Table of ConTenTs:

annual reporT2009

Very SatiSfactory reSultS in uncertain timeS 02

Prime moVer in online SyStemS and SerViceS 04

international PerSPectiVeS and collaborationS 06

national and nordic collaboration 08

We KnoW that muSic PayS 10

cultural contributionS 12

more than 68 Percent to foreign rightS holderS 14

anti-Piracy WorK in denmarK 15

StatementS from Koda’S chairman 16

accountS 18

contactS and organiSation chart 20

– While still maintaining one of the lowest administration costs in the world!In spite of the world-wide financial crisis and the ensuing uncertainty within all markets – not least the music market – 2009 was a satisfac-tory year for KODA. Therefore, we can once again forward considera-ble sums to our sister societies all over the world. And, at the same time, we are able to keep our administration costs at approximately 10 percent – one of the lowest administration costs in the world!

2009 ended with the largest distribution ever for KODA!We are proud to be able to show that during the past decade, KODA’s profits have increased steadily each year. Being a small organisation (110 employees) in a small country, we are particularly proud of our low administration costs and of our image as the cornerstone in the Danish music business. This is very much due to our focus on collaboration, the efforts of our highly skilled employees and our advanced technology base which is used by employees and members alike. Our position is furthermore cemented due to our openness towards new ways of using music and new business models for music use.

A strategy of Collaboration and Business Development Collaboration with the rest of the music business, affiliated busi-nesses, the political system – and with our customers is a conscious

“Very SAtiSfACtOry reSultS in unCertAin timeS”by Managing Director niels bak

strategy on our part because it creates synergy, promotes cost effi-ciency and goodwill all around. For decades, KODA and the neigh-bouring rights organisation for record labels and performing artists in Denmark, Gramex, have jointly licensed and collected royalties for general public performances. This one-stop-shop approach, that also includes a collaboration with Copydan (the umbrella organisation for collective rights management societies in Denmark) , has proven very valuable for music users and rights holders alike, because it creates new business and fewer administration costs for all parties involved. The exceptionally high profits in 2008, as illustrated in the table to the right, are due to a lump sum received after a court case with the larg-est commercial TV channel in Denmark, TV2. The case ended in favour of our rights holders, resulting in a serious boost in 2008’s profit and loss account.

Access to the world repertoire of music is crucial to us offline as well as online – through reciprocity, direct representation contracts or member contracts. Multinational publishers as well as sister societies can create far better results with KODA than alternative ways of administering rights when it comes to music use in Denmark.

“

five good reasons to choose KODA:1) Low administration costs at just around 10 percent2) Creator of new business models for music use3) Prime mover on market effects4) Efficient and innovative5) Emphasis on collaboration and a sound working relationship with rights holders worldwide

Collaboration, Transparency and Increasing Profits.

2

KODA is a serious ad competitive business partner, nationally and internationally.

“

Music everywhere but not at all costs. Setting a fair price on the value of our rights holders’ music is always a high priority.

“examples of new business models and collaborations in 2009:

In 2009, the TDC Play service expanded to also incorporate a streaming service. The doubling of KODA’s Internet revenues in 2009 is to some extent due to the TDC Play agreement.

KODA launched a new model for the use of music in short video clips on general entertainment sites, among others we entered into an agreement with one of the main players in this market - the largest Danish online newspaper, ekstrabladet.dk.

Our collaboration with Norwegian sister society, TONO, was in-tensified in 2009 – particularly regarding the joint development of online systems. This strategy results in cost efficiency and time saving – which means more revenue for the rights holders.

Various new projects have been launched in collaboration with KODA’s customers. With the Danish music venue organisation “Spillesteder.dk”, we started a regional project called “Local Heroes” to strengthen the local foundation of the venues. The project “Karrierekanonen” (the Career Cannon) was launched in 2009 and continues successfully in 2010. It focuses on the devel-opment of upcoming new music and is a collaboration with some of our major customers: DR (Danish Broadcasting Corpo-ration), Roskilde Festival and Spillesteder.dk. Finally, KODA insti-gated the launch of “Musikzonen” (the Music Zone) – a project where we gathered more than 50 Danish businesses, organisa-tions and research institutes in order to create synergy and jointly promote research on music, the use of music and the general understanding of music as an important factor in busi-ness and economy.

KODA’s administration costs 1999 - 2009

13.012.5

10.1 10.411.1

11.010.6

11.1 11.3

9.9 10.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

KODA's administration costs 1999 - 2009

KODA’s Licensing Revenues and Result 2000 - 2009 M. euro

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mio. Eur.

Revenues Result

3

We are prepared to license any kind of music use, as long as the rights holders receive fair compensation. Our focus is to ensure efficient working procedures for rights hold-ers, customers and for our administration. This efficiency results in very low administration costs – among the lowest in the world. This, in turn, of course means more money for our members and for for-eign rights holders. We develop and implement efficient online systems in-house for fast and service-minded handling of customers as well as members. All systems have been developed by KODA – most of them in collabora-tion with our Norwegian sister society, TONO. A new, modernised version of our website www.koda.dk was launched last year and provides a high level of information and serv-ice. From this website our members and customers can log onto their own personalised system for music registration and reporting.

