Licensing Tariffs for 2– Public Performance of Protected Works in Musical Events in Clubs
The tariff applies to musical events with or without entrance fees – such as: playing music for parties, including with DJs, musical performances and business events – that are held in clubs.
The tariff does not apply to family events (weddings, bar mitzvahs, etc.) that are held in the club.
The royalty fees for clubs, as of 1 January 2, is 10% of all direct and/or indirect revenue of any kind received by the club, according to the rate of use of the protected works from the ACUM repertoire. For an event that does not generate revenue, the royalty rate is 10% of the event budget.
“Revenue” – any direct and/or indirect revenue of any kind in money or the equivalent thereof, which is generated from the activity of the club, including, but not limited to, revenue from entrance fees to the club, income from the sale of drinks and food, revenue from sponsorships and advertisements, income from collaboration and barter transactions, etc.
For example: if the revenue of the club from a given event is NIS 50,000 and the percentage of the use of the protected works from the ACUM repertoire is 95% of all the works that are publicly performed, the royalties from this event would be calculated as follows: NIS 50,000 * 10% * 95% = NIS 4,750 with VAT.
As part of the terms of the license granted to the club, the club will send ACUM each month (by the 15th of each calendar month) reports about the musical events that were held in the preceding month, a report on the works that were performed at the events, and a revenue report certified by an accountant; the club will pay ACUM royalties each month, accordingly.
If you are disputing the licensing fees for 2016, in the meantime you are allowed to pay the interim usage fees that are calculated according to the tariff for clubs that were in effect in 2022.
Manner of calculating interim usage fees per year:
Maximum capacity of the club x NIS17.04 x days that the club operated
NIS 17.04 is the sum to be paid per person per year.
For example: a club that can hold 400 people, which operates twice a week, will pay the following amount per year:
NIS 17.04 x 400 x 2 = NIS 13,632
The interim fees do not include the following uses, for which a separate and additional license is required in accordance with the ACUM tariffs:
- Artist’s performances (local or foreign) for which entrance fees are charged
- Business events (closed events for workers’ unions, companies, etc.)
- Family events (weddings, bar/bat mitzvahs, henna ceremonies, brit milahs/ britot, birthday parties, etc.)