Tag Archives: CT 3a

SUISA extends payment deadline for its customers

From April 2020 and until further notice, SUISA will grant an extension of the payment period on invoices issued. For music not used in connection with the official regulations against the spread of the corona pandemic, copyright fees will be dropped. Text by Irène Philipp Ziebold

SUISA extends payment deadline for its customers

The corona virus is currently posing major challenges for the whole of Switzerland – many of SUISA’s customers are affected by the financial consequences, as are the musicians whose rights SUISA manages. (Photo: Federal Office of Public Health)

The drastic measures taken to contain the Sars CoV-2 virus have brought about drastic changes in the social and economic environment in Switzerland within a very short time. Cultural life in the country has almost come to a standstill. Many of SUISA’s customers, especially event organisers and commercial enterprises, are suffering from the financial consequences of the lockdown. SUISA members are also severely affected by the sudden loss of basic income: Copyright royalties are one of the few steady sources of income for composers, lyricists and publishers whose rights SUISA manages.

SUISA is a link in the chain of companies affected by the crisis: Especially now, it is of existential interest for music creators that the payment of copyright royalties is preserved. In this context, SUISA is maintaining its service of permitting public use of music and is adapting some of its modalities to exceptional circumstances for the benefit of licensees.

Extension of the payment deadlines

For invoices issued from April 2020, the payment period for SUISA’s customers will be increased. The extended term of payment is recorded as a date on the invoices. This accommodation in the terms of payment is granted automatically and will be valid until further notice.

Discount for music usages that did not take place

Due to official regulations, various uses of music are and have been impossible. Be it banned events, closed shops or events in hospitality businesses that could inevitably not take place: Copyright fees for usages that have demonstrably not taken place shall not be payable.

In order to be able to deduct the discount correctly according to each individual case, various procedures will be applied for administrative and technical reasons:

Dance and entertainment in the hospitality industry

Customers who obtain a licence for dance and entertainment in the hotel and restaurant industry according to the Common Tariff H (CT H) can partially benefit from an automatic and deduction of the discount. For all cases where an automatic reduction is not possible due to the data available, we will dispatch the annual invoices in the regular scope. If the invoiced amount is too high due to cancelled events, we will revoke the invoices and reduce them to the actual amount of use according to the feedback from the customers.

Background entertainment

For licensees of the Common Tariff 3a (CT 3a) for background entertainment, the dates of business closures can vary considerably from one company to another.

We kindly ask you to notify us of the respective business closure dates by using our electronic form:

  • For your notification, please use the form located at www.suisa.ch/3a
  • Please note that reimbursements can only be made if no employees were on the business premises and if there were no occurrences of music use in telephone loops or in business vehicles.

Once we have verified the details you submitted, we are going to credit the relevant amounts in line with Common Tariff 3a for full calendar months where no background entertainment took place. For businesses which were open again on 27 April and would not fulfil these requirements, SUISA is offering a reduction of one calendar month as a gesture of goodwill.

Customers of other tariffs

Licensees of other tariffs who receive periodic invoices for long-term contracts must report any music use that has not taken place to the competent SUISA administration department, whose contact details appear on the invoices. Thus, in the context of a final settlement, the compensation can be adjusted to the actual use made.

SUISA remains available to answer questions or concerns of all customers by telephone from Monday to Friday from 9 a.m. to noon and from 1.30 p.m. to 5 p.m.

Further information:
www.suisa.ch/3a
www.suisa.ch

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From April 2020 and until further notice, SUISA will grant an extension of the payment period on invoices issued. For music not used in connection with the official regulations against the spread of the corona pandemic, copyright fees will be dropped. Text by Irène Philipp Ziebold

SUISA extends payment deadline for its customers

The corona virus is currently posing major challenges for the whole of Switzerland – many of SUISA’s customers are affected by the financial consequences, as are the musicians whose rights SUISA manages. (Photo: Federal Office of Public Health)

The drastic measures taken to contain the Sars CoV-2 virus have brought about drastic changes in the social and economic environment in Switzerland within a very short time. Cultural life in the country has almost come to a standstill. Many of SUISA’s customers, especially event organisers and commercial enterprises,...read more

