S.L. 415.1 Art. 17Distribution of amounts to rightholders. 16 [ Cap. 16.

(1) Without prejudice to regulation 19(3) and regulation 35, a collective management organisation shall regularly, diligently and accurately distribute and pay amounts due to rightholders in accordance with the general policy on distribution referred to in regulation 12(4)(a).

(2) Collective management organisations or their members who are entities representing rightholders shall distribute and pay those amounts to rightholders as soon as possible but no later than nine months from the end of the financial year in which the rights revenue was collected, unless objective reasons relating in particular to reporting by users, identification of rights, rightholders or matching of information on works and other subject-matter with rightholders prevent the collective management organisation or, where applicable, its members from meeting that deadline.

(3) Where the amounts due to rightholders cannot be distributed within the deadline set in sub-regulation (2) because the relevant rightholders cannot be identified or located and the exception to that deadline does not apply, those amounts shall be kept separate in the accounts of the collective management organisation.

(4) (a) The collective management organisation shall take all necessary measures, consistent with sub-regulations

(1) and (2), to identify and locate the rightholders. In particular, at the latest three months after the expiry of the deadline set in sub-regulation (2), the collective management organisation shall make available information on works and other subject-matter for which one or more rightholders have not been identified or located to:

(i) the rightholders that it represents or the entities representing rightholders, where such entities are members of the collective management organisation; and S.L.415.01 ADMINISTRATION OF COPYRIGHT

(ii) all collective management organisations with which it has concluded representation agreements.

(b) The information referred to in the paragraph (a) shall include, where available, the following:

(i) the title of the work or other subject-matter;

(ii) the name of the rightholder;

(iii) the name of the relevant publisher or producer; and

(iv) any other relevant information available which could assist in identifying the rightholder.

(c) The collective management organisation shall also verify the records referred to in regulation 6(d) and other readily available records. If the above-mentioned measures fail to produce results, the collective management organisation shall make that information available to the public at the latest one year after the expiry of the three-month period.

(5) Where the amounts due to rightholders cannot be distributed after three years from the end of the financial year in which the collection of the rights revenue occurred, and provided that the collective management organisation has taken all necessary measures to identify and locate the rightholders referred to in sub-regulation (4), those amounts shall be deemed non-distributable.

(6) The general assembly of members of a collective management organisation shall decide on the use of the non-distributable amounts in accordance with regulation 12(4)(b), without prejudice to the right of rightholders to claim such amounts from the collective management organisation in accordance with the Civil Code on the statute of limitations of claims.

(7) Collective management organisations may limit or determine the permitted uses of non-distributable amounts, inter alia, by ensuring that such amounts are used in a separate and independent way in order to fund social, cultural and educational activities for the benefit of rightholders.

Chapter 3

Management of rights on behalf of other collective management organisations