Distribution rules

1 GENERAL PROVISIONS 

Sanasto pays compensation based on the fees it collects for the use of copyrighted works in accordance with these rules. The rules are confirmed by Sanasto’s annual meeting.

2 PERSONS ENTITLED TO COMPENSATION 

The authors of copyrighted literary works and the holders of rights to the works of deceased authors are entitled to compensation based on copyright. These groups will be referred to as “authors” below. In addition to writers, “author” refers to literary translators who hold copyright to their translations.

3 distribution rules

The distribution rules concerning different types of compensation are primarily laid down in the agreements made with the users of literary works, in connection with Sanasto’s compensation tariffs or in sections 6 and 7 of these rules. If the distribution of compensation between the authors is not specified as above, the following provisions will apply.  

Copyright compensation is paid to the author whose work has been used and for the use of which Sanasto has been notified. If the work has several authors, compensation is paid to them proportionate to their number.  

If the work has a translator or several translators in addition to the author or authors, the compensation for the translation is 50% of the work-specific compensation. If the work has several translators, compensation for the translation will be paid to them proportionate to their number.  

4 GENERAL PRINCIPLES FOR THE USE OF COMPENSATION FOR COPYRIGHT 

Apart from the management fee referred to under section 8, Sanasto may not use copyright compensation or returns on invested copyright compensation for purposes other than payments to the authors. Investment activities are carried out in accordance with the decision of the association’s annual meeting on the general principles of investment activities. 

Sanasto’s annual meeting may, however, decide that part of the copyright compensation collected or returns on investment can be used for common purposes that indirectly benefit the authors.

5 EXPIRY OF COMPENSATION 

The expiry of copyright compensation is governed by the provisions of the Act on the Collective Management of Copyright, the expiry periods specified in the copyright legislation and the expiry periods provided in the Act on the Expiry of Debts.  

Sanasto’s annual meeting decides on the use of expired copyright compensation. Sanasto provides information about these purposes of use on its website.  

Sanasto’s annual meeting may decide that part of the expired copyright compensation be used for common purposes that indirectly benefit the authors.

6 MINIMUM AND MAXIMUM PAYMENT LIMIT

Sanasto’s minimum payment limit is EUR 10. Any payments below this threshold will remain pending until the minimum payment limit is exceeded. Copyright compensation for an author accumulates for three years from the end of the financial year during which the compensation was collected. The compensation expires if the minimum payment limit is not exceeded within this period.  

The maximum payment limit for compensation for the lending of physical works is EUR 32,000 per annual allocation period. The maximum payment limit for compensation for the library use of e-books and e-audiobooks is EUR 15,000 per annual allocation period.

7 SPECIAL RULES ON LENDING COMPENSATION AND COMPENSATION FOR LIBRARY USE OF E-BOOKS AND E-AUDIOBOOKS

The lending compensation and compensation for the library use of e-books and e-audiobooks are only paid for works with an ISBN. The proportion of compensation accumulated for the work is determined based on data on lending or use provided by libraries or the service provider. For each year, Sanasto’s Board of Directors confirms the compensation rate per lending and use event.  

Lending compensation and compensation for the library use of e-books and e-audiobooks expires three years after the end of the financial year during which the compensation was collected. Unallocated lending compensation and compensation for the library use of e-books and e-audiobooks  is paid as additional compensation to the authors entitled to compensation for the years in question.  

The distribution of lending compensation or compensation for the library use of e-books or e-audiobooks  for an individual work between several authors is based on the authors’ notifications of the number of authors and their own role as an author of the work.  

Sanasto pays lending compensation and compensation for the library use of e-books and e-audiobooks only to authors of text. 

For library categories containing more than 10% images or illustrations, there is a reduction factor that takes into account the proportion of the work that is imagery. The reduction factor for imagery in works is applied to the following library categories:  

For clarity, it should be noted that in library category 84, the proportion of images is 7%, and therefore no imagery reduction is applied to this library category. No imagery reduction is applied to e-audiobooks.

Imagery reduction will be applied to all titles that fall under the scope of imagery reduction in the relevant library categories. A pilot project will be implemented regarding the 2026 budget (loans from 2025). The pilot will test title-specific imagery reductions for library class 82 (poetry) instead of class-specific reductions. A 20% imagery reduction will be applied to illustrated works in the pilot.

