STIM was founded in 1923, a few years before Sveriges Radio began regular broadcasting.

Once an organization is set up, representing a majority of copyright holders within a type of works (as STIM is for composers of recorded music), Swedish copyright law (1960:729, chapter 3a, sections §42a–f) grants users of such works (e.g. broadcasters that use recorded music) the right to use all such works under a single contract with that organization.

The collected fees are set by STIM, depending on the size of the audience but independent of the individual work or composer.

An individual composer who disagrees, must actively opt out (§42b–e, 2nd paragraph) of this collective arrangement.

Everything is for free and is, according to STIM, a way of creating a space for songwriters where one can make new connections, write music and develop.