Tag Archives: Online licensing

From the 2021 Annual Report: From law-making to implementation

The «Regulations» division is responsible for SUISA’s legal affairs. This starts with its involvement in political law-making activities, runs through tariff negotiations and drafting the distribution rules, and ends with the implementation of rules and regulations in case of disputes. In 2021, the division dealt with a number of key issues. Text by Vincent Salvadé

From the 2021 Annual Report

The 2021 Annual Report contains all the relevant figures and information relating to the previous financial year at SUISA (cooperative and group). (Photo: SUISA)

1. Legislation

In last year’s Annual Report, we mentioned the initiative of National Councillor Philippe Nantermod demanding an exception to copyright law for protected works used in hotel rooms and similar facilities. This parliamentary initiative was revisiting a provision that the National Council and the Council of States had rejected in September 2019 as part of the revision of the Copyright Act. On 3 March 2021, the National Council accepted the parliamentary initiative. For us, that was inadmissible. There was no good reason to revise the Copyright Act after such a short time, especially since it was the fruit of a compromise. Cultural circles had made significant concessions to reach a solution. They would have been cheated if certain elements were to have been changed unilaterally. Moreover, the initiative was inconsistent with international law. As a result, either Switzerland would have been exposed to economic sanctions, or, to avoid violating international agreements, it would have had to apply the exception only to the works and performances of Swiss nationals. That would have blatantly discriminated against Swiss artists compared with those of other countries. Fortunately, the initiative was rejected by the Council of States in early March 2022, and the matter was definitively shelved.

The revision of the Swiss Code of Civil Procedure also kept us busy. For a while, it seemed that conciliation would be made mandatory before any legal action could be brought to enforce royalty payments of less than CHF 30,000. During legal proceedings, it is often worthwhile to seek an arrangement. However, collective management organisations must respect the principle of equal treatment, and their tariffs are binding. It follows that they have limited leeway for proposing or accepting out-of-court settlements. Under the circumstances, we argued in favour of a voluntary conciliation procedure which would avoid unnecessary costs when an out-of-court arrangement appears to be out of reach. The matter seems to be on the right track, although the revision of the Code of Civil Procedure is yet to be completed as this report goes to press.

Just before Christmas, the Federal Council published a report in response to a motion requesting an evaluation of the effectiveness of the revised Copyright Act (which came into force on 1 April 2020). On the whole, the Government is relatively positive. It noted that the anti-piracy measures seemed to have had a dissuasive effect and that there was less criticism from rightholders. On the other hand, the Federal Council was more reserved about the new extended collective licence model: the latter should enable collective management organisations to issue global licences for an entire repertoire (even on behalf of rightsholders that they do not represent contractually) but was still to realise its full potential. In this context, we welcome Switzerland’s intention to follow the international talks: regulation at international level will be necessary to ensure that the extended collective licence is also used in multi-territorial operations.

2. Tariffs

In terms of tariff negotiations, we concluded two significant agreements in 2021.

The first was an agreement with our international partners on a new Tariff 4i regulating private copying on digital storage media. This agreement extends the levy scheme to include laptops and external hard drives. The new tariff is currently before the Federal Arbitration Commission for approval and is expected to enter into force on 1 July 2022. This will significantly increase our revenues from the blank media levy. Moreover, in 2022 we will pursue talks on a new tariff for private copying on the Cloud (i.e. on remote servers). The talks had been suspended in autumn 2021 pending a decision by the European Court of Justice on a similar levy scheme applied in Austria. The ECJ handed down a ruling favourable to rightholders at the end of March 2022.

In 2021, in a different context, we finalised negotiations on a new Common Tariff Z regulating circuses. The objective had been to achieve a better delimitation between this tariff and Common Tariff K which regulates concerts and certain other types of shows. Henceforth, Common Tariff Z, with more advantageous rates, will apply only to certain well-defined shows. The Federal Arbitation Commission approved the new tariff on 8 November 2021.

3. Distribution Rules

In spring 2021, the amendments to the Distribution Rules decided by SUISA’s Board at the end of 2020 were all approved by the Federal Institute of Intellectual Property (IPI). The new distribution system for private copies was implemented for the first time in September 2021.

