The Claim Detail Message Suite Standard (CDM) provides (i) a format (the Claim Detail Message) for a response to a sales/usage report received by an owner/administrator of Musical Works which sets out the claim each owner/administrator is making in respect of the Musical Works identified in the sales/usage report and all the calculation details behind the individual and aggregate royalty claim being made by each owner/administrator in such detail that the original sender of the sales/usage report can be confident in accepting the associated invoice for payment, and, (ii) notwithstanding that point, provides two formats (the Reporting Record Discrepancies Message and the Reporting Overclaim Discrepancies Message) for the original sender of the sales/usage report to identify to the owner/administrator of the Musical Works any discrepancies that the original sender of the sales/usage report considers to exist in the Claim Detail Message.
The CDM Standard is provided in multiple parts:
- Part 1 defines the file naming convention and the general architecture. This architecture is the same as used for the DSR Standard;
- Part 2 defines the record types that are used to make claims or report discrepancies;
- Part 3 defines the process and file format for making and updating claims;
- Parts 4 and 5 define the process of reporting discrepancies, including overclaims.
Note that the allowed values for the CDM Standard are defined in Part 2 of the DSR Standard.
Benefits of CDM
The following benefits arise out of moving to DDEX’s Claim Detail Message standard:
- All messages in the CDM standard are very closely aligned with the messages in the DSR standard:
This is true of the terms used, the structure, the functionality, the technical framework, the object properties and the allowed value sets. It will therefore be possible to use well-established DSR functionalities such as multi-context and multi-content category reporting in response to a multi context DSR message. That is, claims for all commercial offers for the same territory that are reported in a single DSR message can be sent using a single CDM message even though it is still possible to send a number of single-context CDM messages.
- All messages in the CDM standard offer transparency, traceability and auditability:
The communication resulting from implementing the CDM standard provides a clear, fair business framework.
- CDM introduces a discrepancy reporting formats:
Although some existing claim formats offer a dispute communication mechanism, these are usually limited in functionality and, as a consequence, rarely used. The CDM standard contains flexible, yet powerful, discrepancy message formats.
- CDM is a format that is enriched with new data attributes and offers greater flexibility of reporting structures than other formats. This added flexibility includes, for example:
- The ability to include optional writer information, making it easier for the licensor and the licensee to identify the musical works for which claims and/or invoice information is provided;
- Some record blocks have been added that enable flexibility with respect to communicating data about unique business models such as UGC;
- As with the DSR standard, summary record blocks have been included which summarise the detailed records which enable quick validation and verification when a recipient parses the CDM message; and
- The ability to communicate share, revenue and royalty information with more precision than with just six decimal digits. This will enable a more precise royalty calculation which is especially helpful for reporting streaming usages.
- CDM satisfies new business models’ requirements:
Because of the time it was created the CCID format was download-centric. By contrast, the CDM standard enables exchange of data about all business models, most particularly streaming models. DDEX expects to extend CDM in future to cater for audio-visual content and/or any other new business model that should arise.
- CDM has a complete choreography:
The CDM standard provides messages that can be used to create a complete choreography of information exchange for:
- Discrepancy management;
- Overclaim reporting;
- Claim updates; and
- File retraction.
- The file structure of all CDM messages is flat and easy to implement:
CDM makes use of the same tabular structure already used for the DSR standard. CDM also inherits the same grouping of data into Blocks which makes the ingestion of the data very efficient and simple to implement.
- CDM is specified to facilitate both post-usage (or post-claim) and pre-usage (or pre-claim) claiming:
This new facility, provided it is agreed between licensee and licensor, will enable the claiming process to take place before receipt of DSR messages which reduces overall processing time.
- CDM is a worldwide industry standard:
CDM messages offer a claim/invoice process that can be used throughout the world. Some of the existing formats for claiming are only effective in selected regions.
- CDM unifies the entire usage/claiming choreography under the single governance processes of DDEX:
CDM is managed and maintained under the auspices of DDEX with its well-defined governance processes.
Challenges when implementing CDM
Clearly, expecting partners to move to the new CDM standard, with the inherent upheaval that implies, is not without its challenges. These include
- Operational impact:
Implementing the full choreography that the CDM standard offers can be a challenge especially for smaller companies. This also applies to the number of data fields the format supports. However, not all data fields are mandatory, thereby mitigating this issue. Also, some licensors may receive data with more precision that they were used to (e.g. with eight decimal places instead of six). This may require an update to their internal processes. On the other hand, not all CDM messages need to be implemented at once. It is possible to agree with business partners to carry out a full implementation over a period of time and only after the introduction of each step has been shown to operate effectively.
- IT development impact:
CDM is richer than most existing claiming formats in terms of the amount of data provided and the detail of royalty calculation. This, in turn may require more tracking and storage for licensors. If the full choreography of the CDM standard is implemented there is of course a need for additional development by licensees. However, this may be balanced by the fact that a full implementation of the standard provides more clarity for licensees in terms of tracking changes to claims and invoice data
- Additional resource requirements during the period of maintaining two formats:
Some smaller licensees and licensors may take more time to adapt their systems and processes which may require their business partners to maintain both standards for a period.
- Different processes:
While CDM does not define any business rules or processes that users of the standard are required to implement (even though there is a choreography), it remains up to the licensee and the licensor to determine how to utilise the extensive functionalities of DSR and CDM standards in the context of their business relationship.
Why migrate to CDM?
The reasons why a licensee or licensor may wish to implement some or all of the CDM standard are:
- As CDM is the only global standard for reporting claims, invoices and discrepancies, transitioning to CDM will enable licensees and licensors to reduce the number of formats, ultimately to one. This reduces the maintenance overhead of implementers, especially in a world where ownership of musical works is split into increasing numbers of shares;
- CDM is the only format that enables the communication of multi-context reporting;
- CDM is the only format that enables the communication of information about discrepancies which meets current business requirements;
- CDM is the only format of its kind that enables the provision of:
- Writer information to help identify musical works;
- Data about exchange rates and the source for such exchange rate data; and
- Longer field lengths which assists with the identification of music services and works.
Currency conversion in DSR and CDM
- The currency of the transaction (DSR);
- The currency of reporting (DSR and CDM); and
- The currency of invoicing (CDM).
Both standards enable the communication of two monetary amounts for most crucial financial data points. In addition to these data points the standards also enable the identification of the conversion rate, the source for the conversion rate and the date the conversion rate was published.
For recipients of messages containing these data points, the conversion rate should be used to multiply the source amount to arrive at the target amount. In the DSR standard this means that a transaction amount multiplied by the conversion rate will result in the amount being reported. In the CDM standard a reporting amount multiplied by the conversion rate will result in the amount being invoiced.
These conversion rates are solely for the conversion of the monetary amounts included in the relevant messages. The nature of the status of such conversion rates and the date the conversion rate was published is determined by the bilateral agreement between the licensee and the licensor.
As the application of multiple currency conversions to the same monetary amounts will likely lead to errors, DDEX recommends that a maximum of two currency amounts and one currency conversion rate are used to extrapolate monetary amounts in the use of chains of DSR and CDM messages.