Tag Archives: Association

“Hands-on” – the new Common Tariff K

The new Joint Tariff K applies to events which have taken place since 01 January 2017. An overview of the changes to the concert tariff in force and some answers to frequently asked questions which have arisen based on the experience gathered with the new provisions in the first few months. Text by Chantal Bolzern

“Hands-on” – the new Common Tariff K

Since January 2017, a new concert tariff has been in force in Switzerland and in Liechtenstein. The picture shows SUISA member Seven (in the middle) on stage at the Tonart Festival in Altdorf, where he performed with a trio in March 2017. More information on Seven is available in the brochure “Where the music is new”, 2017 edition. (Photo: Tabea Hüberli)

What’s new?

There is now one instead of two tariffs. That way, all information that is relevant to customers, and the respective licensing terms and conditions are now combined into one single document. This makes life much easier, especially for event organisers who organise, apart from concerts, also other events such as theatre performances, cabarets etc.

The types of events are defined and explained in more detail and clarity. Apart from concerts, there are now specific event categories for concert-like performances, shows, ballet and theatre. These are intended to help customers to find their type of event and the licensing rates required for calculating the budget more quickly.

The licence fee percentages have been newly defined and reduced for many events depending on the type of event (concert, concert-like performance, show, ballet, theatre).

Apart from concerts, Common Tariff K (CT K) also governs licensing for music appearing in comedy, shows (such as “Art on Ice” or “Masters of Dirt”), sport tournaments with choreographies such as show dances or theatre performances with musical background or bedding. The calculation of the licence fees for comedy, tattoo festivals etc. in particular will become easier since the event is now relevant as a whole for the amount of the licence rate; it is no longer necessary to license individual works at different rates. This also helps making the budgeting process for event organisers easier and reduces the efforts of SUISA.

Small concerts are invoiced based on the works that were actually used (“pro rata temporis” rule) and no longer as a lump-sum. At the same time, licensing based on the costs of the music usage was re-introduced. Thus, the copyright remuneration will be calculated on the basis of the income generated or the costs incurred. The latter specifically applies to concerts which are free of charge and charity events.

Customers may also deduct the costs for external ticket sales up to a lump-sum of 10%, even for small concerts, if they submit the relevant supporting documents. SUISA thus takes into consideration that event organisers nowadays do use external ticket agencies, even for small or non-commercial events.

Performing artists of any recordings that are played by event organisers prior or after the event, or between the live performances, now also grant the event organiser reproduction rights. This entails a slight increase of the licensing rate for neighbouring rights from 0.2% to 0.25%.

Following the afore-mentioned lowering of the licensing fees, there was a review of the discount system. The volume discount is now only granted for small concerts and the contractual customer must be a member of a recognised association of event organisers in order to qualify for a discount.

What has not changed?

Services to concert goers by third parties that are included in the entrance fee, such as the use of public transport, a voucher for an inclusive drink etc. as well as ticket and value-added tax may still be deducted from the income if the relevant supporting documents are submitted.

The minimum licence fee has remained the same and still amounts to CHF 40 per event. Our contractual customers continue to receive the association discount as well as a 2% cash discount if they pay their invoice within 10 days.

Event organisers must submit set lists or lists of the performed works to SUISA. Firstly, SUISA requires such lists so that it can calculate a correct licensing amount. If SUISA does not hold the rights in all the titles, because, for example, copyright protection has already lapsed, the licensing amount is reduced on a pro rata temporis basis. The licensing rate also gets reduced on a pro rata temporis base if music is not used throughout the entire performance, as is the case quite regularly for theatre performances or comedy. Secondly, SUISA requires the lists in order to distribute the income collected to those composers and publishers whose music has been performed during the event.

Answers to frequently asked questions

Why does the new tariff create more administrative effort?
Introducing a new tariff is always an opportunity to check with long-term customers whether the modalities for the notifications of the events are still suitable for both parties. Furthermore, it is possible that with the partial changes to the licensing rates or conditions under the tariff, SUISA requires different information from customers. This mainly affects such concerts for which event organisers had received a licence based on the Common Tariff Kb between 2009 and 2016 (small concerts). Unfortunately, this is linked to an increased administrative effort for customers as well as for SUISA during a transitional period. As soon as we have clarified with individual customers in each case how we can licence and distribute correctly, this will get easier again.

What is a small concert and why is there no longer a specific tariff for it?
Between 2009 and 2016, a proper tariff applied for small concerts, Common Tariff Kb. Since the beginning of this year, small concerts are governed by the same tariff again as major concerts, theatre performances or comedy events.

