Tag Archives: Copyright remuneration

The Royalty Report is online

News about “My account”: Thanks to user-friendly graphics, the Royalty Report provides a quick overview of how the copyright royalties developed over the last five years and allows individual analyses per mouse click. Text by Claudia Kempf

The Royalty Report is online

The user interface of the SUISA Royalty Report. The data analysis tool is available to all members via the portal under “My account”. (Photo: SUISA)

The SUISA member portal is very popular and is used a lot. More than two thirds of all members have access to “My account” and use the advantages of the portal. Since May 2021, a significant function has been added to the portal: the Royalty Report. With this newly introduced analysis tool, you can create statistical evaluations of your own SUISA income and turn them into graphics.

After all, there is a lot of information in the SUISA settlements. You can access the settlements in “My account” as navigable PDFs. An accumulated evaluation of this data required manual or, in the case of publishers receiving electronic settlements, technical efforts.

This additional effort is now a thing of the past: With the Royalty Report, all members can, simply by clicking on the right button, get answers to questions such as: Which of my works is doing really well in a specific country? Which of my works generated the highest turnover last year? In which areas was a specific work most used: Radio, online or in discotheques?

The Royalty Report is interactive

The basic setting provides an overview of all work usages of the last five years and the current financial year. It shows at first glance: How many works did it take to reach the turnover I have generated? When were the works used, and where? What are the top works and what is the turnover they generated in that time? Did I earn more as a lyricist or a composer, as an original or sub-publisher? Are my works used more on Spotify or Apple Music?

The Royalty Report is interactive. With just one click on a work or a country, for example, the entire appearance of the display is adjusted to the selected work or country. The link sign (chain symbol) in the work list leads you directly to the works database and provides details how the relevant work has been registered at SUISA.

Thanks to various filter options, the income can be shown by different criteria such as settlement date, usage period, country, distribution category, work or online music providers. In order to gain a deeper insight, the selection criteria can be combined in any way. The program also allows for an export of the filtered data to Excel. The settlements and usage periods can be specified further with a click on the arrows in front of the respective selection criteria so that an evaluation is also possible for an individual settlement.

If you have questions on how to use the Royalty Report, the following functions are available:

  • Info buttons: They appear if you hover over a field with your mouse at the top right in the user interface. They contain information about the data which are shown in this area.
  • A user manual summarises the most important functions and contains tips and tricks on the use of the Royalty Report and explanations on the various displays and distribution categories.
  • A video shows the most important user tips:

The Royalty Report is available in English. The manual contains translations of all terms and info buttons which are used in the report.

The Royalty Report is based on the data analysis tool by Microsoft Office. The software developer recommends to use the application on a computer with a browser of the latest generation. Mobile end devices such as smartphones and tablets are, however, not suitable for processing large data volumes.

The member portal will be expanded in the medium term to become a central point of contact for our members so that core tasks of SUISA can be offered more quickly and cost-efficiently. The Royalty Report is an important step into the digital future. A next step is the renewal of the login process so that members can manage their online accounts completely independently.

The access to “My account” and the Royalty Report is open to all SUISA members. Order your login for a personal online user account now: www.suisa.ch/my-account

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News about “My account”: Thanks to user-friendly graphics, the Royalty Report provides a quick overview of how the copyright royalties developed over the last five years and allows individual analyses per mouse click. Text by Claudia Kempf

The Royalty Report is online

The user interface of the SUISA Royalty Report. The data analysis tool is available to all members via the portal under “My account”. (Photo: SUISA)

The SUISA member portal is very popular and is used a lot. More than two thirds of all members have access to “My account” and use the advantages of the portal. Since May 2021, a significant function has been added to the portal: the Royalty Report. With this newly introduced analysis tool, you can create statistical evaluations of your own SUISA income and turn them into graphics.

After all, there is a...read more

Are royalties subject to social security (AHV/AVS) contributions?

Do royalties qualify as earnings from self-employment? Swiss AHV/AVS compensation offices follow different practices. Text by Michelle Moser

Are royalties subject to social security (AHV/AVS) contributions?

Saving for retirement: Swiss compensation offices do not agree on whether or not royalties are subject to social security contributions. (Photo: Nattapol Sritongcom / Shutterstock.com)

Musicians often earn their living from several different sources: fees from concerts, a teacher’s salary from the music school, fees for commissioned works, or remuneration collected by SUISA on their behalf.

The different cantonal compensation offices have no uniform position on whether the remuneration distributed by SUISA qualifies as income from gainful self-employment – which would be subject to AHV/AVS contributions.

AHV/AVS – mandatory insurance for all

All Swiss residents and persons gainfully employed in Switzerland are subject to mandatory retirement, disability, and survivors’ insurance. And all those insured (except children) are accordingly required to pay social security (AHV/AVS) contributions. The contributions are normally assessed on the income earned from gainful employment.

For persons who are gainfully self-employed, contributions are assessed on the income earned from one’s own entrepreneurial, commercial, or business activities.

In principle, the following guidelines apply: AHV/AVS contributions must be paid on the earnings declared in one’s tax return. This is not the case for income from capital investments or real property, for example, which is taxable income but is not subject to AHV/AVS contributions.

Royalties: income from employment or from capital investment?

For SVA Zurich, the social security institution, royalties basically qualify as income from self-employment and should be declared accordingly. As a result, authors must register as self-employeds.

SVA Zurich does, however, make a distinction between authors who actively exploit their works and authors who do not. Authors who actively exploit their works after creating them (e.g. as a member of a band playing its own compositions) qualify as gainfully employed. This includes collective administration by SUISA. The earnings from such gainful employment are subject to AHV/AVS contributions.

The subsequent royalties received by authors who do not actively exploit their works after creating them, on the other hand, qualify as income from capital investments, and are not subject to AHV/AVS contributions.

In summary, for SVA Zurich what is decisive is whether an author participates in the performance of the works or merely “reaps” the proceeds from his earlier compositions.

Different practice from one canton to the other

Whether AHV/AVS contributions are payable on remuneration distributed by the collecting societies is decided differently by the compensation offices depending on who is asking, and the amount involved.

Unlike SVA Zurich, the compensation office of the canton of Vaud, for example, holds that remuneration for the creation of works is by definition subject to AHV/AVS contributions, while the remuneration from subsequent uses distributed by the collecting societies qualifies as capital gains and is not subject to social security contributions. It follows, therefore, that none of the remuneration distributed by the collecting societies is subject to AHV/AVS contributions.

In the final analysis, the decision on these social insurance issues does not lie with the collecting societies but with the compensation offices. For this reason, the Swiss collecting societies advise their members to contact the competent compensation office to establish what exactly their AHV/AVS contribution obligations are.

