|
Royalty Process
|
|
Questions and answers about the process CCLI uses for the distribution of funds received as payment for the Licenses CCLI offers.
|
|
How does CCLI distribute the License Fees received from churches for the Church Copyright License? How can I know that the royalties are distributed fairly and correctly?
|
The royalty process is complex, but the following summary describes the process briefly and answers those questions:
CCLI currently offers the Church Copyright License in eleven Territories: Australia, Canada, Denmark, Finland, Iceland, New Zealand, Norway, South Africa, Sweden, the United Kingdom, and the United States, (to see the current number of license holders in each of those Territories, have a look at the
Numbers of License Holders
page in the CCLI At A Glance section of the web site). Those Territories are combined into Regions: the Africa Region is made up of the South Africa territory, the Asia/Pacific Region is Australia and New Zealand, the Europe region is the United Kingdom and the Nordic Countries, and the North America Region is the United States and Canada.
In each Territory, CCLI collects a License Fee as payment for the Church Copyright License, for the reproduction of songs, according to the terms of the License. CCLI has worked out with song copyright owners in each Territory the royalty split, the amount of the License Fee to go to the song owner and the amount to be kept by CCLI for the administration of the Church Copyright License. On or before February 15 and August 15 every year, CCLI distributes the royalties collected to the copyright owners.
|
|
How does CCLI distribute the royalties to the copyright owners?
|
|
Churches report songs reproduced in a given period to CCLI. The number of churches reporting varies from country to country, depending on the sample size necessary to gather statistically valid results. For example, churches in the U.S. report songs reproduced in a six-month period once every 2½ years, while in Australia, every church must report all songs reproduced for the term of the License (one year for the Church Copyright License).
To aid in the reporting of songs produced, CCLI provides a Copy Report to each church which is to report.
CCLI enters the data provided by the returned Copy Report into a computer system in-house, which is continually being refined for the process. The data entry is checked in a number of different ways, and at many stages throughout the process, by several levels of management within CCLI, to ensure the complete accuracy of the data.
CCLI calls some churches to confirm that the songs reproduced were the ones they thought the church meant, and to clarify the songs reproduced.
Each song reproduction reported results in credits for the song, with the number of credits dependent on the number and type of reproductions made, and the size of the church.
 The credits from all the song reproductions reported are totaled. This total number of credits is used to determine what proportion of the funds collected should be paid for each song to the copyright owner. Then at the semi-annual royalty payout, the copyright owner is provided, along with the funds, a report of the number of credits and type of reproduction for each song reproduction reported, and details of the total number of credits reported by all churches and total funds to be distributed in that territory. (See the
Top 25 Songs
lists reported by churches for the last payout.)
The accuracy and completeness of the information the churches provide in the Copy Reports are vital to the royalty process: if a church does not report a song reproduction, CCLI cannot pay the correct copyright owner, and if a church does not provide all the information CCLI needs to determine which song it is they have reproduced, again CCLI cannot pay the correct copyright owner.
|
|
How do we know that CCLI distributes all the money it should?
|
There are a number of "checks and balances" put in place by CCLI to show its accountability:
- Every year CCLI holds an Owner's Meeting for each region, where full details of License fees collected, and royalties distributed, are reported. Every song copyright owner participating in the Church Copyright License program is invited to the meeting for that region.
- CCLI has an Advisory Board for each region, made up of copyright owners, which communicates regularly throughout the year, and meet at least annually. The purpose of the Advisory Board is to provide input and feedback to CCLI, from the copyright owner perspective. At the annual Advisory Board meeting, CCLI goes into more detail about the royalty process and company accounting.
- Of course the amount each song owner earns is confidential to that owner, so CCLI cannot go into those details in a general meeting such as the Owner Meeting. A copyright owner can request an inspection of CCLI's books and records relating to that owner's songs.
The Church Copyright License program has been in operation in the United States since 1988, and song copyright owners will gladly attest to CCLI's accountability and reliability. (See
CCLI's Company Profile
in the CCLI At A Glance section for more details of CCLI's founding and history.)
|
|
How much do songwriters earn for their songs?
|
That depends very much on the usage of the song by churches! A song reproduced by one church only may earn a matter of cents, while a song used in many of churches will earn more. The principle applies that the songwriters who most bless the Church, are themselves most blessed as a result of the Church Copyright License program.
|
|
Tell me more about songwriters and the CCLI License program.
|
|
As outlined above, CCLI distributes the majority of the License Fee to the copyright owners (i.e. publishers and songwriters) as royalties. These royalties are paid to those songs that have blessed the churches and have been copied for use in worship services. Read Songwriter Comments to see some of the comments by some songwriters or publishers who have been blessed by the royalties received through the License program.
It has been a real joy for CCLI to see these funds distributed as fair compensation to such anointed, special ministers of song, to see so many copyright owners blessed.
CCLI wishes to thank all the churches around the world who participate in the License program, by contributing the License Fee and providing an accurate record of songs reproduced. Thank you for honoring the songwriters who bless your church with their songs.
|
|
|
SongSelect