Moreover, SUISA’s Board adopted three amendments to the Distribution Rules concerning online rights. The first applies to situations where an online platform does not report sufficient information on the works it uses: in this case, distribution is made based on the information obtained from other platforms using a similar repertoire. The second amendment concerns «residuals», namely the amounts paid by online providers «in final settlement» for works that have not been claimed by any rights management organisation. As of the end of 2021, these residuals are distributed to entitled parties in the form of supplemental payments on their settlements for current uses. The third and last amendment concerns «Play Suisse», the video on demand (VoD) platform of the SRG-SSR (Swiss Broadcasting Corporation). The Board decided that a portion of the amounts paid by the SRG-SSR under Tariff A would henceforth be allocated to distribution category 22S covering VoD. This portion is calculated based on the share of costs invested in «Play Suisse» as against SRG-SSR’s total costs.

This third amendment still requires IPI approval. The latter has first requested an addition to Tariff A. The SRG-SSR agreed, and the matter was referred to the Arbitration Commission in spring 2022: we are looking forward to a favourable outcome soon.

4. Regulatory authority

Finally, two cases are pending on which IPI, our regulatory authority, and SUISA hold divergent views. Both cases concern the relationship between «conventional» collective rights management, which is under federal oversight, and the liberalised management of online rights. In the first case, IPI opposes the granting of guarantees by SUISA to secure a bank loan to MINT, the joint venture company with SESAC for the management of online rights. In the second case, IPI opposed a cross-selling initiative undertaken by SUISA to inform its Tariff 3a (background music) customers that they would have to obtain an additional licence for the use of music on their websites or social media pages.

In both cases, we filed an appeal with the Federal Administrative Court. In the first case, we argued that the proper functioning of MINT was in the best interest of SUISA’s members. After all, the aim of the joint venture is to bring the Swiss repertoire together with other repertoires to achieve greater bargaining power in our dealings with giants like Google, Apple, or Spotify. The guarantees granted to MINT will be submitted to the 2022 General Meeting and the matter will thus be closed. In the second case, IPI deemed that data protection requirements disallow the communication of this information by SUISA, and that the information is misleading since conventional rights management and the management of online rights are governed by different rules. We believe that IPI exceeded its competence in this context and has disregarded the realities of collective management in its interpretation of statutory rules. We are now awaiting the decision of the Federal Arbitration Court.

Both these cases address an important question: how far can SUISA go to respect its obligations as a monopolistic organisation in certain areas while coming to terms with a liberalised market in others? We need the regulatory authority to provide a practical answer to this question. Otherwise, SUISA’s members may have to suffer the consequences.

2021 Annual Report
The 2021 Annual Report contains all the relevant figures and information relating to the previous financial year at SUISA (cooperative and group). Informative articles shed light on income, political developments and tariff negotiations in the past year. Once again, 2021 was dominated by the coronavirus pandemic and its impact on the music industry. You can find out what this meant for SUISA’s members and customers in the 2021 Annual Report.
www.suisa.ch/annualreport
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The «Regulations» division is responsible for SUISA’s legal affairs. This starts with its involvement in political law-making activities, runs through tariff negotiations and drafting the distribution rules, and ends with the implementation of rules and regulations in case of disputes. In 2021, the division dealt with a number of key issues. Text by Vincent Salvadé

From the 2021 Annual Report

The 2021 Annual Report contains all the relevant figures and information relating to the previous financial year at SUISA (cooperative and group). (Photo: SUISA)

1. Legislation

In last year’s Annual Report, we mentioned the initiative of National Councillor Philippe Nantermod demanding an exception to copyright law for protected works used in hotel rooms and similar facilities. This parliamentary initiative was revisiting a provision that the National Council and the Council of States had rejected in September 2019 as part...read more

Background on SUISA Digital’s lawsuit against Snapchat operators

Today, SUISA Digital Licensing (SUISA Digital) announced that it is suing Snap for copyright infringement. Snap operates the successful platform Snapchat. In a written interview, Fabian Niggemeier, CEO of SUISA Digital, comments on the background of the lawsuit. Interview by Giorgio Tebaldi

Background on SUISA Digitalʼs lawsuit against Snapchat operators

Snapchat offers its users the possibility of adding music to their messages. Very few authors receive any remuneration from Snap, the operator of Snapchat, for this. (Photo: Postmodern Studio / Shutterstock)

Fabian Niggemeier, why is SUISA Digital suing Snap?
Like every online platform that makes music available to its users, Snap also requires a license for Snapchat in order to be able to use this music commercially. However, Snap does not own a license for our repertoire and does not pay any compensation to the creators and publishers we represent for the music in the videos on Snapchat. Thus, Snap is clearly in violation of copyright law, which is why we filed a lawsuit against the company.