The different practices of cantonal compensation offices with regard to social security contributory obligations on royalties offers no legal certainty and is unsatisfactory. The Swiss collecting societies will follow this issue closely and keep their members informed of any changes.

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  1. Ich bin erstaunt bezüglich unterschiedlicher Handhabung von Ausgleichskassen von Urheberrechten/-entschädigungen. Jede AHV-Ausgleichskasse hat die gesetzlichen Grundlagen anzuwenden und wenn etwas unklar ist, ist dies durch das BSV klarzustellen. Der unterschiedlichen Handhabung wären u.a. auch Autoren (mit oder ohne Vorlesung) ausgesetzt. Dies meine Ansicht als Eidg. Dipl. Sozialversicherungsexperte.

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Do royalties qualify as earnings from self-employment? Swiss AHV/AVS compensation offices follow different practices. Text by Michelle Moser

Are royalties subject to social security (AHV/AVS) contributions?

Saving for retirement: Swiss compensation offices do not agree on whether or not royalties are subject to social security contributions. (Photo: Nattapol Sritongcom / Shutterstock.com)

Musicians often earn their living from several different sources: fees from concerts, a teacher’s salary from the music school, fees for commissioned works, or remuneration collected by SUISA on their behalf.

The different cantonal compensation offices have no uniform position on whether the remuneration distributed by SUISA qualifies as income from gainful self-employment – which would be subject to AHV/AVS contributions.

AHV/AVS – mandatory insurance for all

All Swiss residents and persons gainfully employed in Switzerland are subject to mandatory retirement, disability, and survivors’ insurance. And all those insured (except children) are accordingly...read more

How private copying produces revenue – distribution of blank media levies

Nowadays, the lion’s share of private copying is done from the internet rather than from CDs as in the heyday of the record market. SUISA’s Distribution Rules have now been amended to reflect present circumstances. The adjustments are designed to ensure a more equitable distribution of the remuneration from private copying. Text by Anke Link

How private copying produces revenue – distribution of blank media levies

Consumers increasingly source their music from the internet. The move to digital forms of music consumption has caused a shift in the sources of music tapped for private copying. As a result, changes also had to be made in the distribution of blank media revenues. (Photo: Carlos Castilla / Shutterstock.com)

The Federal Copyright Act allows Swiss consumers to make copies for their own use and that of a close circle of friends and relatives, regardless which source is used to copy the music from. Since 1992, Swiss copyright legislation has provided that this form of private copying is subject to remuneration. This remuneration is not levied, however, from those who actually make the copies – i.e. the individual consumer – but from the producers and importers of the blank media used to store such copies.

At the outset, blank audiotapes were the chosen media: you would put one into a recorder and then wait by the radio until your favourite song was played, or you would use them to record music played back from a CD so you could listen to it on the Walkman. VHS tapes, used to record television broadcasts, were also among the first blank media carriers to be subject to the levy. Later came blank CDs and DVDs on which you could record music and films.

Today, the blank media levy applies mostly to digital storage media built into devices like smartphones and tablets. These offer variegated possibilities for storing music, films, and other works. The remuneration is levied as a flat fee per blank medium, regardless of the scope of the copying and the works actually copied. SUISA is responsible for collecting the levy from the producers and importers of the devices and distributing the proceeds to those who provide the content for the copying: music authors and artists, filmmakers, writers, etc.

How are the blank media revenues distributed?

When distributing the proceeds from the blank media levy, a first breakdown has to be made between the five Swiss copyright collecting societies: ProLitteris, SSA, SUISA, Suissimage, and Swissperform. SUISA acts as the central collecting agency for them all. The basis for this breakdown is the share of the copied repertoire represented by each Society.These shares are determined through representative surveys. But the surveys do not provide any information about the works themselves; they only establish whether the works concerned are musical works, films, videos, works of visual art, or texts.

The share that SUISA receives for the private copying of musical works is then distributed to SUISA’s members by allocation to its various distribution categories. Direct distribution is not possible because no one can say in practice which works were copied, stored or downloaded at which frequency by consumers from the internet. Apart from the undesirable intervention in the consumer’s private sphere, the cost of collecting such data would be exorbitant. That is why SUISA allocates the proceeds from the blank media levy to various distribution categories for which detailed programming information is available.

In the past, these allocations relied on the reasoning about the sourcing of private copying. It was assumed, for example, that a portion of the private copying would be sourced from CDs: accordingly, a share of the blank media levy revenues was allocated to the CD production distribution categories. Another share was allocated to the distribution categories for radio and TV broadcasting revenues following the assumption that another portion of private copying would be sourced from such broadcasts.

What sources are used for private copying today?

Today, however, the lion’s share of private copying is sourced from the internet. So basically, one could apply the proceeds of the blank media levy entirely to the distribution categories for online uses? Unfortunately, it is not quite that simple.

On the one hand, SUISA does not manage all the rights for all the music used on the internet. On the internet, SUISA is in competition with foreign rights administration societies and cannot, therefore, offer the entire world repertoire of music online. Only a portion of the works used on the internet produces revenues that flow into the distribution categories for online uses. These are not the only works used for private copying; private copying also taps all the other works in the world repertoire. If the revenues from the blank media levy were all allocated to the online uses distribution categories, a major portion of the privately copied works would be disregarded.

What is more, blank media fees cannot be levied for works copied from a legal source against payment (prohibition of double payment under Article 19(3bis) FAC). This applies to music from download shops like iTunes or from streaming platforms like Spotify. SUISA distributes the revenues collected from these platforms to the corresponding online distribution categories based on the programme reports received from the platforms. Legal prescriptions provide that no blank media levies may be charged for these downloads or for offline storing of streaming services. Therefore, the works involved cannot rightfully be allocated any amounts from the blank media revenues.

Downloaded songs are often re-copied. What about them? – True. Contrary to the original downloading or offline storing of streaming services, these subsequent copies are subject to the blank media levy. But in practice nobody knows which works are involved or how often they are copied. So an indirect method for distributing the revenues from the flat rate blank media levy has to be found for these, and for all the other privately copied works.

How do the Distribution Rules account for the new circumstances?

Since the allocation of revenues based on the private copying sources would lead to the wrong results under present circumstances, we engaged Gfs Zurich, a market research company, to assist us in finding alternative methods for ensuring the most equitable distribution of blank media revenues. Gfs Zurich conducted a representative survey for this purpose. In the survey, consumers were asked where they had “encountered” the last work they had copied for private use – regardless of the source from which they had made the copy: at a concert, the cinema, on the radio, on television, a new CD/LP or a DVD? SUISA has sufficient information about the works used in those distribution channels to be able to use such data as the distribution basis for the blank media revenues.

