copyswede annual report 2015

ANNUAL REPORT 2015

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COPYSWEDE ÅRSREDOVISNING 20152 3

THE YEAR IN BRIEF»

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ON BEHALF OF THE CREATORS OF CULTURE

THE OPERATION

THE YEAR IN NUMBERS

ORGANIZATION

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– AdministrationReport2015 18– RevenueandExpenditureAccount 21– BalanceSheet 22– CashFlowStatement 24– Notes 25– Auditor’sReport 28

– Employees 30– BoardofDirectors 30– FurtherInformation 30– MemberOrganizations 31– CollaborativePartners 31

– TVLicensesthatReflectToday’s TelevisionViewing 11

– TheRighttoMakePrivateCopies 12– TheRevenues’PathfromCopyswedeto theCreatorsofCulture 15

– TheMembersareCopyswede 6– CollectiveLicencesaSmartSolutionwhichRemunerateCreatorsofCultureforTheir Copyright 9

– SignificantEvents2015 4– TheCreatorsofCultureinFocuswhen Tomorrow’sCopyrightTakesShape 5

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Copyswede works to fund the creation of new culture

Copyswedeareexperts in the collectiveadministrationof copyrightwithin theTV sector.WelicencetheretransmissionofTVandradioprogrammesviavariousmediaandmanagetheSwedishlevysystemforprivatecopying.Weworkonbehalfofourmemberorganizationstoensurethatcreatorsofcultureareremuneratedfor theircopyright. If theconsumptionofculture is tobesustainable,creativepeoplemustreceivereasonableremuneration.Astrongcopyrightleadstosecureandunshackledperformers.InSwedeninparticularandtheEUingeneral,thereisstrongpolitical,legalandpopularsupportforcopyrightanditseffectiveandcollectivemanagement.Wehavebeenentrustedwithmanagingaspectsofthistask.

COPYSWEDE ANNUAL REPORT 20154

SIGNIFICANT EVENTS 2015Clear verdicts concerning how the Swedish private copying levy system should be interpretedDuring the year, all three verdicts relating to the privatecopyinglevysystemcameoutinfavourofthecreatorsofculture.

– Aninterimverdictannouncedon30AprilbySveaCourtof Appeal in the case against TeliaSonera concludedthatIphonesmeetthestatutoryrequirementsforbeingcoveredbythelevysystemforprivatecopying.However,theverdictdoesnotconcernhowmuchTeliashouldpay.Thatisafutureissueforthecourtstodecideupon.

– Averdictannouncedon26JunebySkåneandBlekingeCourt of Appeal in the case against Sony Communica-tionsconcludedthattheW715musicmobileshouldbecoveredbythelevysystemforprivatecopying.TheCourtofAppealruledthatSonyMobileshouldpayCopyswedeSEK3/GBratherthanSEK0.5/GB,asthedistrictcourthadconcludedinitsverdict,whichentailsaroundSEK1.7mil-lionandCopyswede’slegalcostsinboththedistrictcourtandthecourtofappeal.Theclaimappliesfrom1January2009inclusive.

– Inaverdictannouncedon20OctoberbySolnaDistrictCourtinthecaseagainstSamsung,thecourtconcludedthatcomputersandtabletsshouldalsobecoveredbytheprivatecopyinglevysystem.Thestatutoryrequirementsaremetinthatcomputersandtabletsareideallysuitedforprivatecopyingandarealsosufficientlywidelyusedfor copying. Copyswede has requested an account ofcomputerandtabletimportssince1September2013.Atpresent,noremunerationamounthasbeenrequested.

Supreme Court reviews Telia caseAt theendof theyear, theSupremeCourt granted leavetoappealinthecasebetweenCopyswedeandTelia,whichconcernstheissueofwhetherornotIphonesarecoveredbytheprivatecopyinglevy.

New Swedish law for copyright organizations set to be introduced A new law for copyright organizations involved in rightsmanagementissettobeintroduced.Togetherwithotherstakeholders,Copyswedehasparticipatedasanexpert in

the legislative process. During the year, Copyswede alsosubmitted statements concerning the investigation’s pro-posals(SOU2015:47).Thenewrulesareexpectedtoenterintoforceduring2016.Theunderlyingdirective,”Directive2014/26/EUoftheEuropeanParliamentandoftheCouncilon collectivemanagementof copyright” is comprehensiveand covers many legal areas. In the process, it was im-portant toemphasise that structureswhich functionwellwithintheareaofcollectiverightsmanagementinSwedenmustbeprotected,butitisalsovitalthattheprovisionsofthedirectiveconcerninggreaterinsightforrightsholdersisintroducedinawaywhichguaranteesthegreatestpossibletransparency.

Breakthrough in the provision of TV and radio archives for researchDuringtheyear,CopyswedesignedadeclarationofintentwithKopiostoandtheNationalLibraryofSweden(KB)withtheaimofcreatingagloballyuniqueopportunitytostreammaterial from KB’s TV and radio archive across nationalborders. A national trial is already currently under waythrough a partnershipwith KB. A pilot initiative can nowalsobe initiatedinordertoexplorenewwaysformakingmaterialavailablebetweenthecountries.ThetrialisaimedatenablingresearchersinSweden,andeventuallythroughthepilotprojectinFinlandtoo,togainaccesstoKB’sTVandradioarchivefortheirremoteresearchviastreaming.

Theprovisionofprotectedcontentacrossnationalborderswheretheusealsoneedssupportfromnationalprovisionsconcerning collective licences has been seen as a majorchallenge.Theaimofthetrialistoidentifysolutionstotheproblemsthatcanarise.Forexample,howafutureremu-nerationmodelshouldbeformulatedneedstoberesolvedbeforeafull-scaleservicecanbelaunched.

New Open archive agreementCopyswede has signed an agreement with SVT whichmeansthat,sinceApril2013,someofSVT’sowninhouse-producedprogrammesbroadcastbefore30June2005havebeenavailableonSVT’swebsite,Openarchive.InDecem-ber2015, thisagreementwas supersededbyanewone-yearagreementwhichisbasedonadifferentremunerationmodel.

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COPYSWEDE ANNUAL REPORT 20154 5

THE CREATORS OF CULTURE IN FOCUS WHEN TOMORROW’S COPYRIGHT TAKES SHAPETechnological advances are continuing to create new opportunities for creators of culture to reach out to their public via new forms of TV and film services, at the same time as the range of services available to consumers is expanding. The consumption of video, such as films and TV programmes, no longer solely takes place in front of the TV or at the cinema, as an increasing proportion of this consumption takes place via tablets and smart mobile phones.

THE YEAR IN BRIEF

Infrastructuredevelopment,wideraccesstoon-demandser-vicesandincreasedstoragecapacityonourcomputers,tabletsandmobilesareallfactorswhichareenablingustoconsumeculturewhenwewantto,regardlessofwhereweare.

As technology develops, consumers’ expectations as re-gards always having access to their services change too.TechnologicaladvancesandchangesinmediaconsumptionhaveledtheEuropeanlegislatortoinitiateacomprehensiveprogrammeofreforminorderto increasetheavailabilityofservices,amongotherthings.Thisworkincludesthede-velopmentofcertainaspectsofthecopyrightregulations.During 2016, the European Commission is for exampleworkingonaproposaltoestablishtherightconditionstoenable consumers to gain access to their services onlinewhentravellingwithintheEU.

Itispleasingtobeabletonotethatthefundamentalprin-ciple behind the European legislation when copyrightreformsareproposedistoensurethatahighlevelofpro-tectionisaffordedtorightsholdersandperformingartists,asthecopyrightprotectionestablishesthenecessarypre-conditionsfortheintellectualcreation.Timeaftertime,theEU institutions have stated that strong protection whichpromotes creativity favours not only rights holders, per-formingartistsandproducersbutalsoconsumers,culture,industryandsocietyatlarge.

Intheworktodevelopsustainablesolutions,itisparticularlypleasing thatboth theEuropeanCommissionandanum-berofEuropeancountrieshavebeguntoshowaninterestin theNordiccollective licenceschemes.Theyare intere-stedintheschemesasamodelformanagingthecommoninterestsof themarket and rightsholders for simplyandcost-effectivelyestablishingcomprehensivelicenceschemesinareaswhereagreementsmustbeestablished for largenumbersofrightsholdersatthesametime.

The collective licence scheme and other similar schemesarecontributingnotonly to theemergenceofnewservi-ces,themodelisalsohelpingtocreateequalpartiesinthemarket, which in itself is creatingmore opportunities to

negotiatereasonableremunerationforauthorsandperfor-mingartists.TheEUinstitutionshavelongclaimedthat,inordertomaintaincopyrightprotectionforcreativeartists,strongandeffectivecopyrightorganizationsthatcansafe-guardtheinterestsofartistsareessential.Forcreatorsofculturewhoaskacollectivemanagementorganization tomanagetheirrights,itisthereforevitalthattheorganiza-tionsconcernedareruninawaywhichgivesthecreatorsofculturefullinsightintohowtheirrightsarebeingmanagedandwhatcostsarebeingincurred.

During2016,theSwedishParliamentwillvoteonanewlawwhichimplementstheEUrulesfororganizationsinvolvedincollectiverightsmanagement.

Duringtheworkto introducethenewrules,anumberofmajorcompanies,whichareheavilydependentoncontentcreatedbyauthorsandperformingartistsinordertodeve-loptheirservices,haveinvestedconsiderableresourcesinseekingtoinfluencethelegislationwiththeaimofmakingitdifficulttorightsholderstoactcollectivelythroughtheirorganizations. There is a clear tendency for national andinternationalcompaniestorefusetoallowrightsholderstojoin together incollectivenegotiatingorganizations inor-dertocounterthedominanceofthesecompanies.Insteadof investingstrengthandresources inmaking lifedifficultforrightsholders,thesecompaniesshouldstartactinglikeprofessionalnegotiatingpartieswhoareprepared topayremunerationto theauthors,performingartistsandpro-ducerswho all contribute to the creation of the contentwhichhelps togeneratevalue for theservices that thesecompaniesoffer.

Thenewlawreflectsthefactthatcollectiverightsmanage-ment is vitally important for thehealthy development ofthemarketforfilms,TV,music,etc.Onlywhen individualauthors,performingartistsandproducerscanbeguaran-teedreasonableremunerationwhentheirworksandper-formancesareusedcanwebegintotalkaboutsustainablecultureconsumptionwhichistobeofbenefittoeveryone.

Mattias Åkerlind, CEO

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Screenwriters actually create jobs for an entire industry – it all starts with us.

One of Copyswede’s 14 member organi-zations is the Writers Guild of Sweden, an interest organization with around 700 professionally active screenwriters and translators within film, TV, stage, ra-dio, computer gaming and other media. The guild’s new chair is Pia Gradvall, who is an active screenwriter herself. Her productions include The Crown Prin-cess, The Whodunit Detective Agency and Nobody Owns Me. Her CV also in-cludes an Oscar nomination.

