3%
Jul 2014 – from 3% to 2.5%
Feb 2016 – from 2.5% to 2%

 

- The fee remains at 3.25% for Merlin Members who are not members of local Independent Trade Associations. Merlin discounts rates to members of local independent Trade Associations, as we believe the work which they do is of significant value to Merlin. We would imagine that the discount members receive on their Merlin administration fees should cover any membership dues which those local independent Trade Organisations charge.

 

Due to the cost and nature of obtaining settlements and recoveries from infringing services, Administration Fees relating to those activities remain unchanged.

 

To reflect this change, the Merlin Policy on Administration Fees is amended as follows:

 

Administration Fees

 

The Board has set the following fees towards the Merlin Administration Fee (i.e. as per the Merlin Membership Agreement, the amount appropriate to fund Merlin’s operational costs and other liabilities). These fees are subject to ongoing review, but will be as follows until such time as the Board resolves otherwise:

 

  • Commercial Agreements, (e.g. Spotify, YouTube, Google Play, Deezer etc.) – an administration fee of 2% of revenue received.
  • Settlements / recoveries in respect of infringement (and any other legal claims) – an administration fee of 25% of the sum recovered net of all directly relating legal and accountancy fees and third-party administration charges.
     

PROVIDED THAT fees will be higher for members who are not members of Board approved local Independent Trade Associations as follows:

 

  • Commercial Agreements, (e.g. Spotify, YouTube, Google Play, Deezer etc.) – an administration fee of 3.25% of revenue received.
  • Settlements / recoveries in respect of infringement (and any other legal claims) – an administration fee of 32.5% of the sum recovered net of all directly relating legal and accountancy fees and third-party administration charges.
     

The discounted charge to members of Board approved local Independent Trade Associations is in recognition of the benefits to Merlin of communicating via these trade associations on particular issues.  

 

For members in territories which have no local Independent Trade organisation, the discounted fees will apply.

 

In the case of settlements / recoveries in respect of infringement (and any other legal claims), all directly relating legal and accountancy fees and any third-party
administration charges will be charged in addition to these fees by deducting the same from the sum recovered.

 

It is obviously very satisfying to be able to announce another significant reduction in these fees, and we trust that this development further underlines our commitment to continuing to deliver the maximum possible value to you via our activities.

 

 

 

 

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