Henceforth, therefore, the revenues from the blank media levies will be allocated to the distribution categories used to distribute the revenues from these other distribution channels. This is consistent with the principle set forth in point 5.3.2 of the Distribution Rules (DR), namely: “Remuneration where no programmes are provided shall be allocated to such distribution categories in which the same or at least a similar kind of music prevails”. In certain cases, no alternative distribution channel could be determined. The corresponding share of the blank media revenues is therefore assigned to the distribution categories for radio broadcasts; since these are the categories with the broadest repertoire, this system benefits the greatest number of rightholders.

Point 5.5.5 has thus been amended to read:

Point 5.5.5 CT 4 (blank media), 4i (built-in digital storage media) – Blank media levies
Distribution categories
Audio 33.0% 1A
28.0% 2A
(for domestic licensing) 11.5% 21A
(for central licensing) 11.5% 21Z
16.0% 4
Video 16.0% 1C
12.0% 22A
14.0% 2C
8.0% 9A
17.0% 1A
17.0% 2A
The remaining 16% shall be allocated in supplement to the TV remuneration for foreign broadcasters under Tariff CT 1.
In the case of mobile phones and tablets, CT 4i revenues shall be allocated 90% to audio and 10% to video. In respect of the other blank media regulated by CT 4 and CT 4i, the relevant distribution key shall be determined by the type of blank media.

The Intellectual Property Institute approved this amendment on 6 April 2021; we expect to receive approval from the Liechtenstein regulatory authorities in the next few weeks. The amendment is effective three months after it is approved and will therefore be implemented for the next distribution of blank media revenues in September 2021.

Who receives more and who less money from private copying?

The re-allocation of the blank media revenues will have a positive effect overall. At least three times more authors and publishers will receive more money than before. For most members, however, the increase will be only a small amount. Those who will see a decrease in their blank media revenues are likely to be affected more strongly.

Nevertheless, we are convinced that the revision was both necessary and equitable. The decreases are mostly due to the cancellation of allocations to the online distribution categories, and to reduced allocations to the 21Z distribution categories for central licensing of CD productions. We have explained above why allocations to the online distribution classes are no longer justified today.

The same applies to the 33.0% allocation to distribution category 21Z for central licensing which is no longer justified since: the decision dates back to the heyday of the record market when SUISA was collecting about CHF 25 million per year in revenues for CD productions. By 2019, the distributable amount from central licensing was no more than CHF one million, yet CHF 2.3 million in blank media revenues were allocated to distribution category 21Z. Rightholders who earned CHF 1 from the distribution of their works on CD were collecting CHF 2.17 from the blank media levy.

Following the virtual collapse of the record market, these allocations largely overstepped the original intent. As a result a small number of rightholders were being favoured at the expense of the majority. The adjustments now introduced are more equitable for everyone, and we trust that even those who henceforth receive less income from the blank media levy will appreciate this fact.

Further Information:
SUISA Distribution Rules

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Nowadays, the lion’s share of private copying is done from the internet rather than from CDs as in the heyday of the record market. SUISA’s Distribution Rules have now been amended to reflect present circumstances. The adjustments are designed to ensure a more equitable distribution of the remuneration from private copying. Text by Anke Link

How private copying produces revenue – distribution of blank media levies

Consumers increasingly source their music from the internet. The move to digital forms of music consumption has caused a shift in the sources of music tapped for private copying. As a result, changes also had to be made in the distribution of blank media revenues. (Photo: Carlos Castilla / Shutterstock.com)

The Federal Copyright Act allows Swiss consumers to make copies for their own use and that of a close circle of friends and relatives, regardless which source is...read more

Negotiating in the age of corona … and with corona

Negotiating is one of SUISA’s key functions. SUISA negotiates tariffs and contracts inter alia. It must safeguard the interests of its members, ensure their legitimate demands are understood and accepted, and obtain the best possible terms for musical creation. It does this through discussion and compromise: in a nutshell, through human relations. But last spring, a new player invited itself to the negotiating table: Covid-19. By Vincent Salvadé, Deputy CEO

Negotiating in the age of corona … and with corona

The tariffs that are being negotiated now, during the corona crisis, are intended to apply in better times when music will hopefully be played again. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

The dynamics have changed. Talks are now held mostly by videoconference. In other words, human relations take place through an interposed screen. This makes it more difficult to observe non-verbal reactions to a proposal, or simply to understand one’s counterparts. We must adapt … and regret the days when a handshake symbolised agreement.

Moreover, the crisis tends to freeze negotiating positions. On the one hand, the economy is in trouble: large events are banned, and the country goes from lockdown, to unlockdown, to re-lockdown. On the other, artists’ and creators’ revenues are in free fall. Under the circumstances, it is more difficult to make concessions and reach a compromise. Everyone is determined to protect what little they have left.

So what strategy should SUISA now adopt?

Firstly, certain sectors are clearly less impacted by the crisis than others. Online usages, for example, are not lagging: people are too scared – or are not allowed – to go to the cinema, so they watch a film on VoD. Music streaming is also doing well. These are therefore the areas SUISA should focus on to negotiate the best terms for its members. Who, for their part, are having a truly hard time.

“It is our duty today to prepare for the future and to support the equitable implementation of legal principles in favour of our members.”

We must, however, avoid one pitfall. In many areas, the fall in users’ revenues automatically has negative consequences for authors: after all, authors’ royalties are calculated as a percentage of users’ revenues. Users should not take advantage of the crisis to obtain better terms from SUISA. Otherwise authors will lose twice. We have had to remind our partners of this.

But the hard truth is that the live entertainment sector is in agony. Last spring, we interrupted certain negotiations hoping to start them again when the sun came back. After a short reprieve, the clouds are now building up again … and the tariff process takes time. Now, at the end of 2020, we are negotiating tariffs which will only come into force in 2022 when (as we dare hope) the crisis will be well behind us. It is our duty today to prepare for the future and to support the equitable implementation of legal principles in favour of our members. That is certainly not easy when our partners are losing money. But it is our responsibility for a better future.

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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.

