Tag Archives: Joint venture

A Board Meeting focused on the coronavirus

To comply with coronavirus regulations, SUISA’s Board met for the first time by video conference on 28 and 29 April 2020. Board members were connected by sound and video from their respective home offices. After a short period of accustomation, the meeting proceeded apace without any significant communications problems. Even thorny issues were debated and decided in this way. Report from the Board by Andreas Wegelin

A Board Meeting focused on the coronavirus

Based on our current state of knowledge, we expect a 25% drop in total budgeted revenues owing to event cancellations and business shutdowns in the wake of the restrictions ordered by the public authorities to contain the corona pandemic. (Photo: RomeoLu / Shutterstock.com)

The main items on the Board’s spring agenda are the approval of the annual financial statements, status report and business report and their referral to the General Meeting, as well as the preparation of the agenda for the General Meeting.

SUISA’s 2019 financial statements show highly satisfactory results. Royalty revenues totaled CHF 155.25m, a 3% increase over the prior year. As a result, after deducting costs, CHF 129.34m will be distributed to beneficiaries in Switzerland and abroad in 2020. Moreover, thanks to significant investment income, an additional 7% can be distributed on all settlements.

Written vote instead of a 2020 General Meeting

The Board decided that, by way of exception, the business on the agenda for this year’s General Meeting will be put to a written vote since there is no assurance that the meeting scheduled for 26 June at the Bierhübeli in Bern will effectively be able to take place. The documentation for voting by correspondence will be sent to members at the end of May.

Two by-elections to the Committees are also on General Meeting’s agenda – and will be held this time in writing: the Board proposes Michael Hug to succeed Grégoire Liechti in the Distribution and Works Committee. Melanie Oesch is the designated candidate to succeed the late Reto Parolari as Member of the Board.

Course of business during the corona crisis: the Board establishes a task force

Apart from the usual items on the agenda for the spring meeting, discussions in the Board focused on corona-related threats, or rather, on the consequences of business shutdowns and the ban on events. Meanwhile, it is known that no large concerts will take place until the end of August at least, and that smaller events will only be allowed under stringent health and security measures liable to impact audience size. It is quite conceivable that these restrictions will remain in force for a longer period.

Under the circumstances, we expect SUISA’s budget for revenues from concerts, events and music entertainment in the hospitality industry to be cut by half. This translates into a reduction of 25%, or CHF 38m, in SUISA’s total budgeted revenues. A more accurate forecast cannot yet be made given the lack of visibility until the end of the year. The Board has established a task force to examine, together with the Executive Committee, how the loss in revenue will impact the course of business, and to identify the necessary cost-cutting measures.

Developments in the online licensing market

Another important topic in the context of SUISA’s consolidated annual financial statements was the development of the online licensing market. For three years now, SUISA Digital Licensing has been licensing the rights of SUISA members not only in Switzerland and Liechtenstein, but throughout Europe – and even worldwide where the agreements so allow – through Mint Digital Services, SUISA’s joint venture with SESAC, the US rights’ management organisation.

By pooling repertoires, SUISA has become an important provider of services in this field with Mint. The two start-up companies Mint and SUISA Digital Licensing are not yet profitable. The Board has therefore instructed the Executive Committee to prepare and present a detailed evaluation of the break-even prospects, calculated under various scenarios.

The next meetings of the Board, to be held in video conferencing again, are scheduled for 25 May and 25 June 2020.

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To comply with coronavirus regulations, SUISA’s Board met for the first time by video conference on 28 and 29 April 2020. Board members were connected by sound and video from their respective home offices. After a short period of accustomation, the meeting proceeded apace without any significant communications problems. Even thorny issues were debated and decided in this way. Report from the Board by Andreas Wegelin

A Board Meeting focused on the coronavirus

Based on our current state of knowledge, we expect a 25% drop in total budgeted revenues owing to event cancellations and business shutdowns in the wake of the restrictions ordered by the public authorities to contain the corona pandemic. (Photo: RomeoLu / Shutterstock.com)

The main items on the Board’s spring agenda are the approval of the annual financial statements, status report and business report and their referral...read more

Penny-pinching in digital music distribution

Business in the online sector has been subject to constant change – not only for copyright societies. In the second part of the interview, SUISA CEO Andreas Wegelin reports on the status quo and provides an outlook on the scenarios that are being discussed. Interview by guest author Silvano Cerutti

Penny-pinching in digital music distribution

Music is now consumed rather differently to how it was consumed 15 years ago: From the turnover of the Digital Service Providers, about 12 to 15 percent are allocated to authors, which results in royalties at a micro-penny -level per play. (Photo: LikeBerry)

Andreas Wegelin, let’s talk about proportions and size ratios. Streaming service providers such as Spotify, for example, pay composers micro-penny -amounts per play. If you extrapolate this, what is the percentage of the turnover?
Andreas Wegelin: If you only consider authors’ rights, that is about 12 to 15 percent of about 70% of the service provider’s total turnover. The rest is allocated to the recording, the producer, the artist. This roughly corresponds to the offline situation in Switzerland. Copyright for authors is governed by state-approved tariffs there. They are actually slightly lower. A monopoly thus does not bring about a better result for authors.

Why is there so little that comes together for the author? Without the author, the piece would not even exist for others to perform.
I completely agree with you. If a composer happens to be a good singer as well and thus performs his own songs, he gets more. But this is the same case for the offline sector. A singing author gets more from his record company than from us – because the producer provides the service provider with the music recording which can be played. It is not SUISA that does that but companies such as Sony, Universal etc. which therefore also hold the relevant market power.
Furthermore: Let’s compare the situation to the radio broadcasters: Radio addresses a multitude of listeners, streams one individual listener. If you break down the radio remuneration to listener levels, the amount is not much higher than that for streaming. A reason why streaming is even lower is that I nearly only have mainstream music on the radio. The selection of songs is therefore limited. In the case of streaming services, I also have niche repertoire. In other words (please don’t quote me on the figures), I have a “heavy rotation” on the radio with about 50 songs per month, and 1,000 songs on Spotify.

