Chapter IV: Rights management

Collective management organisations draw up annual accounts comprising a balance sheet, an income statement and notes, in accordance with a regulation of the accounting standards authority and in such a way as to separate: 1° Income from the exploitation of rights and any revenue or assets resulting from the investment of such income; 2° Any of their own assets and income from these or other activities, as well as the…

Collective management organisations are not authorised to use the income mentioned in 1° of article L. 324-9 for any purpose other than its distribution to right holders. However, they may deduct certain sums from the income to be distributed, corresponding in particular to their management costs, under the conditions laid down as part of the general policy defined by the general meeting of members. These deductions must be justified in…

Collective management organisations invest income from the exploitation of rights and income resulting from the investment of such income in accordance with the general investment and risk management policy defined by the general meeting, and with the following rules: 1° If there is any risk of a conflict of interest, collective management organisations shall ensure that the investment is in the sole interest of right-holders; 2° The assets are invested…

I.-Collective management organisations pay the sums due to right holders no later than nine months from the end of the financial year in which the income from the exploitation of rights was received. This time limit may only be waived for a legitimate reason, in particular the lack of information enabling the identification or location of the beneficiary right holders. II.-Where these sums are paid to a collective management organisation…

When sums due to right holders cannot be distributed or paid within the time limits set out in article L. 324-12 for the reasons set out in the second paragraph of I of this article, these sums are managed and presented separately in the organisation’s accounts.

Collective management organisations take the necessary measures to identify and locate rightholders. In particular, no later than three months after the expiry of the deadline set in I of Article L. 324-12, they shall make easily accessible online to the rightholders they represent, to the entities representing them when they are members of the collective management organisation, and to the collective management organisations with which they have concluded representation agreements,…