Was there no other way to get Snap to pay copyright royalties?
Unfortunately, there was no other option. We conduct contract negotiations with every online music provider – we now have such contracts with around 80 providers. We have also been trying to negotiate such a contract with Snap for about two years. So far, the attempts have been unsuccessful. Snap takes the position that they do not use any of our authorsʼ and publishersʼ songs. But we can prove that this statement is false. In fact, there are thousands of songs available on Snapchat that have been composed and written by creators and publishers who have entrusted us with their rights.

Snap introduced the new “Sounds” feature for Snapchat – embedding music in Snaps – some time ago. At launch, Snap stated that it had entered into licensing agreements with rights holders for this offering. Does Snap not pay any royalties to other collecting societies? Is SUISA Digital an isolated case?
Unfortunately, we donʼt know. We only know that Snap offers the works of numerous authors and publishers, who are represented by us, to users on the Snapchat service and thus reproduces them publicly. Snap has not acquired a license for this.

How much compensation does Snap have to pay for the use of the works of the authors and publishers represented by SUISA Digital?
We are yet to calculate the exact amount. Unfortunately, we currently lack the necessary information for this. One demand of our lawsuit is therefore that Snap discloses Snapchatʼs revenues and streaming figures without restriction and without gaps. Based on these figures, we will calculate the actual amount of compensation owed.

What does this lawsuit mean for Snapchat users? Will the repertoire represented by SUISA Digital be blocked?
There is no reason for a blocking of the repertoire we represent as long as Snap abides by the rules. So far, our repertoire can only be accessed illegally on Snapchat. We appeal to Snap, for the benefit of its users, to talk to us about licensing our repertoire and not to escalate the situation any further.

SUISA Digital is a Liechtenstein company owned by a Swiss cooperative, but the lawsuit is being brought before the Hamburg Regional Court. Why?
There are several reasons. SUISA Digital represents copyrights not just for uses in Switzerland and Liechtenstein but for the whole of Europe. Therefore, it is possible to institute proceedings in a large German-speaking country. The markets in Switzerland and Liechtenstein are too small for a lawsuit to have any external effect here. Lastly there is always the risk in a small market like Liechtenstein that Snap would take its service off the market. This scenario is extremely unlikely in the case of a lawsuit in Germany.

PRESS RELEASE: SUISA Digital suing Snapchat for copyright infringement

SUISA Digital Licensing
The music licensing organisation SUISA Digital Licensing (SUISA Digital for short) is a subsidiary of SUISA, the cooperative society for authors and publishers of music in Switzerland and Liechtenstein. SUISA Digital, having its registered office in Vaduz, Liechtenstein, represents the online rights to musical works by composers, lyricists and publishers from 15 copyright societies and several publishers worldwide. SUISA Digital licenses internet platforms worldwide and has contracts with over 80 online service providers, amongst others Youtube, Spotify, Apple Music or Meta (formerly Facebook).
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Today, SUISA Digital Licensing (SUISA Digital) announced that it is suing Snap for copyright infringement. Snap operates the successful platform Snapchat. In a written interview, Fabian Niggemeier, CEO of SUISA Digital, comments on the background of the lawsuit. Interview by Giorgio Tebaldi

Background on SUISA Digitalʼs lawsuit against Snapchat operators

Snapchat offers its users the possibility of adding music to their messages. Very few authors receive any remuneration from Snap, the operator of Snapchat, for this. (Photo: Postmodern Studio / Shutterstock)

Fabian Niggemeier, why is SUISA Digital suing Snap?
Like every online platform that makes music available to its users, Snap also requires a license for Snapchat in order to be able to use this music commercially. However, Snap does not own a license for our repertoire and does not pay any compensation to the creators and publishers we represent for the...read more

