How are advance payments that were awarded as coronavirus aid offset?
Rights holders who had suffered event or production cancellations due to the pandemic and the associated loss of royalties were able to apply for coronavirus aid and advances for distribution years that had not yet been finally distributed until 30 April 2020. Advances were paid out for the years from 2015 to a maximum of 2019, which roughly corresponded to the GVL income of the previous years and the expected remuneration.
Example:
Advance payment for 2015: € 1,500
Advance payment for 2016: € 1,500
Advance payment for 2017: € 1,500
Advance payment for 2018: € 1,500
Advance payment for 2019: € 1,500
Distribution amount in 2020: € 7,500
The actual remuneration claims for a respective distribution year were or will subsequently only be offset against the respective amount for the distribution year. In individual cases, amounts that have not been fully offset may still be outstanding for years that have since been finally distributed, which could result in a negative overall balance.
Example:
Advance payment for 2015: € 1,500 actual remuneration claim € 1.700 (additional payment of 200 € for the year 2015)
Advance payment for 2016: € 1,500 actual remuneration claim € 1.500 € (deduction has been paid off completely, no addtional payments)
Advance payment for 2017: € 1,500 actual remuneration claim € 1.650 € (additional payment of €150 for the year 2017)
Advance payment for 2018: € 1,500€ actual remuneration claim € 1.300 € (outstand amount of € 200)
Advance payment for 2019: € 1,500 tactual remuneration claim € 1.500 € (deduction has been paid off completely, no addtional payments)
In this example given, GVL has paid out an exceeding amount of € 200 for the year of usage 2015, as well as 150 € for 2017.
This outstanding amount will be offset with remunerations - beginning with the year of usage 2020 - until a positive amount that can be paid out is reached. If you have been granted deductions for years that have not yet been finally distributed, the period will be extended accordingly.
Please compare the remuneration entitlements from the detailed reports of the respective final distribution with the amounts of your payout notifications since distribution year 2015 in order to determine the amount of any negative balance. If you have any further questions, please contact:
Accounting (10am-14pm) |
030 – 48483-634 |