Life as a freelance screenwriter in thefilm and TV industry is unpredictable.Onedayyoucanbewithoutajob,andthe next you can be asked tomake astart on three projects, which makesyourincomeveryvariable.

–Theremunerationisalsopaidinsmallinstalments. One amount when thescript is ordered and another on de-livery. The final amount is paid uponrecording. Only once the productionhasbecomearealitywillthescreenwri-ter receive their full remuneration.Authorscanexpecttowaitalongtimefortheirmoney–ifitcomesatall.Farfrom all projects come to fruition. Ishouldaddthatmaybeonly10percentofwhatiswrittenforTVactuallycomesoff,saysPiaGradvall.

– Copyswede are held in high esteemamongstourfilmandTVmembers.Thecopyrightremunerationthatispaidoutis absolutely vital and creates essentialsecurity. Many people would not beabletocontinuewritingscriptswereitnot for thatmoney,believesPiaGrad-vall.

Yet it is also a golden age for screen-writers.–Storiesare in incredibledemand.TV

seriesarebeingconsumedatanama-zingrate.NordicNoirhasbecomeanin-ternationaltermandSweden’ssuccesswith ”The Bridge” has opened manydoors. Thanks to the US series ”MadMen”,Swedishchannelsarebeginningto understand the importance of thescreenwriter’s vision guiding the pro-cess.That’swhenitgetsgood,addsPiaGradvall.

Inthemodernsocietyinwhichwelive,TVandfilmarebeingused inanenti-rely new way. In connection with theestablishmentofafullydigitalcontent-based industry, it is important torememberthatthegrowthwillreachallgroupsinthefoodchain,notjustdistri-butorsandservicedevelopers.

–CopyrightissuesarethereforeoneoftheWritersGuildofSweden’skeyques-tions.Screenwritersactuallycreatejobsforanentireindustry–itallstartswithus,concludesPiaGradvall.

The Musicians’ Union is a relatively small union within the Swedish Trade Union Confederation with around 3,000 members. The union works to improve the contractual positions and working conditions of musicians. The challenges associated with digitalisation and glo-balisation require you as a musician to have control over your artistic rights in particular.

Everyoneneedsmusic and fewpeoplecould imagine living without it, butfew understand just how much workis required in order to produce all thismusic. It is incredibly hard work. Wewantourmemberstofocusontheirar-tistryandseeourrolemoreasasourceofsupportasregardsthewayinwhichmarkets, agreements and rights work,says Jan Granvik, chair of the SwedishMusicians’ Union. Jan was himselfactive as a guitarist with Swedish bandGlory,whichplayedmelodioushardrockduring the ’80s and ’90s, amongotherbands.

In order for newmusic to be created,those who create the music must beremunerated. The system thatwe cur-rently have in place for remuneratingmusiciansinvolvesthemreceivingafeewhentheyplay.Rightstousethemusicin various contexts are then triggered,and this type of remuneration is paidlater,e.g.byCopyswede. Incomeflowscome from various sources and areoftenrelativelysmallindividually,whichmeans that it is important to collecteverysingleamount.

–Manymusiciansgetbyon thebread-line, so thesesmallflowsofmoneycanbe vital in determining whether or nottheycontinueasaprofessionalmusician,addsJan.

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The value of music can not be commercialised by anyone without pay ing.

PIAGRADVALL,chair&screenwriter,WritersGuildofSweden JANGRANVIK,chair&musician,SwedishMu sicians’Union

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THE MEMBERS ARE COPYSWEDE



Copyright remuneration is accounting for an in-creasing share of our members’ incomes, which is making copyright increasingly important.

In the sameway as the SwedishMusi-cians’Unionofferssupporttoitsmem-bers as regards contractual conditionsand rights, Copyswede provides sup-port totheMusicians’UnionregardingcopyrightremunerationinareassuchasretransmissionviathecableTVnetworkandfortherighttomakeprivatecopies.

–Weasorganizationswithintheculturesectorareofcoursesmall.Weneedum-brellaorganizationsinordertomanageandworkwithourmembers’rightsinaprofessionalandappropriatemanner.Itis therefore important to have organi-zations such as Copyswede which cancoordinate a number of smaller orga-nizationsandtheir interests.Thevalueof music cannot be commercialisedby anyone without paying, concludesGranvik.

Anna Carlson has been chair of the Swedish Union for Theatre, Artists and Media since 2006 and as an actress is a member of Uppsala City Theatre’s regular ensemble. The union has 8,000 members across around a 100 professions – artistic, technical and adminis-trative staff within the theatre and film industry (not screenwriters). The mem-bers who receive copyright remunera-tion are actors and actresses, artists and directors working within TV, film and radio. This remuneration is ma-naged internally by the union’s rights company.

Thecircumstancesoftheunion’smem-bers vary greatly. Some are orientedtowardsstageart,whileotheraremoreoriented towards film and TV. WithinTV,filmandradio,thereareonlyprojectpositions for a particular production,wheremembersareoftenself-employ-edandsubmitaninvoiceforthefeefortheircontribution.Aproductioncanlastanythingfromasingledaytothirtydaysormore.The”combinators”group,whoarebothsalariedemployeesandsubmitinvoices,isincreasinginsize.

–Copyrightremunerationisaccountingforanincreasingshareofourmembers’incomes, which is making copyrightincreasingly important. Yet it is alsobecomingharder to resist. It is impor-tantthatourmembersunderstandthatcopyright isarightandthattheymuststandup for their rightswhenpartici-pating innegotiationsasan individual.There is considerable pressure to buyoutrightsinordertocutcosts.Itiseasytosellallyourrightsforafewthousandkronormore today, but that is a veryshort-termapproach,saysAnnaCarlson.

The copyright remuneration is des-cribed by Swedish Union for Theatre,Artists and Media as being ”deferredsalary”, unlike the fee you receive foryour contribution to a particular pro-duction,suchasaTVseries.Copyright

remuneration is paid later. By then,a series may have been shown manytimesondifferentplatformsand,giventheglobalworldinwhichwenowlive,in many different parts of the worldtoo. Thismay be something youwereunawareofwhentheserieswasdeve-lopedandsomethingthat itmightnotpreviously have been possible to payremunerationfor.

Inthisregard,Copyswedeplaysanim-portantrolefortheSwedishUnionforTheatre,ArtistsandMediabylicensingandcollectingrevenuesfortheretrans-missionofTVandradio,andmanagingthe revenues for the private copyingthattakesplace.

–Makingitclearwhatcopyrightmeansinanunderstandableway isan impor-tant task. Copyswede is also extreme-ly important for the Swedish Unionfor Theatre, Artists and Media in thisregard.Itisimportantthatwesharethework. Copyswede collects absolutelyvitalmoneyforusandtogetherwearealsoastrongvoiceinthemediadebatein the battle for copyright, concludesAnnaCarlson.

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The value of music can not be commercialised by anyone without pay ing.JANGRANVIK,chair&musician,SwedishMu sicians’Union ANNACARLSON,chair&actress,SwedishUnionforTheatre,ArtistsandMedia

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COLLECTIVE LICENCES

Collective licences are one aspect of the copyright legislation which enables organizations representing broad groups of rights holders to issue comprehensive licences for various types of services, such as “TV everywhere solutions”. These licences give the necessary permissions which the market needs for its various services, and guarantee right holders remuneration for the use of their works, which is particularly important in the new emerging digital environment.

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Copyright ultimately centres around the idea that a person who has created or interpreted a work holds the exclusive rights to it, i.e. an exclusive right to allow or prohibit others to use the work. The right holder may then decide to enter into an agreement concerning various types of use. As regards works such as films and TV programmes where many authors and performers and perhaps one or more producers have worked together, there are special requirements concerning agreements in order for the works to form part of a collective range on new platforms and in services that could not have been foreseen at the time they were created.

COLLECTIVE LICENCES A SMART SOLUTION WHICH REMUNERATE CREATORS OF CULTURE FOR THEIR COPYRIGHT

14MEMBER ORGANIZATIONS

ReusingTVprogrammesandTVchannelsforvariousformsofmassuseisbeneficialforboththepublicandsocietyingeneral,andisalsosomethingthatviewershave now come to expect. In connection with this,Copyswede can offer licensing solutions that ensurethatrightholdersreceiveareasonablelevyandatthesametimeretaincontrolovertheirworks.

The way in which the copyright system is designedenables right holders tomonitor the financial deve-lopmentoftheirworksovertimeandtoearnmoneywhen they are in demand and consumed throughvariousservices.

Coordinated rights management strengthens the artist collective and facilitates the establishment of agreementsIndividual authors often have a weak negotiatingpositioninrelationtolargemediacompanies.Coupledwiththefactthatmanyproductionsandservicescol-laterightsfromalargenumberofparticipatingrightholders, there aremany good reasons for individualauthorsandperformingartiststoworktogetherwitheach other. It has therefore been common practicefor sometime forcopyrightholders to join togetherin organizationswith the task of coordinating rightsmanagement.Suchcollectiverightsmanagementalsogives artists the opportunity tomanage their rightsasregardscomplexcompositeworksorwhenaverylargenumberofworksisusedcollectively.Bychoosingtomanagetheirrightsinacoordinatedandcollectivemanner,artistcollectivesareinastrongernegotiating

positionwithrespecttolargemediaanddistributioncompaniesthathaveaninfluenceontheartists’con-tractualmarket.

Collectiverightsmanagementalsoplaysacrucialroleingivingallcompaniesprovidingserviceswithartisticcontentthepotentialtoeffectivelyacquiretherequisitepermits.Whenalargenumberofrightsareofferedinacoordinatedmanner,itisalsopossibletocreateandprovide services thatwould otherwise not be deve-lopedatall.

Organizations for collective rights management areofcrucialimportanceforthecontinueddevelopment of markets for artistically created content. Theseorganizations are also important for the functioningoftraditionalmediamarkets,e.g.TV,filmandmusic,in addition tomass use by educational and culturalinstitutions. Against this background, the work totransposeanEUDirectiveconcerningthefunctionalityandmanagementofcopyrightmanagementorganiza-tionsinSwedishlawbeganinearly2014.Thepurpo-seofthis istoensuretheefficiencyandreliabilityofsuchorganizations throughout theEU/EEAarea. It isimportantthatacopyrightmanagementorganizationcan liveup to the requirementsandexpectationsofthemarket.Thisappliestoboththeneedsofartistsforeffectiveandopenmanagersoftheirrightsandusers’requirements for a reliable and effective system forobtaining permits. The process of implementing theEUDirectivecontinuedthroughout2015.