Prime mOVer in Online SyStemS AnD SerViCeS

In 2009, more than 28,000 concerts were registered through our online system MyKODA. This equals 84 percent of all potential concerts for online registration and 68 percent of all reported concerts.

95 percent of our members’ song registration is carried out in our online system MyKODA or via another digital format. The system also provides confidential royalty statements for each member – composers, songwriters and music publishers.

“

We embrace the many new opportunities for music use made possible by the Internet.

According to IFPI’s own figures, Denmark has a higher digital share of the music turnover than any other country in Europe. “

Online Systems for our CustomersWe have been licensing Internet music use with great efficiency since 1996. Our IT Development Department supplies us with online systems for our customers. As a result we have implemented an on-line licensing shop where customers can easily sign up for the most common Internet music usages.

Online Systems for our membersAll desired services are available online – for publishers, composers and songwriters alike. All these online systems have been developed in-house by our own IT staff. MyKODA is an online members’ system where any new song can be registered as well as all concerts. The system also provides confi-dential royalty statements. Upon signing a contract with a composer/songwriter, music publishers can simply report all new songs online at MyKODA. It is also possible to register entire song catalogues in various formats.

4

Online services for composers, songwriters and music publishers

Composers, songwriters and music publishers can register any new song directly at www.koda.dk in the MyKODA service and see their own archive of registered songs.

Upon signing a contract with a composer/songwriter, music publishers simply report all new songs electronically at MyKODA. The registration of entire song catalogues in various formats is also an option.

When a rights holder transfers his/her claims to a music publisher, the publisher can see the account information of the rights holder in MyKODA.

When a song is played in public, on TV or radio, the reports are auto-matically registered online –the accuracy of the reports is naturally checked by our expert staff.

Live concerts are easily registered online for national and international concerts.

Payment is made directly to the user’s bank account and all relevant in-formation regarding what songs have been played and how many times is listed on MyKODA.

Composers, songwriters and music publishers can check their ac-counts information for details such as time, place, title of the show, TV performance, airplay and concerts

The search function in KODA’s song database is accessible to all users of MyKODA.

Music publishers can search in all the cue-sheets KODA has registered.

Music publishers can check and search in their personal agreements, in the original agreements as well as in the sub publishing agreements.

As per March 2010, MyKODA had 16,000 unique online users. This is a very high figure considering the fact that less than 14,000 members received remuneration from KODA in 2009.

“

Concert Registrations in MyKODA per year

462

5,920

10,391

15,317

19,370

22,61024,413

28,138

0

5,000

10,000

15,000

20,000

25,000

30,000

2002 2003 2004 2005 2006 2007 2008 2009

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Radio andTelevision

Satellite andCable

Internet Blank Tapes Other PublicPerformances

Received fromAffiliatedSocieties

Interest

2008 2009

Breakdown of KODA’s total revenues for performing rights 2008-2009 1,000 euro Total 2009: 85,121 2008: 85,871

5

We appreciate the collaboration we have with international music rights holders – and in 2009 we focused highly on our collaboration with multinational music publishers as well as with the foreign collec-tive rights management societies, both of which entrust KODA with their rights for licensing in Denmark.

It is part of our philosophy to ensure that commercial music users can license the rights they need for their activities in Denmark. We aim to help the music users obtain the repertoire in a hassle-free manner and we believe that this approach benefits both music users and rights holders. First of all, it makes it easier for the music users to launch new services and this also benefits the rights holders because KODA simultaneously strives to license the services at reasonable rates reflecting the value of the music on the Danish market.

the CiSAC Statement of ObjectionsIn the so-called CISAC case, the European Commission argued that the collective rights management societies in Europe had – deliber-ately or not – arranged the rights flow between them in a way that made it cumbersome to obtain pan-European licenses (for satellite, cable and Internet use). Most of the involved societies, including KODA, have appealed the decision and in early 2010 the written prepa-ration of the case before the European Court of First Instance was fi-nalised. We now await the court to set a date for the oral hearing of the case.

In the meantime, KODA and the other societies were under an obliga-tion to implement the decision (even though it was appealed) and KODA has diligently renegotiated the reciprocal representation agree-ments with our sister societies in Europe as required by the decision.

internAtiOnAl PerSPeCtiVeS AnD COllABOrAtiOnS

Collaboration on Different levelsWe emphasise collaboration with multinational music publishers and want to be transparent about our business in order to convince rights holders that KODA is the best alternative for licensing music rights in Denmark. We make ourselves available for dialogue and discussion with rights holders and rights holder representatives for instance at events like MIDEM and other international venues. All this helps the rights holders we represent to understand our business and our strat-egies. In the end it supports our vision of being able to license music users in Denmark for the repertoire they need.

Another example of our international collaboration is KODA’s new agreement regarding distribution of licensing income for satellite and cable TV with the British collective rights management society, PRS for Music. Usually, collective management societies forward their cable retransmission income for a particular channel to the so-ciety in the country in which the original satellite broadcast takes place. However, with KODA’s new agreement with PRS, this proce-dure has been refined for TV channels which for all practical pur-poses are more closely linked to the country in which the retrans-mission takes place than to the country in which the satellite broad-cast takes place.

