Changes to the distribution of collections for internet use

New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Text by Irène Philipp Ziebold

Changes to the distribution of collections for internet use

SUISA changes its distribution keys for the income from streaming and downloads. (Photo: Rawpixel / Shutterstock.com)

For years, the distribution split between authors and publishers in terms of the allocation of the collections from performing and broadcasting rights on the one hand, and reproduction rights on the other hand has been agreed separately. SUISA has accordingly provided for different distribution keys in its distribution rules for the two rights categories.

For online uses, there is no separate distribution key which could be directly agreed on by the contracting parties. As a consequence, the collections from online uses are on the one hand distributed in analogy with the performing rights distribution key and on the other hand in accordance with the reproduction rights distribution key (cf. item 2.1.2 of the distribution rules).

Up to now, SUISA has been distributing 100% of collections from streaming in accordance with the distribution key for performing rights and 100% of collections for downloads in accordance with the distribution key for reproduction rights. This meant, however, that SUISA held a special position internationally and, at the same time, this practice no longer met the latest developments in the online sector.

New distribution keys for downloads and streaming

Apart from taking a look at the usual rules applicable abroad, technical procedures were also evaluated with a view to the analysis that led to the determination of the new distribution ratios of the distribution keys for download and streaming. Technically speaking, the making available of a work is based on the creation of a copy of the work on the server of the provider, the transmission of the copy to the consumer as well as the performance resp. potential storage on the terminal device of the consumer.

During discussions among the various committees (Distribution and Works Committee andBoard) with respect to the proposed changes, various views regarding the performing and reproduction rights shares existed with respect to the weighting of the distribution keys.

In particular the question arose how the aspect of transitoriness resp. repeated playback of a work should be considered for streaming, and which percentage should reflect this for the weighting of the performing share.

In the end, the following split was agreed:

  • Download: 25% of collections shall be allocated to the performing rights distribution key and 75% to the reproduction rights distribution key.
  • Streams: 75% of collections shall be allocated to the performing rights distribution key and 25% to the reproduction rights distribution key.

Distribution of the collections from video on demand (VOD)

At the same time, the provisions regarding the distribution of collections from video on demand were adjusted. The respective revenues shall now be distributed in analogy to download and streaming “per file” (per work). Prior to that, the revenues from video on demand had been supplemented to the remuneration for broadcasts of pay TV. The change now also permits in this sector that collections are distributed in a more exact and pinpointed manner.

For further information see the distribution rules of SUISA.

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