COPYRIGHT AND COLLECTIVE LICENSING

Copyright is an individual right. Essentially,it means that anyone who has created aliteraryorartisticworkmustgivetheirper-missionbeforewhatheorshehascreatedorperformedcanbeusedbyothers.Thereisacorrespondingrightforanyonewhohasproduced a film or phonogram. The signalrights of TV and radio companies are alsoprotected.Agreementsconcerningtheuseof works and performances consisting ofmanydifferentrights,suchasTVprogram-mes and film, often require collaborationbetweenvariouscategoriesofrightholders.Through assignments from the memberorganizations and the partnerships thatCopyswedehaswith TV and radio compa-niesandorganizationsrepresentingfilmandphonogram producers, Copyswede is abletooffercomprehensivelicencesforretrans-missioninvariousmedia.

Copyswedehasbeen createdby artistorganizationsinSwedentoactassuchanorganizationforcollecti-ve management in complicated licensing situationsin theareaof rights licensing for radio, TVandfilm,andforthemanagementoftheprivatecopyinglevy.Inaddition to thisassignmentgivenby the fourteenownerorganizations,Copyswedealsocooperateswiththe record industry through the International Fede-ration of the Phonographic Industry, SwedishGroup(IFPI), and with film and TV producers through theSwedishFilmProducers’Association(FRF).Inaddition,Copyswedecooperateswitharound100programmecompanies whose programme services are licensedby Copyswede through the Union of BroadcastingOrganizationsinSweden(UBOS).

Extended collective licences follow developmentsThe benefits of collective rights management havelong been understood in the Nordic countries, andthese countries have had well-developed systemsusingcollectivelicencesasabasissincethe1960s.

The1November2013,anewcollective licencepro-visionwasintroducedintotheSwedishCopyrightActconcerningageneralcollectivelicence.Theaimistoidentify the needs that exist within themarket in afaster andmore flexible way to enable agreementstobeofferedwith the supportof theextended col-lective licence provision. The first agreements weresignedbackinlate2013andenabledprogrammestobe restarted while they were actually being broad-cast.During2015,Copyswedealsocontinuedtoofferlicencesunderthenewprovision, includingcatch-upservicesinconnectionwithretransmission.

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TV LICENSES THAT REFLECT TODAY’S TELEVISION VIEWING Copyswede is continuing to issue licences for the simple retransmission of TV and radio programmes on various technical platforms, encompassing everything from basic centralised antenna instal-lations to largescale IP TV systems. The repertoire covers channels from Sweden, the rest of the Nordic region, Europe and the rest of the world. Copyswede has also been offering licences for timeshift playback of SVT’s programmes for a number of years.

THE OPERATION

Since2014,Copyswede issued licencesforTVEvery-whereservices,whereaudiencescanaccesstheirTVservicesanywhereandanytimeandusinganyrecei-vingdevice.Asregardsrights,thepreconditionswereinplaceforabreakthroughforTVEverywhereduringtheyear.However,thisbreakthroughneverhappened.Instead,theoperatorsinitiatedmediationconcerningtheconditionsforretransmissionofSVT/URchannelsovertheinternet,whichisapivotalaspectofTVEvery-where. Copyswede’s channel repertoire is currentlydividedintothreemainareas:channelsfromSVT/UR/SR,channelsfromTV4andforeignchannels.

Copyswede also offers licences which enable hotelsandotherestablishmentstoretransmitTVandradiototheircustomers.

Retransmission also includes Copyswede’s licensingof the TVFinland channel in the Swedish terrestrialnetworkintheMälardalarea.ThedistributionareaforthisretransmissionhasbeenexpandedovertheyearsandCopyswedeisreadytosupplementthelicenceiftheuser,inthiscasetheSwedishAssociationofFinnishSpeakers,shoulddecidetoexpandfurther.

Since 1997, Copyswede has licensed SVT World,whichisasatellitebroadcastthatistargetedoutsideSweden’sbordersandoffersa selectionof SVTpro-grammes.Copyswedehasalsobeenabletocontinu-allyexpandthelicencefortime-shiftviewingasSVT’sneedshaveincreased.

SVT isalso seekingotherpermits toenable themtodistribute their programmes in ways not involvingbroadcasting. Under the specific extended collec-tive licence for the programme company’s archive,

CopyswedehasissuedalicencewhichfacilitatesSVT’sÖppetarkiv(‘Openarchive’)archiveservice,whichisavailableviaSVT’swebsite.

Copyswede also plays a role as regards licences forthecommercialpublishingof individualprogrammesfromSVT,URorSRintheformofDVDs,CDsorvideoon-demand (VOD). As regards usewithin education,Copyswedeoffersvarioustypesoflicence.Copyswedehasaschoolrecordingagreement,whichmakesavai-lablecontentfromSVT,SRandTV4foruseinteaching,as well as a number of major agreements with URconcerning conditions for the use of programmesfromURbyschools.

Copyswedealsoissueslicencesforlesscomprehensive,butstillimportant,useswithincareoftheelderlyandthemerchantnavy.

The rapid pace of technological development anddemand means that the extended collective licenceis continually being reviewed, supplemented andrenegotiated.

THE WORLD’S TV Copyswede’schannelrepertoirecoversmanychannelsfromtheNordicregion,Europeandtherestoftheworld.» Read more at copyswede.se

SVT,TV4etc.

Foreignchannels

UR,TVandradioprogrammeson- demand,onDVDandineducation

DISTRIBUTION

SUMMARYSVT, TV4 etc., SEK

Foreign channels, SEK

UR, TV and radio programmes on-demand, on

DVD and in education, SEK

Revenues 79,153,424 40,704,037 30,820,972

Staffcosts 2,371,221 2,769,104 688,312

Othercosts 994,738 977,877 235,510

Fordistribution 75,787,465 36,957,056 29,897,150

Collectioncosts 4.25 % 9.21% 3.00 %


THE RIGHT TO MAKE PRIVATE COPIES – a Necessary Piece of the Puzzle for Today’s Consumption

Consuming music, film and TV is something that many of us take for granted and do extensively. Rapidly expanding infrastructure is enabling service providers to build readily accessible media services. This would not be particularly useful if the services could not be filled with content which consumers are prepared to pay for. It is therefore a fundamental precondition that there are creators who create works and performances which form the content of these services and that

they receive payment for their creations.Copyright is based on the exclusive right that allauthorshaverelatingtotheirliteraryandartisticper-formances.Apersonwhocreatesaworkdetermineshowitshouldbeexploitedandanyonewishingtousetheworkmustthereforeobtainthepermissionoftheauthor todoso. Inorder tobalance the interestsofauthorsagainstthoseofthepublic,thereareanum-berofrestrictionsontheexclusiveright,whichmean

thatincertainsituationsworksmaybeusedwithoutthepermissionof theauthor.Onesuchrestriction istherighttocopycontentforprivateuse.

The right tomakesuchprivatecopies isvery impor-tantforindividualconsumersandinmanycasesisalsoa precondition formany of the servicemodels thathavebeendevelopedinthedigitalenvironment.Thenumberofdevicesandproductswhichmakeprivate

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copying possible, and their associated storage capa-city,hasrisensharplyinrecentyears.Consumerscancopysongsandfilmsfromcomputerstoharddrives,telephonesandtabletsandthenbackagaininordertosavethem.AllthisconstitutesprivatecopyingwhichiscarriedoutundertherestrictionintheCopyrightAct’sexclusiveright.

Further positive legal developments in Sweden and the EU Over the years, Copyswede has made many settle-mentswithvariousindustryrepresentativesandregu-latedtheremunerationpayableforproductsusedforcopying inagreements. In recentyears, somestake-holderswithinthe industryhavequestionedthesui-tabilityoftheremunerationforcertainproducttypes,e.g.mobilephones,externalharddrivesandcompu-ters.Asaresultofthis,anumberoflegalproceedingshavebeeninitiatedwiththeaimofclarifyinghowtheprovisionsconcerningtheprivatecopyinglevyintheSwedishCopyrightActshouldbeinterpreted.

During 2015, Svea Court of Appeal and Skåne andBlekingeCourtofAppealruledthattheprivatecopy-inglevyshouldbepayableforproductswhichcanbeused forprivatecopying.Adistrict courtverdicthasalsobeenannouncedwiththesameconclusion.

AllverdictsarebasedonthepivotalEUregulationandthecaselawthattheEuropeanCourtofJusticehascre-atedinrecentyears.ThelevyisbasedonanEUDirecti-ve,theso-calledInfosocDirective(Directive2001/29/ECon theharmonisationof certainaspectsof copy-rightandrelatedrightsintheinformationsociety),andmeans that rightsholdersmustbe compensated fortheabilityofcitizenstomakeprivatecopies.

The verdicts have been appealed and the SupremeCourthasgrantedleavetoappealinoneofthecaseswhichconcernsthelevyforIphones.Afinalnotifica-tionconcerninghowtheSwedishprovisionsregardingtheprivatecopyinglevyshouldbeinterpretedwillbeannouncedduring2016.

Importers of external hard drives and USBmemorysticks have been paying the private copying levy toCopyswede since the end of 2011. Two companieshave terminated agreements and, as a result, haveceasedpaying the levy to Copyswede for the afore-mentionedproduct types.Copyswede initiated legalproceedingsagainstbothcompaniesduringtheyear.ThecaseshavebeensuspendedpendingtheSupremeCourt’simpendingdecisionconcerningsmartphones. Spain,FinlandandNorwayaresomeofthecountrieswhich finance rights holders’ compensation via thenationalbudget, i.e. it isnottheimportersormanu-facturerswhopaythelevy.TheremunerationmodelissubjecttoreviewandtheEuropeanCourtofJusticemust decide on the legality of such a remunerationsystemandwhetheritiscompatiblewiththeInfosocDirective.

THE OPERATION

AmazonItunes

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possible copy

SUMMARYPrivate copying levy, SEK

Revenues 86,168,197

Staffcosts 3,182,790

Othercosts 5,607,256

Fordistribution 77,378,151

Collectioncosts 10.20 %

PRIVATE COPYING TODAYPrivatecopyingcontinuesunabated» Read more at copyswede.se

COPYSWEDE ANNUAL REPORT 201514PHOTO

:AMMEN

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Copyswede’s task is to collect and distribute revenues between right holder groups active within the field of TV and radio. The revenues could for example concern the retransmission of TV and radio programmes via cable TV networks, timeshift playback of SVT programmes, DVD publishing and various ondemand services. Right holders also receive their share of the private copying levy that is collected.

THE REVENUES’ PATH FROM COPYSWEDE TO THE CREATORS OF CULTURE

Distribution of the revenuesCopyswede distributes revenues for a number oflicensingareas.Rightholdersinvolvedinthelicensingsometimesdiffer innature; hencedifferentdistribu-tion agreements and regulations are applied to therespectivelicensingareas.Regardlessofthelicensingarea, representativesofproducers andbroadcastingcompanies receive their share of the revenues andhavetheirowndistributionrulesconcerningredistri-butionoftherevenuetorightholdersbothwithinandoutside Sweden. As regards the share that remainsforrightholderswhoarerepresentedbyCopyswede,responsibility for further individualdistributionrestswithCopyswedeanditsmemberorganizations.