The model gives KODA and PRS the opportunity to collaborate and evaluate which society is in the best position to make an even more efficient and correct distribution than we could under the old struc-ture. We are thrilled about this agreement because it helps to reduce the administration cost by avoiding the duplication of our efforts at KODA and PRS. At the same time it gives KODA and PRS a flexible so-lution for the distribution of income related to satellite and cable and we look forward to developing this collaboration in the future.

6

I’m very proud to be number 1 on the most played song list abroad. As a writer/producer I wouldn’t be able to make a living from music without KODA and it’s sister societies around the world. It’s a complicated task to obtain the song rights for all the songs played on radio, TV etc. and I feel blessed that there is a system which secures me payment from this. Big respect! Jonas Jeberg

“

We are delighted that our music is played a lot outside Denmark and that KODA collects the money for us. We are fans of KODA, and when we talk to music publishers – even in England and other countries – they feel the same!”Anders Bønløkke, Alphabeat

“ I am extremely happy and proud that people like my music here in Denmark as well as abroad. My KODA membership is crucial to me because my music gets played all around the world and the payments from KODA are always fast, efficient and accurate.Enur

“

Top 10 - Most frequently played Danish compositions abroad (based on 2008 registration)no. TITle CoMposer/sonGWrITer arTIsT

1 ONE STEP AT A TIME R. NEVIL, CUTFATHER, J. JEBERG, L. EVANS JORDIN SPARKS

2 CALABRIA ENUR, NATASJA ENUR FEATURING NATASJA

3 LET ME THINK ABOUT IT IDA CORR, MOTRACK , BURHAN G IDA CORR VS FEDDE LE GRAND

4 THE ANTHEM ENUR, A. C. PEREZ, W. M. MATTOS, C. A. CAMPO PITBULL FEAUTURING LIL JON

5 FASCINATION A. BØNLØKKE ALPHABEAT

6 SUPERSTAR REMEE, MICH HANSEN, JOE BELMAATI JAMELIA/CHRISTINE MILTON

7 DESTINATION CALABRIA ENUR, A. GAUDINO, S. M. LINN, S. SCARPELLINI ALEX GAUDINO FEATURING CRYSTAL WATERS

8 TANGO JALOUSIE JACOB GADE DIVERSE KUNSTNERE

9 PLAYED ALIVE U. SAVERY, M. FRIIS, M. PARSBERG SAFRI DUO

10 BARBIE GIRL S. RASTED, C. NORREEN, R. DIF, L. NYSTRØM AQUA

Alphabeat

Jonas Jeberg

Enur

7

In 2009, we launched various new projects with partners – mainly with KODA’s customers from other cultural organisations but also with regular business partners and business schools.

In 2008, a joint licensing agreement initiated by KODA and processed by Copydan (the umbrella organisation for righs holders) was imple-mented between the Danish Broadcasting Corporation (DR) and in total 25 Danish collective management societies and trade unions regarding DR’s online archive Internet portal. The success of the DR online archive deal paved the way for a new deal In 2009. This time DR wanted to launch two new TV channels – one with history con-tent and one with children’s programmes. Once again the 25 rights holders organisations were able to strike a deal with DR, which made it possible for DR to acquire all the necessary rights. At the same time, the 25 rights holders organisations – including KODA – continue to receive adequate remuneration for the rights they each represent.

Collaboration equals GoodwillKODA has a high activity level and contributes significantly to the development of new Danish music. This furthers our public image and provides us with goodwill from politicians and other decision makers.

In collaboration with the Danish music venue organisation “Spille-steder.dk”, we have launched a regional project called “Local He-roes” to strengthen the local anchoring of the venues. Another new

nAtiOnAl AnD nOrDiC COllABOrAtiOn

project is “KarriereKanonen” (the Career Cannon) which focuses on the development of upcoming new music. KarriereKanonen is a col-laboration between DR (Danish Broadcasting Corporation), Roskilde Festival and Spillesteder.dk and covers a wide range of aspects in talent development.

KODA also instigated the launch of “Musikzonen” (the Music Zone) – a project for which we gathered more than 50 businesses, organi-sations and research institutes in order to jointly create synergy, promote research on music and on the use of music and on the gen-eral understanding of music as an important factor in business and economy.

nordic Collaboration in Online licensingIn 2009, KODA and the seven other Nordic/Baltic collective manage-ment societies developed a licensing scheme, which makes it possi-ble for music customers to acquire a pan-Nordic/Baltic online li-cense for Internet music use across the region in all eight territories. The collaboration between the involved collective management soci-eties is anchored in NCB (Nordic Copyright Bureau), which will front negotiations with the music users as well as process the invoicing and distribution for this type of license. The initiative has received massive support from rights holders, other collective management societies, music users as well as from the European Commission. The licensing landscape is indeed changing these years and KODA looks forward to taking part in the new Nordic online licensing scheme.