Board meetings December: Budget established for the year 2022

The meetings of SUISA’s Board of Directors on 12 and 13 December 2021 had unfortunately to be held in the form of a video conference again due to the recommended protective measures. Among other things, the budget for 2022 was approved at the last meetings of the year. Report from the Board of Directors by Andreas Wegelin

Board meetings December: Budget established for the year 2022

The outlook with regard to the staging of concert events and the associated collections for performing rights for 2022 remains a foggy one. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

Due to the pandemic, the last meetings of the Board of Directors and its commissions were once again held by video conference on 12 and 13 December. Shortly before that, the Board of Directors still had the opportunity to meet physically in the course of a conference.

Future of online licensing

In this information and retreat session on 24 November 2021, the Board of Directors discussed the current situation regarding the global management of our members’ rights for online uses with SUISA’s Executive Committee and the CEO of Mint Digital Services AG. SUISA is competing with other collective management organisations and licensing companies through its joint venture company established together with the American SESAC: ICE, founded by PRS (UK), Gema (DE) and Stim (SE), and Armonia, founded by Sacem (FR). The possible scenarios for the acquisition of further customers were therefore discussed with the Mint CEO. The Board was also able to take note of the benefits that direct licensing of SUISA repertoire brings to our members worldwide.

2022 Budget

The main topic of the December Board meeting was the approval of the 2022 budget presented by management. As is well known, the situation regarding performing rights remains critical. Due to Covid-19, large events are only possible under restrictive conditions, if at all. These requirements entail that ticket sales are also more tentative and often worse than before the pandemic. As a result, performing rights revenue is expected to be lower in 2022 than it was prior to Covid-19 (–35% compared to 2019). Nevertheless, there should be an increase compared to 2020 (+12%).

Important pillars for achieving a better result in all areas compared to 2020 and probably also 2021 are the continuously improved market coverage, adjusted tariffs and new contracts. As a result of the new tariff relating to the blank media levy for external hard disks and laptops valid from 1 July 2022, revenue from compensation claims is expected to increase by around 20% compared to 2020.

On the expenditure side, we continue our cautious course. Expenditures are expected to be lower in 2022 than in 2020. Nevertheless, investments must be made in the further development of IT. The aim is to carry out as many communication processes as possible between members and SUISA and between clients and SUISA online: Our contact persons should be able to get in touch with us at any time via the web portal.

Within the framework of the budget, the Board also decided on the cost deductions for settlements to rightsholders in 2022. These cost deductions remain unchanged, i.e.: a maximum of 15% for performing and broadcasting rights and for online uses (video, websites). For online distribution of audio recordings, the cost deduction is 10%.

Code of conduct and conflicts of interest

The 2014 EU Directive on collecting societies also applies in the Principality of Liechtenstein. SUISA has therefore amended its Articles of Association accordingly in 2018. As a further consequence of the provisions of the Directive, the rules on conflicts of interest need to be defined more precisely. The board approved these rules at the December meeting. To this end, the Board of Directors and the Executive Board will disclose to the General Meeting corresponding declarations on vested interests and the remuneration from their SUISA mandates.

Projects

The Board of Directors also decided to continue its work on and planning of two projects: on the one hand, the celebrations for SUISA’s 100th anniversary in 2023 and, on the other hand, a joint project with Gema to automate and thus improve market registration for performing rights. Details of this will be able to be elaborated in the reports following the upcoming board meetings.

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The meetings of SUISA’s Board of Directors on 12 and 13 December 2021 had unfortunately to be held in the form of a video conference again due to the recommended protective measures. Among other things, the budget for 2022 was approved at the last meetings of the year. Report from the Board of Directors by Andreas Wegelin

Board meetings December: Budget established for the year 2022

The outlook with regard to the staging of concert events and the associated collections for performing rights for 2022 remains a foggy one. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

Due to the pandemic, the last meetings of the Board of Directors and its commissions were once again held by video conference on 12 and 13 December. Shortly before that, the Board of Directors still had the opportunity to meet physically in the course of a conference.

Future...read more

Residuals from online collections – what’s that and how can I participate in them?