Can I assume that a service such as YouTube pays out to a similar extent as Spotify?
In the case of YouTube, one question needs to be asked which is difficult to answer: What do the 12 to 15 percent relate to? Spotify has subscription fees while YouTube only has advertising income: Is it thus 12 to 15% of the advertising revenue which has been generated in a specific country for a specific video during a specific period of time? And if there is no advertising shown on the video, is there no money, irrespective of how many thousands of clicks are shown in total?

With YouTube, you have the additional problem that everyone can upload everything without having to supply any rights information. How can you find out what belongs to whom?
YouTube’s approach is automation. This works to some extent, but there are also blatant mistakes with regards to the allocations. For such data volumes, however, it is only possible to do so by way of automation. For a total control, you would have to be able to track all sound files.

Does this mean, the future must be the upload filter?
There’s a huge debate on this topic at EU level. So far, the “safe harbor” principle has been applied in the EU, which said: A Digital Service Provider (DSP) is not responsible for the contents which are uploaded to their platforms. The regulation stems from 2002 and was intended to promote the development of the online data exchange. YouTube did not exist in those days. YouTube could then benefit from this regulation even though masses of protected contents are distributed via YouTube. In the meantime, the protection of the author has been enjoying greater importance again. YouTube, however, threatens now to block contents arguing it would be too complicated to provide for a settlement of the rights in each case. That way, certain contents would no longer be available and this would be a grave restriction of freedom of opinion.

Are there any alternatives?
You could introduce a statutory compensation claim for authors, similar to blank media levies for private copies. This would mean: YouTube is allowed to distribute contents but YouTube would have to pay for it by law. In the case of the blank media levy, the argumentation used to be: You cannot control what someone records onto a music cassette, so a blanket solution is required and it could be that you pay a remuneration of e.g. 5 Rappen for each blank medium per hour in favour of the authors. Something like this would also be possible for online usages but it is a topic that is highly controversial.

Which solution would be better for the authors?
For authors of our scale, a blanket arrangement would be better, for bigger rights holders, the right of interdiction currently in force would be better. It gives them enough power to negotiate with YouTube or Google directly. Google cannot just ignore them. We, however, had to first become active ourselves in order to speak with YouTube about a licence. That was also a reason for our Joint Venture and our approach to expand the repertoire we represent.

How long does it take to negotiate an agreement with a platform of such a magnitude?
Since we have been part of the Joint License and have been processing via Mint, we could shorten the duration. Depending on the provider, it lasts between one and eight months. And if you want to renew an agreement, you are looking at four to five months.

What kind of strategy does SUISA pursue in cases where agreement negotiations with a provider fail?
In such a case – it is rather rare, because, among reasonable business partners, you do find a solution – we must fight in court to get the recognition and the adequate remuneration for the use of the rights of our members.

How many DSPs are there in total?
Actually, there are too many (laughs). There are dozens. Of course, you start with the most important ones, i.e. the biggest. There are about 15. But Mint is planning to expand into other territories. In India, for example, the two big telecoms companies are also important music providers which results in new and different constellations.

I am a cooperative member of SUISA, may I see such agreements?
No. A provider wants to prevent competitors seeing their contracts. That is why there is always a confidentiality clause. SUISA cooperative members do, however, see what they get in the end. If they do not like this situation, they can always assign their rights to someone else. I doubt very much that they will be given access to such contracts there. That is a result of the competitive market.

In December 2019, it became known that Gema has bought a majority stake in Zebralution GmbH, a digital distributor. What does this development mean for SUISA?
Gema tries this way to be increasingly active in the business with data for the works of its members. By cooperating with a digital distributor, Gema can succeed in providing its members with 360-degree-service, which does not just include the management of copyright but also neighbouring rights. SUISA is also going to consider what kind of steps are sensible for a rather comprehensive service to its members in the digital music distribution sector.

Züri West has earned money with “I schänke dir mis Härz”, whereas “079” by Lo & Leduc has yielded much less, even though it is at least as successful.
That may well be the case. This difference does not just apply to Lo & Leduc but for all, worldwide, because music consumption is different to what it was 15 years ago. That is why concerts have become more important and that is why the entire broadcasting sector is so important because we still have relatively stable conditions there …

But?
The problem is that more and more advertising is moving towards the internet. Licensing fees for broadcasting rights depend on the turnover of the broadcaster, and that turnover mainly comes from advertising. The income is falling drastically because advertising is shifting more and more towards the internet.

A similar scenario as we had it in the newspaper sector.
Exactly. This is hard to manage. The next online agreements will need to focus more on that. It is actually very fascinating. And of course we do not always succeed immediately, sometimes it takes tough negotiations and, if necessary, even legal proceedings. We also had this situation in the 70ies and 80ies when the task at hand was to collect remuneration for cable retransmission. New developments and types of services for music keep popping up. We need to keep an eye on them and it is our exciting and rewarding task to negotiate remunerations on behalf of our members.

To the first part of the interview: “Brave new world”

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Brave new worldBrave 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. Read more
The first year of SUISA Digital Licensing AGThe first year of SUISA Digital Licensing AG A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Read more
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  1. Rolf Hug says:

    Very interesting. Also to mention that the big publishing companies don’t play by the code of conduct and
    can get away with anything.

