12.—(1) A collective management organisation must regularly, diligently and accurately distribute and pay amounts due to right holders in accordance with the general policy on distribution referred to in paragraph (1)(d)(i) of regulation 7 (general assembly of members) subject to paragraph (3) of regulation 14 (deductions and payments) and regulation 27 (payment).
(2) A collective management organisation or, a member of it which is an entity representing right holders, must distribute and pay the amounts referred to in paragraph (1) to right holders as soon as possible but in any event no later than the beginning of the period which starts 9 months from the end of the financial year in which the rights revenue was collected unless paragraph (3) applies.
(3) This paragraph applies where there are objective reasons which prevent the collective management organisation or its member referred to in paragraph (2) from distributing or paying the amounts within the time specified in that paragraph.
(4) The objective reasons referred to in paragraph (3) may relate in particular to—
(a)reporting by users;
(b)identification of rights or right holders; or
(c)matching of information on works and other subject matter with right holders.
(5) A collective management organisation must ensure that amounts due to right holders are kept separate in the accounts of the collective management organisation where—
(a)those amounts cannot be distributed within the time specified in paragraph (2) because the relevant right holders cannot be identified or located; and
(b)paragraph (3) does not apply.
(6) A collective management organisation must take all necessary measures to identify and locate right holders consistent with the requirements of paragraph (1) (see paragraph 7).
(7) The measures referred to in paragraph (6) include in particular—
(a)the collective management organisation making available, at the latest 3 months after the beginning of the period specified in paragraph (2), information on works and other subject matter (see paragraph (8)) for which a right holder has not been identified or located to—
(i)the right holders that the collective management organisation represents or entities which are its members and which represent right holders; and
(ii)the collective management organisations with which it has concluded representation agreements.
(b)the collective management organisation—
(i)verifying the records referred in in paragraph (d) of regulation 6 (collective management organisation and its members) and other readily available records; and
(ii)where right holders remain unidentified or not located, making the information referred to in sub-paragraph (a) available to the public no later than one year after the end of the 3 month period referred to in that sub-paragraph.
(8) The information referred to in paragraph (7) includes, where available—
(a)the title of the work or other subject matter;
(b)the name of the right holder;
(c)the name of the relevant publisher or producer; and
(d)any other relevant information available which could assist in identifying the right holder.
(9) Amounts due to right holders are non-distributable for the purposes of these Regulations where—
(a)they cannot be distributed before the end of the period of 3 years from the end of the financial year in which collection of the rights revenue occurred; and
(b)the collective management organisation has taken all necessary measures to identify and locate the right holders referred to in paragraph (6).
(10) The decision on the use of non-distributable amounts referred to in regulation 7(1)(d) is without prejudice to the right of a right holder to claim such amounts from the copyright management organisation in accordance with the law providing for a limitation period applicable to the bringing of proceedings.