Oneofthekeyprinciplesforalldistribution,whetheritbewithinCopyswede,viaCopyswede’smemberorga-nizationsorbycollaborativepartners,isthatallrightholderswhoareentitledtocompensation,bothwithintheEUandinsomecasesalsooutsidethisarea,mustbe treatedequally.Anothervery importantcriterionisthatthedistributionmustalsobeclear,transparentandeasytounderstand–aresponsibilitywhichtodayisunderlinedbyvariousEUDirectives.

In an ongoing process, Copyswede is continuingto invest considerable resources in improving andsimplifying the entire distribution process betweenthe various right holder groups, including our col-laboration partners. Alongside this, work has beenunderwaytoevaluatehowaspectsofour individualdistributionprocesscanbesimplifiedandmademoretransparent forbothSwedishand international rightholders.Thisworkisbeingcarriedoutincollaborationwiththememberorganizations.SimilarworkisunderwayintherestoftheNordicregion.

Revenues for retransmission of TV channelsCopyswede collects revenues for the retransmission of many TV channels via the Swedish cable TVnetworks,particularlytheNordicandEuropeanpublicservicechannels. IntheneighbouringNordiccountries,Copyswede’s sister organizations collect revenuesfor retransmission of the Swedish TV channels fromthe domestic cable TV operators and, in Sweden,Copyswedecollects revenues fromtheSwedish cableoperators for the retransmission of the Nordic TVchannelsviatheSwedishnetworks.Throughreciprocalagreements, revenues are exchanged between theNordiccountries,whichthendistributetherevenuesindividually amongst the right holders in the homecountriesoftherespectivechannels.Copyswedealsocollects revenues for broadcasting of the Swedishchannels via the Swedish cablenetworks and indivi-dually distributes its share of the revenues that arecollectedaccordingtoprinciplesapprovedannuallybythememberorganizations.

CommercialinterestinbroadcastingtheSwedishchan-nels is largely limitedtotheNordicregion.However,manyEuropeancountriesare interested in receivingcertain SwedishTVprogrammes, suchas Johan Falk and Bron. We correspondingly find many Europeanprogrammes being broadcast via the Swedish chan-nels and, through agreements between the variousEuropeanrightholderorganizationsandCopyswede,revenuesarealsoexchangedanddistributedtorightholders in this area. Germany, France, SwitzerlandandSpainaccount for thehighestshareof thesere-venues.FromSweden,thelargestrevenuesforindivi-dualprogrammesgototheUKandFrance.Inthisway,Swedishrightholdersalsoreceiverevenueswhicharecollectedfortheircontributiontoproductionsthatarebroadcastabroad.

THE OPERATION


Copying behaviour governs the distribution of PCLDigital advances are presenting private individualswithawidevarietyofwaysinwhichtoconsumeandreceivethefantasticrangeofmusicandfilmsthatareavailableonthemarkettoday.Copyswedeisrequiredby law to collect and distribute the private copyinglevy.Thelevymustbedistributedsoastomatchthecopyingthathastakenplaceascloselyaspossible.Inthedistributionprocess, rightholders lacking repre-sentationareentitledtoequaltreatment.

Yethowcanweknowwhichworkshavebeencopied?Itisofcoursenotpossibletoknowexactlywhichworkshavebeenused,buttherevenueisdistributedtoin-dividual right holders based on annual SIFO surveysconcerningthetypesofprogrammesandthechannelsfromwhichtheprogrammeshavebeensaved/copied.Ongoingworkisunderwaytosimplifyandclarifythedistributionoftheprivatecopyinglevy.

Manygroupsofrightholderssharetheprivatecopyinglevy.TVcompaniesreceiveasharewhichisdistribu-tedthroughUBOS.TherevenuethatconcernsmusicissplitoffanddistributedbyCopyswede’smemberorga-nizations,STIMandSAMI,aswellasthecollaborativepartner, IFPI.FRFreceivesrevenuesin itscapacityofproducerrepresentative,anddistributestherevenuethatbelongstoUSrightholders.Copyswedeindividu-allydistributesother revenuesbetweenparticipantsinthevariousprogrammes,eitheritselforviaitsmem-berorganizations.

The programmes that are copiedmost according totheSIFOsurveysarealsothosethatareallocatedthehighestshareoftherevenue,moreparticularlydramaandentertainmentprogrammesthatarebroadcastonSVT,TV4,Kanal5andTV3.InadditiontotherevenueforthecopyingofTVprogrammesandmusic,revenueforthecopyingofaudio-booksandradioprogrammesisalsosplitoff.

Want to know more?ReadmoreinthebrochureCopyswedeDistribution2015.» Download at copyswede.se

Copyswede collects

UBOS

US right holders

FRF

Copyswede distributes

Audio-booksIFPI

Swedish Publishers’

Assoc.

Radio

SAMI

Music

STIM

VideoAudio

Individual right holders


Individual SVT programmes generate revenuesSincethemid-1980s,Copyswedehasdistributedindi-vidualrevenuesforthepublishingofTVprogrammesonDVD(previouslyvideo)whichhavebeenproducedbyorforSVT.Agreementshavealsobeenestablishedforvideoon-demand(VOD),buttheseonlygeneratedsmall amountsof revenue for the rightholders. TherevenuesarepaidtoCopyswedebythedistributors,whoalsosubmit reportsonsalesandrentingoutofthevarioustitles.Theinformationisusedasabasisfortheindividualdistributionbetweentherightholders.Today,theareacoversabout120titlesintotal.

Individual payments are made via Copyswede or amember organization to the authors or performingartistswhoparticipatedintheprogrammes,e.g.cine-matographers, directors, writers, screenwriters andactors. Revenues concerning recorded music aretransferred intheformof lump-sumstoSAMI,STIMandIFPIforredistributionandpaymenttotherelevantrightholders.

Programmes from UR.seSincespring2012,URhasbeenable,underanagree-mentwithCopyswede,tomakefreelyavailablemuchof its inhouse-producedTVandradioproductiononUR’s ownwebsite. Through this agreement, e.g. do-cumentaries, which were previously only availablethrough password-protected networks and via URPlayforsixmonthsafterbroadcasting,canbereceivedatanytimeandanywhere.

SUMMARYRevenues distributed 2015, SEK

Privatecopying 89,298,394

Retransmission 165,041,030

DVD/Video,etc. 1,329,699

Total 255,669,123

THE OPERATION

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ADMINISTRATION REPORT2015

Description of operationsCopyswedeisacooperativeeconomicassociationownedbyfourteenmemberorganizations,representingSwedishauthors and performing artists. Copyswede’s task is tocoordinatenegotiationsandagreementsincertainareasof copyright, primarily retransmission of TV and radio.Viamandates fromCopyswede’smemberorganizationsand Copyswede’s cooperation agreements with broad-castingcompaniesandorganizationsforfilmandphono-gram producers, we are able to sign comprehensiveagreementsconcerningtheuseofcopyrightedworkandperformances.

Copyswede licenses some eighty broadcasting chan-nelsforretransmissionviacableTVandIPTVnetworks,among others, Themajority of the channels are publicservicechannelsfromtheNordiccountriesandContinen-talEurope.

TheCopyrightActcontainsaprovisionthatallowsatypeofextendedcollectiveagreementtoextendthecoverage of the agreements reached between Copyswede andcableoperatorsregardingcertainre-useofTVchannelsto also include Swedish and foreign rights holders notdirectly representedbyCopyswede’smemberorganiza-tionsorcollaborativepartners.Fortheagreementstoac-quirethisextendedcoverage,Copyswedemustrepresentanumberof rightsholderswithin the sector. The rulesconcerningextendedcollectivelicencesarealsocoveredbycertainprotectiveregulationswiththeaimofensuringthatrightsholderslackingrepresentationandrightshol-derscoveredbydirectrepresentationaretreatedequally.

Copyswede’s agreements which are established pursu-ant to the collective licence provision concerning theretransmissionofTVandradiochannelscoverall typesof network and technology, creating opportunities forestablishingagreementswhennewmeansofdistributionare developed. The extended collective licence can beusedbyalloperatorswishingtoretransmitTVchannels,whichmeansthatCopyswedecanalsoissuelicencesforretransmissions inhotelsandsimilarestablishments,aswellasforinternalusebycompanies,publicauthoritiesandorganizations.

InNovember2013,anewgeneralcollectivelicencepro-visionenteredintoforce,whichenablesarepresentative organization to also establish agreementsunder exten-ded collective licences within defined areas where itwouldotherwisebeimpracticaltoestablishanagreementunderanextendedcollectivelicence.Rightsholderswhodonotwishtheirrightstobecoveredbyanagreementestablishedunderthegeneralextendedcollectivelicencemayrefusetoallowtheirrightstobeutilised.

Copyswede also administrates the Swedish system fortheprivatecopyinglevy,whichgivesauthorsandperfor-merssomecompensationforthelossofincomecaused

byprivatecopyingasregulatedintheSwedishlegislationandEUDirective.SimilarsystemsexistinmostcountrieswithintheEU.ForMemberStatestopermitprivatecopy-ing,asystemservingtocompensateauthorsandperfor-mersforthelossofincomecausedbytheprivatecopyingpermittedbythe legislation is required. InSweden, it istheimportersandmanufacturersthatareobligedbylawtopayaprivatecopyinglevyfortheirimportofproductsdesignedforprivatecopying.

Copyswede’s remit also includes distributing the copy-right revenues that are collected for various uses. Alllevies collected by Copyswede are distributed to therights holders concerned in cooperation with memberorganizationsandcollaborativepartners.

Significant events during the yearDuring2015,demandfor thesigningof licences for theretransmission of TV channels via the open internet(known as OTT) continued to increase. A number ofagreements have been established with several of thelargestoperatorswhichfacilitatetheOTTretransmissionofSVT’schannels,certainTV4channelsandmanyforeignchannelslicensedbyCopyswede.Withthesupportofthegeneralcollectivelicence,itwaspossibletosupplementtheagreementforOTTretransmissionwiththeopportu-nitytorestartaprogrammewhile it isbeingbroadcast.An agreement has also been established concerning aseven-daycatch-upservicewiththeoperatorsinconnec-tionwiththeretransmissionofprogrammes.

AlthoughanumberofagreementshavebeenestablishedconcerningOTTretransmissionwithassociatedcatch-upservices,thereisstilldisagreementbetweenCopyswedeandseveralmarket-leadingplayersconcerningthecondi-tionsthatshouldapplytotheservices.Throughout2015,mediationhasbeenunderwaybetweenCopyswedeandfive of the largest operators in the market. While thismediationisunderway,theoperatorsarereportingandmaking payments in accordance with the establishedagreement. The issue of the conditions applicable tocatch-up services relating toOTT retransmission is alsobeingdiscussedwithintheframeworkofthemediation.