In order to continue to fall under the “small concert” category, the capacity of the event venue must be no bigger than 999 people, and the income generated from ticket sales may not exceed CHF 15,000 per event. In this segment, the basic licensing rates were lowered from 10% until 2008 via 9.5% in 2016 to 9% for this year. Until 2008 the same rules have applied, and now, from 2017 onwards, apply again for the declaration of the concerts and licensing such as major concerts. This means that customers deliver the same information to us and don’t have to ask themselves each time which category the event falls under and how they should submit their documentation to SUISA.

This is especially a simplification of matters for medium-sized clubs whose capacity is just less than 1,000 people and which have generated more than CHF 15,000 in ticket sales in one instance and less in another. It’s also facilitating matters immensely for the venues that organise cabarets and concerts. Until now, you had to adhere to CT Ka for comedy, dance, acrobatics etc., and CT Kb for concerts.

Why are sponsoring monies or subsidies suddenly taken into consideration as income in the case of small concerts?
The basic idea of copyright is that authors participate in the collections which have been generated from the exploitation of their works. In the event business, the main income source are usually the ticket sales. If an event organiser’s plans for their budget only caters for the music costs such as payment for musicians to be covered by way of third party means, such third party means (sponsoring, subsidies etc.) must be taken into consideration as an income. This rule has already been established in concert tariffs as early as 20 years ago. It applies for all major concerts, comedy and theatre performances and used to apply to small concerts up until 2008. Due to the combination of the two tariffs CT Ka and CT Kb, it now applies to small concerts again since the beginning of this year.

Many non-commercial clubs and stages create annual budgets, where they make a hybrid calculation. They receive subsidies from their municipalities or cantons, but finance themselves from ticket income and turnover generated by the gastronomy on top of that. As long as they assume in their annual budgets that their ticket sales cover the artists’ performance salaries, the new tariff entails no changes for them. For long-term customers it therefore suffices to glance over their old invoices (up until 2008) to see whether a change has taken place. During the tariff negotiations, we undertook thorough calculations and research together with the associations whose results are now confirmed when implementing the tariff: for the vast majority of the event organisers of the non-commercial sector and especially clubs and stages, nothing will change.

The changes do, however, affect event organisers of corporate events or events that are free of charge, but also categories which can only pay artists’ salaries and other costs related to music by means of subsidies or sponsors’ subsidies.

What are non-musical performances at major concerts and what do they entail?
Both the old Common Tariff Ka (item 25 CT Ka) as well as the new Common Tariff K (item 14.1 CT K) include the term “non-musical performances”. We found out in everyday application of the tariff, that it wasn’t always clear to event organisers what is meant by this term. In order to answer these questions in the tariff, we have clarified this term in the new tariff text: it includes sophisticated choreographies, elaborate costumes and costume changes, video installations or light shows which go beyond the ‘must-have’. By doing so, we want to – as is required by copyright law – take performance-related activities into consideration which are not music but are still protected by copyright.

In practice, this means that the entire concept is taken into consideration for concerts of artists such as Beyoncé or bands like Archive, and the event organiser has to pay a lower licensing rate for the copyright in musical works. It also means that even in big stadiums, concerts sometimes will take place without elaborate artistic production and the event organiser will pay the usual basic licensing rate. That does not only apply to big classical concerts but can also be the case for concerts of certain singer songwriters, like Bruce Springsteen or Neil Diamond.

Why were the new provisions of the concert tariff made known so shortly before its introduction?
In June 2016, SUISA had announced that a new tariff had been negotiated with the relevant user associations such as SMPA, petzi, KTV, ATP etc. and that an agreement had been made. The result of the negotiations was submitted to the Federal Arbitration Commission for copyright and neighbouring rights (ESchK) for approval. The EschK approved the new Common Tariff K on 20 December 2016 and the tariff could thus come into force on 01 January 2017. The relevant tariff documents could not be officially published prior the approval had been given by the ESchK. SUISA had no influence on the date of the approval.

Further information:
«Concerts, comedy shows, shows, ballets, etc.» on www.suisa.ch

Related articles
New Concert Tariff 2017New Concert Tariff 2017 After some intensive negotiations, SUISA and the association of concert organisers have agreed on a new concert tariff. The new Common Tariff K shall replace the tariffs CT Ka and CT Kb still valid until the end of 2016, and enter into force on 01 January 2017. Read more
If bands and event promoters organise a concert togetherIf bands and event promoters organise a concert together The event organiser of a concert has to pay the copyright licence fee. How does it affect the legal situation, if musicians and organisers jointly run the performance by way of a cooperation? The concert organiser is responsible for paying the copyright licence fee in the case of artist engagement agreements. It occurs that events are organised by the bands themselves or in cooperation with third parties. In such cases, the type of cooperation between the band and the organiser determines who has to pay the copyright licence fee. Read more
Concerts and Festivals in SwitzerlandConcerts and Festivals in Switzerland In a commentary for IQ magazine, the publication of the International Live Music Conference (ILMC), Chantal Bolzern, Head of the Performing Rights Department at SUISA, outlines the importance of co-operation between collective management organisations and promoters. Read more
Collapse article

Leave a Reply

All comments will be moderated. This may take some time and we reserve the right not to publish comments that contradict the conditions of use.

