Percentage Licence for Restaurants, Recording

Who is the licence intended for?

The licence is intended for operators who organise events involving recorded music and/or karaoke at their own permanent venue with an audience capacity of more than 1,500 people. The event location can be, for example, a restaurant or a dance pavilion, and the event organiser can be a company, an association or a private individual.

The licence can also be an alternative to a fixed-price licence for all permanent venues with an audience capacity of more than 200 people. A percentage licence can be cheaper than a fixed-price licence if the events to be held are generally free of charge or if the ticket price for the events is low and/or the number of attendees is expected to be quite low.

What does the licence cover?

The licence covers the public performance of recorded music and/or karaoke at discos, dances and similar events where music is played from a record or other recording or device. Often the music is played by a DJ.

The event may be for the public and/or the event organiser’s own staff and may be subject to admission fees or free of charge. The licence also covers the playing of background music at the venue before the start, after the end or during the intervals of the actual event. If several DJs perform at the same event, a single licence will cover all of the DJs.

The licence is location-specific: if you have several restaurants or dance venues where you organise events, you must get a separate licence for each location.

The licence requires monthly reporting and confirmation of event information in Teosto’s web service. It is important to submit and confirm the event information for each month of the year, as this affects the price of the licence.

To play recorded music, you will also need a Dance Music in a Restaurant licence from Gramex, which covers the rights of music performers and producers and is sold by Musiikkiluvat.fi.

How is the price of the licence calculated and what does it cost?

The price of the licence is affected by the total number of events held during the year. The price is a percentage of the ticket revenue according to its category for each event or, for free events, the price per attendee. However, there will always be a minimum price for events in accordance with the price list, which will apply if the percentage of the ticket revenue for the event is lower than the minimum price. You can see the percentages and minimum prices in the price list.

The price of a percentage licence is also affected by how active you are in managing your obligations. By submitting and confirming the information about your events (dates, performers, ticket revenue or number of attendees) for each month in the Teosto web service by the 15th day of the following month, you will receive correct invoices based on the actual number of events and a 3% annual discount on the price of the licence.

Only VAT and any service fees (for example delivery method fee, delivery fee, ordering fee) that the end customer sees when making a purchase and that the ticket seller charges directly to the end customer may be deducted from the ticket revenue reported to Teosto. No other deductions may be made from the reported ticket revenue.

If you do not submit the information of the actual events by the 15th day of each month of the year, you will receive an estimated invoice for the unreported and unconfirmed months’ events, with a negligence penalty charge of 20% added to the final amount.

PLEASE NOTE! Information must also be submitted for the months in which you have not held any events. In the web service, click the No events this month button for the relevant months.

How is the estimated invoice formed?

The number of events for the whole year that you estimated at the time of buying the licence will initially be divided evenly among all of the months of the year. The number of events allocated to each month will change as you report and confirm actual events in our web service.

If you do not submit and confirm any information for a particular month or do not submit the information on time, you will receive an estimated invoice for the month’s events, which is formed on the basis of the following formula: the estimated number of events for the month x the estimated ticket price x the maximum audience capacity of the venue x the estimated royalty percentage based on the number of events estimated at the time of purchasing the licence.

If, after receiving the estimated invoice, you submit and confirm the information of the actual events in the web service, the estimated invoice will be credited on your next invoice.

How and when is the licence paid for?

We carry out invoicing four times a year (January, April, July and October) for the use of music at events organised with this licence.

If you have received estimated invoices and negligence penalty charges, you can correct them by submitting the event information after receiving the estimated invoice, in which case they will be credited on the next invoice. It is possible to submit and correct event information until the January of the following year, but if you do not submit the information by then, the estimated invoices will remain in effect.

However, failure to submit the event information of even a single month will result in the loss of the annual discount.

Adjustment invoicing

After the end of the year, the number of events you estimated at the time of purchasing the licence and the number of events you reported will be compared. If the estimated number of events and the number of events you reported differ so much that the size category of the licence and, therefore, the price per event change, you will receive an adjustment invoice (either a credit note or an additional invoice) for the past year.

How long is the licence valid for?

Once you have signed the agreement with Teosto, the licence will be valid until further notice, so until you terminate it. The notice period of a licence is usually one month.