As regards the private copying levy, the levy collectedfor 2015was lower than that for 2014. The remunera-tionamountedtoSEK86million,comparedwithSEK119million in 2014. The step change in technology whichhas takenplace in recentyearshasmeant thatcopyingforprivateusenowlargelytakesplaceonsettopboxes,externalharddrives,USBmemorysticks,mobilephones,tablets and computers. The downturn in revenues canbeexplainedbythefactthatanumberofplayersarenotcurrentlypayingthelevyformobilephones,tabletsandcomputers,butareinsteadawaitingtheoutcomeofthecurrentlegalproceedings.


THE YEAR IN NUMBERS

Whetherornotmobilephonesshouldbecoveredbythelevyschemeisanissuewhichhasnotyetbeenresolvedwithfinaleffect.During2015,verdictswereannouncedintwoseparatecaseswhere,afteranumberofyearsofnegotiations,Copyswedewasforcedtotakemobilephoneimporterstocourtinordertohavetheissueofwhethersuch phones should be covered by the levy schemereviewed. In June 2015, Skåne and Blekinge Court ofAppeal ruled that the model of SonyWalkmanmobilewhichwasthesubjectofthereview(theSonyWalkmanW715)iscoveredbythelevyschemeandthatSonyMobilewasthereforeobligedtopaythelevytoCopyswedeforitsimportsofthemobilephonemodel.TheverdicthasbeenappealedtotheSupremeCourt.

AttheendofApril2015,SveaCourtofAppealannoun-cedaninterimverdictaccordingtowhichIphonesarede-emedadevicewhichistobeconsideredasdesignedforprivatecopyingandwhichshould thereforebecoveredbytheprivatecopyinglevy.Thebackgroundtotheverdictwasthat,followingfruitlessnegotiations,CopyswedewasforcedtosueTelia inorder tohavethe issuereviewed.TeliahasappealedtheverdicttotheSupremeCourt.TheSupremeCourthasgrantedTelialeavetoappeal,andthecasehasbeendeferredforaverbalhearingtobeheldinearlyMay2016.

Since1 September2013, the levyhasalso coveredpri-vatecopyingoncomputers,tablets,internalharddrivesandgamesconsoles.Thelevyontheseproductshasbeenquestionedbymanyplayersinthemarket.Thishasmeantthatanumberofcompanieshavestilltoreportandpaythe levyforsalesmadeafter1September2013.During2014, this resulted inCopyswedebeing forced to serveSamsungwithasummons,as thecompanyhadneitherreportednorpaidthe levyfor its importsofcomputersandtablets.InOctober2015,SolnaDistrictCourtanno-uncedaverdictinthecase.Theverdictstatedthatcom-putersandtabletsarecoveredbytheprivatecopyinglevysystem.SamsunghasappealedtheverdicttoSveaCourtofAppeal.TheCourtofAppealhasgrantedleavetoappealandthepartiesareexchangingwrittencommunication.

During2014,theEuropeanParliamentandCounciladop-tedadirectiveconcerningcollectivecopyrightmanage-ment.Thisdirectiveconsistsoftwoseparateparts,withthe first part consisting of provisions which are aimedat harmonising and improving the functionality of theEuropean copyright organizations, particularly with re-gardtoformsofgovernanceandaccess.Thesecondpartisaimedatpromotingandsimplifyingcross-borderlicen-singofrightstomusicalworks.TheSwedishgovernmenthassetupan investigationandcommissionedaspecialinvestigatortoproposehowtheEUDirectiveshouldbetransposedinSwedishlaw.InMay2015,theinvestigatorpresentedthereportentitled”Collectiverightsmanage-mentswithintheareaofcopyright”.

During 2015, Copyswede invested considerable resour-cesinanalysingthereport’sproposalsandassessingthepossibleconsequencesforCopyswede’soperation in itscurrent form.One consequence of the directive is thatthe levy that is collectedwill have tobedistributedbycertainspecifieddeadlines.Someprovisionsinthedirec-tivewillalsonecessitatecertainadditionalinvestmentsinITsystems.

Overthepasttwoyears,Copyswedehasworkedtoana-lysethedistributionofthe levythathasbeenmanagedby Copyswede. This work is aimed at simplifying andautomatingthedistributionprocessinordertodistribu-teagreaterproportionofthelevyinashorterperiodoftime.Thisworkwillbeintensifiedduring2016.

During2015,theEuropeanCommissionhasalsoinitiateda series of initiatives aimed at reviewing the Europeancopyright regulations. Issues regarding cross-border li-censing, rights holders’ entitlement to remuneration,additionalproposals for collective licensingmodels andthewayinwhichtheprivatecopyinglevysystemwillbedevelopedwill be covered by the Commission’s propo-sals. During the year, Copyswede played an active rolein replying to various consultations from the SwedishGovernmentandtheEuropeanCommission.

Towards the end of 2015, a new one-year agreementwassignedbetweenCopyswedeandSVTregardingSVT’sOpenArchive.Underthisagreement,SVTwillpayacer-tainamountperaveragenumberofannualhoursplacedinthearchive.TheagreementcontainsnolimitationsontheamountofmaterialthatSVTcanplaceinthearchive,whichmeansthattheremunerationfor2016willdependonthenumberofprogrammesthatcanbeplacedintheservice.Theagreementalso containsaprovisionwhichguaranteesaminimumremunerationofSEK5million.

Annual General MeetingCopyswede’sannualgeneralmeetingwasheldon28May2015atCopyswede’sofficesinStockholm.

Board MeetingsTheboardofdirectorsheldnineformalboardmeetingsduring2015.

Significant Events after the End of the Financial YearAsa resultof themergerof theAssociationofSwedishCraftsmen andDesigners (KIF) and the SwedishArtists’National Organization (KRO), under the legal nameof KRO, KRO applied and was granted membership ofCopyswedeinearly2016.

Finance Business areasTheorganizationisdividedintoanadministrativesectionandnineseparatebusinessareas,ontheprincipleofoneareaforeachagreementarea.Priortobudgetdecisions


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201520142013201220112010

REVENUE DEVELOPMENT 2010-2015, SEK million ADMINISTRATION COSTS AS A PERCENTAGE OF DISTRIBUTIONS PAID

and during the year in progress, Copyswede analyseswhatproportionofthesecretariat’sworkshouldbespentondifferentissuesandwhatcostsaretobeattributedtoeacharea.

Management of Funds HeldCopyswede’smanagementoffundsheldreferstofundsinneedofinvestment,untilagreementsareenteredintoorpaymentmustbemade.Investmentsmustnotinvol-veanyrisktothecapitalamount.Undertheinvestmentrules,anyinvestmentsotherthaninbankaccountsmustbe restricted to safe, non-speculative instruments. Thetypes of security that are permissible are: certificatesof deposit, treasury notes/bonds, treasury bills,moneymarket instruments issued by specific institutions andothermoneymarketinstrumentsofferingasimilarlevelofsecurity.Since2009,Copyswedehasinvestedannuallyinequityindexedbondswithatermofuptofiveyears.At theyear-end2015,anominalamountofSEK60mil-lion had been invested in equity indexed bonds. Theaverage interest rateduring2015was0.02percentonCopyswede sbankaccounts.Copyswede’s total interestrevenueduring2015amountedtoSEK579,826.

Expenditure and IncomeCopyswede’s annual accounts have been prepared inaccordancewith the Swedish Annual Accounts Act andthe general recommendations of the Swedish Accoun-tingStandardsBoardBFNAR2012:1AnnualReport andConsolidated Financial Statements (K3). Income fromoperationsconsistsofrevenuefortheuseofcopyrightedmaterialandperformances.

Consequently, the largest itemofexpenditureconcernscopyrightpaymentsmadeorallocatedtoTVcompanies,producers,organizations,aswellastoauthorsandper-formers.OtherexpenditurearisesthroughtheactivitiesofthesecretariatandtheBoardofDirectors.Incomein2015amountedtoSEK290,619,545.Thecorrespondingfigurefor2014wasSEK271,527,749.Becausecollabora-tionamongrightsholdersextendsoverseveralareasofrevenue,substantialeconomiesofscaleareavailable.Thisenables costs, determined as a percentage of revenuecollected,tobekeptdown. In2015,costsamountedto 9percent(20149percent).

Operating CostsOperating costs during the year amounted to SEK 25.6million. The corresponding figure for the previous yearwasSEK24.6million.Thecostsaretobechargedtovario-uscollectedcopyrightrevenues.Thecostsforindividual

distributionaretobechargedonlytotheamountavail-ableforindividualdistribution.Apercentagebreakdownofcostsfor2015inthevariouscategoriesisgivenbelow.

Business area, %Cost ratio

2015Cost ratio

2014Retransmissionofforeignchannels 14.6 17.3RetransmissionofSwedishchannels 13.1 11.8Privatecopyinglevy 34.3 37.2Memberservices,developmentissues,inhousedistributionissues

21.2 18.3

Individualdistribution 13.1 9.6Other 3.7 5.8

Fundsaccruingtoexternalrightsholders,suchasTVandradio companies and producer organizations, or fundswhereuserequirestheapprovalofthememberorganiza-tions,mayonlybeusedtocovercostsbyagreementwiththepartiesconcerned.Suchitemsarethusnotrecogni-sedundercostsinCopyswede’saccountsbutareinsteadreportedasaCopyswedereceivablefromtherespectivecollectioncategory.

Allocation of ProfitInaccordancewiththeprovisionsgoverningtheorganiza-tion’soperations,Copyswede’sRevenueandExpenditureAccountclosedwithabreak-evenresult.

Key RatioThe purpose of key ratio is to reflect the organiza-tion’s operations. In the case of organizations such asCopyswede, it is difficult to find an accurate key ratio.TheBoardofDirectorshasdecidedtousethetotalcostsofactualoperationsdividedbythetotalrevenuedistri-buted.Thekeyratiothenbecomesareflectionnotonlyofthevolumeofrevenuecollected,butalsoofthefactthatdistributionagreementshavebeenestablishedandmoniespaidout.Anotherconsequenceofthechoiceofratio is that the greater the proportion ofmonies paidoutthatareindividual,thehigherthekeyratio.Thecostofdistributingsmallamountstoalargenumberofbene-ficiariesisnaturallyhigherthanthatofdistributinglargeamounts to justa fewbeneficiaries. In this respect, thekeyratiomaybemisleadingasameasureoftheefficiencyoftheoperation.Whenanewrevenuecategoryisaddedortherevenuethatiscollectedincreasessharply,thekeyratiowill temporarily rise until distribution agreementsare established and payments can bemade. The chartbelowshowsthedevelopmentsinCopyswede’skeyratiooverthepastfewyears.


