Merlin is the global rights agency for the independent sector, established by the worlds leading independent companies to enhance the licensing of independent music globally, and operating on a not-for-profit basis. Merlin only charges fees to cover the costs of running and managing the organization. These fees are generated by charging its members administration fees on revenue generated from Merlin deals.
Merlin’s standard fee to its members is 3.25%, however members of WIN affiliated Independent Trade Associations are offered a discounted rate of 2%, which a substantial discount on the standard fees, and should be a great incentive for companies to support their local Independent Trade Associations.
Merlin has also informed us that in 2013 and 2014 the organization generated administration fees in excess of actual costs, and as a result are repaying around $1.9m to members in administration fees charged for those years.
That figure is split between years as follows:
2013 – $1,014,675.
This is 1.2% of revenues earned in that year, and equivalent to a 30% discount against a fee of 4% in the first half of 2013, and a 40% discount against a fee of 3% in the second half of the year, i.e. effective fees in 2013 were 2.8%, reduced to 1.8% in the second half of the year.
2014 – $855,016
This is 0.67% of revenues earned in that year and equivalent to a 22.3% discount against a fee of 3% in the first half of 2014, and a 26.8% discount against a fee of 2.5% in the second half of the year i.e. effective fees in 2014 were 2.33%, reduced to 1.83% in the second half of the year.
The rebate relating to each year will be apportioned pro-rata to administration fees charged to members on their Merlin earnings for each of such years.
It is great news for the independent community that Merlin has announced this significant rebate, and we trust that this underlines the value of Merlin to all of our members, and reaffirms Merlin’s commitment to delivering the maximum possible value to members via its activities.