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

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

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

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

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

Joint licence for copyright and neighbouring rights

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

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

Audion GmbH – a rights agency

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

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

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

Joint collection: Background music and videos on websites

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

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

Outlook: Large enterprises

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

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  1. Liebe Frau Ziebold

    Ich bin einerseits Mitglied der SUISA und froh, dass diese meine Interessen als Urheber wahrnimmt. Andrerseits bin ich auch eine 1-Mann-Firma, allein in einem Büro. Alles, was ich über GT 3a lese, erscheint mir plausibel, trifft aber auf mein Unternehmen nicht zu. Ich hasse Hintergrundmusik, weil sie mich beim Arbeiten stört, und selbst wenn ich ein Radio während der Arbeit laufen liesse, wäre ich der einzige, der es hört. Von einer gewerblichen Nutzung, die ja wenigsten ein Ohrenpaar eines Mitarbeiters oder eines Kunden voraussetzt, bin ich also weit entfernt. Ich verfüge auch nicht über ein Geschäftsauto, das – wie ich mir von einer SUISA Mitarbeiterin habe sagen lassen – auch als Büroraum zählen würde. Sie meinte dann auch, dass ich wohl nicht zahlungspflichtig sei.

    Der zuständige Sachbearbeiter sieht das aber ganz anders und meint, ich müsse einfach zahlen. Er glaubt nicht, dass er das näher begründen müsste und weigert sich auch, mir die rechtlichen Grundlagen zuzustellen. Er bezeichnet aber die GT 3a-FAQs auf Ihrer Website als nicht verbindlich, die meiner Meinung nach deutlich machen, dass ich nicht unter die GT 3a Zahlungspflicht falle. Also, wenn ich einem Kunden eine Rechnung schicke, muss ich das immer begründen können. Ich habe nun eine Betreibungsandrohung ihres Inkasso-Büros im Haus, nachdem eine Rechnung und 1 Mahnung nicht beantwortet wurden, die gar nie bei mir eigetroffen sind. Aber das ist eine andere Geschichte.

    Meine Frage an Sie lautet nun: Hat ihr Mitarbeiter recht? Muss einfach jede Firma GT3a zahlen? Wenn ja, warum gibt man sich dann so Mühe mit der Spezifizierung der Fälle, wenn es gar keine Ausnahmen gibt? Gibt es für diese Null-Ausnahme-Regelung eine rechtliche Grundlage, die Sie mir anstelle Ihres Mitarbeiters zustellen können? Sind Ihre Mitarbeitenden angehalten, nach dem Versand 1 Rechnung und 1 (nicht eingeschriebenen) Mahnung Ihr Inkasso-Büro in Gang zu setzen mit entsprechenden Mehrgebühren? Warum erhalten nicht einfach alle Firmen eine Rechnung?

    Ihre Meinung dazu interessiert mich sehr.

    Mit freundlichen Grüssen

    M. Gabriel

    • Manu Leuenberger says:

      Lieber Herr Gabriel
      Wir danken Ihnen für Ihre konstruktive Rückmeldung. Ihr Anliegen ist uns wichtig und wir werden die spezifische Sachlage hinsichtlich Ihrer 1-Mann-Firma und der erfolgten Kommunikation inklusive der vorhandenen Informationen dazu intern betrachten. Gerne setzen wir uns mit Ihnen in Kürze noch persönlich in Verbindung, um weitere konkrete Falldetails von Ihnen zu erfahren und mit Ihnen zu besprechen.
      Bis dahin wünschen wir Ihnen alles Gute.
      Freundliche Grüsse, Manu Leuenberger / SUISA Kommunikation

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

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

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

Up to now, you had to obtain a licence from SUISA for the copyright in accordance...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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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

When SUISA does politics

SUISA and the other Swiss rights administration societies have never been as actively involved in politics as in 2018. But is it really justified for SUISA to become engaged in politics? By Vincent Salvadé, Deputy CEO

When SUISA does politics

SUISA’s political work is geared to creating a favourable framework for Swiss musical creators in terms of rights management. (Photo: Trybex / Shutterstock.com)

The revision of copyright law certainly has something to do with SUISA’s political engagement. But the rights administration societies have also taken a stand on numerous other issues: the “No Billag” initiative, gambling legislation, revision of telecommunications law, various parliamentary motions and initiatives, etc. Moreover, the societies regularly respond to consultation procedures on a broad range of legislative proposals. This shows that music, and culture in general, have become ubiquitous in our society. Music and culture are multi-faceted and as such are affected by a great number of political issues.