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Business in the online sector has been subject to constant change – not only for copyright societies. In the second part of the interview, SUISA CEO Andreas Wegelin reports on the status quo and provides an outlook on the scenarios that are being discussed. Interview by guest author Silvano Cerutti

Penny-pinching in digital music distribution

Music is now consumed rather differently to how it was consumed 15 years ago: From the turnover of the Digital Service Providers, about 12 to 15 percent are allocated to authors, which results in royalties at a micro-penny -level per play. (Photo: LikeBerry)

Andreas Wegelin, let’s talk about proportions and size ratios. Streaming service providers such as Spotify, for example, pay composers micro-penny -amounts per play. If you extrapolate this, what is the percentage of the turnover?
Andreas Wegelin: If you only consider authors’...read more

Summer meeting of the SUISA Board

As in previous years, the summer meeting of the SUISA Board took place on the day before the General Assembly, on Thursday, 20 June 2019, in Biel. Report from the Board by Andreas Wegelin

Summer meeting of the SUISA Board

The SUISA Board held its summer meeting the day before the General Assembly that took place at the Biel/Bienne Congress Centre, as shown in the image. (Photo: Natalie Schlumpf)

In addition to the usual final preparations for the General Assembly, the SUISA Board also noted the comprehensive report by the statutory auditors for the 2018 financial year. In general, the audit gave the management team a good report. However, it also suggested some improvements. The management team has now been tasked by the Board with actioning the proposed improvements.

The prospects for the Mint joint venture, which completed its second year of operation at the end of March 2019, was another important topic for discussion at the board meeting. The Board decided that, as the parent company of Mint, the SUISA cooperative shall provisionally waive the assertion of any claims for work and IT services provided in support of the joint venture company Mint, in the same way as the American partner SESAC.

The Board also addressed the issue of whether SUISA could offer services abroad in the future, in the event that the local collecting society is not working satisfactorily. It will decide in greater detail based on specific cases.

The first year of SUISA Digital Licensing AGThe first year of SUISA Digital Licensing AG
A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Read more

The Board was once again able to note pleasing distribution results. In June 2019, beneficiaries in Switzerland and abroad received CHF 43.7 million.

Finally, the Board approved changes to the distribution rules and several adjustments to the General terms and conditions of the rights administration agreement, made necessary by the Liechtenstein collecting society regulation and the EU directive on collecting societies. The updated General terms and conditions for rights administration will be supplied to all members shortly. The changes to the distribution rules will be presented via the SUISA publishing channels once they have been approved by the regulatory authority.

After the meetings, the Board members met with heads of department and managers for an evening meal, providing the opportunity for discussion and for getting to know some new senior managers.

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As in previous years, the summer meeting of the SUISA Board took place on the day before the General Assembly, on Thursday, 20 June 2019, in Biel. Report from the Board by Andreas Wegelin

Summer meeting of the SUISA Board

The SUISA Board held its summer meeting the day before the General Assembly that took place at the Biel/Bienne Congress Centre, as shown in the image. (Photo: Natalie Schlumpf)

In addition to the usual final preparations for the General Assembly, the SUISA Board also noted the comprehensive report by the statutory auditors for the 2018 financial year. In general, the audit gave the management team a good report. However, it also suggested some improvements. The management team has now been tasked by the Board with actioning the proposed improvements.

The prospects for the Mint joint venture, which completed its second...read more

Overall, a positive financial year 2018

The SUISA Board and its Committees for Tariffs and Distribution as well as for Organisation and Communication met for their regular spring sessions on 9 and 10 April 2019 at the SUISA head office in Zurich. Report from the Board by Andreas Wegelin

Report from the Board: Overall, a positive financial year 2018

Apart from the Cooperative Society SUISA, there is now also a SUISA group, which includes the subsidiary company SUISA Digital Licensing and the 50% holding in the Joint Venture Mint Digital Services AG. (Photo: Natalie Schlumpf)

The most important topic during the spring meeting are traditionally the resolutions concerning the financial statements of the past year for submission to the General Assembly. SUISA publishes two financial statements in accordance with the Standard Swiss GAAP FER from this year onwards, one for the parent company, the Cooperative Society SUISA, and one consolidated financial statement for the SUISA group. The group comprises the subsidiary company SUISA Digital Licensing with headquarters in Vaduz (FL) and the 50% holding in the company Mint Digital Services AG, Zurich, a Joint Venture by SUISA and the American organisation for music rights, SESAC.

The annual financial statements of the group as well as of the parent company show an overall positive picture. Total collections reached a new high of CHF 160.8m. Income from the licensing of the online music business surpassed CHF 10m for the first time and contributed to this result.

Unfortunately, the secondary income was much lower last year. The reason for this is the bad investment year. Securities income only reached CHF 0.6m in 2018. In 2017, this amount still stood at CHF 3m. As a consequence, this difference now lacks in terms of covering expenditure for 2018. Nevertheless, cost coverage deductions taken from the settlements to members should not increase. The Board therefore decided to use more money from the liabilities that became available for the financing of the costs, and has subsequently reduced the supplementary distribution from 7% to 5%.

Preparations for the General Assembly

Additional topics were the preparation of other business for the General Assembly: the analysis of the organisation’s risks, the resulting management report and the approval of the entire annual report for submission to the GA. Lastly, nominations for two retiring Board members had to be decided upon, and documents relating to the investment policy and the compensation of Board members that had become necessary due to the new Articles of Association had to be resolved.

The Board took notice that Executive Committee was making efforts and got involved with the relevant departments to collect remuneration from abroad. In this context, it is important to take into consideration that the laws, tariffs and distribution rules are different at our sister societies and that SUISA cannot be held responsible for that. The Board therefore rejected the claim for a settlement of a member which held the view that it had not received enough remuneration for usages abroad.

Finally, the Board had to say farewell to executive assistant Dora Zeller, who is going to leave SUISA in order to retire. President Xavier Dayer expressed his thanks in the name of the entire Board for the turntable-like function that Dora Zeller had mastered with distinction throughout the last 10 years, and wished her well for the next, ‘third’ phase in her life.