8

In Denmark we have a strong culture for creating and listening to music. Music is of great importance to our cultural heritage and our cultural development. A strong copyright protection provides an incentive for music creators and publishers to create and invest in new works. At the same time copyright protection ensures that users and consumers have a wide variety of music and other creative works to choose from.We have a well functioning system with collective copyright management in Denmark. I am pleased that KODA has taken up the challenge to find good and solid solutions for the collective copyright administration in the digital environment. This is the way forward in achieving good solutions to the benefit of rights holders, music users and consumers. Per Stig Møller, The Danish Minister for Culture

“ KODA is an important economic foundation for any creating artist. Furthermore, it is also a good place to go for professional and kind help with complicated copyright matters.Fuzzy

“

KODA means a lot to us economically and is much more stable and reliable than collective management societies in other countries.The Blue Van

“

KODA’s profits 2000-20091,000 euro

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1,000 EURO

Radio/TV and Satellite/Cable

General Performance Licensing/Private Copy Remuneration

Other Income

Per Stig Møller

The Blue Van

Fuzzy

9

We have a conscious strategy of growing the music market by keeping a close customer relationship and staying close to our “product” - mu-sic itself. We do this by focusing on new business models, on the value of music and on partnerships and collaborations. In brief: We want to be “the helper” in the music market.

We believe that strong relations with customers increase their incentive to pay for music use as well as increase their understanding that music pays. The number of debt collection cases at KODA has dropped dramati-cally during the past three years as a result of our customer strategy.

We have managed to turn our customers’ focus away from the level of tariffs towards the actual product they are paying for: Music! We or-ganise events and conferences for our customers, offering them ex-pert knowledge about music use in shops and chain stores. We have also arranged VIP meetings where our key customers in the creative industries have met some of the big commercial companies among our customers. These meetings have, among other things, resulted in new collaborations in which music is used in innovative ways.

We KnOW thAt muSiC PAySGetting closer to the customer, the product and the arts grows the entire market for music!

We collect knowledge on the value of music from scientific re-search and private surveys and we offer our customers consul-tancy services free of charge about how they can use music in the most optimal way. We call this campaign: “Music Pays” and the core messages in the campaign are gathered in the following:

10 pointers on how to use music strategically:

Consider which function you wish the music to have in your shop, restaurant etc.

Let the music create your image Play music which ”fits” your customers The music pace influences the flow of customers Let the music suit the goods and the service you are selling Play music that goes with the rhythm of the day and the week You lose influence on the choice of music if you play radio Play music that your employees enjoy Use a music centre of good quality Consider and test a suitable music volume

0

1,000

2,000

3,000

4,000

5,000

6,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Classical concerts Other concerts

Remuneration from concerts1,000 euro

10

Selected business models, partnerships and collaborations

In 2009, TDC Play expanded to also incorporate a streaming service. The doubling of KODA’s Internet revenues in 2009 is to some extent due to the TDC Play agreement. Telia Fri Musik is another online music service that was launched in 2009. The service is for the tel-co’s subscribers as well as for the general public upon paying a monthly subscription.

A licensing model for smaller online music sites focusing on new, alternative music was launched in 2008 with the music site Band-Base.com. Wavesout.dk and other similar sites are now launching using the same model whereby 40 percent of all generated income from the site, which directly or indirectly stems from music, is paid to KODA for the use of music.

In 2008, we were the first country in Europe to launch a “start over” service on cable and IP-TV. This was possible due to a close col-laboration with other rights holders in cable TV. In 2009, the service proved very successful with a large part of the Danish population getting access to the start over service.

We have been the prime movers in facilitating online access to DR’s (Danish Broadcasting Corporation’s) archives via agreement with 29 organisations on behalf of 20 types of rights holders. DR is presently unfolding this access online.

We launched a new model for the use of music in short video clips on general entertainment sites, among others we entered into an agreement with one of the main players in this market - the largest Danish online newspaper, ekstrabladet.dk.

KODA as the helper in the market We aim to give our customers a greater understanding of why they have to pay for music We communicate the cultural value of music We communicate the value of music when used strategically We bring people together – customers and members and customers and customers We aim to be the catalyst in the music market

Our contract with KODA means that we are able to offer the Danish population a far more varied selection of music on radio as well as on TV and new media in the coming years. At DR, we are pleased with the collaboration with KODA because it benefits music makers as well as our listeners and viewers. In this way, the artists are ensured correct and efficient payment for their music and DR – like other radio and TV stations - has access to play the music we wish. Kenneth Plummer, CEO Danish Broadcasting Corporation (DR)

“

KODA’s income 2009 - other public performances1,000 euro Total 21,186

Restaurants, Hotels etc.5,81927,5%

Cinemas etc.1,2165,7%

Shops etc.5,49926,0%Music at Work

3671,7%

Other Background Music444

2,1%

Concerts4,38520,7%

Entertainment etc.

3,45616,3% Restaurants, Hotels etc.

5,81927,5%

Cinemas etc.1,2165,7%

Shops etc.5,49926,0%Music at Work

3671,7%

Other Background Music444

2,1%

Concerts4,38520,7%

Entertainment etc.