But is it really justified for SUISA to become engaged in politics? Yes. When we act, we do so without partisan labels, motivated solely by our members’ interests. Rights management can rarely be dissociated from politics.

“Generally speaking, our political actions are always aimed at achieving a favourable legal framework for rights management.”

In recent months, SUISA’s tariff negotiations have triggered two parliamentary interventions in Bern: first, in an attempt to counter our supplementary common tariff 3a, which had been confirmed by the Federal Supreme Court at the end of 2017, National Councilor Philippe Nantermod filed a parliamentary initiative demanding that licence fees be abolished for hotel rooms and the like; and second, National Councilor Martin Candinas submitted a motion proposing to disregard State subsidies to local radio stations in peripheral regions in the copyright calculation basis, although the matter has already been decided to the contrary on several occasions by the authorities responsible for approving the tariffs. In both cases, politics were the means chosen to try to defeat what we have struggled to achieve through our rights management activities.

Generally speaking, our political actions are always designed to foster a favourable legal framework for rights management. That is just as true for the revision of copyright law as it was earlier this year in our stand against the “No Billag” initiative: both were driven by the same motivation. Recently, we intervened to ensure that the revision of the telecommunications legislation would not jeopardise a balanced solution for authors’ rights with regard to replay TV.

Such political action requires major investment in terms of argumentation and persuasion. But it has proved worthwhile: on 13 June 2018, the Council of States rejected the Candinas motion (as well as the alternative proposed by the Federal Council) by 22 votes to 21. Would the outcome have been the same if the musical world had not mobilised? SUISA therefore intends to continue resolutely on this path and pursue its active political engagement, in particular against the parliamentary initiative of National Councilor Nantermod.

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Invoicing licence fees for background music and TV reception in businesses as of 2019Invoicing licence fees for background music and TV reception in businesses as of 2019 Businesses that play background music on their premises or show broadcasts on screens are required to pay licence fees in accordance with Common Tariff 3a. As of 2019, SUISA will once again manage all customers under this Tariff directly. Read more
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SUISA and the other Swiss rights administration societies have never been as actively involved in politics as in 2018. But is it really justified for SUISA to become engaged in politics? By Vincent Salvadé, Deputy CEO

When SUISA does politics

SUISA’s political work is geared to creating a favourable framework for Swiss musical creators in terms of rights management. (Photo: Trybex / Shutterstock.com)

The revision of copyright law certainly has something to do with SUISA’s political engagement. But the rights administration societies have also taken a stand on numerous other issues: the “No Billag” initiative, gambling legislation, revision of telecommunications law, various parliamentary motions and initiatives, etc. Moreover, the societies regularly respond to consultation procedures on a broad range of legislative proposals. This shows that music, and culture in general, have become ubiquitous in our society. Music...read more

Invoicing licence fees for background music and TV reception in businesses as of 2019

Businesses that play background music on their premises or show broadcasts on screens are required to pay licence fees in accordance with Common Tariff 3a. As of 2019, SUISA will once again manage all customers under this Tariff directly. Text by Martin Korrodi

Invoicing licence fees for background music and TV reception in businesses as of 2019

Under copyright law, playing background music in a shopping centre like in the above example qualifies as a use outside the private sphere. That is why businesses need a licence, which they can obtain from SUISA in accordance with Common Tariff 3a. (Photo: Unsplash, Victor Xok)

Pursuant to the Federal Copyright Act (Article 10(2)(f)), the reception of broadcasts in businesses is a use outside the private sphere and is therefore subject to a licence. As a result, in addition to paying Billag reception fees – and conversely to private households – businesses which play radio or TV sets on their premises need to licence the authors’ rights under Common Tariff 3a (CT 3a). These licences are granted by SUISA.

Hitherto, Billag AG would invoice the licence fees under CT 3a for SUISA’s account. Since Billag was also responsible for invoicing radio and TV reception fees, the cooperation generated advantageous synergies. Both invoices could be issued to customers from a single source, saving time and effort on all sides.