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The SUISA Board and its Committees for Tariffs and Distribution as well as for Organisation and Communication met for their regular spring sessions on 9 and 10 April 2019 at the SUISA head office in Zurich. Report from the Board by Andreas Wegelin

Report from the Board: Overall, a positive financial year 2018

Apart from the Cooperative Society SUISA, there is now also a SUISA group, which includes the subsidiary company SUISA Digital Licensing and the 50% holding in the Joint Venture Mint Digital Services AG. (Photo: Natalie Schlumpf)

The most important topic during the spring meeting are traditionally the resolutions concerning the financial statements of the past year for submission to the General Assembly. SUISA publishes two financial statements in accordance with the Standard Swiss GAAP FER from this year onwards, one for the parent company, the Cooperative Society SUISA, and one...read more

The first year of SUISA Digital Licensing AG

A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Text by Fabian Niggemeier

The first year of SUISA Digital Licensing AG

The first business year of SUISA Digital Licensing AG was influenced by negotiations with many music service providers, successfully and jointly held with the SESAC Digital Licensing AG. (Photo: MichaelJayBerlin / Shutterstock.com)

By launching the subsidiary company, in short SUISA Digital, SUISA has outsourced cross-border and international online licensing in its entirety. SUISA is, from now, only responsible for the licensing of music uses on homepages and music services which only address a Swiss audience.

SUISA Digital’s responsibilities

SUISA has, for nearly six years, issued pan-European licences for online uses. In other words, the rights of SUISA members in the online world are not granted just for Switzerland, but directly for the whole of Europe. Thanks to the outstanding IT systems in this sector, SUISA was able to significantly increase the income of its members.

Another step followed in 2017: SUISA founded the Joint Venture, Mint Digital Services, with US collective management organisation SESAC. Until then, SUISA negotiated agreements with internet music providers (music service providers, abbreviated to MSPs) and managed the agreements itself upon their conclusion. With the creation of the Joint Venture, these two fundamental activities were split and outsourced. Mint Digital Services is responsible for the administration of the agreements i.e. the technical processing and invoicing in the name of the rights holders, whereas SUISA Digital is responsible for market monitoring, market penetration and the negotiation of the agreements. By way of another new introduction, the territory where the agreements apply was extended from Europe to nearly the whole world.

SUISA Digital is thus building a global licensing system and also offers this system to third parties. Collective management organisations from other countries can instruct SUISA Digital just like publishers can (for their Anglo-American repertoire), or authors from all over the world. That way, a cost-efficient management of rights can be ensured in the best possible manner.

Joint licences

SUISA Digital does not pursue this task by itself. It is in the interest of the rights holders as well as the MSPs to structure the negotiations in as efficient a manner as possible. That means to cover and govern as many rights as possible with as few agreements as possible. For this reason, SUISA Digital offers all MSPs to extend their agreements to the repertoire of SESAC Digital Licensing AG (in short: SESAC Digital). Provided that the MSP agrees, SUISA Digital and SESAC Digital jointly lead the negotiations and bundle their repertoire into a joint licence.

This is in the interest of the MSPs since it means they have to undertake less negotiation efforts, but also in the interest of SUISA Digital and SESAC Digital since a highly interesting “package” can be offered to the providers by joining up the repertoires. The advantage of this package is also that it does not just contain compositions which are used in Switzerland or Europe but also create a high demand globally.

The negotiations

At the end of 2017, a small but motivated team only focussed on preparing the negotiations. A multitude of information and figures had to be gathered and linked. Designing the agreement for areas outside Switzerland and Europe presented some challenges to the negotiation team. The parties agreed that the price of music should be linked mainly to the local significance of the music and the local buying power. It can thus be ensured that an adequate remuneration can be invoiced which remains affordable to the consumers.

Economic deliberations also made it clear that the big MSPs had to be approached first. The six biggest providers are responsible for 80% of the turnover. This statistical average does, of course, not apply for the music of all members: Those who are active in a specific music genre will at best have a bigger turnover on the platforms that focus specially on that genre. It was nevertheless paramount to prioritise the providers in line with their market share; knowing that certain big providers would be among the negotiation partners that would be harder to deal with.

Involving a mix of consistency, comprehension and rigour it was possible to make good progress in the negotiations. After twelve months, agreements could be entered into with all big MSPs or the negotiations are close to being concluded. Since these agreements are now ‘safe’, the next task is to complete the market penetration.

Until now, agreements with the following providers were jointly entered into with SESAC Digital:
YouTube, Spotify, Apple Music, Apple iTunes, Google Play, Deezer, Beatport, Facebook, Soundcloud, Melody VR, and Qobuz.

Joint negotiations are underway with the following providers:
Amazon, Napster, Tidal, Juke, 7Digital, dailymotion, Mixcloud, Red Karaoke, Soundtrack your Brand, What people play, Anghami, Auro, Bleep, Emoticast, Idagio, Smule, Xtendamix, Yousician, Better Day Wireless, DJ City, Juno, Linn Record, Musically, Recisio und Radionomy.

Add to that another approximately 20 MSPs from which feedback is due, as well as about 10 MSPs which are only active on a national level in the selected territories.

Distribution

As mentioned at the outset, the relevant agreements are processed and administered by the Joint Venture Mint Digital Services. The distribution of the income is, however, done by SUISA Digital and SUISA. A minimum of six months lies between the usage period and the distribution. The reason for this is that we do not represent the global repertoire, compared to the traditional offline sector. We can thus not invoice everything and then distribute, but only what we identify.

In this context, we depend on the collaboration by our members: The quicker they notify us of their works, the faster we can generate the invoices. For this reason, we are waiting between 60 and 100 days before we process the reports, depending on the MSP. That way, we can ensure that the majority of the new works and thus works with the highest usage levels has been registered and can be distributed by us. The distribution of the income is then made, at the latest, in the quarter after the payment from the MSPs has reached us.

There are going to be bigger settlements in due course. Since all agreements had to be renegotiated, no invoices could be sent out during the ongoing negotiations. In the cases of Spotify or Deezer, this led to the fact that the uses of the entire year 2018 were only invoiced at the beginning of 2019.

Outlook

During the second business year, SUISA Digital is going to focus firstly on achieving a coverage of the internet music market which is as complete as possible. Secondly, it is paramount that new markets, also outside of Europe, will be opened up and to ensure that SUISA members receive the remuneration they are due from anywhere in the world. For this purpose, we are constantly collaborating with Mint to improve systems and processes in order to continue providing our members with the best possible services in future.

