LTE Distribution Circular 2/24 , Vat and Taxes

Greetings to you,

Here are a few more (important) points to take note of regarding the distribution services being offered to you. These apply to labels and in some cases also to artists, but if they don't apply ignore them or ask me for clarification. The contents of these circulars are confidential in the sense that they are not to end up in public please. I send these to all distribution partners.

 1 - Performance Rights. A large percentage of the payments we send you includes revenue from performance rights. This is around 15% of the revenue we collect.  These collections will be over an above any direct arrangements you may have for your rights collection society, and only if there is a duplication on the collection system will you hear from us on this score.

 2 -  Payment Threshholds. We still await final news about the minimum threshold for streaming accounting however on internal accounting, we now have an arrangement in place to collect and save reports below 10 USD and will remit these once we have a value that justifies the bank charges. You can at anytime request details of usage, even if it is below the minimum threshold.

3 - Distribution. I have mentioned before in our circulars that our services are basically the distribution and representation of your tracks to the streaming platforms and online shops in the case of physical product. This includes the correct loading of music, metadata and the sales accounting that ensues.

4 - Marketing. This means that we do not do consumer marketing except by direct arrangement. If you just have a distribution deal then you have to create demand for your music. If your recordings are the subject on a recording contract with us or one of our associate firms and the release appears on one of our labels, then we do do marketing (or share the responsibility) for your music. What this actually means is subject to agreed marketing plans. However we are available to do campaign related marketing on a one off basis and you are welcome to talk to us about this.

5 - TAX Changes. We can and will not make contract changes simply by advice in these circulars. If we propose changes to our deals we will do so by a separate direct email and then if necessary draft a side letter for your signature. HOWEVER if this clause or similar wording as below is not in our deal with you we need to included it. Please review this draft and ask any questions you may have.

DRAFT -

h – The distributor will not deduct taxes that may be due by the OWNER on revenue distributor pays to him, in the case where the OWNER has not invoiced the distributor for amounts due to the OWNER. In the case of invoiced dues the OWNER shall show the VAT due as well as the registration number of the applicable vendor. The OWNER will hold the distributor free of obligations that my arise from tax authorities relating to payments made to OWNER. The OWNER will make their own arrangements for taxation with their respective tax authority.

Best wishes,

Patrick

 

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LTE Distribution. 

Postfach 762334

22070 Hamburg

Deutschland

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