Percentage licence for a restaurant, recording – special terms specific to the method of use

For the purposes of these special terms specific to the method of use, ‘Event’ refers to any recorded music event or karaoke event organised by the Customer where the performance of music is the main content or purpose of the event and that includes the public performance of works to an audience.

Such an event will also be considered to have been organised by the Customer if the Customer organises the event together with the music user or another third party or otherwise cooperates with them to organise the event.

Licence contents

The licence covers:

• The public performance of music as recorded music or karaoke at an Event held at the reported permanent venue or held by the Customer at another venue
• The public performance of music at an Event intended for the Customer’s staff
• The minor public performance of music as background music played from a recording in direct connection with recorded music or karaoke (such as break or interval music) at the same venue. The recordings used must be lawfully reproduced for the purposes of the licence.

This means that the licence does not cover:

• Other background music in customer spaces, background music in restaurants, cafés or other similar activities, or in other contexts or spaces
• Concerts, music reproduction, and playing music to the audience before a performance without Teosto’s separate permission
• The playing of recorded music from a jukebox when the audience pays a fee to listen to a work of their choice on the jukebox

Prices and invoicing

The price of the licence is determined on the basis of Teosto’s price list for recorded music and karaoke

1. The audience capacity of the venue reported by the customer
2. The number of events
3. According to the event’s ticket revenue or number of attendees or other royalty basis communicated to the Customer by Teosto

The Customer must inform Teosto in advance of any changes to the aforementioned bases for royalties.

Audience capacity refers to the maximum number of customers or audience members that can fit in the venue (1 seat = 1 customer/m² or the maximum number stated by the authorities).

The Customer’s obligation to report

Teosto has the right to obligate the Customer to provide Teosto with information about to the Event, the venue, the bases for royalties, the use of the works or the context of the use, or other such information. Teosto will inform the Customer of such obligations or any changes to them.

Estimated invoicing

Teosto has the right to estimate the royalties to be paid by the Customer to Teosto on the basis of the Event if the Customer fails to provide Teosto with the information it has requested from the Customer, or if the information submitted by the Customer to Teosto is incorrect or incomplete.

The order of application for the terms

In addition to these special terms specific to the method of use, Teosto’s General Terms and Conditions will also apply. The order of application for the terms is as follows:

1. The special terms specific to the method of use
2. Teosto’s General Terms and Conditions.

Teosto’s general terms and conditions

How to submit event information: Percentage licence for a restaurant, recording

At the time of purchasing the licence, you estimate the number of recorded music and/or karaoke events you will organise over the year. The event-specific royalty percentage, i.e. the price of the licence, is determined on the basis of the total number of events per year. However, there will always be a minimum price for events in accordance with the price list, which will apply if the percentage of the ticket revenue for the event is lower than the minimum price. You can see the percentages and minimum prices in the price list.

Submitting event information

For events organised using a percentage licence, you must submit and confirm the event information monthly. The information must always be submitted in Teosto’s web service no later than on the 15th day of the following month. You can get login credentials for the web service by contacting our customer service. 

The information to be reported includes:

• The date of the event
• The name of the event or performer(s)
• Event fees: paid or free admission

If the event is subject to an admission fee, please report:

• The price (including taxes) of a single ticket
• The number of tickets sold and the number of people attending for free
• Pre-tax ticket revenue (total ticket revenue)

You may only deduct VAT and any service charges that the ticket seller charges directly to the end customer from the ticket revenue reported to Teosto. No other deductions may be made from the reported ticket revenue.

If the event is free of charge, submit the event’s number of attendees.

You can report at the same time all of the events held in the various spaces of the same venue as well as any events held at the same venue using a different music licence. You can also confirm event information in advance: for example, information for venues that are only used in the summer can be submitted and confirmed well in advance for the months with no activities or events.

PLEASE NOTE! Information must also be submitted for the months in which you have not held any events. In the web service, click the No events this month button for the relevant months. If you do not hold any events during the year, you will not receive an invoice for the licence if you report and confirm for each month that you have not held any events.

Prices and invoicing

Events organised using a percentage licence will be invoiced for once a month based on the information you have submitted.