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  1. Walter Thut says:

    Guten Tag,
    einen Fall welcher mich und andere von der SUISA vertretene Komponisten betrifft, und die oben genannten Zeitverschiebungen bei den Abrechnungungen fuer Urheber stark in Frage stellt, moechte ich gerne hier beschreiben:

    Die Urheber des bei dere SUISA angemeldeten Songs BACK TO THE DIRTY TOWN haben viele Millionen Clicks uf Youtube, und viele Screenshots Belege dass dieser Song seit 2017 z.B. in der Schweiz, Frankreich und den USA dauernd Webungen vorgeschaltet hat.

    Leider haben die Urherber von der SUISA noch keine einzige Ueberweisung erhalten. Obwohl die SUISA uns vor mehr als einem Jahr bestatigt hat, dass sie cies Clicks auch erfasst haben, und dass wir Verguetungen von der SUISA bis spaetestens Ende 2018 bekommen werden, haben wir noch keine einzige Abrechung dazu, und keinen einzigen Rappen ueberwiesen erhalten.

    Bei unserem digitalen Vertrieb funktioniert hingegen die Abrechnung sehr gut, und liegt bei mehreren Tausend CHF pro Jahr.

    Was stimmt hier nicht?

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A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Text by Fabian Niggemeier

The first year of SUISA Digital Licensing AG

The first business year of SUISA Digital Licensing AG was influenced by negotiations with many music service providers, successfully and jointly held with the SESAC Digital Licensing AG. (Photo: MichaelJayBerlin / Shutterstock.com)

By launching the subsidiary company, in short SUISA Digital, SUISA has outsourced cross-border and international online licensing in its entirety. SUISA is, from now, only responsible for the licensing of music uses on homepages and music services which only address a...read more

131.4m Swiss Francs for composers, lyricists and publishers

It was with satisfaction that members of the SUISA Board approved the results of the previous year during their meeting at the end of March 2017. The total turnover was 3.2% higher than that of the previous year. An overall amount of CHF 131.4m can be paid out to rights holders. The Board has, in addition, decided that a supplementary distribution of 7% shall be carried out on top of all regular distributions in 2018. Report from the Board by Dora Zeller

131.4m Swiss Francs for composers, lyricists and publishers

SUISA managed to yield a total turnover of CHF 159.2m in 2017, including secondary income. Due to the positive outcome, composers, lyricists and publishers receive CHF 2.5m more in royalties for their artistic performances than in the previous year. (Photo: Tabea Hüberli)

Apart from the delightful business result, the Board also received reports on the distribution of the collections of the last year in its meetings in March. As such, CHF 21m were paid to authors and CHF 38.7m to publishers. Transfers to sister societies amounted to CHF 53m.

Further distribution topics featured on the agenda: On the one hand, the Board decided that a supplementary distribution of 7% shall be carried out on top of all regular distributions in 2018. On the other hand, the governing body determined a minimum amount for the distribution of the collections from exploitations by broadcasters. Pursuant to the distribution rules, the distribution per private broadcaster follows the ratio of the licence fee that these broadcasters pay. The prerequisite for this is that the licence fee collected from the broadcaster must be higher than the amount determined by the Board each year. Furthermore, the station logs must be submitted electronically. Last year, the Board had lowered the minimum amount from CHF 15,000 to CHF 5,000. The Board took the decision to maintain this threshold.

General Assembly of SUISA on 22 June 2018 in Berne

The Board members also dedicate a lot of time to the preparation of the General Assembly. It takes place on Friday, 22 June 2018, in Berne. Apart from statutory business, the revision of the Articles of Association is an item on the agenda for the GA. The Articles of Association shall be adapted to the provisions of the EU Directive, which have been implemented into national law in Liechtenstein. Furthermore, such an adaptation is important so that SUISA can continue to carry out cross-border licensing of online usages within the European Union.

A synoptic representation of the changes to the Articles of Association will be posted to the members who are entitled to vote together with the invitation for the GA. The notes to the invitation include further details on the reasons for the intended changes to the provisions. One important issue is the duty to provide members with a complaints procedure. SUISA therefore plans to set up a Complaints Committee. The Board will propose the designated persons to the General Assembly for election.

Further elections are due for the Distribution and Works Committee. Guido Röösli retires and the Board has nominated Natalie Riede for the seat that has become available. She is a young publisher and represents the Swiss electronic music scene.

Mint Digital Services, the joint venture

The Board turned to the international stage with regards to the subject Mint Digital Services. A representative of US partner SESAC explained to Board members what it would take – in his opinion – to be successful in a competitive environment: Tenacity and negotiating skills, paired with intelligent IT software and high data quality are, from his point of view, the necessary tools. These qualities are combined under the joint venture Mint which was launched last year.

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It was with satisfaction that members of the SUISA Board approved the results of the previous year during their meeting at the end of March 2017. The total turnover was 3.2% higher than that of the previous year. An overall amount of CHF 131.4m can be paid out to rights holders. The Board has, in addition, decided that a supplementary distribution of 7% shall be carried out on top of all regular distributions in 2018. Report from the Board by Dora Zeller

131.4m Swiss Francs for composers, lyricists and publishers

SUISA managed to yield a total turnover of CHF 159.2m in 2017, including secondary income. Due to the positive outcome, composers, lyricists and publishers receive CHF 2.5m more in royalties for their artistic performances than in the previous year. (Photo: Tabea Hüberli)

Apart from the delightful business result, the Board also...read more

To be continued: Our success story, spanning more than 90 years

The General Assembly of our Cooperative Society will take place on Friday, 23 June 2017, in Zurich. Members will have the opportunity during the General Assembly to co-determine the destiny of their cooperative society. Apart from the positive results of the annual accounts for 2016, SUISA is also going to report on the Joint Venture Mint Digital Services, co-founded with SESAC, plus on the developments regarding the copyright revision and the debate on the ‘service public’. By Andreas Wegelin, CEO

To be continued: Our success story, spanning more than 90 years

SUISA founded the Joint Venture Mint Digital Services together with US authors’ society SESAC. The project helps improve the competitiveness of SUISA in the online music market. Shown in the picture: Andreas Wegelin, SUISA CEO (on the left), and John Josephson, Chairman and CEO of SESAC Holding. (Photo: Hannah McKay)

SUISA can look back on a successful financial year 2016. Thanks to the positive year-end result, we are able to pay out more than CHF 128m to those who are entitled to receive a payment. That is more than ever before in the successful history of the Cooperative Society SUISA, spanning more than 90 years.