In mid-December, we pay our members the fourth settlement of their online revenues this year. But this time, we’ll put a cherry on top! This “cherry” comes from the so-called “residuals” about the distribution of which the SUISA Board had decided in autumn 2021. In this context, here’s the most important piece of advice: Register all works as soon as possible with SUISA! Text by Anke Link

Residuals from online collections – what’s that and how can I participate in them?

Due to an international agreement with online music platforms, SUISA amended its distribution rules in the online collections area. (Photo: MandriaPix / Shutterstock.com)

“Residuals” are amounts paid by online music platforms for works or parts of works which have not been claimed by any collective management organisation. The reason for this is often that the works or parts of works have not been registered by the authors or publishers with their collective management organisations. SUISA can only collect licence fees via the SUISA Digital Licensing AG (SUDL) from the platform for works that have been declared and completely documented. This is why it is important that you register the works as soon as possible! Best before they are published online (details on this also in the blog article “Online licensing activities require early work registrations” of 29 October 2020).

International rules on how to deal with “residuals”

In the summer of 2020, an international working group, consisting of CMOs (SUISA was also part of it), major publishers and the most important platforms agreed on binding rules regarding how to deal with “residuals”: The money attributable to unclaimed works or parts of works is divided among all licensors of a platform in proportion to their respective market share. SUISA thus receives a share for each territory for which it licenses a platform, according to the importance of its repertoire in relation to the other repertoires used in that country.

This is just one more reason why it is important that works are registered as soon as possible, as this increases SUISA’s repertoire share. What needs to be mentioned in this context is that the members undertake towards SUISA to register their works within a certain period anyway: in the case of authors, this is within a month after the work has been created and in the case of publishers within a month after the work has been published.

It will now also be possible via SUISA Digital Licensing to issue an invoice for this period even after the expiry of an already distributed usage period, and this up to a maximum of 18 months after the end of the usage period. For works which have been fully registered with SUISA within the period, SUDL will be able to request the respective licence fee from the platform.

Only when the period within which a retroactive invoice can be issued, has expired, “residuals” will be determined. This means: The contributions for works or part of works which have, by then, still not been claimed by a collective management organisation, will be paid by the online music platforms to all of its licensors in proportion to their repertoire share.

Changes to the SUISA distribution rules

Up to now, only iTunes had paid “residuals” to SUISA. With the agreement made in the summer of 2020, the large platforms are now following suit. This way, a binding provision became necessary in the distribution rules of SUISA, about which the SUISA Board of Directors decided in September 2021. It will be applied to the fourth online distribution 2021 for the first time.

SUISA distributes its share in the “residuals” as a blanket adjustmenton the current online distributions. In contrast to revenues for works that have not been documented or have been only partially documented, which are used offline (e.g. at concerts), the “residuals” will not be reserved for potential late or subsequent settlements at a later point in time.

The reason for this is, on the one hand the disproportionately high costs which such work-based adjustments would entail. On the other hand, our analyses have shown that the works which only get registered fully after the 18-month period has expired, only have little economic significance. Incidentally, even our sister organisations abroad do not reserve “residuals” from the distribution for longer periods.

Whether we are talking about online or offline uses: A fast work registration is an advantage in any case because it facilitates a quick payment of the licensing revenues. Late work registrations, however, always carry the risk of income losses for the respective rightsholders. Additional costs are also created for SUISA which is a disadvantage for all rightsholders.

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  1. Durussel André says:

    Merci pour ces informations claires et intéressantes

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In mid-December, we pay our members the fourth settlement of their online revenues this year. But this time, we’ll put a cherry on top! This “cherry” comes from the so-called “residuals” about the distribution of which the SUISA Board had decided in autumn 2021. In this context, here’s the most important piece of advice: Register all works as soon as possible with SUISA! Text by Anke Link

Residuals from online collections – what’s that and how can I participate in them?