3,45616,3%

Kenneth Plummer

11

Each year, 10 percent of KODA’s net profit is allocated to Cultural Contri-butions. The sum is invested in national upcoming artists in Denmark – a small country and a “small” language. KODA invests in Danish music culture through Cultural Contributions that supports the image of copy-right and increases customer and user willingness to pay for music.

Thus, Cultural Contributions is an investment that strengthens our na-tional image and – in particular – ensures and strengthens the political support for our cultural function in society. This acceptance, in effect, enables KODA to ensure a reasonable level of income for our mem-bers. The end result is more money for all rights holders, national as well as international.

Big international rights holders make money due to our Cultural Contributions. Why?

Our support for national music culture shows legal and political au-thorities that we are a democratic organisation with great signifi-cance for Danish culture. If we were instead perceived as a com-mercial organisation, the general acceptance of paying for music would decrease significantly. We believe that it is wise - in the long term – to give something back to society.

Supporting national music increases musical diversity internation-ally. This diversity is important for the development of the music business as a whole. We earn more money per capita than the ma-jority of collective rights management societies, in particular than the societies without Cultural Contributions. This is again, due to the national acceptance of our function.

CulturAl COntriButiOnS- a tool for national branDing, leaDing to gooD reasonable tariffs

facts: Our Cultural Contributions are provided for cultural purposes only. Not for social purposes, pensions or the like.

We provide full transparency in our accounts, also regarding our Cultural Contributions.

No Cultural Contributions are deducted from online sale when substituting physical sale.

in 2009, the Cultural Contributions went to direct member support e.g.Concerts and tours, scholarships, promotion material, courses and workshops as well as events supporting national music and festivals, for example:

The “Skolekontakt” (school contact) project in which KODA mem-bers visit schools all over the country with workshops on how to make music and to promote respect for copyright.

Co-funding the project ”Musikzonen” (The Music Zone) in collabo-ration with a wide range of business partners, IFPI and research in-stitutes.

A stage for upcoming Danish jazz music at Copenhagen Jazz Festival A two day festival for upcoming bands, SPOT Festival Workshops and seminars for songwriters

12

The young duo Electrojuice have already played lots of concerts in Denmark and abroad: ”It is a

great recognition for us to receive Cultural Contributions from KODA. The support makes

it possible to develop our project and helps us to afford the machines and instruments we need to

make our music,” says Electrojuice.

Troels Abrahamsen received Cultural Contributions in 2009 for his solo CD, WHT:”The support means a lot to me. It is important for me to be able to control my CD master and merely license the music to a record company and I am able to do this due to the Cultural Contributions from KODA,” says Troels Abrahamsen.

Our support for national music culture shows legal and political authorities that we are a democratic organisation with great significance for Danish culture.

“ 4276,0% 234

3,3%

1.73024,2

4245,9%

1.13715,9

2753,9%

1.44320,2

801,1%

94513,2%

340,5%

4105,8%

Production, releases and/or distribution of recordings Production af sheet music

Grants for studies, work or travel Accomodation

Concerts Courses, workshops etc.

PR activities etc. Prizes etc.

Organisation and other administration expenses (max 20%) Elderly and disadvantaged members (temporary subsidies)

Other purposes

Employment of KODA’s Cultural Contributions 2009 in Euro In 1,000 euro Total 7,139

Troels Abrahamsen

Electrojuice

13

mOre thAn 52 milliOn eurOS tO fOreiGn riGhtS hOlDerSDenmark is a music importing country – with a strong music culture and close collaboration on copyright protection

Number of Danish musical works in KODA’s database2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