REVENUE AND EXPENDITURE ACCOUNT

Copyswede Cooperative Economic Association, Corp. ID. No. 7696020036

Operating revenue Note 2015 2014

RetransmissionofforeignchannelsinSweden 40,704,037 32,628,349

RetransmissionofSwedishchannelsinSweden 79,153,424 71,216,055

PrivatecopyinglevyinSweden 2 86,168,197 118,611,944

OtherproductionofcopiesinSweden 30,820,972 19,457,702

RevenuesfromtheNordicregion 48,590,257 25,990,561

RevenuesfromtherestofEurope 4,969,818 3,412,372

Otheroperatingrevenue 212,840 210,766

290,619,545 271,527,749

Operating costs

Copyrightremuneration -264,987,767 -253,408,108

Dissolutionofreserve,baddebts 3 0 6,509,310

Otherexternalcosts 6,7,8 -9,775,176 -9,966,848

Staffcosts 4,5,9 -15,270,358 -13,889,680

Depreciation 10,11 -550,563 -743,642

-290,583,864 -271,498,968

Operating profit 35,681 28,781

Result from financial investments

Interestrevenue 579,826 2,562,668

Interestexpenses 0 0

Interesttorightholders -579,826 -2,562,668

0 0

Surplus after financial items 35,681 28,781

Tax 12 -35,681 -28,781

NET REVENUE FOR THE YEAR 0 0

THE YEAR IN NUMBERS


BALANCE SHEET

ASSETS Note 31.12.2015 31.12.2014

Fixed assets

Intangible assets

Capitalisedsystemdevelopmentcosts 10 1,194,122 996,383

1,194,122 996,383

Tangible assets

Equipment 11 182,023 293,349

182,023 293,349

Financial assets

Investmentsheldasfixedassets 13 60,000,000 80,000,000

Otherlong-termreceivables 14 1,062,415 1,036,689

61,062,415 81,036,689

Total fixed assets 62,438,560 82,326,421

Current assets

Current receivables

Accountsreceivable 3 19,851,227 18,426,715

Taxesrecoverable 347,063 353,962

Otherreceivables 15 33,935,506 47,212,917

Pre-paidexpenses 997,470 1,177,455

Total current receivables 55,131,266 67,171,049

Cashinhandandondeposit 563,272,251 520,878,794

Total current assets 618,403,517 588,049,843

Total assets 680,842,077 670,376,264


EQUITY CAPITAL AND LIABILITIES Note 31.12.2015 31.12.2014

Equity capital

Restricted equity capital

Capitalcontributed 14,000 14,000

14,000 14,000

Total equity capital 14,000 14,000

Provisions

Provisionforadjusted,non-recognisedprivatecopyinglevy

16

41,843,714

31,257,059

Total provisions 41,843,714 31,257,059

Long-term liabilities

Owedtorightholders 17 7,694,616 6,964,768

Total long-term liabilities 7,694,616 6,964,768

Current liabilities

Owedtorightholders 17 610,519,504 599,533,881

Accountspayable 819,262 11,305,024

Otherliabilities 18 5,130,343 17,378,096

Accruedexpenses 19 14,820,638 3,923,436

Total current liabilities 631,289,747 632,140,437

TOTAL EQUITY CAPITAL AND LIABILITIES 680,842,077 670,376,264

Collateral pledged 20 1,000,000 1,000,000

Contingent liabilities None None

BALANCE SHEET

THE YEAR IN NUMBERS


CASH FLOW STATEMENT

Operating activities Note 2015 2014

Operatingprofit 35,681 28,781

Adjustment for non-cash flow items

Depreciation 550,563 743,642

Capitalloss 5,219 0

591,463 772,423

Interestreceived 579,826 2,562,668

Interestpaid -579,826 -2,562,668

Taxpaid -28,782 -38,658

Cash flow from operating activities before changes in working capital

562,681 733,765

Change in working capital

Dicreaseincurrentreceivables(+), increaseincurrentreceivables(-)

12,032,884 -7,340,728

Dicreaseincurrentliabilities(-), increaseincurrentliabilities(+)

-850,690 83,526,125

Cash flow from operating activities 11,744,875 76,919,162

Investment activity

Investmentsinintangibleassets 10 -606,675 -1,012,225

Investmentsintangibleassets 11 -35,520 -34,416

Investmentsinfinancialassets 13 0 0

Cash flow from investment activity -642,195 -1,046,641

Financial activity

Decreaseinlong-termreceivables(+) 19,974,274 17,394

Increaseinlong-termliabilitiesandprovisions(+) 11,316,503 24,957,466

Cash flow from financial activity 31,290,777 24,974,860

Increase in cash and cash equivalents 42,393,457 100,847,381

Cash and cash equivalents at beginning of year 520,878,794 420,031,413

Cash and cash equivalents at year-end 563,272,251 520,878,794


NOTESAmounts in SEK unless stated otherwise.

» Note 1. Accounting and valuation policiesThe annual report has been prepared in accordance with the SwedishAnnual Accounts Act and the general recommendations of the SwedishAccountingStandardsBoardBFNAR2012:1AnnualReportandConsolidatedFinancialStatements(K3).

The income consists of the revenues invoiced during the year after thededuction of value added tax. All income consists of revenues collectedforuseofcopyrightedmaterialandperformances.AfterthedeductionofCopyswede’scosts,therevenuesaredistributedtorightsholderswhoareentitledtocompensationfromtheirrespectivecollectionareas.

CopyswedelicensessomeeightyforeignTVandradiochannels,aswellasSVTandTV4,forretransmissioninSwedenandcoversalltypesofnetworkand technology, creating opportunities for selling on agreements whennewmeansofdistributionaredeveloped.Inadditiontoretransmissiontohouseholdsviacablenetworks,IPtechnologyandtheinternet,Copyswedecanissuelicencesforretransmissiontohotels,etc.andforinternalusebycompanies,governmentagenciesandorganizations.Copyswedealsoissueslicences to permit retransmitted programmes to be included in variouscatch-upservicesatthetimeoftransmission.

CopyswedealsoadministratestheSwedishsystemfortheprivatecopyinglevy,whichgivesauthorsandperformerssomecompensationforthelossofincomecausedbyprivatecopyingasregulatedintheSwedishlegislationandEUDirective.

Revenuesundertheheading”OtherproductionofcopiesinSweden”includerevenuesforSVT’sarchive,URandthereleaseofSVTprogrammesonDVDandviavideoondemandservices.

RevenuesfromtheNordicregionconcernrevenuesforSwedishTVchan-nels,SwedishprogrammesbroadcastviaNordicTVchannels,aswellastheprivatecopyinglevyforSwedishprogrammes.

RevenuesfromtherestofEuroperelatetothereuseandprivatecopyingofSwedishTVprogrammesoutsidetheNordicregion.

Leasing agreements where the financial benefits and risks which areattributabletotheleasingobjectlargelyremainwiththelessorareclassi-fied as operational leasing. Payments, including an initial increased rent,in accordancewith these agreements are reported as a cost distributedlinearlyovertheleasingperiod.

Copyswedesecurespensioncommitmentsthroughfee-basedpaymentstoCollectumandSPP.

Twoofthecompany’semployeeshaveacompanycar.

Anagreementhasbeen reachedwith theCEOconcerning severancepayamountingtotwelve-months’salary.Theagreementonlyconcernstermi-nationofemploymentinstigatedbythecompany.

Currenttaxesarerecognisedbasedonthetaxratesandtaxrulesapplicableasofthebalancesheetdate.

Intangible assets are recognised at acquisition valueminus accumulateddepreciation.Thedepreciationisperformedonastraightlinebasisovertheexpectedperiodofuse,whichisfiveyears.

Tangible assets are recognised at acquisition value minus accumulateddepreciation.

Acquisitionvalueincludesexpenseswhichcanbedirectlyattributedtotheacquisitionof theasset. Thedepreciation isperformedona straight linebasisovertheexpectedperiodofuse,whichisfiveyears.

Financial instruments are recognised in accordance with the rules inK3Chapter11,whichmeans that recognition takesplaceon thebasisofacquisitionvalue.

Receivablesarerecognisedascurrentassets.Receivablesarerecognisedastheamountwhichisexpectedtobereceivedafterthedeductionofindivi-duallyassessedbaddebts.

Operating costs have been apportioned among the association’s variousdepartments.

Inthecaseofdistributionwhichrequirestheapprovalofexternalrightshol-ders,theamountsarerecognisedasareceivable.Otherapportionedcostshavebeenfinancedbydeductionsfromtherelevantgrossitemsofrevenue.

Thecashflowstatementispreparedaccordingtotheindirectmethod.Thereportedcashflowonlycoverstransactionswhichresultedinincomingoroutgoingpayments.

In addition to cash andbankdeposits, the company classifiesdisposablecreditswithbanksasliquidassets.

Blockedfundsarenotclassifiedasliquidassets.

» Note 2 Estimates and assessmentsCopyswede represents Swedish authors and performing artists.Copyswede’staskistocoordinatenegotiationsandagreementsincertainareasofcopyright,primarilyretransmissionofTVandradio,andtoadminis-tercollectionoftheprivatecopyinglevy.ViamandatesfromCopyswede’smember organizations and Copyswede’s cooperation agreements withbroadcasting companies and organizations for film and phonogram pro-ducers,weareabletosigncomprehensiveagreementsconcerningtheuseof copyrightedwork andperformances. Copyswede’s remit also includesdistributingthecopyrightrevenuesthatarecollectedforvarioususes.

Copyswedereachesagreements in itsownnamebasedonthemandatesit isgiven.Copyswede’scostsaredeductedfromcopyrightrevenues.Theamountthatremainsconstitutesdebttobothmemberorganizationsandthosewhoseworksandperformanceshavebeenused.Therevenuesaredistributedandpaidtorightsholders inaccordancewithmemberagree-ments and distribution agreements and in accordance with distributiondecisionstakenbytheboard.

Copyswedehassubmittedaclaimthattheprivatecopyinglevyshouldbepaidoncomputers,tablets,internalharddrivesandgamesconsolesimpor-tedfrom1September2013inclusive.Anumberofimportershaveobjectedtotheclaims,whilstmanyothercompaniesarereportingandpayingthelevyfortheproducts.During2013,theinvoicedamountofSEK9.1millionwasattributable to theproductsconcerned.During2014, thecorrespon-dingamountwasSEK22.4million,whileduring2015itwasSEK10.6million.SeealsoNote16.

Asanumberofcompanieshaveobjectedtotheclaimsforthelevy,thein-voicedamountshavenotbeenrecognisedandCopyswedeinitiatedaclaimagainstSamsungduring2014.InOctober2015,SolnaDistrictCourtannoun-cedaverdictinthecase.Theverdictstatedthatcomputersandtabletsarecoveredbytheprivatecopyinglevysystem.SamsungappealedtheverdicttoSveaCourtofAppealandtheCourtofAppealhasgrantedleavetoappeal.

Incaseswhereacourt issuesafinalverdictthattheproducts,orat leastsomeof theproducts, shouldnotbecoveredby the levyscheme, itmaybeappropriatetorepaytherevenuewhichisattributabletotheproductsconcerned.Withregardtocustomerswhohavenotadjustedtheirinvoices,areservationforbaddebtshasbeenmade.SeeNote3.

