DALRO’s commission, or administration fee, for reprographic rights licensing is a standard 25% of all licence fees collected domestically. This fee is deducted from the royalties paid to both local (South African) and foreign rightsholders.
For the rights administered by DALRO’s Theatrical and General Division, the administration fee is usually negotiated between DALRO and the rightsholder, ranging from 10% for professional productions to 20% amateur productions.
The deducted administration fee goes towards DALRO’s running costs.
DALRO has two transactional distributions and one blanket distribution each year. The blanket distribution is also immediately followed by a blanket supplementary distribution.
The two transactional distributions are for rightsholders whose works (both theatrical and reprographic) have been licensed transactionally in the preceding licensing period. The blanket distribution is made up of license fees collected from blanket licensees and is distributed on the basis of usage reports received from these licensees.
The blanket supplementary distribution is based on the distribution data or ratios of the preceding blanket distribution. It is a distribution exclusively for local rightsholders and consists of income received from "repertoire swap" agreements (i.e. where royalty income is not exchanged by DALRO and the foreign RRO) and non-title specific foreign income.