We are also doing well in terms of our costs. An average cost coverage deduction of 12.37% shows that we have the costs under control. If you take the reoccurring supplementary distribution of 7% into consideration as a contribution to the costs, the actual percentage amounts to 6.75% of the pay-outs to those entitled to receive a payment.

SUISA improves its competitiveness in the online market

Members will have the opportunity during the General Assembly to co-determine the destiny of their cooperative society. Apart from the positive annual accounts, we are also going to present the newly founded project for the improvement of SUISA’s international competitiveness in the online music market.

Together with the US authors’ society SESAC, we have founded Mint Digital Services as a Joint Venture back in February 2017. The JV enterprise offers services in relation to the administration and processing of online music licences. With this JV, we emphasise our strategic direction, i.e. to offer rightsholders an efficient and cost-effective administration.

Wanted: Active participation of our cooperative members

There will also be news on the legal framework conditions. AGUR12 II has passed a compromise for the attention of the Head of the Ministry in the EJPD (Federal Department of Justice and Police, FDJP); we are now waiting for it to be substantiated in a legislative draft.

Please do take part in our General Assembly. Only your active participation ensures that SUISA will be there for its members as a Cooperative Society in future.

See you on 23 June 2017 in the Kaufleuten Zurich.

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The General Assembly of our Cooperative Society will take place on Friday, 23 June 2017, in Zurich. Members will have the opportunity during the General Assembly to co-determine the destiny of their cooperative society. Apart from the positive results of the annual accounts for 2016, SUISA is also going to report on the Joint Venture Mint Digital Services, co-founded with SESAC, plus on the developments regarding the copyright revision and the debate on the ‘service public’. By Andreas Wegelin, CEO

To be continued: Our success story, spanning more than 90 years

SUISA founded the Joint Venture Mint Digital Services together with US authors’ society SESAC. The project helps improve the competitiveness of SUISA in the online music market. Shown in the picture: Andreas Wegelin, SUISA CEO (on the left), and John Josephson, Chairman and CEO of SESAC Holding. (Photo: Hannah McKay)

SUISA can look...read more

Meeting of the SUISA Board – April 2017

During its spring meeting, the SUISA Board dealt with the financial results of the previous year. It approved SUISA’s annual accounts for 2016 as well as those of the Pension Fund for Authors and Publishers. Items on the agenda included the ratification of the 2016 annual report as well as the preparation of individual business items for the General Assembly on 23 June 2017 in Zurich. SUISA’s international involvement emerged during the discussion on the pricing of IPI subscriptions. Report from the Board by Dora Zeller

Meeting of the SUISA Board - April 2017

An important agenda item of the Board’s spring meeting: Preparations for the General Assembly where SUISA members can co-determine the future of their Cooperative Society. (Photo: Manu Leuenberger)

SUISA’s annual statements for 2016 reflect a pleasant result for music authors and publishers: Income from Swiss sources reached new record levels (CHF 136.1m). Total turnover therefore was the highest in the Cooperative Society’s history (CHF 154.3m). The amount which is due for distribution to the rightsholders rose to CHF 128.9m (previous year: CHF 125m).

Annual accounts 2016 of the Pension Fund

The Board members jointly make up the Pension Board of the Pension Fund for Authors and Publishers (UVF). In that capacity, they examined and approved the returns of the UVF Fund. The fund assets have increased. Before it is possible to hold a discussion on how to adjust the insurance benefits, it was decided to wait for the impact of the revised Pension Fund Regulations on the annual accounts 2017 (please also refer to the article “New Pension Fund Regulations in force from 01 January 2017” on the SUISAblog).

SUISA General Assembly 2017 on 23 June in Zurich

This year’s ordinary General Assembly of SUISA shall take place on Friday, 23 June 2017 in the Kaufleuten Festsaal in Zurich. Doors will open at 9.45 am. The meeting will begin at 11.00 am.

During the first part of the GA, mandatory statutory business items will be dealt with. In the second part of the assembly, the following current topics shall be discussed:

SRG & “Service Public”

The term “Service Public” comprises the mission of SRG (Swiss Broadcasting Corporation)  and private broadcasters financed by fees collected by Billag for radio and TV reception. It is perceived as a comprehensive service for society, covering the relevant requirements relating to education, culture and entertainment of the population. The “No-Billag initiative” challenges the “Service Public”. It does not – as the name might suggest – intend to abolish Billag. Its aim is much more to stop the public service financing of broadcasts. SRG and Swiss private broadcasters would be affected since they receive monies from the fees collected by Billag for radio and TV reception. The Council of States has rejected the initiative in its spring session. It is expected that the topic will be tabled for discussion before the National Council in autumn.

Another approach demands that SRG shall renounce on all radio channels which are not part of the “Service Public” mission. The following so-called special category channels would be affected: Radio Swiss Pop/Classic/Jazz, Radio SRF Virus, Radio SRF Musikwelle, and Radio RTS Option Musique would fall silent. Swiss music is often played in the programmes of these special category channels. If these channels were to be abolished, a lot of airtime for music by SUISA members would be lost.

Géraldine Savary, Ständerätin (federal councillor) and SUISA Board member, is going to comment on the political debates in relation to the “Service Public”.

