The division of shares pertaining to a specific work must reflect the contribution made by each author in the creation of the work. If, for example, there were two of you working on a song and you agree that you both contributed equally to its creation, you should divide the shares/rights so that you each hold 50 per cent. Ultimately, this means that you will each receive half of the payment generated by your song.
Your membership of Koda obliges you to follow the Koda guidelines for dividing shares. You can either use Koda’s standard division or choose the so-called agreed division option.
- Standard division
The standard division option means that the composers will share half of the proceeds (50%) equally, and that the lyricists will share the other half equally. If the work features no lyrics, the composers will share the full 100% equally. See standard division rules for: Koda (pdf) and NCB (pdf).
- Agreed division
If all composers and lyricists who have contributed to a work agree that the rights should not be divided equally they may agree on a different division within the framework outlined below.
Your agreed division must observe certain minimum and maximum limits. In Koda, divisions of shares must comply with the following:
- the composers must collectively be allocated a total share of at least 25% and no more than 75%
- the lyricists must collectively be allocated a total share of at least 25% and no more than 75%
- no individual composer or lyricist may be given a share of less than 1%
No maximum or minimum limits to the distribution between composers and lyricists apply to the division of NCB shares.
If we receive work registrations with agreed divisions that do not comply with these rules we will divide the shares in accordance with Koda’s standard division rules until further information or registrations is received.
If a given work involves contributions from one or more arrangers/adapters, the total share allocated to the arranger may not exceed 16.67% (=1/6) of the work’s total 100%. Composers and lyricists may each allocate up to 1/6 of their own share to arrangers.