Negotiating is one of SUISA’s key functions. SUISA negotiates tariffs and contracts inter alia. It must safeguard the interests of its members, ensure their legitimate demands are understood and accepted, and obtain the best possible terms for musical creation. It does this through discussion and compromise: in a nutshell, through human relations. But last spring, a new player invited itself to the negotiating table: Covid-19. By Vincent Salvadé, Deputy CEO

Negotiating in the age of corona … and with corona

The tariffs that are being negotiated now, during the corona crisis, are intended to apply in better times when music will hopefully be played again. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

The dynamics have changed. Talks are now held mostly by videoconference. In other words, human relations take place through an interposed screen. This makes it more difficult to observe non-verbal reactions to...read more

Support for SUISA members during the corona crisis

Following the federal COVID-19 ordinances, music usage plummeted depriving authors and publishers of a significant portion of their royalty revenues. SUISA offers its members financial support to bridge the loss in earnings. Text by Irène Philipp Ziebold

Support for SUISA members during the corona crisis

No concerts means no revenues from performing rights. Instead, Kety Fusco played live music from her home for the SUISAblog “Music for Tomorrow” series and for SUISA Music Stories on social media. (Photo: screen shot video Kety Fusco)

Cancelled concerts, closed shops and cinema theatres, reduced advertising on radio and TV – the consequences of the federal measures against the spread of the coronavirus have a direct impact on rights management revenues: if there is no music usage, there is no royalty income.

SUISA offers its members financial support to bridge the loss in earnings:

Advances

First and foremost, SUISA has the option, as it has always had, to grant advances to its members. Both authors and publishers can qualify for an advance. The amount of the advance is based on the member’s average revenues in the preceding years. Advances can only be granted to members who have earned more than CHF 500 on average in royalties in recent years. Members may apply for an advance by email. Applications are processed within seven days. The decision is communicated in writing by email. If the applicant satisfies the qualification criteria, the advance will be paid immediately by bank transfer.

Under normal circumstances, advances are offset against the member’s next settlement. This means that the amount advanced is deducted from the distributable amount. As an immediate measure in the exceptional context of the corona pandemic, SUISA’s Board has decided that advances would not be offset before June 2022 at the earliest. The Board and the Executive Committee are keeping a close eye on the crisis situation and, depending on economic developments, may decide to further postpone the offsetting of such advances. In any event, repayment of these advances will not be due before June 2022 at the earliest.

Support payments for members

If an advance is insufficient to alleviate the existential financial hardship suffered by a member as a result of the loss in royalty revenues, the member may apply to SUISA for support payments. SUISA’s Pension Fund makes funds available to authors in the event of an emergency. As a further immediate measure, the Executive Committee has decided to create an additional emergency relief fund from which support payments can be made to authors and publishers alike. The emergency relief fund still has to be ratified by the General Meeting by postal voting. (Addendum added on 27.08.2020: The General Meeting approved the relief fund by a large majority. For more information, see article: “SUISA General Meeting: Emergency fund for authors and publishers approved”.)

In the framework of its rights administration responsibilities, SUISA provides support to members who suffer a loss in their royalty revenues. However, only limited funds are available for support payments. SUISA members who are not already receiving hardship relief from the emergency fund of Suisseculture Sociale or under other cantonal measures may apply for support payments from SUISA.

Applicants must prove their financial hardship. Applications for support payments can be submitted via the members’ portal “My account”. Application documentation will be processed within seven days. Decisions are communicated in writing by email. Payment is made by bank transfer as soon as an application is approved. Support payments do not have to be repaid.

Federal support measures and other aid

The financial support provided by SUISA is designed to help bridge a shortfall in royalty income. SUISA’s support is supplemental – not in lieu of or as an alternative to federal support measures. Information about the measures introduced by the Swiss government to alleviate the economic consequences of the corona pandemic on the cultural sector is available (in German, French and Italian) on the website of the Federal Office of Culture (FOC): www.bak.admin.ch/bak/de/home/themen/coronavirus.html

The Swiss cultural foundation Pro Helvetia also publishes continuously updated information at: www.prohelvetia.ch/en/dossier/info-hub-covid-19/

Go to: www.suisseculture.ch for information about the emergency relief fund for cultural workers, and a link to the application portal. Applications for immediate aid can be submitted through this portal.

Helpful information for musicians is also available on the website of Sonart, the professional association of freelance musicians in Switzerland.

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Following the federal COVID-19 ordinances, music usage plummeted depriving authors and publishers of a significant portion of their royalty revenues. SUISA offers its members financial support to bridge the loss in earnings. Text by Irène Philipp Ziebold

Support for SUISA members during the corona crisis

No concerts means no revenues from performing rights. Instead, Kety Fusco played live music from her home for the SUISAblog “Music for Tomorrow” series and for SUISA Music Stories on social media. (Photo: screen shot video Kety Fusco)

Cancelled concerts, closed shops and cinema theatres, reduced advertising on radio and TV – the consequences of the federal measures against the spread of the coronavirus have a direct impact on rights management revenues: if there is no music usage, there is no royalty income.

SUISA offers its members financial support to bridge the loss in earnings:

Advances

First and foremost,...read more

Brave new world

There is hardly any other technical development that has turned the music business upside down as much as the success of platforms such as YouTube. And hardly any technical development has been as remiss in the treatment of authors’ rights as the internet. In this interview, SUISA CEO Andreas Wegelin explores opportunities and difficulties of this rather young business sector. Interview by guest author Silvano Cerutti

Brave new world

“If I compare SUISA with other organisations that are still in their early days when it comes to online, we are already well underway”, SUISA CEO Andreas Wegelin is convinced. (Photo: Günter Bolzern)

Andreas Wegelin, the distribution of online royalties is affected by delays which caused disappointment in some members. Can you empathise with that?
Andreas Wegelin: It is our job to get as much collected on behalf of our members as possible, not just online but for all usage categories. If there is a cause for criticism, we take it seriously and examine it. There is, however, also the aspect that some members have received more than before, and they are not disappointed.

Maybe the question needs rephrasing?
Well, maybe the level of expectation is too high. Today, music is consumed in much smaller units, there are possibly one or two songs from a CD and that is reflected in the turnover, of course.

But members should receive a settlement four times per year. That did not quite work out in 2019. Why?
That’s right. One of the reasons for this is that the payment of one major customer was late. The amounts in the June distribution would thus have been far too small: On the one hand, the settlement would have fallen under the so-called payout threshold, they would therefore have received nothing. On the other hand, the administration costs would have been too high. We subsequently decided to postpone the settlement. Our goal, however, remains to pay out on a quarterly basis.

So, you don’t have a problem with the data volume you received that you need for the calculation of the online royalties?
No, we don’t. Yes, the data volume we receive is rather huge and requires complex processing with respect to many countries and currencies, but our systems have proved to be extremely efficient in this regard.

I can now upload my work on platforms such as iMusician, from where it is distributed to various service providers (Spotify etc.) and I can see how much my work is used, and where. Can SUISA also do that?
These are two different business models. iMusician monitors where an individual recording is played. That is, of course, much easier to track than having to simultaneously trace dozens, if not hundreds of recordings of one single work. What’s more, music providers know exactly who the artists of a recording are, but don’t have information on the composers of the song.