SUISA prepares for the future

SUISA has founded the Joint Venture Mint Digital Services together with US collective management organisation SESAC ((2)). The JV will take on the invoicing and administration of the online licensing activities of SESAC and SUISA and offer its services also to publishers and collective management organisations. One major publisher, Warner/Chappell, has already signed up to the service range offered by Mint Digital Services. Andreas Wegelin is going to report on this important step for the future and the consequences for SUISA and its members.

IPI system: What may it cost?

SUISA has been supplying CISAC societies with the electronic world repository for authors/publishers since 1969. The technical infrastructure of the Interested Parties Information (IPI) system belongs to SUISA. SUISA issues an invoice to collective management organisations which are using the system for the service provided to them by SUISA each year.

The IPI system forms a part of CISAC’s IT tools. The CISAC administrative council has audited the costs of the IT tools. Of all these systems, the IPI has been the most expensive in 2014. Subscription fees for the IPI system had already been lowered at a previous stage. Nevertheless, the management board of the international umbrella organisation demands that the subscription fees are adjusted downwards. Otherwise, it is said, a competitive system will be launched.

The Board members have deliberated on the room for manoeuvring between fair, cost-covering subscription fees and the intention of SUISA to continue operating IPI at a continued high quality standard. The value of the system depends on all collective management organisations entering their data into this one system so that it shall be and remain the one reliable global identification system for authors and rightsholders.

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During its spring meeting, the SUISA Board dealt with the financial results of the previous year. It approved SUISA’s annual accounts for 2016 as well as those of the Pension Fund for Authors and Publishers. Items on the agenda included the ratification of the 2016 annual report as well as the preparation of individual business items for the General Assembly on 23 June 2017 in Zurich. SUISA’s international involvement emerged during the discussion on the pricing of IPI subscriptions. Report from the Board by Dora Zeller

Meeting of the SUISA Board - April 2017

An important agenda item of the Board’s spring meeting: Preparations for the General Assembly where SUISA members can co-determine the future of their Cooperative Society. (Photo: Manu Leuenberger)

SUISA’s annual statements for 2016 reflect a pleasant result for music authors and publishers: Income from Swiss sources reached new...read more

Mint Digital Services: FAQs

SUISA and SESAC, a US collective management organisation, have established Mint Digital Services as a joint venture. Mint Digital Services will take over the invoicing and administration services for SESAC and SUISA’s online licensing activities. The joint venture will also offer services to publishers and collective management organisations. Warner/Chappel Music, a major publisher, is already using Mint’s services. Here the main FAQs: By Fabian Niggemeier, Martin Korrodi, Sebastian Spring and Erika Weibel

Mint Digital Services: FAQs

Through Mint Digital Services, SUISA is relying on its high-performance, state-of-the-art IT infrastructure to develop new business. (Graphics: Hej – Büro für Strategie und Gestaltung in Kultur und Wirtschaft, Zurich)

What is Mint Digital Services?
Mint Digital Services is a joint venture established by SUISA and SESAC, a US music rights organisation. Mint Digital Services offers administration services for multi-territorial online music licensing. Essentially, its services involve processing usage reports for online platforms, identifying represented repertoires, and invoicing.

The purpose of Mint Digital Services is on the one hand to streamline online licensing of SESAC and SUISA’s own repertoires. On the other, the joint venture intends to offer its services to large music publishers and, in due course, to other collective management organisations.

What were the reasons underlying SESAC and SUISA’s decision to establish Mint Digital Services?
There were three main reasons:

  1. Through Mint Digital Services, SUISA can turn to account its high-performance IT infrastructure for the development of new business areas.
  2. The joint venture will enable SUISA to fully exploit the capacity of its existing IT infrastructure. So far, SUISA’s extensive investment in its online licensing and distribution activities has only served its own repertoire. With little additional cost, Mint Digital Services can take on the invoicing and administration of SESAC’s repertoire and those of other publishers – at a later date perhaps even for other collective management organisations.
  3. SUISA is equipping itself for the future. In coming years, collective management organisations will see their monopolies challenged. The rule that only one society should be responsible for licensing the world repertoire in its own country is gradually eroding. The trend towards direct licensing – in other words, multi-territorial licensing of (solely) own repertoire – is progressing even outside the online sector.

Should members apply to Mint for online uses of their works?
No. Nothing will change for SUISA members. SUISA remains the contact for members and will continue to issue their settlement statements. Mint Digital Services simply provides services to SUISA.

Developing a new company costs money. Will members now receive lower settlements owing to higher cost-coverage deductions by SUISA?
No. The greater part of the investment was already made in recent years since SUISA has regularly upgraded its IT – regardless of the joint venture. The cost of developing the new company is therefore relatively low, and the business plan shows that the investment can be fully depreciated in a few years.

Can members expect to receive more money, more quickly for uses in the USA thanks to the partnership with SESAC?
The partnership with SESAC will have no effect on settlement flows from the USA. The joint venture only concerns online uses outside the USA. SUISA will continue to use its best efforts to improve payments from the USA and other countries. However, SUISA has only limited influence on the practice of the foreign sister societies.

Warner is a customer of Mint Digital Services. Does that mean that SUISA will henceforth focus on the majors to the detriment of the needs of its members?
No. Warner is Mint’s customer – not SUISA’s. Moreover, SUISA strives to be as customer-oriented as possible, regardless whether it is dealing with a major, an independent or an author.

Will Mint Digital Services be responsible for licensing the online repertoire?
No. The joint venture will only provide administration and invoicing services. SESAC and SUISA will establish two separate companies in the coming weeks to handle the licensing of their repertoires. Mint SESAC Licensing, a subsidiary of SESAC, and Mint SUISA Licensing, a subsidiary of SUISA. The two companies will be responsible for the separate online licensing of their respective rights, and for the performing rights of most Anglo-American companies.