373519 399359 418999 446911 478095 539970 576160 610533 646625 682456

Payments to and from abroadeuro euro

Received 2009 from

2008-2009+ / -%

Distributed 2009 to

2008-2009+ / -%

STIM, SWEDEN 986,484 0% 19,291,699 102%

PRS, UK 596,654 24% 12,447,103 154%

ASCAP, USA 191,054 27% 6,799,605 113%

BMI, USA 140,465 34% 5,910,841 150%

GEMA, GERMANY 760,129 37% 1,785,901 15%

SACEM, FRANCE 260,144 -34% 1,777,640 111%

SOCAN, CANADA 58,615 69% 886,004 164%

TONO, NORWAY 462,774 -9% 702,158 34%

APRA, AUSTRALIA 106,232 7% 551,937 206%

SIAE, ITALY 208,400 31% 444,157 134%

SESAC, USA - 0% 426,562 174%

BUMA, THE NETHERLANDS 198,400 21% 316,063 222%

AKM, AUSTRIA 64,571 1% 232,088 195%

TEOSTO, FINLAND 348,847 18% 189,613 52%

SGAE, SPAIN 317,977 52147% 140,254 42%

SUISA, SWITZERLAND 238,702 401% 91,490 81%

IMRO, IRELAND 37,472 14% 89,140 32%

JASRAC, JAPAN 144,310 -2% 78,682 151%

STEF, ICELAND - 0% 72,822 58%

SABAM, BELGIUM 121,817 26% 66,745 -31%

KOMCA, SOUTH KOREA 12,800 36% 36,636 0%

ACUM, ISRAEL 5,382 -29% 36,287 424%

SAMRO, SOUTH AFRICA 25,856 12% 29,196 32%

SADAIC, ARGENTINA 8,481 -12% 29,038 -4%

OSA, CZECH REPUBLIC 11,602 -18% 27,175 108%

UBC, BRAZIL 46,227 14% 24,385 2%

ZAIKS, POLAND 84,337 -8% 17,848 39%

RAO, RUSSIA 23,782 47% 16,157 70%

SACM, MEXICO 5,370 33% 14,437 146%

SPA, PORTUGAL 15,614 23% 12,651 173%

ABRAMUS, BRAZIL - 0% 12,143 0%

CASH, HONG KONG 6,776 41% 9,007 1078%

ARTISJUS, HUNGARY 57,400 91% 8,026 74%

MESAM, TURKEY - -100% 5,888 -26%

EAU, ESTONIA 13,341 123% 5,714 106%

SUBTOTAL 5,560,013 21% 52,585,094 113%

Others 106,088 -32% 49,310 32%

TOTAL 5,666,101 19% 52,634,405 113%

However popular Danish music is, we remain a music importing country. This is reflected in our financial review in the distribution of remunerations in Denmark and abroad. In 2009, KODA sent more than 52 million euros to rights holders outside Denmark, equalling approximately 68 percent of the total distribution. As seen in the table, KODA paid 52.6 million euros to foreign rights holders in 2009 while receiving only 5.7 million euros. As the figures in the table show, many societies received more than double of the amount they received from KODA in 2008 – this is for instance the case for PRS for Music, who in 2009 received 12 million euros from KODA (2.5 times more than in 2008).

money flowThe money that KODA pays out to foreign rights holders takes various avenues before reaching its final destination - i.e. the account of the rights holder. For example:

Royalties mainly flow through KODA’s foreign sister societies that represent the rights holder in question.

As many multinational music publishers are members of our Swedish sister society, STIM, for the entire Nordic region including Denmark, a very large part of KODA’s distri-bution to foreign rights holders (19 million euros equalling 37 percent of the total) runs through STIM, which then distributes the royalties to the music publishers in question.

The collecting societies collaborate on the distribution of income for the cable retrans-mission of Radio and TV. As a result, KODA sends cable retransmission royalties to other societies, who then distribute the royalties on behalf of KODA.

Financial reservation from previous years: In 2009 we put extra focus on being able to distribute financial reservations from previous years and we managed to reduce the reservations by 63 percent.

Finally, KODA collaborates with NCB (Nordic Copyright Bureau) on collection and distri-bution for online downloads, which means that the royalties in this respect are paid out to rights holders by NCB.

1414

Our Deputy Managing Director Martin Gormsen has been appointed by the Danish Minister for Culture as a representative in an anti-piracy committe by our Minister for Culture. Furthermore, KODA collaborates with the Danish Anti-Piracy Group (APG); a consolidation of the film- and music-industry in Denmark.

Working towards the cooperation of iSP’sIn 2009, KODA and the Danish Council of Copyright (a consolidation of authors and performing artists) participated in a series of meetings set up by the Minister for Culture. The result was a report containing legal and technical descriptions of models designed to contribute to the protection of copyrights on the Internet. Consequently, KODA has put great effort into lobbying for the establishment of a committee with the purpose and mandate to prepare legislation that will require ISPs to cooperate in sending out information letters to their customers when copyright infringements are detected. KODA hopes that it will result in a system of so-called “graduated response”. The Ministry of Culture has primo 2010 established a Committee for Copyright with the purpose of enforcing copyright as well as develop-ing new business models and strengthening existing ones. KODA’s Deputy Managing Director, Martin Gormsen, has been appointed as one of the representatives by the Danish Minister for Culture.

Anti-PirACy WOrK in DenmArK – A nAtiOnAl COllABOrAtiOnKODA plays an important part in national anti-piracy efforts.

the Anti Piracy Group (APG)APG has reduced traffic on several of the widely known illegal file sharing services. Typically, KODA is represented in the political dis-cussions concerning anti piracy through the Danish Copyright Council.

A summary of the most important activities in APG in 2009. In January 2009, the Danish ISP (Internet Service Provider) DMT2 A/S (now Sonofon A/S) was ordered by the court to block access to the infringing web site “The Pirate Bay”. This injunction was upheld by the High Court in a decision from 2008. All the Danish APG mem-bers now stand behind this lawsuit as they have intervened in the court case. We expect the Supreme Court to assign a date for trial soon.

During 2009, the number of criminal cases has grown and we hope to see this development continuing during 2010 as well.

Intensified focus on and investigation regarding owners of pirate services and other forms of source piracy. Cooperation with the po-lice has been strengthened and APG is working to introduce an in-formative and educational pilot project with the police as well as with schools, public institutions etc. as recipients.

recent Danish research on music piracy online: A 2009 survey carried out by Megafon Analysis (on behalf of IFPI Denmark) shows that TDC Play has given the digital music market a significant boost. 43 percent of the TDC subscribers stated that they download “much less or less” illegal music.

Another 2009 survey carried out by Greens Institute of Analysis in Denmark shows that the number of people who download music illegally has dropped by 4 percent in 2009 compared with a similar survey in 2008.