So SUISA’s job is more complex?
Of course. Add to that the obligation to provide clear information on the rights whenever you upload a song to such a distribution service. At our end, however, we also get notifications of works which have been uploaded by a fan without any details at all. If I do compare our administration costs with the fees that a service such as iMusician charges, I think to myself: we can keep up very well. But – such distribution services show us how we could improve our service in future and what is in demand on the market.

Which is?
The key word is tracking. I give you an example: If commercials with music of Swiss authors are broadcast abroad, the best way for me to get information on the number of broadcasts is via a tracking system. Today, not least on the grounds of cost, we have a system where the broadcasters deliver the information to us. Which could be something like “Nivea spot”. Well, which one? If I already have the melody as a sound file, I can track that. That is our future, even if it is not the most pressing measure we need to take for the online sector.

Automation is therefore only as good as the data that are available to it?
Exactly. And they are often incomplete.

What about monitoring service providers such as Utopia Music which can track songs across the internet?
Monitoring is a huge topic. We follow this very closely and are also planning a pilot project. Yet again, this is a matter of the relevant cost-benefit ratio. That ratio may well be good for an international hit producer but when it comes to an overall repertoire such as ours, the expense can push the administration costs up to silly levels.

The ‘rucksack of completeness’ has been around for the offline sector for many years and the distribution works rather well in that area. In the online sector, however, where everything could be measured, things are complicated.
That is annoying, yes. The offline system has been functioning well for nearly 100 years. But we only cover Switzerland and Liechtenstein for that. Online, we need to take a global approach and are also facing competition, because, according to the EU, each rights holder can choose who they are represented by.

What are the consequences?
In the past, rights holders assigned their rights to SUISA via so-called reciprocal representation agreements for the perception of their work in Switzerland and the Principality of Liechtenstein. Based on that system it was possible to pass on the relevant share from Switzerland to any composer, whether English or American, and one subsequently received the relevant shares from abroad for Swiss authors.

Online, on the other hand….
…. it is only possible for a society to collect for the rights holder whom it represents directly, even though this can be done at a global level. All of a sudden, the documentation must be more accurate and also completed for other countries since it otherwise won’t match. One collective management organisation might declare that their share of a work amounts to 80 percent, another organisation claims to hold 40 percent, which adds up to 120. Such cases happen all the time.

And what’s the consequence of this?
The provider says: As long as you do not know who sends an invoice for what, I won’t pay you. Or we do not get any money, but the info: I have already paid someone else!

How do disputes among rights representatives arise?
Let’s take an example: I have a work with a composer, a lyricist and a publisher. The latter, however, has an agreement with a sub-publisher and has, for another territory, instructed a third publisher, and now all of these entitled parties can choose their own collective management organisation for the online exploitation. This means that there might be four or five collective management organisations which are then in charge for their respective part of the work. Now, I have to agree exactly which part belongs to me. This is where the “disputes” start, because the entry may be different at their end.

Is there no regulation among the copyright management organisations how you can proceed in such situations?
The societies are trying to coordinate their collaboration better in technical working groups. Due to the new competition situation among the organisations, a complete solution for these difficulties has not been found yet.

Music is consumed in small units, the rights representation happens at an even smaller scale, international competition and no smooth processes – doesn’t that frustrate you?
No, that is what makes this job so interesting! Changes such as the internet come to you from outside. You can either put your head in the sand or try to make the most of it. If I compare SUISA with other organisations that are still in their early days when it comes to online, we are already well underway.

But you do understand that authors are stressed out by such a situation?
Of course, it stresses us, too (laughs). We are building a new service here, which will hopefully be profitable and in demand and which gets the most out of it for our members. This can only happen in small steps and with setbacks, but there is also progress: We were able to improve the agreements, modernise infrastructure and the duration between the usage date and the distribution date could be halved since 2012. I am very optimistic.

To the second part of the interview: “Penny-pinching in digital music distribution”

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There is hardly any other technical development that has turned the music business upside down as much as the success of platforms such as YouTube. And hardly any technical development has been as remiss in the treatment of authors’ rights as the internet. In this interview, SUISA CEO Andreas Wegelin explores opportunities and difficulties of this rather young business sector. Interview by guest author Silvano Cerutti

Brave new world

“If I compare SUISA with other organisations that are still in their early days when it comes to online, we are already well underway”, SUISA CEO Andreas Wegelin is convinced. (Photo: Günter Bolzern)

Andreas Wegelin, the distribution of online royalties is affected by delays which caused disappointment in some members. Can you empathise with that?
Andreas Wegelin: It is our job to get as much collected on behalf...read more

How SUISA distributes fees collected for background entertainment

More than 100,000 companies in Switzerland use music, TV and films for background entertainment purposes. For these usages, the companies pay a fee based on Common Tariff 3a to authors, publishers, performers or producers. How and to whom are these revenues paid? Text by Giorgio Tebaldi

How SUISA distributes fees collected for background entertainment

Considered by many to be part of the pub atmosphere just like teak furniture or dartboards: premier league games on the telly. Producers of the broadcasts have the right to receive a remuneration for usages outside domestic and private circles or home life. (Photo: Nomad_Soul / Shutterstock.com)

Just like lighting or decoration, suitable background music is an important contributing factor to make customers and guests feel good in a shop, hairdresser or restaurant. Plus, live transmissions of a football or cricket match are equally part of the interior décor of a pub, just like dark furniture, wooden shields and the dartboard.

Similar to the obligation to pay makers of the furniture, the decoration or the lighting, composers, lyricists, performers, scriptwriters or producers are entitled by law to receive a remuneration for the use of their works and performances outside the private circle. The five Swiss collective management organisations Pro Litteris, SSA, SUISA, Suissimage and Swissperform are responsible for this task. SUISA collects the remuneration for the use of music, films and TV broadcasts pursuant to the Common Tariff 3a (CT 3a) on their behalves.

What does SUISA do with the collected money from background entertainment?

The first step is that the collected money is split among the five Swiss collective management organisations based on a fixed distribution key. The SUISA share for the coverage of music contents is slightly more than half of the income. Each society is then responsible in a second step to pay out these collected fees to authors and artists, publishers and producers.

In the case of SUISA, 88% of the above-mentioned fifty percent is distributed to the rightsholders. This means that of the CHF 100 that were collected, CHF 88 are paid out to creators and their publishers.