» Note 3 Provision for bad debtsDuring2012,adisputearosebetweenCopyswedeandComHemconcer-ningthepaymentofapenaltyinterestinvoiceforSEK438,185.ComHemhasbeenchargedpenaltyinterestasaresultoflatepaymentofthelevyfortheretransmissionofSVT.

THE YEAR IN NUMBERS


Copyswedehassubmittedaclaimthattheprivatecopyinglevyshouldbepaidoncomputers,tablets,internalharddrivesandgamesconsolesimpor-tedfrom1September2013inclusive.

ThecompaniesAppleandDustinhavesubmittedreportsfortheproducts,buthavenotadjustedtheirinvoices.During2014,Applerequestedcreditfor invoices concerning products covered by the levy from 1 September2013 onwards. However, Copyswede’s claim for payment for these pro-ductsremainsinplace.Noprovisionswhichimpactontheresultfor2015havebeenmade.SeealsoNote2.

2015 2014

Accountsreceivable 20,643,132 19,245,933

Provisionforbaddebts OnOff'sbankruptcy

0

-27,314

Provisionforbaddebts,interestreceivable,ComHem

-438,185

-438185

Provisionforbaddebts,Dustinprivatecopyinglevy

-353,720

-353,720

Total receivables 19,851,227 18,426,714

» Note 4. Average number of employees

2015 2014

Numberofemployees 17 16

Ofwhom,men,% 34 32

» Note 5. Gender breakdown, board and executive management

2015 2014

Board of Directors

Numberofwomen 2 3

Numberofmen 4 4

Executive Management

Numberofwomen 0 0

Numberofmen 1 1

» Note 6. Summary of other external costs

2015 2014

Rentandotherpremisescosts 1,689,974 1,721,290

Officecosts 1,112,178 1,098,563

Consultancycosts,otherexternalservices,representationcosts

5,725,080

6,183,373

Othercosts 1,247,944 963,622

9,775,176 9,966,848

» Note 7. Operational leasing agreementsIn Copyswede’s reports, operational leasing largely relates to leasedpremises.

The tenancyagreementwassignedduring2012and runs foraperiodoffiveyears. Iftheagreement isnotterminated,thetenancyperiodwillbeextended by three years on each occasion. Future rent expenseswill bebasedonthetrendintheconsumerpriceindex.Inadditiontotherentingofpremises,theagreementalsoconcernstheleasingofofficeequipmentandvehicles.

Future minimum leasing charges which must be paid concerning non-terminableleasingagreements:

2015 2014

Fallsdueforpaymentwithinoneyear 1,820,984 1,720,921

Fallsdueforpaymentaftermorethanoneyearbutwithinfiveyears

1,666,268

3,199,983

Fallsdueforpaymentaftermorethanfiveyears

0

0

Leasingchargesexpensedduring theperiod

1,819,105

1,828,845

» Note 8. Information regarding fees to auditors

2015 2014

PricewaterhouseCoopers

Auditingservices 185,000 181,300

Auditingservicesinaddition totheauditassignment

20,000

20,000

Total 205,000 201,300

Specially appointed auditor

Auditingservices 4,830 4,830

Total 4,830 4,830

Total 209,830 206,130

» Note 9. Salaries and other remuneration

2015 2014

Salaries and other remuneration

Allemployees 9,839,539 9,003,623

Ofwhich,toCEOandBoard 1,317,387 1,291,557

2015 2014

National insurance costs (of which, pension costs)

Allemployees 5,049,927 (1,596,880)

4,641,819 (1,480,784)

Ofwhich,toCEOandBoard 697,341 (228,085)

690,864 (229,404)

» Note 10. Intangible assets

2015 2014

Capitalised system development costs

Acquisitionvaluebroughtforward 5,421,112 4,408,887

Procurement 606,676 1,012,225

Retirementofassets 0 0

Accumulated acquisition value carried forward

6,027,788

5,421,112

Depreciationbroughtforward 4,424,729 3,830,702

Retirementofassets 0 0

Depreciationduringtheyear 408,937 594,027

Accumulateddepreciationcarriedforward

4,833,666

4,424,729

Scheduledresidualvalueatyear-end 1,194,122 996,383

» Note 11. Tangible assets

2015 2014

Equipment

Acquisitionvaluebroughtforward 1,249,940 1,229,844

Procurement 35,519 34,416

Retirementofassets -13,047 -14,320

Accumulated acquisition value carried forward

1,272,412

1,249,940

Depreciationbroughtforward 956,591 821,296

Retirementofassets -7,828 -14,320

Depreciationduringtheyear 141,626 149,615

Accumulateddepreciationcarriedforward

1,090,389

956,591

Scheduledresidualvalueatyear-end 182,023 293,349

» Note 12. Tax

2015 2014

Currenttax 35,681 28,781

Deferredtax 0 0

Tax 35,681 28,781

Taxfortheyearconcernstaxonnon-deductiblecosts.


» Note 13. Investments held as fixed assetsThisitemreferstothreeequityindexedbondsissuedbySvenskaHandels-banken.Thebondsguaranteerepaymentoftheinvestedprincipalonthedayofredemptionandhaveafixedtermofthree,fourorfiveyears.

Nominal amount

Market value

Transaction date

Redemp- tion date

EquityindexedbondSHBO1333

20,000,000

26,620,000

15.02.2013

28.12.2016


20,000,000

24,540,000

15.02.2013

28.12.2017


20,000,000

23,840,000

10.12.2013

10.12.2018

ThetotalequityindexedbondholdingisSEK60,000,000.

» Note 14. Other long-term receivablesOther long-term receivables amount to SEK 1,062,415. Of this amount, SEK1,024,890comprisesblocked fundsascollateral forbankguaranteesissuedtoCopyswede’slessors.

» Note 15. Other receivablesTotalother receivablesamount toSEK33,935,506.TheamountprimarilyconsistsofCopyswede’sclaimstocovercosts.Seealsoaccountingpolicies.Copyswede apportions its costs between the company’s various depart-mentsandbetweencollectionareaswithineachdepartment.

Thedepartment’scostsaredeductedfromthelevythatiscollectedbeforeitisdistributed.Thesecostsarereportedasreceivablesbeforedistribution.

Theyear’scostsforadministrationoftheprivatecopyinglevyamountingtoSEK8,785,246(SEK9,121,395)willbedeductedfromtherevenuescollectedfor2015,whichwillbedistributedduring2016betweenFRF,IFPI,UBOSandCopyswede.

Thisyear’scostforadministrationoftheretransmissionofforeignchannelsamountedtoSEK3,746,982(SEK4,253,353)andwillbedeductedfromtheamountstobedistributedduring2016.

Accordingtoadecisiontakenin1996,thecostoftheyear’sindividualdistri-butionistobecalculatedinconnectionwithclosureoftheannualaccounts.OnlyorganizationswhoseindividualdistributionishandledbyCopyswedewill contribute to financing this aspect of the operation. The cost of theyear’s individual distributionamounted to SEK3,348,074 (SEK2,269,249)andwillbedeductedfromtheindividualpaymentstobedistributedduring2016.

Costsfordevelopment,emergingissuesandCopyswede’sowndistributionissuesamountedtoSEK5,434,900(SEK4,491,370).ThesecostsaretobechargedtoCopyswede’sownshareoftherevenuescollectedforretrans-missionandprivatecopyinglevyaccordingtotherespectiveshares.

Thisyear’scostofworkrelatingtotheretransmissionofSwedishchannelsamountedtoSEK3,351,911(SEK2,892,285)andwillbedeductedfromtheamountstobedistributedduring2016.

» Note 16. Provision for adjusted, non-recognised private copying levy Copyswedehassubmittedaclaimthattheprivatecopyinglevyshouldbepaidoncomputers,tablets,internalharddrivesandgamesconsoleswhichareimportedfrom1September2013inclusive.Anumberofimportershaveobjectedtotheclaims,whilstmanyothercompaniesarereportingandpay-ingthelevyfortheproducts.Asanumberofcompanieshaveobjectedtotheclaimsforthelevy,theinvoicedamountshavenotbeenrecognisedandCopyswedeinitiatedaclaimagainstSamsungduring2014.InOctober2015,Solna District Court announced a verdict in the case. The verdict statedthatcomputersandtabletsarecoveredbytheprivatecopyinglevysystem.Samsung appealed the verdict to SveaCourt ofAppeal and theCourt ofAppealhasgranted leave toappeal. Incaseswhereacourt issuesafinalverdictthattheproducts,oratleastsomeoftheproducts,shouldnotbecoveredby the levyscheme, itmaybeappropriate to repay therevenuewhichisattributabletotheproductsconcerned.During2013,theinvoicedamount of SEK 9.1 million was attributable to the products concerned.During2014,thecorrespondingamountwasSEK22.4million,whileduring2015itwasSEK10.6million.

Withregardtocustomerswhohavenotadjustedtheirinvoices,areserva-tionforbaddebtshasbeenmade.SeeNote3

2015 2014

Adjustednon-recognisedprivatecopyinglevy 41,689,687 31,118,535

Interest 154,027 138,524

41,843,714 31,257,059

» Note 17. Owed to rights holders

2015 2014

Undistributedretransmissionrevenue

204,211,844

202,312,406

Undistributedprivatecopyinglevy 199,999,845 210,389,240

Estimatedindividualpayments 33,060,622 33,727,375

Provisions,screenwriters 17,451,046 17,945,682

Provisions,writers 4,317,191 5,831,106

Provisions,journalists 4,036,370 3,866,641

Provisions,directors 12,482,872 13,833,646

Provisions,actors,misc.TFotherthandirectors

28,560,800

33,074,029

Provisions,musicians 9,512,679 8,711,667

Provisions,filmcameramen 1,781,395 2,109,838

Provisions,visualarts/stillphotographers

8,053,208

8,054,701

Provisions,presenter 310,274 571,224

Other 94,435,974 66,071,094

Total 618,214,120 606,498,649

Ofwhich,long-termcomponent 7,694,616 6,964,768

Balance, current component 610,519,504 599,533,881

Currentliabilitiesfallduewithinthenextyear.Long-termliabilitiesfallduewithintwotofiveyears.

» Note 18. Other liabilities

2015 2014

Invoicedbutasyetunutilisedcontributions fortheCreatorsofCultureproject

207,041

257,501

PAYE 349,660 320,595

VATsettlement 973,642 0

On-account payment, cable TV administration 3,600,000 16,800,000

5,130,343 17,378,096

In2009,alargenumberoforganizationsrepresentingauthorsandperfor-mersinvariouswaysestablishedaworkinggroupentitled‘Kulturskaparna’(the Creators of Culture),whichwill participate in the copyright debate.Copyswedeisresponsibleforthefinancialadministrationoftheproject.