We are certain that the reason for the reduction in piracy is the increasing availability of legal online music service alternatives.

15

The world of music and public performance has changed completely and we must never again turn to habitual thinking when it comes to ways of getting our members a reasonable income from their music.

KODA has proved highly capable of adapting to the ever changing market for music consumption. Our collective rights management so-ciety has demonstrated awareness and has been able – in a steady stream - to create new business models and partnerships.KODA works intensely in all corners of the market - to ensure our members a fair remuneration and this requires a significant amount of adaptability and creativity.

transparency and DialogueWe strive towards complete transparency in our everyday transac-tions and work continuously to make this the state of the art within collecting societies. Our administration costs are among the lowest compared to other rights societies round the world, and at the same time we probably deliver the best market penetration of them all. KODA continues to improve collecting procedures, to grow new mar-kets, to upgrade business policies and to maintain dialogue with de-cision makers.

KODA is highly respected and recognised as an organisation “in the know” about the music business, an organisation that facilitates col-laboration in the music business, and last but not least – an organi-sation that helps customers find the best and most satisfying way to use music. We offer solutions for every kind of music use and our customer partnerships have resulted in a radical drop in the number of problematic court cases as well as in the number of debt collec-tions from customers.

StAtementS frOm KODA’S ChAirmAn ivan PeDersen

fascilitator and partnerKODA is a first mover in the facilitation of new music platforms and a very important player on the Danish/Nordic music scene. We are present in every aspect of cultural life involving music as a highly re-spected partner and facilitator. KODA is more than ready to offer its services and to compete with anyone in order to facilitate the handling of your repertoire in our part of the world.

KODA’s Administration Costs 1999 - 2009

13.012.5

10.1 10.411.1

11.010.6

11.1 11.3

9.9 10.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

KODA's administration costs 1999 - 2009

16

We must maintain the concept that music represents not only one - but more values in society. Both now and in the future, the economy from using music will be expressed through many, diverse business models. Luckily, KODA is a significant and credible actor across all platforms in our country. We are a knowledge bank within the music field – and not least – a visible defender of music rights.Ivan Pedersen, Chairman of the Board

“

KODA’s Allocation of Revenues for 2009In 1,000 euro 83,318

Foreign Rights Holders53,7%

Danish Rights Holders27,6%

Private Copy Remuneration

Cultural Contributions 8,2%Administration Costs

10.2%

0,3%

17

note 2009 2008 2007

1 Music Remuneration, Denmark 70,724 68,527 59,212

Music Remuneration, Denmark, payment previous years 8,868

Music Remuneration, Copying 667 740 861

Music Remuneration, Faeroe Islands 447 340 356

Music Remuneration, Greenland 302 371 289

4 Music Remuneration, from Abroad 5,666 4,745 4,297

77,806 83,591 65,015

2 Administration Expenses (8,523) (8,456) (7,517)

result before interest etc. 69,283 75,135 57,498

3 Net Interest Income 5,512 2,082 1,296

Corporation Tax - -

result for the year 74,795 77,217 58,794

Settled as follows:

4 Remuneration Affiliated Societies 5,666 4,745 4,298

Contributions for National Cultural Purposes

6,806 7,130 5,364

Collective Private Copy Remuneration 225 251 284

8 Remainder for Distribution 62,098 65,091 48,848

74,795 77,217 58,794

Financial review for the year 2009, in Euro 1,000

Copenhagen, 4th March 2009

ManagementNiels Bak

KoDa’s board:Ivan Pedersen (Composer, KODA’s Chairman) Susi Hyldgaard (Composer)Klaus Ib Jørgensen (Composer)Pia Raug (Composer)Niels Rosing-Schow (Composer)Jacob Morild (Songwriter)Tine Birger Christensen (Music Publisher)Jørgen Andresen (Music Publisher)Ole Dreyer Wogensen (Music Publisher)

note 2009 2008 2007

assets

Liquid Funds 24,894 40,931 14,236

Debtors 2,292 1,998 7,260

5 Securities 47,362 43,665 45,066

6 Property 14,507 14,230 13,804

7 Fixtures and Fittings 617 509 535

Accrued Interest 20 157 32

Accruals 112 122 139

Other receivables 43 152 -

Total assets 89,847 101,764 81,072

liabilities

Contributions for National Cultural Purposes 7,526 7,413 5,577

Collective Private Copy Remuneration 586 654 801

Other Collective Purposes 142 152 138

Remuneration Affiliated Societies 2,671 1,595 1,392

Un-distributed Amounts 6,501 17,787 9,661

Provisions for Write-up and Property 5,838 5,812 5,812

Accruals - - 5,734

Other Creditors 3,082 2,184 1,841

8 For Distribution 63,501 66,167 50,116

Total liabilities 89,847 101,764 81,072

9 Contingencies etc.

Balance as of 31st December 2009, in Euro 1,000

18

EUR - 1,000 2009 2008

1 Music remuneration, Denmark

Radio and TV 48,721 47,284

Internet 2,782 1,026

Cinema and Film Showings 1,212 1,027

Background Music in Restaurants, Hotels and Ships 5,757 5,656

Trading and Sales Premises 5,478 5,129

Music in Work Spaces 366 316

Music in Airplanes 76 144

Music in Coaches 77 83

Miscellaneous 292 301

background Music 6,289 5,973

Concerts 4,332 4,300

Indoor Entertainment <200 persons 296 288

Indoor Entertainment >200 persons 569 560

Outdoor Entertainment 100 98

Association Agreements 124 114

one-off events 5,421 5,360

Exhibitions/Conferences 17 15

Sports Events 884 740

Amusement Parks 404 413

Circus 58 39

Theatre Music 517 615

Schools and High Schools 485 431

other entertainment 2,365 2,253

Provisions for debtor loss (1,823) (52)