How and to whom are these revenues paid? SUISA usually knows three different possibilities of distribution: direct distribution, blanket distribution with programme material and blanket distribution without programme material (see box). Programme material consists of lists with the works which were performed or broadcast.

In the case of the CT 3a, the money is nearly exclusively paid by way of a lump-sum without programme material. Submitting and processing the work lists in this category would be linked to an enormous effort for customers and SUISA alike, and they would be in no proportion to the actual benefit. Instead, SUISA uses the programme material already available from various sources to allocate the collections made on the basis of the CT 3a. SUISA ensures during this process that lists and/or usages are considered for this allocation, enabling that the remuneration is distributed as fairly as possible.

A distribution which is as fair as possible – even without a list of the performed works

Based on empirical data there are cases where it is assumed that a major part of the companies, shops, restaurants etc. uses works which are also broadcast on the radio, resp. TV. Accordingly, a major part of the income from CT 3a is allocated on the basis of the programme material for the use of music, TV broadcasts and films from radio and TV transmissions. SUISA also takes into account that not just pop, rock or urban is played but also other genres such as traditional or folk music and even church music. A part of the collections is thus also distributed on the basis of programme lists for church performances, brass music or yodelling clubs.

In order to distribute the money to the creators and artists, it is thus allocated to other similar distribution categories for performing and broadcasting rights (see distribution rules, Art. 5.5.2).
Should a member receive a payment from one of these distribution categories, it also receives a share from the income for background music entertainment from CT 3a.

In some exceptional cases in background entertainment, there is a direct accounting process for the distribution of collected fees. This happens, for example, for music which is used in a museum for an exhibition, or music which is used in a company’s phone loop for a longer period. In such cases, the music in question is usually commissioned.

SUISA distributes four times a year. In 2018, more than CHF 132m were paid out to composers, lyricists and publishers of music.

Types of distribution and distribution categories

SUISA distributes the collections from authors’ rights in three different ways:

  1. In a direct accounting scenario, copyright remuneration can be allocated directly across the available lists of works that have been performed. This is also possible for concerts, for example: If songs of five co-authors are performed during a concert, these five rightsholders receive the fees collected for this concert.
  2. In the case of a blanket distribution with programme material, copyright remuneration is calculated on the basis of a point value. For SRG broadcasts, for example, SUISA receives a lump-sum payment on the one hand and detailed broadcast reports on the other hand. The broadcast reports include details on how many seconds of music have been transmitted in total, plus the exact duration of each work. A point value per second is determined based on these details and the remuneration is paid to authors and publishers of the played works.
  3. A blanket distribution without programme material takes place when it comes to collections based on tariffs where there is no information provided on the works that have actually been used, or if that information cannot be established. The distribution of such income is made on the basis of available programme material from several sources. The exact allocation of the money is specified in the SUISA distribution rules in detail.

The collected revenue is distributed on the basis of distribution categories. The latter correspond to various usages, e.g. music in concerts, on radio and TV channels of the SRG, or private broadcasters, in churches etc.

Details can be found in the SUISA distribution rules.

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Why SUISA members should also consider joining SWISSPERFORMWhy SUISA members should also consider joining SWISSPERFORM Composers and lyricists who are SUISA members and are also active as artists and/or producers and whose performances are broadcast by Swiss or foreign radio and TV channels are entitled to receive a remuneration from SWISSPERFORM. For all those authors-composers-artists/producers, a membership with SWISSPERFORM is thus a necessary addition to their SUISA affiliation in order to safeguard their rights and the full remuneration they are entitled to. Read more

 

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More than 100,000 companies in Switzerland use music, TV and films for background entertainment purposes. For these usages, the companies pay a fee based on Common Tariff 3a to authors, publishers, performers or producers. How and to whom are these revenues paid? Text by Giorgio Tebaldi

How SUISA distributes fees collected for background entertainment

Considered by many to be part of the pub atmosphere just like teak furniture or dartboards: premier league games on the telly. Producers of the broadcasts have the right to receive a remuneration for usages outside domestic and private circles or home life. (Photo: Nomad_Soul / Shutterstock.com)

Just like lighting or decoration, suitable background music is an important contributing factor to make customers and guests feel good in a shop, hairdresser or restaurant. Plus, live transmissions of a football or cricket match are equally part of the...read more

Common Tariff 3a: A hundred thousand new SUISA business customers | plus video

With regards to Common Tariff 3a (CT 3a), SUISA has been managing all customers directly again since 01 January 2019. In order to do so, data of about 100,000 customers which received their 3a invoices via Billag in the past years, has been migrated into the SUISA systems. A new team of 16 staff is responsible for all customers of this tariff and provides customer service in four languages. In the meantime, more than 58,000 invoices have left the building – time to take a first provisional look back. Text by Martin Korrodi; Video by Sibylle Roth

On 15 February 2019, SUISA dispatched the first 1,000 CT 3a invoices for usage period 2019 to customers such as selling businesses, shopping malls, catering outlets or guesthouse landlords. Prior to the first dispatch, the migrated Billag data was analysed and manually cleaned up in order to ensure that the invoices were going to be correctly generated. The dispatch scope was intentionally kept small so that any technical or organisational problems could be detected and resolved quickly.

With increasing experience, the dispatch volume could be increased step by step – this way, after five months (February to June), more than half of the 3a customers have already received an invoice. Until mid-June, about 58,000 invoices were sent out with a total invoiced of nearly CHF 17 million. From April onwards, and in addition to the invoices, the first reminders had to be dispatched, from May the second reminders so that up to 20,000 mailings per month left the building.

CT 3a customer service in numbers

In line with the big number of invoices and reminders, the customer service must process a lot of feedback and queries. More than 2,000 phone conversations with customers were held in May alone, and about 600 electronic messages (contact forms and e-mails) were processed. Add to that about 160 mailings that reach us per month via traditional post.

What’s great is that many of our customers visit our website www.suisa.ch/3a and use the online portal for their queries and issues. Since the beginning of the year, 504 new customers registered online and obtained a CT3a licence, and 1,419 customers asked questions regarding their invoices via the online portal. The tariff allows a 5% discount to those customers who use the online portal for processing their CT 3a business with SUISA.

Under the leadership of Nevio Tebaldi, a team of 16 people is looking after the 3a customers; they share 12 full-time positions (1,200 in job percent). During the development phase, three additional people who support the team and take over duties in the field of data cleanup are available temporarily.

Frequently asked questions

The most frequently asked questions by the customers affect the new responsibility for the invoicing process from 2019. The systems change in terms of the radio and TV reception fees and the closure of the Billag AG seem to have created confusion so that customers do not always understand why they receive an invoice from SUISA and what the purpose of the owed fee is.