Your email address will not be published.

The new Joint Tariff K applies to events which have taken place since 01 January 2017. An overview of the changes to the concert tariff in force and some answers to frequently asked questions which have arisen based on the experience gathered with the new provisions in the first few months. Text by Chantal Bolzern

“Hands-on” – the new Common Tariff K

Since January 2017, a new concert tariff has been in force in Switzerland and in Liechtenstein. The picture shows SUISA member Seven (in the middle) on stage at the Tonart Festival in Altdorf, where he performed with a trio in March 2017. More information on Seven is available in the brochure “Where the music is new”, 2017 edition. (Photo: Tabea Hüberli)

What’s new?

There is now one instead of two tariffs. That way, all information that is relevant to customers,...read more

Swiss music lives thanks to SRG’s special interest stations

The Transport and Telecommunications Committee of the National Council has moved to close down six SRG special interest stations and has filed a motion in this sense. For Swiss music creators the consequences would be devastating. These stations are precisely those that play and promote local Swiss music. Sign the online petition “Hands off special interest stations” now! Text by Giorgio Tebaldi and Manu Leuenberger

Swiss music lives thanks to SRG's special interest stations

From the streets of Berne to the stage of the Kulturfabrik in Lyss: The band Troubas Kater performing in dialect appears during the 14th edition of “8×15.” in November 2015. At each of these concert evenings of SRF Virus, 8 Swiss bands can present their talent, and be discovered by the audience in a 15-minute slot. (Photo: SRF)

At the Swiss Music Awards in February 2017, the Zurich duo Dabu Fantastic and their co-composer Gianluca Giger were awarded prizes for the best hit and best composition. The Zurich band is currently one of Switzerland’s most successful pop acts. According to singer Dabu Bucher in a recent interview with SRG (Swiss Broadcasting Company), the band owes its popularity in great part to the SRG radio stations. SRF Virus first played its songs over 10 years’ ago, actively encouraging the band’s career.

The SRG youth station is important for other Swiss artists too. It serves as a springboard for young and (still) unknown musicians. The station provides an important platform for newcomers, through its “8×15.” concert broadcasts for example. 50% of the music broadcast by SRF Virus is Swiss music. Hardly any other station offers its audience so large a proportion of local music.

But if the Transport and Telecommunications Committee of the National Council has its way, that will soon be over. In Motion 17.3010 for a “Reduction in special interest radio stations”, the Committee asks for six SRG radio broadcasting stations to be closed: SRF Virus, SRF Musikwelle, Radio Swiss Classic, Radio Swiss Jazz, Radio Swiss Pop and the French-speaking station Option Musique. According to the motion, these stations “do not perform any true public service mission”.

Public service also means promoting Swiss cultural creation

In its “Report on the revision of the definition and provision of the SRG public service taking into account private digital media”, the Federal Council reviewed the meaning of public service in radio and television broadcasting. In its report, the Federal Council pointed out that the SRG provides “numerous unprofitable services in the interest of society”. These services include promoting Swiss films, Swiss music and Swiss literature. This would hardly be possible without reception fee revenues.

Special interest stations extensively promote Swiss music – pop and rock as well as jazz on SRF Virus, and classical and especially folk music on SRF Musikwelle. As SUISA claims on its website, altogether 22% of the music played on the six special interest stations is Swiss, as against 20% overall for all the SRG stations. By comparison, Swiss private broadcasters play less than 10% of Swiss music on average.

Special interest stations discover and promote Swiss music

Special interest stations are instrumental in discovering and promoting Swiss music. Their reporting about the current Swiss music scene is irreplaceable. It is difficult to imagine private broadcasters throwing themselves into the breach left by closing the special interest stations. Private broadcasters are guided by profit-making principles and are primarily financed by advertising. Therefore, they have to gear most of their programming to an audience which wants to hear hits. Swiss musicians hear this all the time in statements like:  “we don’t make the hits, we just play them”, says singer-songwriter Christoph Trummer, President of the association Musikschaffende Schweiz (Swiss Musicians), in an interview with Musikmarkt, the music magazine.

Closing down the special interest stations would also affect Swiss music creators financially. Between them, the six stations played about 550,000 minutes of music by Swiss authors in 2015. According to SUISA’s 2015 annual report, the licence fees for SRG radio stations average CHF 2.70 per minute of playing time. Thus, broadcasting royalties for the works of Swiss composers, lyricists and publishers on the six SRG special interest stations totalled about CHF 1.5 million. This money does not only go to well-established stars, it also goes to unknown Swiss artists.

