MPLC will pay LICENSOR its allocable share of collected licence fees on a calendar quarterly basis. Payment and royalty statements are sent no later than sixty (60) days following the close of any quarter in which licence fees are collected. Payment will be made upon receipt of the ensuing invoice. In cases where invoices are not required, royalty statements are sent no later than sixty (60) days following the close of any quarter and payment will be made upon receipt of the ensuing invoice.
The MPLC royalty allocation process utilises multiple data sources and market awareness to give a professionally calculated estimate and suitable assessment of the relative market value of each our rights holders’ repertoires as compared to the other rights holders in any given market within each territory. Each territory contains markets (health care, transportation, etc.) Each market contains royalty pools, currently “Theatrical” and “TV/All Other”.
The Theatrical Royalty Pool determines relative market share based upon theatrical box office revenue as reported by a publicly available source (currently Comscore). The Theatrical Royalty pool takes into account up to 10 years of data: Sixty percent (60%) of the weighting shall be based upon each licensor’s relative theatrical box office revenue share for the immediately prior calendar year using data obtained by Comscore or by another industry recognised equivalent research company; twenty percent (20%) of such weighting shall be based upon each licensor’s relative theatrical box office average for the two calendar years prior to the immediately prior calendar year using the same type of data; and the remaining twenty percent (20%) of such weighting shall be based upon the average theatrical box office/home video revenue for each such licensor for the prior seven (7) years.
The TV/All Other Royalty Pool contains all other titles including television series, and feature films for rights holders not participating in the Theatrical Royalty Pool (e.g. because theatrical box office data isn’t reported). The TV/All Other Royalty Pool determines relative market share based upon selected TV minutes data. Each licensor’s relative television minute data share for the immediately prior calendar year using data obtained by the industry recognised research company, Rovi.
The allocation between the Royalty Pools differs from country to country, and market to market within each country. To achieve the most accurate relative allocations according to customer viewing, we undertake an annual assessment utilising available viewing data (reflecting available rights at the time of allocation), local market research and MPLC’s analytical assessment.
Independent Rights Holders without Significant Publicly Reported Data. MPLC pays a minimum royalty to certain small independent rights holders from the Royalty Pools. Such minimum royalty payments shall, in the aggregate, be limited to no more than five percent (5%) of the royalties, and the actual amount of these payments will reduce the amount of royalties calculated in the Royalty Pools. The determination of the relative market share of these independents is determined through market assessment and may also include self reported data when insufficient data is available from the box office or TV minutes data sources.
General Policy on Deductions:
MPLC deducts a set % management fee of revenue received as determined by individual contract with each rights holder. License fee receipts are calculated on, and reported, net of value added taxes, goods and services taxes, withholding taxes, sales taxes, excise taxes and similar taxes while every rights holder has the option to be paid in the local currency where the license fee was collected. There are no other deductions.