The confusion of the copyright fee with the radio and TV reception fees is probably due to the fact that Billag had dispatched both invoices until the end of 2018 – one of them on behalf of the Federal Office of Communication (Bakom) and the other one on behalf of SUISA. Within the commercial field, this co-operation made absolute sense since businesses which run a radio or TV set in their business location do not just have to pay the fee to the Bakom but – unlike private persons – require an additional licence for copyright pursuant to CT 3a.

From 2019, the starting point for radio and TV reception fees has changed fundamentally: A general fee is replacing the previously device-based reception fee. This general fee will be levied nationwide to all households and businesses. The obligation to pay the fee as well as the amount of the levy is, additionally, depending on the turnover of businesses: Businesses with a turnover of less than CHF 500,000 are exempt of the fee – businesses with higher turnovers are automatically invoiced by the Federal Tax Administration Office in a six-tier tariff category system.

With regards to the copyright fees based on CT 3a, there are, however, no major changes: The tariff continues to depend on the actual usage scope and is thus based on the area music is piped to. There is no turnover threshold – even businesses with less than CHF 500,000 have to pay a fee for copyright. The only “change” affects the sender of the invoices which is no longer Billag but SUISA.

The “successor” of Billag, Serafe AG plays no role for business customers since it exclusively invoices private households with the radio and TV reception fees on behalf of Bakom and has therefore nothing to do with businesses.

New contacts for businesses from 2019. (Graphics: Sibylle Roth)

 

Usage scope covered by CT 3a
The following usages are relevant for CT 3a: all exploitations in venues outside domestic and private circle or home life, such as in selling businesses, shopping malls, restaurants, lounges, office spaces, work spaces, storage spaces, company vehicles (car radio), ski lift stations, meeting rooms, seminar rooms, guest rooms (these are defined as guest and patient rooms as well as holiday homes), museums, exhibitions etc.
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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.

With regards to Common Tariff 3a (CT 3a), SUISA has been managing all customers directly again since 01 January 2019. In order to do so, data of about 100,000 customers which received their 3a invoices via Billag in the past years, has been migrated into the SUISA systems. A new team of 16 staff is responsible for all customers of this tariff and provides customer service in four languages. In the meantime, more than 58,000 invoices have left the building – time to take a first provisional look back. Text by Martin Korrodi; Video by Sibylle Roth

On 15 February 2019, SUISA dispatched the first 1,000 CT 3a invoices for usage period 2019 to customers such as selling businesses, shopping malls, catering outlets or guesthouse landlords. Prior to the first dispatch, the migrated...read more

Copyright law revision: compromise is the key to success – no exceptions for hotel rooms

The revision of the existing Copyright Act is entering the decisive phase this year. After seven years’ preparatory work, parliamentary debates have now started. The revised act could come into force on 1.1.2020 if both federal houses respect the delicate compromise. Text by Andreas Wegelin

Copyright law revision: compromise is the key to success – no exceptions for hotel rooms

The jurisprudence in Switzerland and Europe is clear: when a hotel receives radio or television broadcasts and retransmits them into its guest rooms, it is a use which is relevant for copyright purposes. (Photo: Piovesempre / iStock)

The long road to a minor partial revision started nine years’ ago: in 2010, State Councillor Géraldine Savary asked the Federal Council to propose solutions to prevent the use of illegal online offers. The Federal Council rejected the request arguing that authors could simply give more concerts to make up for the loss in earnings caused by the slump in CD sales. This answer outraged musicians, and rightly so: not all composers can perform their own works.

In summer 2012, Federal Councillor Sommaruga responded to the protests by creating a working group to prepare proposals for the revision of the Copyright Act. AGUR12, as the working group was called, submitted its recommendations in December 2013. Based on those recommendations and on a wealth of additional unacceptable proposals, the Federal Council produced a preliminary bill in 2015 which met with widespread criticism in the consultation process. FC Sommaruga was obliged to reconvene the AGUR in autumn 2016. AGUR12 II concluded its work in March 2017 with a compromise. At the end of 2017, relying largely upon this compromise, the Federal Council submitted a revised bill to Parliament.

Main points of the revised bill

The relevant key elements of the compromise for musical authors are:

  • Obligation for the hosting provider to remove illegal content and to prevent further uploading of such content (Article 39d); provision for processing personal data to facilitate prosecution of illegal uploading of protected music (Article 77i). Additional demands by authors and producers, e.g. to block access to illegal offers on the Internet, met with strong resistance from consumers and network operators, and were disregarded in the compromise. In this context, one should also consider that such blocking in the musical field would in any event have come ten years too late. Thanks to a wide range of affordable, legal and easy-to-use music streaming services, file-sharing networks and illegal services in the musical field have been greatly reduced.
  • SUISA’s right to information from users in tariff negotiations and accelerated procedure for the approval of copyright tariffs (Articles 51 and 74(2))
  • Extended collective licence (Article 43a): this provision, for instance, enables users to obtain a licence from the collecting societies for publications from archives.

Remuneration for video on demand – unnecessary for composers

The Federal Council also proposed to introduce a remuneration claim for music with regard to video on demand (Articles 13a and 35a). Music creators do not, however, need this: Article 10(2) already entitles them to authorise or refuse the use of their works (in this case, film music). SUISA has already concluded licence agreements for VoD services with all main providers. No new remuneration claims are needed. The existing legislation is adequate.

The VoD remuneration claim was primarily designed to enable Swiss filmmakers to receive fair compensation when their films are viewed on new platforms like Netflix. This would reduce the “value gap” that filmmakers suffer because they participate neither in the direct “pay per view” revenue nor in the platforms’ indirect revenues from advertising and the sale of usage data. Conversely to film music composers who are well organised in rights’ management organisations worldwide, Swiss filmmakers have very limited bargaining power and are therefore dependent on this new remuneration claim.

Against the recommendations of AGUR12 II, the Federal Council extended this claim to music authors who, as mentioned above, do not need this special entitlement. Regrettably, the National Council did not follow our reasoning in the detailed discussion of the law in December 2018 and failed to provide for an exception for music authors. The last hope now lies with the Council of States, which will probably deal with the subject in its March session.

New exemption from the obligation to pay remuneration for radio and TV reception in hotel rooms?

In December 2018, the National Council decided, via the back door so to speak, to follow the parliamentary initiative of Valais FDP MP Nantermod and add a new clause in Article 19(1)(d) FCA providing that the retransmission of radio and TV broadcasts, but also of music or video channels, on demand in hotel rooms, rented holiday apartments, hospital rooms and prison cells, are exempted from copyright fees. As a result, authors would be in a worse position than under the existing legislation, and the revision of the law would work largely to their disadvantage.