If you do not submit the information on time, you will receive an estimated invoice for the month’s events, which is formed on the basis of the following formula: the estimated number of events for the month x the estimated ticket price x the maximum audience capacity of the venue x the estimated royalty percentage based on the number of events estimated at the time of purchasing the licence.

If, after receiving the estimated invoice, you submit and confirm the actual information of the events, the estimated invoice will be credited on your next invoice.

After the end of the year, the number of events you estimated at the time of purchasing the licence and the number of events you reported will be compared. If the estimated number of events and the number of events you reported differ so much that the size category of the licence and, therefore, the price per event change, you will receive an adjustment invoice (either a credit note or an additional invoice) for the past year.

By submitting and confirming the all the information about your events for each month in the Teosto web service by the 15th day of the following month, you will receive 3% annual discount on the price of the licence. You can always submit and confirm the year’s event information until the 15th of January of the following year, after which we will carry out adjustment invoicing.

Events organised using a percentage licence will be invoiced for once a month on the basis of the information you have submitted.

If you do not submit the information on time, you will receive an estimated invoice for the month’s events, which is formed on the basis of the following formula: the estimated number of events for the month x the estimated ticket price x the maximum audience capacity of the venue x the estimated royalty percentage based on the number of events estimated at the time of purchasing the licence.

How do I correct the invoice and get a refund of the negligence penalty charge?

If, after receiving an estimated invoice, you submit and confirm the information about the use of music at the events you have organised, we will correct the estimated invoice and give you a refund of the negligence penalty charge on your next invoice.

You can submit and confirm the information about the events you have organised by logging in to the web service with your login credentials at extranet.teosto.fi or by clicking the E-Services link in the top right corner of the our website.

I don’t have login credentials for the web service – how do I get them?

If you have not yet applied for login credentials for our web service, you can get them from our customer service.

If you have not held the event for which you received an estimated invoice

Please contact our customer service and we will remove the event from your information and give you a refund of the estimated invoice.

Save money by submitting the information on time!

By submitting the information about the events you organise on a monthly basis, you will receive accurate invoices based on the information you have submitted. In addition, you will receive an annual discount of 3% per licence product if you submit the event information for each month on time.

Event information must always be submitted in the web service no later than on the 15th day of the following month, for example information about events held in January must be submitted no later than on the 15th of February.

PLEASE NOTE! Information must also be submitted for the months in which you have not held any events. In the web service, click the No events this month button for the relevant months.

Adjustment invoicing after the year has ended

The pricing of the licence is based on the audience capacity of the venue and the number of events organised during the year. When you bought the licence, you gave us an estimate of the number of events you would be organising over the year. The price per event for your music licence was determined on the basis of your estimate (price list price categories XS–L).

In accordance with the terms of the licence, you have submitted and confirmed the information about the events you have organised (number of events, performer, ticket revenue information and other information) to us on a monthly basis via our web service.

After the year has ended, we will check in the January of the following year whether your estimate of the number of events at the time of buying the licence matched the number of events you reported to us monthly. The final price per event will be determined on the basis of the number of events you have reported to us.

If the estimated number of events and the number of events you have reported and confirmed differ so much that the price category of the licence and, therefore, the price per event change, you will receive an adjustment invoice (either a credit note or an additional invoice) for the previous year based on the change to the price per event.

You can always submit and confirm the year’s event information until the 15th of January of the following year, after which we will carry out adjustment invoicing.

If you have not submitted and confirmed the event information for every month of the year

If you have not submitted and confirmed the event information for one or more months, and instead have one or more estimated invoices, the invoiced number of events for that month will be used when the number of events held during the entire year is calculated.

The negligence penalty charge for the months with estimated invoices will also remain in effect.

If you organised fewer than ten events

If you organised fewer than ten events during the year, the events you organised will be invoiced for in the annual adjustment invoicing as follows:

• For events with paid admission, 4% of ticket revenue per event or at least EUR 40.81 per event
• For events with free admission, EUR 40.81 per event (2023)
• For events with free admission, EUR 42.77 per event (2024)

The royalty percentage for the starting year

The royalty percentage for the starting year will be determined every January according to the price list category (XS–L) based on the valid number of events for the previous year (either reported and confirmed or estimated).

If necessary, you can change the number of events on your licence by contacting our customer service.