Due to an international agreement with online music platforms, SUISA amended its distribution rules in the online collections area. (Photo: MandriaPix / Shutterstock.com)

“Residuals” are amounts paid by online music platforms for works or parts of works which have not been claimed by any collective management organisation. The reason for this is often that the works or parts of works have not been registered by the...read more

SUISA Board meeting, autumn 2021

The Board of Directors and the Committee for Tariffs and Distribution and the one for Organisation and Communication gathered on 29 and 30 September 2021 for their autumn meetings in Lausanne. Report from the Board of Directors by Andreas Wegelin

SUISA Board meeting, autumn 2021

During its autumn meeting, the SUISA Board of Directors elected Francine Jordi (pictured) into the Board of FONDATION SUISA. (Photo: Thomas Buchwalder)

Fortunately, the epidemiological situation allowed the members of the SUISA Board of Directors and the Executive Committee to meet in person again. Of all people, it was ausgerechnet? Councillor of States, Johanna Gapany, newly elected to the Board at the General Meeting 2021, who was only able to join the meeting of the Committee for Organisation and Communication (O+K) via video link due to her participation in the session of the Federal Councillors in Bern. The SUISA meeting schedule 2022 is going to be adapted with the Council sessions in mind.

Cost unit accounting

The Board of Directors dealt with the results of the cost unit accounting for 2020, like every year in its autumn meeting. Based on the cost unit accounting, it can be determined how high the expenditure for collection and distribution is for each tariff in detail.

It is generally known that SUISA deducts a fixed percentage from the settlements to the rightsholders as a cost contribution for its expenditure related to collection and distribution. This percentage, i.e. 15% for performing and broadcasting rights, is a mixed calculation in relation to the effective costs. For example, collecting licence fees for music usages in the hospitality industry (CT H) or for dance and entertainment (CT Hb) is more costly than the collection from radio stations (Tariff A and CT S).

This cost unit accounting also makes these differences visible, and it can also be shown in a time dimension whether the costs for a specific tariff are showing a downward trend thanks to savings and rationalisation measures. The result of the cost unit accounting 2020 was somewhat clouded by the difficult collection situation due to the pandemic, less income but still costs which could not be reduced to the same extent.

Strategy

Every year in its autumn meeting, the Board of Directors takes a look at the strategy of SUISA. The basis paper for this was created in 2019. It was now time to check whether the defined strategic objectives are still to be weighted equally and can be achieved in a meaningful way.

Due to the pandemic, slight adjustments were made; however, the fundamental strategic stance of “asserting oneself in the face of increasing competition through high yields with high cost-awareness and best service quality” remains the same.

Special meeting to discuss online usages

In relation to the company’s strategy, the Board of Directors is going to meet at the end of November in a special meeting to discuss online usages. One reason for this, among others, is also the five-year anniversary of Mint Digital Services, the Joint Venture with the US-American organisation SESAC.

For this special meeting, the Board of Directors approved an agenda and determined the main issues. The objective is to define the needs and expectations of the SUISA members and satisfy them by way of finding suitable measures at Mint Digital Services and the SUISA group of companies.

Distribution of “residuals”

Changes in the distribution rules normally have to be approved by the Swiss Federal Institute of Intellectual Property (in Switzerland) and the Office for Economic Affairs (in Liechtenstein). The competence in the case of distribution rules for collections for online licensing is different: The management of online rights is not subject to federal supervision. As such, the respective changes to distribution rules exclusively fall under the competence of the Distribution and Works Committee and the SUISA Board of Directors.

As part of this competence, the Board of Directors decided in its meeting on 30 September 2021 that item 5.6.1 of the distribution rules be changed respectively reviewed with regards to the distribution of the “residuals” paid by online platforms. “Residuals” are amounts paid by online music platforms for works or parts of works whose rights owners could not be determined and as such no claims were established by any collective management organisation.

Such difficulties arise in such cases when musical works have not been registered in time. For such cases, online providers pay so-called “residuals” after 18 months to the collective management organisation of the country where the music was used.

A so-called “multi-stage invoicing” has been agreed with the online music providers: The usage data of the distribution period will be matched after 90 and after 180 days again against the works database. During that time, it is possible to submit a late registration of the works resulting in a settlement for the work that has been registered late.

The Board of Directors decided that after 180 days, the payments for non-identified works (the “residuals”) shall be paid out as a supplement on top of the other used works in the corresponding distribution period. The alternative that up to five years after the usage, unidentified works can still be registered has been dismissed by the Board of Directors due to cost reasons. It is therefore important that new titles are registered as soon as possible so that online usages can be distributed as adequately as possible.