What is at stake? If a hotel retransmits radio or TV broadcasts to its guest rooms, the retransmission qualifies as a “rebroadcast” within the meaning of Article 10(2)(e) FCA. This was decided by the Federal Supreme Court in 2017. The providers of TV sets and audio players in guest rooms are hoteliers, landlords of holiday apartments, or hospital operators. All of them operate for profit. Such usage does not, therefore, qualify as private use. The jurisprudence in Switzerland and Europe is clear: this is a relevant usage under copyright law.

The decisions are based on the Bern Convention, the most important international treaty in copyright law, and on other international treaties such as the WCT and the WPPT. Switzerland cannot disregard these treaties. If it did, it would expose itself to sanctions because the obligations under the Bern Convention are also enshrined in the WTO Agreement on the Protection of Intellectual Property (TRIPS). To avoid sanctions if Switzerland were to incorporate this new exception into its law, the exception could only apply to the works of Swiss authors – a totally unacceptable discrimination.

“Hotel rooms would hardly be cheaper if the small copyright fee was eliminated.”

What does it cost hoteliers today? Fees are calculated based on the surface area covered by the TV/audio usage. Up to 1000 m2, the monthly licence fee is CHF 38. Hotels with up to 50 rooms of 20m2 each pay less than CHF 1 per room per month. The rate is slightly higher for larger areas. Hotels with 100 rooms pay CHF 91.80, which is still less than CHF 1 per room per month. The cost for hotels is therefore modest. However, all things being equal, the shortfall for authors and other rightholders would add up to some CHF 1 million per year.

Hoteliers pay their other suppliers for all other services delivered to their hotels. These range from electricity and cleaning to soap in the bathrooms. These goods and services are not provided free of charge – they are part of the hotel supply chain. Hoteliers run their hotels for profit, and in-room entertainment contributes to the price of a room and, therefore, to the added value of the hotel. Why should hoteliers who offer this service to their guests not have to pay the music and film rightholders? Exempting hotel rooms from the copyright remuneration obligation would discriminate against authors and other rightholders compared with other suppliers. And consumers would not even benefit from the exemption because hotel rooms would hardly be cheaper if the small copyright fee was eliminated.

The compromise and the FCA revision both at jeopardy

As mentioned above, the compromise bill for the revision of copyright law put together by AGUR12 II and the Federal Council is now on the finishing straight. If Parliament were to significantly worsen authors’ situation by introducing the hotel room exception, authors would feel slighted and might present further demands for revision. With the risk that no new law is adopted and nearly nine years’ revision efforts will all have been for nothing in the end.

If the revision were to deprive them of the right to allow their works to be rebroadcast in hotel rooms against remuneration, music authors would probably be better off under the existing law.

It is essential that we defend the delicate compromise in the coming months and impress on the Councils that no further changes to the detriment of authors are admissible.

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The revision of the existing Copyright Act is entering the decisive phase this year. After seven years’ preparatory work, parliamentary debates have now started. The revised act could come into force on 1.1.2020 if both federal houses respect the delicate compromise. Text by Andreas Wegelin

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The long road to a minor partial revision started nine years’ ago: in 2010, State Councillor Géraldine Savary asked the Federal Council to propose solutions to prevent the use of illegal online offers. The Federal Council rejected the request arguing that authors could simply give more concerts to make up for...read more

Changes in the distribution of revenues from radio uses

The classifications for radio broadcasting stations have been changed. Starting with the 2019 settlements, a uniform factor of 0.25 will be applied for level D uses (sound logos, jingles, background music, etc.), and a factor of 1.5 for level E (other music). In addition, calculations will be made on a per-second instead of a per-minute basis. Text by Irène Philipp Ziebold

Changes in the distribution of revenues from radio uses

The rules for the distribution of revenues from radio uses have been changed. (Photo: T.Dallas / Shutterstock.com)

In 2015, the factors for the distribution of revenues from television broadcasts were changed. The classifications for radio broadcasts have now been changed as well. The rules are set out in points 3.2 and 3.3 of SUISA’s Distribution Rules.

The new rules are based on an essential principle: radio classifications must be appropriate, and at the same time they must be proportionate with existing rules for TV broadcasts.

In practice, this has been achieved as follows: firstly, billing is now on a per-second basis for radio as well; secondly, in level D, degressive rates have also been abolished for radio and replaced by a uniform factor of 0.25; finally, a factor of 1.5 has been introduced for level E (other music) to bring it into a more appropriate relationship with level D.

The reasoning and main arguments for each point are outlined below:

Billing per second

Billing per second ensures more accurate distribution, and better reflects actual usage. Thanks to the Echolon monitoring system, this is now possible at no additional cost. The playing duration of works can now be determined in a uniform manner for radio and television.

Level D (sound logos, jingles, background music, etc.)

Hitherto, degressive rates were still applicable in level D for radio broadcasters although they had been abolished for television broadcasters. The three existing factors (1, 0.5 and 0.05) are relatively arbitrary and are likely to produce inappropriate results. This is more particularly true for the factor of 0.05 in the case of successful productions with over 52 broadcasts in a single distribution period. In other words: the beneficiaries concerned receive too little compared with the other degressive rates. By introducing a uniform rate of 0.25, an appropriate factor – one that is proportionate with the other levels – has been chosen for the music uses in level D. It is also the same factor as for television.

Level E (other music)

Once a uniform factor of 0.25 is introduced in level D, the existing factor of 1 for other music is no longer proportionate to the other factors, taking into account the television classifications. This was remedied by applying a new factor of 1.5. This factor is appropriate both with regard to TV broadcast classifications (“Concerts”: factor 2, “Music in films”: factor 1 and “Sound logos, jingles, background music, etc.”: factor 0.25) and with regard to the radio broadcast classifications (level D: now 0.25)

For further information:
www.suisa.ch/verteilungsreglement (in German)

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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 classifications for radio broadcasting stations have been changed. Starting with the 2019 settlements, a uniform factor of 0.25 will be applied for level D uses (sound logos, jingles, background music, etc.), and a factor of 1.5 for level E (other music). In addition, calculations will be made on a per-second instead of a per-minute basis. Text by Irène Philipp Ziebold

Changes in the distribution of revenues from radio uses

The rules for the distribution of revenues from radio uses have been changed. (Photo: T.Dallas / Shutterstock.com)

In 2015, the factors for the distribution of revenues from television broadcasts were changed. The classifications for radio broadcasts have now been changed as well. The rules are set out in points 3.2 and 3.3 of SUISA’s Distribution Rules.

The new rules are based on an essential principle: radio classifications must be appropriate, and at the...read more