Can SUISA now negotiate better terms and conditions with online platforms?
We may be able to negotiate better contracts with certain online platforms. But it is up to the platforms themselves to decide whether they want to negotiate with the SUISA and SESAC licensing entities individually or jointly. If they decide in favour of joint negotiations, Mint SUISA Licensing may be able to profit from the larger SESAC repertoire in order to obtain better terms and conditions.

SUISA regularly renegotiates its contracts with online platforms with a view to securing the best possible terms and conditions for authors and publishers; Mint SUISA Licensing will do the same.

Press release: “SUISA and SESAC Launch Mint Digital Services and Join Forces with Warner/Chappell Music as its First Client”
For more information about Mint visit the website of the joint venture: www.mintservices.com

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Sustainable growth for members Cooperative societies excel by their solid economic activities. This is also true for SUISA. The cooperative society for composers, lyricists and publishers of music has slightly increased its income in 2015. SUISA pays out approx. 88% of its income to the rightsholders. That’s a total of CHF 125m. The cooperative society thus makes a substantial contribution to the financial livelihood of its members. Below is an analysis of the annual result. Read more
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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.

SUISA and SESAC, a US collective management organisation, have established Mint Digital Services as a joint venture. Mint Digital Services will take over the invoicing and administration services for SESAC and SUISA’s online licensing activities. The joint venture will also offer services to publishers and collective management organisations. Warner/Chappel Music, a major publisher, is already using Mint’s services. Here the main FAQs: By Fabian Niggemeier, Martin Korrodi, Sebastian Spring and Erika Weibel

Mint Digital Services: FAQs

Through Mint Digital Services, SUISA is relying on its high-performance, state-of-the-art IT infrastructure to develop new business. (Graphics: Hej – Büro für Strategie und Gestaltung in Kultur und Wirtschaft, Zurich)

What is Mint Digital Services?
Mint Digital Services is a joint venture established by SUISA and SESAC, a US music rights organisation. Mint Digital Services offers administration services for multi-territorial online music...read more

The fight for the copyright review gets tougher

Dear members, the Swiss Federal Council launched the consultation for a draft to review copyright in December 2015. The draft followed the recommendations by AGUR12. However, further proposals were added from the administration and as a result of parliamentary initiatives. By Vincent Salvadé, Deputy CEO

The fight for the copyright review gets tougher

SUISA continues the fight for copyright and is getting ready for the digital future at the same time: Together with the US-American collective management organisation, SESAC, it founded Mint Digital Licensing, a joint venture issuing online licences. (Photo: ScandinavianStock / Shutterstock)

The draft was welcomed with keen interest, reflected by as many as 1,224 statements submitted during the consultation process. Unfortunately, they highlighted the fundamental differences in opinion. Something that had been expected: There are inherent risks when moving away from the compromise of the AGUR 12 (a working group on copyright that had been set up by Federal Councillor Simonetta Sommaruga in 2012) in the context of an issue as disputed as copyright.

Copyright review: The devil is in the detail

At the end of 2016, Ms Sommaruga asked the same working group to transfer their suggestions into legislative provisions and, where necessary, submit further compromise proposals. It probably was the best that could have been done, even though another option could have been to instruct an expert committee with such editorial tasks: As we all know, the devil is in the detail …

Furthermore, a neutral expert committee could have increased the legitimacy of the proposals of AGUR12. But SUISA which is represented in the working group, will join into this second round.

Cooperation with the American organisation SESAC

Given the circumstances, the plan of a stricter Federal supervision on collective management organisations is not likely to be pursued further. This is good news. After all, the future is digital, and the rights management for online usages of music follows competition rules at the instigation of the European Union.

SUISA takes the new circumstances into account and has created a joint venture, Mint Digital Licensing, together with the American organisation SESAC. Yes, dear members, your eyes didn’t deceive you: The rightsholders in the USA are interested in SUISA’s know-how and the technology so that they can manage their rights in Europe! This implies investments, innovative spirit, additional responsibility and all the risks that a free market entails. Any interference by the government would not have been appropriate in this context.

Yet, the fight for the copyright review can be expected to get tougher. We will have to prove to the market and to consumers that collective management organisations do not just claim money from them. We must show that we create the necessary legal certainty by enabling them to acquire the rights in a simple process and at a fair price for all. The fight has not been won yet – but it’s worth being fought!

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Sustainable growth for members Cooperative societies excel by their solid economic activities. This is also true for SUISA. The cooperative society for composers, lyricists and publishers of music has slightly increased its income in 2015. SUISA pays out approx. 88% of its income to the rightsholders. That’s a total of CHF 125m. The cooperative society thus makes a substantial contribution to the financial livelihood of its members. Below is an analysis of the annual result. Read more
Right in the middle of it and in full swing to improve the service range offered to members – A glance on the service range offered by SUISA for its members shows: During the last few years, there have been innovations which brought about more efficiency and quality. Among these are more detailed settlement statements, the web portal “my account” and the digitisation of member files. These improvements signify a continu-ous process with SUISA right in the middle of it – and in full swing at it, as the follow-ing outlook shows: New: quarterly distributions. “My account” is undergoing further development. We are modernising the technology of our works database. Our member services are also subjected to a fundamental review. Read more
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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.

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Dear members, the Swiss Federal Council launched the consultation for a draft to review copyright in December 2015. The draft followed the recommendations by AGUR12. However, further proposals were added from the administration and as a result of parliamentary initiatives. By Vincent Salvadé, Deputy CEO

The fight for the copyright review gets tougher

SUISA continues the fight for copyright and is getting ready for the digital future at the same time: Together with the US-American collective management organisation, SESAC, it founded Mint Digital Licensing, a joint venture issuing online licences. (Photo: ScandinavianStock / Shutterstock)

The draft was welcomed with keen interest, reflected by as many as 1,224 statements submitted during the consultation process. Unfortunately, they highlighted the fundamental differences in opinion. Something that had been expected: There are inherent risks when moving away from the compromise of the AGUR 12 (a...read more