How do CMOs distribute licensing revenue (tariffs) among their members?
Each CMO is required to create and comply with a distribution policy, which must set out matters such as the method to calculate tariffs, the frequency of tariff distributions, and the way in which the CMO deals with collected tariffs that it is unable to distribute. A CMO must generally distribute a tariff within 6 months after the financial year in which it collected that tariff (unless the distribution policy provides for a longer period). The CMO must also provide usage information about the member’s portfolio when distributing tariffs to them, so that the member can understand the tariff distribution they receive (Division 4, Part 3 of the Copyright (Collective Management Organisations) Regulations 2023).