Favorable framework conditions for Swiss culture

The motion of the Transport and Telecommunications Committee if accepted would have serious implications for the Swiss music scene. Not only would Switzerland lose these important platforms for showcasing the broad diversity of Swiss musical creation, closing down the special interest stations would have significant financial consequences for artists.

Moreover, one substantive question remains to be answered: is it truly Parliament’s role to decide on broadcasting content? Should the legislative not confine itself to setting the framework conditions for radio and television broadcasters? The proposed motion seeks to decide the fate of individual SRG stations. This goes far beyond setting framework conditions. Swiss music creators have more than deserved favorable framework conditions in their own country.

SRG has been operating «mx3 – The Swiss Music Portal» since 2006. Musicians can use the portal www.mx3.ch to present their music to the public; the SRG stations use the portal for their programming. SRF 3, SRF Virus, Couleur 3, Rete Tre and Radio Rumantsch include songs that musicians have uploaded onto mx3 in their broadcast programming. In 2015, about 22,900 bands showcased their music on the mx3 portal.

Petition: Hands off special interest radios!

The purpose of this petition is to ask the competent parliamentary bodies not to close SRG’s special interest stations.

Sign the online petition “Hands off special interest stations” at www.petitionen24.com

Sie können die Petition auch auf dem Unterschriftenbogen unterzeichnen (PDF).

The petition is sponsored by a broad interest group representing the Swiss music scene. Among others, the following stakeholders support the petition: Schweizer Musikrat, Musikschaffende Schweiz, Schweizer Musiksyndikat, Schweizer Tonkünstlerverein, Schweizerischer Musikerverband SMV, Helvetia Rockt, IndieSuisse, IFPI, Schweizer Interpretengenossenschaft SIG, Orchester.ch, Eidgenössischer Jodlerverband EJV, Schweizerischer Blasmusikverband SBV, Schweizerische Chorvereinigung SCV, Verband Schweizer Volksmusik VSV.

Every single signature counts and is important to ensure that radio stations like Radio Swiss Pop, Radio Swiss Classic, Radio Swiss Jazz, Radio SRF Virus, Radio SRF Musikwelle and Radio RTS Option Musique can continue to broadcast and help audiences discover Swiss music. Further information is available on the petition initiators’ website: www.prospartenradio.ch

Reated articles
New distribution key for performing and broadcasting rightsNew distribution key for performing and broadcasting rights The SUISA distribution key for performing and broadcasting rights will be changed from 01 January 2017 onwards. For works with an original publisher, the share of the author shall be 66.67% and that of the publisher 33.33%. The distribution rules are thus adapted to the CISAC key which is applied at international level. Read more
Swiss Copyright Review: SUISA in charge of a working groupSwiss Copyright Review: SUISA in charge of a working group Given the diverging reactions to the preliminary draft for the copyright law review, Federal Councillor Simonetta Sommaruga consulted the AGUR12 again in the summer of 2016 – the latter is a working group consisting of representatives from the affected sectors. The working group had the goal to look for conjoint solutions. Read more
SUISA settlement dates 2017 – an overviewSUISA settlement dates 2017 – an overview SUISA members whose works are performed, broadcast, reproduced or used online a lot can look forward to receiving remuneration at least four times per year for their work on lyrics or compositions or their publishing activities. In 2017, SUISA will continue with its quarterly distributions that it had successfully introduced previously. Minor modifications serve the purpose of distributing the income swiftly and cost-effectively. Read more

 

Collapse article

Leave a Reply

All comments will be moderated. This may take some time and we reserve the right not to publish comments that contradict the conditions of use.

Your email address will not be published.

The Transport and Telecommunications Committee of the National Council has moved to close down six SRG special interest stations and has filed a motion in this sense. For Swiss music creators the consequences would be devastating. These stations are precisely those that play and promote local Swiss music. Sign the online petition “Hands off special interest stations” now! Text by Giorgio Tebaldi and Manu Leuenberger

Swiss music lives thanks to SRG's special interest stations

From the streets of Berne to the stage of the Kulturfabrik in Lyss: The band Troubas Kater performing in dialect appears during the 14th edition of “8×15.” in November 2015. At each of these concert evenings of SRF Virus, 8 Swiss bands can present their talent, and be discovered by the audience in a 15-minute slot. (Photo: SRF)

At the Swiss Music Awards in February 2017, the Zurich...read more

Ein Jahr IndieSuisse: Verbandspräsident Andreas Ryser zieht Bilanz

Sorry, this article is only available in German and French.

hide comments

Leave a Reply

All comments will be moderated. This may take some time and we reserve the right not to publish comments that contradict the conditions of use.

Your email address will not be published.

Sorry, this article is only available in German and French.

...show comments