» Note 19. Accrued expenses

2015 2014

Accruedpersonnelcosts 2,430,162 2,269,709

Accruedconsultancycosts 85,021 353,920

RemunerationfromNorwayregardingSwedishchannelsviaNorwegiancablenetworks

4,072,413

0

Compensation,ongoinglegaldisputes 6,231,030 0

Otheraccruedcosts 2,002,012 1,299,807

14,820,638 3,923,436

» Note 20. Collateral pledged

2015 2014

Bankguarantee,Copyswede'slessors 1,000,000 1,000,000

» Note 21. Key RatioThe key ratio chosen is operating costs, excluding copyright payments,expressedasapercentageofthetotalamountdistributedduringtheyear.Thefigurefor2015was10percent(13percentfor2014).

Stockholm, 14 April 2016UlfMårtens

ChairSusinLindblom

1st Vice ChairMattiasÅkerlind

Chief Executive OfficerAnitaVahlberg JanGranvik MatsLindberg NicklasSigurdsson

Our audit report was submitted on 19 April 2016EvaMedbrant

Authorised Public Accountant, PricewaterhouseCoopersPaulVestergren

Specially Appointed Auditor

THE YEAR IN NUMBERS


AUDITOR’S REPORTTo the General Meeting of Copyswede Cooperative Economic Association, Corp. ID. No. 7696020036

Report on the Annual ReportWe have audited the annual report of CopyswedeCooperativeEconomicAssociationfor2015.

Responsibilities of the Board of Directors and the Chief Executive Officer concerning the annual reportThe Board of Directors and the Chief Executive Officershare responsibility for the preparation of an annualreport consistent with the Swedish Annual AccountsAct,aswellasfortheinternalcontrolsthattheBoardofDirectorsandtheChiefExecutiveOfficerdeemnecessarytoenablethepreparationofanannualreportfreefrommaterialmisstatement,whetherduetofraudorerror.

Responsibilities of the AuditorOurresponsibility is toexpressanopinionontheannualreport based on our audit.The audit was conducted inaccordancewithgenerallyacceptedauditingstandards.Fortheauthorisedpublicaccountant,thismeansthatheorshehasconductedtheauditinaccordancewiththeIn-ternationalStandardsonAuditingandgenerallyacceptedauditing standards in Sweden. These standards requiretheauthorisedpublicaccountanttocomplywithprofessi-onalethicalrequirementsandplanningandcarryouttheauditsoastoobtainareasonabledegreeofcertaintythattheannualreportisfreefrommaterialmisstatement.

Anauditinvolvesexaminingaselectionofthebasicdataforamountsandotherinformationinthefinancialstate-ments. The auditor decides what measures to take, inpart by assessing the risks ofmaterialmisstatement intheannualreport,whetherduetofraudorerror.Whenassessing the risks, the auditor considers internal con-trolsrelevanttotheAssociation’spreparationandatrueand fair presentation of the annual report in order toformulate audit procedures that are appropriate in thecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheAssociation’sinternalcontrols.Anauditalsoincludesevaluatingtheappropri-atenessofaccountingpoliciesusedandtheirapplicationbytheBoardofDirectorsandtheChiefExecutiveOfficer,assessing significant estimates made by the Board ofDirectorsandtheChiefExecutiveOfficerwhenpreparingtheannualreportandaccounts,aswellasevaluatingtheoverallpresentationofinformationtherein.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionInouropinion, theannual reporthasbeenprepared inaccordancewith theAnnualAccountsActandpresentsa true and fair picture, in all material respects, of thefinancialpositionof theAssociationasof31December2015anditsfinancialperformanceandcashflowsforthe

yearendingasofthatdateinaccordancewiththeAnnualAccounts Act. The administration report is consistentwiththeotherpartsoftheannualreport.

We therefore recommend that the Annual GeneralMeetingadopttherevenueandexpenditureaccountandbalancesheetfortheAssociation.

Report on other Legal and Regulatory RequirementsIn addition to our audit of the annual report, we haveexamined the proposed appropriations of the Associa-tion’sprofitor lossandtheadministrationoftheBoardofDirectorsandtheChiefExecutiveOfficerofCopyswedeCooperativeEconomicAssociationfor2015.

Responsibilities of the Board of Directors and the Chief Executive OfficerTheBoardofDirectorsisresponsiblefortheproposalforappropriationoftheAssociation’sprofitorloss,andtheBoardofDirectorsandtheChiefExecutiveOfficershareresponsibility for administration under the EconomicAssociationsAct.

Responsibilities of the AuditorOurresponsibility is toexpressanopinionwith reason-able assurance on the proposed appropriation of theAssociation’s profit or loss and on the administrationbasedonouraudit.WeconductedtheauditinaccordancewithgenerallyacceptedauditingstandardsinSweden.

AsabasisforouropinionontheBoardofDirectors’pro-posed appropriation of the Association’s profit or loss,weexaminedtheBoardofDirectors’proposalinordertoassessitscompliancewiththeEconomicAssociationsAct.

As a basis for our opinion concerning discharge fromliability,inadditiontoourauditoftheannualreport,weexaminedsignificantdecisions,actionstakenandcircum-stancesoftheAssociationinordertodeterminewhetherany member of the Board of Directors or the ChiefExecutiveOfficerisliabletotheAssociation.Wealsoex-aminedwhetheranymemberof theBoardof DirectorsortheChiefExecutiveOfficerhasotherwiseactedincon-traventionoftheAnnualAccountsActortheArticlesofAssociation.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionTherevenueandexpenditureaccountoftheAssociationisinaccordancewiththeconditionsoftheAssociation’soperations reporting a break-even result at the year-end.WerecommendthatthemembersoftheBoardofDirectorsand theChiefExecutiveOfficerbedischargedfromliabilityforthefinancialyear.

Stockholm,19April2016

EvaMedbrant Authorised Public Accountant, PricewaterhouseCoopers

PaulVestergren Specially Appointed Auditor

COPYSWEDE ANNUAL REPORT 201528 29PHOTO

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See our website www.copyswede.se for news andfurther information about our operations. Theweb-sitealsooffersfactsheets,formsandweb-basedtoolsforrightholdersorretransmission/levypayers.

How is the money distributed?Ifyouwouldliketoknowmoreabouthowwedistributethe revenuewe collect every year, visit ourwebsiteandreadourdocument‘DistributionofRevenue’.»Downloadatcopyswede.se

Press room at MyNewsdeskJournalists can easily subscribe to press releasesand other material via Copyswede’s press room atMyNewsdesk:www.mynewsdesk.com/se/pressroom/copyswede

Copyswede via Social MediaFollowCopyswedeonTwitter:twitter.com/copyswede

FURTHER INFORMATION

THE STAFF

CEO&SecretariatMattias Åkerlind,CEONeda Marklund,ExecutiveAssistant

LEGALAFFAIRSLars Grönquist,HeadofLegalAffairsAndreas Modig,ChiefNegotiatorPeter Carls,LegalAffairs

TVANDPRIVATECOPYINGLEVYTanja Jalamo,LegalAffairsEgil Ekbom,MarketSurveillanceLiselott Silwer,MarketSurveillanceAngela Håkanson,FinancialAssistantDovile Siauruseviciute, FinancialAssistant(temporary)

DISTRIBUTIONKarolina von Essen,LegalAffairsKatarina Björkstedt,LegalAffairsIngalena Bruhn,FinancialControllerMona Hojjati,Administrator(temporary)Siri NilssonÖhman,LegalAffairs(temporary)Jessica Nyström,AdministratorMaria Carlsson,Administrator(parentalleave)Annelie Nordgren,Administrator(parentalleave)

COMMUNICATIONSHelene Stjernlöf,HeadofCommunications

RECEPTIONANDOFFICESERVICELena Rosén,Receptionist

BOARD OF DIRECTORS

CHAIRMANUlf Mårtens,ChiefNegotiatorattheSwedishUnionforPerformingArtsandFilmandCEOofitsrightscompanyTrombAB.Ontheboardsince1997.

FIRSTVICECHAIRMANSusin Lindblom, Union Director of Writers Guild ofSweden.Alsoon theboardofALIS –AdministrationofLiteraryRights inSweden,CentreforDrama,KLYS – Swedish Joint Committee for Artistic and LiteraryProfessionals,theLarsMolinFoundationandSFU.Ontheboardsince1986.

SECONDVICECHAIRMANHelena Woodcock,HeadofLegalAffairsatSTIM.Ontheboardsince2010.VacantsinceNovember2015.

MEMBERSJan Granvik, Chairman of the Swedish Musicians’UnionandSAMI.Ontheboardsince2014.

Mats Lindberg, CEO of BUS – Visual Arts CopyrightSocietyinSweden.AlsoontheboardofBonusCopy-right–Access,InternationalFederationofReproduc-tionRightsOrganizations,EuropeanVisualArtist(EVA)and the International Authors Forum (IAF). On theboardsince1986.

Nicklas Sigurdsson, Head of Sales and Marketing,STIM/NCB.Ontheboardsince2014.

Anita Vahlberg,SeniorAdvisorat theSwedishUnionof Journalists.Alsoon theboardofBonusCopyrightAccess,Pressinstitutet,theJournalistFundforFurtherTraining,KLYS–SwedishJointCommitteeforArtisticandLiteraryProfessionalsandthePress’sCooperationCommittee.Ontheboardsince2005.

ORGANIZATION


Copyswede’s Member Organizations

CopyswedehasfourteenmemberorganizationsrepresentingSwedishauthorsandperformers:

VisualArtsCopyrightSocietyinSweden(BUS)www.bus.se

AssociationofSwedishIllustratorsandGraphicDesignerswww.svenskatecknare.se

AssociationofSwedishCraftsmenandIndustrialDesigners(KIF)www.kif.se

NordicCopyrightBureau(NCB)www.stim.se

SwedishArtistsandMusicians’InterestOrganization(SAMI)www.sami.se

AssociationofSwedishProfessionalPhotographers(SFFot)www.sfoto.se

SwedishUnionofJournalistswww.sjf.se

SwedishMusicians’Unionwww.musikerforbundet.se

SwedishPerformingRightsSociety(STIM)www.stim.se

WritersGuildofSwedenwww.dramatiker.se

SwedishWriters’Unionwww.forfattarforbundet.se

SwedishAssociationofEducationalWriters(SLFF)www.slff.se

SwedishFederationofProfessionalMusicians(Symf)www.symf.se

SwedishUnionforPerformingArtsandFilmwww.teaterforbundet.se

ORGANIZATION

Copyswede’s Collaborative PartnersUBOS, Union of Broadcasting Organizations in Sweden:coordinates Nordic public service TV companies andmanycorrespondingbroadcastingcompaniesfromothercountriesandlanguageareas.

IFPI, InternationalFederationof thePhonographic Industry,SwedishGroup,representsphonogramproducers.

FRF,SwedishFilmProducers’Association,representsfilmandTVproducersinvariousfields.ThroughitscollaborationwithAgicoaandEurocopya,FRFalsorepresentsinternationalfilmandTVproducers.

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Alströmergatan12,7trSE-11247Stockholm Phone:+46854566700

[email protected] YMR.

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copyswede annual report 2015

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