Collective management is a service for music creators and music users alike

Whether it’s background music in businesses or the new blanket license deal covering videos with music on the internet for small businesses: In both cases, a lot of music by a lot of rightsholders (composers, lyricists, music publishers) is used by a large number of companies. SUISA acts as a point of contact for these companies as well as for the beneficiaries, simplifying the authorisation for the use of works and processing the due copyright royalties. By Irène Philipp Ziebold, COO

Collective management is a service for music creators and music users alike

With offers such as the newly introduced annual flat rate for online use of music in web videos, SUISA is simplifying how copyright royalties are processed, for customers and beneficiaries alike. (Photo: one photo / Shutterstock.com)

Up to now, you had to obtain a licence from SUISA for the copyright in accordance with Tariff VN for every single video with music on the internet. With this, the copyright was settled, and additional action was also required with regard to neighbouring rights (related rights). The whole licensing process was therefore complex and sometimes difficult to understand.

Joint licence for copyright and neighbouring rights

Together with Audion GmbH, SUISA has now developed a simpler, attractive licensing model for small enterprises of up to 49 staff and up to CHF 9m turnover. Against payment of an annual fee of CHF 344.00 (excl. VAT), small enterprises and individuals can put videos with music onto their own website as well as publish them on their own social media channels. Thanks to the collaboration between SUISA and Audion GmbH, the annual blanket fee is covering the acquisition of both copyright and neighbouring rights.

Not included in the package are advertising videos, pure music videos, videos with a production budget of more than CHF 15,000 and videos with a total playing time of more than 10 minutes. In addition, synchronisation rights must continue to be obtained directly from the publishers or the authors.

Audion GmbH – a rights agency

Audion GmbH is an independent rights agency founded in 2015 by IFPI Switzerland (the industry umbrella association of music labels in Switzerland), which brokers licenses for marginal uses of music recordings between users and music labels.

It is characteristic of Audion’s field of activity that it restricts itself selectively to niches where smaller and non-commercial users in particular face the administrative challenge of obtaining the necessary licences from a large number of music labels. Audion thus meets a user requirement and offers the choice of acquiring the necessary rights either directly from the rightsholders or as a rights bundle from Audion.

The landscape of music labels has changed dramatically with the development of digital distribution and marketing opportunities. Booking agencies, for example, are increasingly taking over label functions. It is therefore partly unclear where the rights need to be obtained from. Audion can help here by acquiring the rights for the user from the various labels.

Joint collection: Background music and videos on websites

As of 1 January 2019, SUISA will once again be responsible for all customers for the Common Tariff 3a (CT 3a, background music). Prior to this, Billag AG had been issuing the invoice. These customers are companies that play background music on their premises, broadcast TV programmes, use music on hold and/or publish videos with music on their websites. Customers can therefore be the same when it comes to using the music in background entertainment and in videos on websites. In both cases, a lot of music by a lot of rightsholders music publishers is used by a large customer group.

This inevitably leads to the requirement that we simplify the licensing of both uses and, in particular, to offer them together. For this purpose, the existing web portal for CT 3a licences is to be adapted in such a way that customers can register both uses at the same time and thus easily license their respective uses.

Outlook: Large enterprises

The newly introduced annual flat rate for the online use of music in web videos applies to small businesses. An offer for large companies – i.e. companies that employ more than 49 people or generate more than CHF 9m in annual sales – is currently being prepared with the aim of offering these companies a simple and adequate solution. As soon as all necessary measures and decisions have been taken on this issue, we will inform you.

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