Meanwhile, owing to a number of developments, this cooperation cannot be continued after the end of this year: thus in 2015, the Federal Act on Radio and Television was revised and the device-based reception fee was replaced by a general levy. This levy is collected from all households – regardless whether or not they actually possess a reception device.

Uses outside the private sphere are subject to licence fees

Under the new system, only businesses with turnover in excess of CHF 500,000 have to pay the licence fee. The State estimates that about 75% of Swiss businesses will not be required to pay the licence fee even if they receive broadcasts on their premises.

The minimum turnover limit does not, however, apply to authors’ rights. All uses of works outside the private sphere are relevant in terms of copyright law. In public areas like shops and restaurants, for example, background music – whether piped in from the radio, internet or a sound recording – is subject to a fee in accordance with CT 3a. And the showing of broadcasts or videoclips, from Youtube for example, also requires a licence from SUISA. Accordingly, many small businesses that do not pay radio and TV fees will still have to pay fees under CT 3a.

In addition to the change in the radio and TV remuneration system, in March 2017 the Federal Office of Communications (OFCOM) decided not to renew Billag’s collection agency mandate. Henceforth, household radio and TV fees will be collected by Serafe AG. For businesses, the fees will be collected by the Federal tax authorities in the framework of the VAT collection procedure. As a result, Billag has lost its main business activity and will wind up operations at the end of 2018. This is another reason why SUISA is obliged to reorganise its CT 3a-invoicing system as of the coming year.

SUISA to manage CT 3a for businesses as of 2019

After considering a number of options, it was decided in autumn 2016 that SUISA would once again manage CT 3a for businesses starting in January 2019. SUISA already issues invoices to about 2000 companies which do not have radio and TV reception but play background music from other sources (CDs, DVDs, etc.).

As of 2019, Billag’s 106,000 business customers will be taken over by SUISA; this six-fold increase in SUISA’s active customer count – realised in a single stroke – will trigger huge growth in processing volumes. Therefore task-oriented processes and largely automated IT infrastructure solutions will be essential to ensure the smooth and proper functioning of customer relations in the CT 3a area.

The necessary steps in this regard were initiated in the current year: a project team working in close cooperation with Billag is preparing the take-over of the customer portfolio at the technical and organisational levels. A customer centre is being established with the equivalent of 12 full-time positions (17 persons overall) to provide support and guidance, in writing or by phone, to CT 3a customers.

Multilingual CT 3a customer centre

To ensure as little change as possible for customers, the customer centre will take over Billag’s existing hotline number (0844 234 234). Moreover, an online portal will be set up to secure access to all relevant services. The customer centre will cater to all users, nationwide, in four languages (English, German, French, Italian).

The new team will also be responsible for market coverage. Since there are very few spontaneous declarations from users of background music, potential customers will be contacted and questioned about their practices as regards background entertainment. SUISA plans to conduct four direct mailing campaigns per year, each designed to reach about 10,000 businesses across all economic sectors.

The customer centre team started work on 1 November 2018. By the end of the year, the team will have received appropriate training, and systems and processes will be in place and fully tested. Officially, the customer centre is to open in the new year; it will be at the disposal of 3a customers as of 7 January 2019.

Complaints procedure
The tariff for background music and TV reception, CT 3a, was negotiated with the representative user associations (Gastrosuisse, Hotelleriesuisse, the umbrella association for rights’ users DUN, the Swiss Retail Federation, inter alia) in 2015 and 2016. It proved impossible to reach a consensus, and the proposed tariff was submitted to the Federal Arbitration Commission for Copyrights and Neighbouring Rights (ESchK). The draft tariff submitted by the Swiss collecting societies proposed an average increase of 14% in the fees for Billag customers. In November 2016, the Federal Arbitration Commission decided in favour of the collecting societies and approved the proposed tariff. However, several user associations appealed the decision to the Federal Administrative Court; proceedings are still pending. The appeal does not have suspensive effect and SUISA can start collecting fees based on the new CT3a in 2019. However, the distribution of the proceeds to the entitled parties must be stayed until a definitive ruling on the tariff is handed down.
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  1. Reto says:

    Genau. Viel bla bla keinerlei Inhalt!
    1 Seite Text und die 2-3 Sätze die alle die das lesen interessieren sind nicht dabei!
    A Muss ich zahlen
    B Wieviel!