The proportion of the compensation for the library use of e-audiobooks for narrators of a literary work is deducted from the allocation before the compensation for authors of a literary work is calculated, and the right of narrators of a literary work to compensation for the library use of e-audiobooks does not reduce the compensation for authors of a literary work. 

A portion of the lending compensation and the compensation for the library use of e-books and e-audiobooks, as decided by Sanasto’s Board of Directors, is set aside each year for claims, complaints and corrections. When the compensation expires, the provision is cancelled and paid as additional compensation to the authors entitled to compensation based on allocations for the year in question.  

8 MANAGEMENT FEE FOR COMPENSATION PAYMENTS 

The amount of the management fee to be deducted from each year’s compensation is decided by Sanasto’s Board of Directors. The management fee is used in full to cover Sanasto’s operational costs.  

The management fee is recognised in Sanasto’s financial statements. In addition, Sanasto informs its customers on its website about the current management fee and other deductions applicable to copyright compensation and income from the investment of compensation.

9 PAYMENT STATEMENT

In connection with each payment, Sanasto makes a payment statement available to the author.  

The payment statement must specify the type of compensation paid, the amounts per type of compensation, the period during which the compensation for use was collected and the contexts in which the work was used.

10 WITHHOLDING TAX

The compensation paid by Sanasto is subject to withholding tax in accordance with the tax legislation. 

At the beginning of the year, Sanasto receives tax information from the Tax Administration for most of its customers. Pensioners must submit a tax card to Sanasto if their tax information has not been received from the Tax Administration. Authors living outside Finland must submit a tax card to Sanasto every year.  

If the author wishes to change the tax information received from the Tax Administration, they must submit a new tax card to Sanasto.  

If Sanasto has no information about the withholding tax rate, 60% of the compensation to be paid will be withheld.

11 PAYMENT METHOD

Compensation is paid to the bank account indicated by the author.

12 PAYMENT SCHEDULE

Sanasto will pay the copyright compensation it collects at the times decided by its Board of Directors. Payments are made at least twice a year. The payment schedule is published on the Sanasto website. 

The times of payment of compensation for the use of works abroad depends on the distribution rules of the country of use or the terms and conditions concerning times of payment under the agreement with the copyright organisations of the country in question. Sanasto pays foreign copyright compensation to authors in connection with the next payment date following the date of receipt in accordance with Sanasto’s payment schedule.

13 COMPLAINTS CONCERNING PAYMENT

If the payment received by an author is incomplete, they may submit a specified rectification request to Sanasto. If the request is found to be justified, Sanasto will issue a corrective payment. 

The rectification request must be made in writing and must specify the following:  
 

• The context or occasion of use from which the incomplete or incorrect compensation has arisen (e.g. the name of the publication in which the work was used or the name and date of the performance in which the work was used)  
• The names of the work used and its authors  
• Any other information necessary for processing of the rectification request.  

The author must inform Sanasto if the compensation calculation shows an error in the amount of the withholding tax. If the error arises from the activities of Sanasto, Sanasto will make an adjustment to the withholding tax.

14 TREATMENT OF COMPENSATION PAID ON INCORRECT GROUNDS

If an author has received copyright compensation on incorrect grounds, they may be required to pay back the compensation. Upon request, an author must provide Sanasto with reliable proof of authorship (e.g. a publishing contract).

15 APPLICATION AND INTERPRETATION OF THE DISTRIBUTION RULES

Issues related to the application and interpretation of the distribution rules are primarily resolved by Sanasto’s Board of Directors.

16 disputes

Disputes concerning the right of authors represented by Sanasto to compensation are primarily resolved through negotiation between the authors.  

If such negotiations between the authors do not lead to an agreement, the responsibility for resolving the matter will be transferred to Sanasto’s Board of Directors.  

Any disputes concerning the interpretation of these distribution rules will be resolved primarily through negotiation. If an agreement is not reached, the dispute will be settled by the Helsinki District Court.

17 ENTRY INTO FORCE AND TRANSITIONAL PROVISIONS

These distribution rules were approved by Sanasto’s annual meeting on 21 May 2026. The rules will enter into force on 2 June 2026 and will be valid until further notice.  

The maximum payment limits specified in section 6 of these distribution rules will be applied from the 2023 allocation year onwards. For previous annual allocation periods, the maximum payment limit specified in the distribution rules for the year in question will be applied.