Music remuneration, Denmark 70,724 68,527

EUR - 1,000 2009 2008

2 administration Costs

Staff Expenses (6,938) (6,495)

Board (213) (199)

Various Committees (1) (4)

Legal Assistance (99) (248)

Auditors Fees (41) (51)

Consultancy Fees (63) (52)

Control and PR Costs (183) (235)

Travel and Representation etc. (283) (273)

Cost of Premises (360) (327)

Stationery and Printed Matters (196) (195)

Telephone and Broadband (71) (68)

Transportation (1) (1)

Bank Costs (6) (6)

Postage (228) (225)

Insurances (37) (37)

Subscriptions (102) (100)

External Registers (25) (73)

IT, Operation Costs for Entries (20) (28)

IT, Operation Costs (277) (393)

IT, System Development and Instal-lation etc.

(62) (88)

Inventory, Maintenance and New Purchases

(51) (57)

Miscellaneous (2) (3)

Depreciation (224) (205)

Cost Reductions 960 907

administration Costs (8,523) (8,456)

2009 2008

6 property

Cost Price 1 January 7,740 7,314

Increase during the Year 250 426

Disposals during the year - -

Cost Price 31 December 7,990 7,740

Apreciation 1 January 6,512 6,512

Apreciation for the Year 27 -

Apreciation 31 December 6,539 6,512

Depreciation 1 January (22) (22)

Depreciation for the Year 0 0

Depreciation as of 31 December (22) (22)

accounting Value as of

31 December

14,507 14,230

Cash Value of property as of 1 January 17,066 16,240

7 fixtures and fittings

Cost Price 1 January 928 1,032

Additions in the Year 332 179

Losses in the Year (69) (283)

Cost Price 31 December 1,191 928

Depreciation 1 January (419) (497)

Disposals 51 248

Depreciation of the Year (206) (170)

Depreciation 31 December (574) (419)

accounting Value as of 31 December 617 509

2009 2008

3 Interest Incomes, net

Returns, Securities 1,988 2,346

Bank- and Giro Accounts 1,281 1,279

Unrealised loss, Securities 2,433 (2,396)

Realised loss due to sold Securities (531) (855)

Interest Rate compensation - 1,431

Debtors 341 277

Interest Income, net 5,512 2,082

4 license revenues affiliated societies

Music Revenues from Cable Distribution of Danish Radio and TV Programmes Abroad

260 217

Other Revenues Affiliated Societies 5,406 4,528

license revenues affiliated societies 5,666 4,745

2009 2008

8 for distribution

For distribution according to the profit and loss account 62,098 65,091

Unplaceable Remuneration 1 January 793 826

Free Portion 610 250

for Distribution 63,501 66,167

5 bonds and Investment trust certificates

The holding consists of unit trust bonds in distributing unit trusts with portfolios consisting of bonds and shares.

9 Contingencies etc.

The estimated capitalised value of pension obliga-tions is 275 (1,000 EUR)

Obligations regarding rental property:Interior maintenance in connection with lease is 12 (1,000 EUR)

A lease has been signed for the address: Landemaerket 27, 2nd og 3rd floor.The lease is irrevocable until June 1st 2010, and the obligatory rent is 45 (1,000 EUR)

Account notes

19

koDa: always at your service!

KODALandemærket 23-25, P.O. box 2154, DK-1016 Copenhagen K.Tel: +45 33306300, E-mail: info@koda.dk.www.koda.dk

Photos used in Annual Report: Anders Beier, Johan Rosenmunthe and Colourbox.com

koDa Management:Niels Bak

Managing Director

legal adviceInternational relations

Martin GormsenDeputy Managing Director

CommunicationNicolaj Hyltén-CavalliusHead of Communication

Birgitte Theresia HenriksenPress Relations Manager

finances, administration and IT-operationsAllan Svarre Jespersgaard

Head of Finance and Administration

MembersTine Eilskov

Director of Members

planning and IT-DevelopmentJens Juel Andersen

Head of Research and Development

licence and MediaTrine Nielsen

Director of Licensing

Jakob HüttelHead of International Legal Affairs

Contact us to hear more….

Managing DirectorNiels BakTel: +45 33 30 63 01/nb@koda.dk

Deputy Managing Director Martin GormsenTel: +45 33 30 63 03/mg@koda.dk

Head of International legal affairsJakob HüttelTel: +45 33 30 63 69/jhl@koda.dk