    A la Betriebe mit bis zu 60 Plätzen zahlen monatlich X Fr
    Betriebe mit bis zu 120 Plätzen zahlen monatlich X Fr
    Betriebe mit über 120 Plätzen zahlen monatlich X Fr

    Fertig!

    • Giorgio Tebaldi says:

      Guten Tag Reto

      Ausführliche Informationen zur Hintergrundunterhaltung finden Sie unter http://www.suisa.ch/3a sowie unter https://www.suisa.ch/de/kunden/verkauf-gewerbe/verkaufs-und-dienstleistungsbetriebe/hintergrundmusik-music-on-hold-gt3a/faq-gt-3a.html.

      Sie müssen eine Vergütung gemäss GT 3a bezahlen, wenn mindestens einer der folgenden Punkte zutrifft:

      – In Ihrem Restaurant, Ladenlokal oder sonstigen Räumen Ihres Betriebes läuft Hintergrundmusik.
      – Sie geben in Ihren Betriebsräumen Filme, Radio- oder Fernsehsendungen wieder.
      – Sie betreiben Gästezimmer, Ferienwohnungen, Patientenzimmer oder ähnliches und stellen dort entsprechende Geräte für die Wiedergabe von Filmen, Radio- und Fernsehsendungen zur Verfügung.
      – Sie spielen Musik in Ihrer Telefonwarteschleife ab.

      Wenn sie also Werke und Leistungen nutzen, die Komponistinnen, Textautoren, Interpretinnen, Drehbuchautoren oder Produzentinnen geschaffen haben, haben diese laut Gesetz ein Recht darauf, für die Nutzung ihrer Werke und Leistungen eine Vergütung zu erhalten.

      Wieviel Sie bezahlen müssen, hängt von der Fläche ab, auf der Hintergrundmusik läuft, bzw. auf der Filme und Fernsehsendungen wiedergegeben werden.

      Für Hintergrundmusik beträgt die Vergütung auf einer Fläche von bis zu 1000 m2 CHF 19.20 pro Monat (zuzügl. MWSt). Für die Nutzung audiovisueller Werke und Leistungen (Filme und Fernsehsendungen) beträgt die Vergütung auf einer Fläche bis 1000 m2 CHF 20.80 pro Monat (zuzügl. MWSt). Für grössere Flächen gelten zusätzliche Entschädigungen gemäss Ziffer 6 des Tarifs. Diese Pauschalen gelten jeweils auch für die Musik in Telefonwarteschleifen, abgestuft nach Anzahl Amtslinien.

      Die Flächen pro Standort werden addiert, einschliesslich allfälliger Gästezimmer. Wenn ein Kunde mehrere Standorte (Geschäftslokale, Betriebsstätten, Filialen etc.) betreibt, so ist die Vergütung für jeden Standort separat geschuldet.

      Freundliche Grüsse

      Giorgio Tebaldi / SUISA Kommunikation

  2. Konrad Hugentobler says:

    Typisches juristisches Bla Bla. Definiert zuerst gefälligst mal, was genau Gebührenpflichtig ist und was nicht. Beispielsweise wird eine Firma ja wohl kaum Suisa bezahlen müssen, wenn ihre Mitarbeiter auf privaten Geräten Musik mit Kopfhörer hören. Was ist genau Berieselung? Ist es nun doch (noch) von Geräten abhängig? Muss eine Firma Suisa bezahlen, wenn Mitarbeiter auf ihrem Arbeitscomputer YouTube Videos schauen? Das wäre ja an Absurdität nicht zu übertreffen.

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.

Businesses that play background music on their premises or show broadcasts on screens are required to pay licence fees in accordance with Common Tariff 3a. As of 2019, SUISA will once again manage all customers under this Tariff directly. Text by Martin Korrodi

Invoicing licence fees for background music and TV reception in businesses as of 2019

Under copyright law, playing background music in a shopping centre like in the above example qualifies as a use outside the private sphere. That is why businesses need a licence, which they can obtain from SUISA in accordance with Common Tariff 3a. (Photo: Unsplash, Victor Xok)

Pursuant to the Federal Copyright Act (Article 10(2)(f)), the reception of broadcasts in businesses is a use outside the private sphere and is therefore subject to a licence. As a result, in addition to paying Billag reception fees – and conversely to private households...read more