Francine Jordi elected to the Pension Board of the FONDATION SUISA

The Board of Directors of SUISA is the election committee of the Board of FONDATION SUISA, the foundation for music promotion of SUISA. In its autumn meeting, the Board elected Francine Jordi as a new Pension Board member.

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Online licensing activities require early work registrationsOnline licensing activities require early work registrations From a sales perspective, online music distribution provides enormous opportunities. With little effort, music can be made available to a global audience within an instant. The distribution of copyright royalties, however, is complex when it comes to online usages. This is also due to the fact that the processes differ from those for performing and broadcasting rights. The most important advice is: First, register the work with SUISA as early as possible, then publish it online. Read more
SUISA and the Covid-19 crisisSUISA and the Covid-19 crisis Since the end of February 2020, it’s not just the music sector that has been confronted with an unforeseen challenge. As a cooperative society for authors and publishers of music and a collective management organisation, how is SUISA dealing with the Covid-19 crisis which has been around for nearly two years? Read more
SUISA Board of Directors holds a physical meeting for the first time in 15 monthsSUISA Board of Directors holds a physical meeting for the first time in 15 months While the General Meeting could only take place by postal vote due to the precautionary measures taken in the context with the corona pandemic for the second time, the Board of Directors decided to hold a physical meeting for the first time in 15 months in Muri near Berne on 24 and 25 June 2021, adhering to the prescribed protective measures. Read more
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The Board of Directors and the Committee for Tariffs and Distribution and the one for Organisation and Communication gathered on 29 and 30 September 2021 for their autumn meetings in Lausanne. Report from the Board of Directors by Andreas Wegelin

SUISA Board meeting, autumn 2021

During its autumn meeting, the SUISA Board of Directors elected Francine Jordi (pictured) into the Board of FONDATION SUISA. (Photo: Thomas Buchwalder)

Fortunately, the epidemiological situation allowed the members of the SUISA Board of Directors and the Executive Committee to meet in person again. Of all people, it was ausgerechnet? Councillor of States, Johanna Gapany, newly elected to the Board at the General Meeting 2021, who was only able to join the meeting of the Committee for Organisation and Communication (O+K) via video link due to her participation in the session of the...read more

SUISA Board of Directors holds a physical meeting for the first time in 15 months

On the day before the General Meeting, the SUISA Board and its committees usually hold a physical meeting at the venue of the General Meeting. This year, it was different for the second time in a row. Report from the Board of Directors by Andreas Wegelin

SUISA Board of Directors holds a physical meeting for the first time in 15 months

SUISA partition wall set up at a venue: The meeting of a nearly full Board of Directors took place for its regular June sessions in Muri near Berne. (Photo: Natalie Schlumpf & Wolfgang Rudigier)

While the General Meeting could only take place by postal vote due to the precautionary measures taken in the context with the corona pandemic for the second time, the Board of Directors decided to hold a physical meeting for the first time in 15 months in Muri near Berne on 24 and 25 June 2021, adhering to the prescribed protective measures.

Except for one Board member who did not want to expose itself to a heightened risk of getting infected due to imminent concert performances and therefore took part via video, all of the members of the Board of Directors joined the Executive Committee in the meeting and cherished the opportunity to be able to have an exchange outside the meetings in the evening.

Encouraging perspectives in the online licensing business

The Board of Directors received a thorough report on the annual results of the subsidiary Mint Digital Services, jointly held with SESAC, whose financial year had ended on 31 March. The result is encouraging even if the organisation needs to receive further support. Perspectives for the new financial year are looking up and are going to improve the earnings situation further. It is important to know that the bundling of the copyright of our members with the rights of large publishers and sister societies lead to a situation whereby we can act in the online licensing market with more market power and subsequently negotiate better conditions with the online providers of music.

On 1 July 2021, the Act on Collective Management Organisations entered into force in the Principality of Liechtenstein. It contains, among others, provisions to cater for transparency among collective management organisations. The EU Directive of 2014 has thus been implemented. So that SUISA can take these provisions into account, the code of conduct and the rules on the disclosure of conflicts of interest at Board level were adapted. There are also new disclosure obligations for the Executive Committee. The Board of Directors has passed the respective documents.

Amendments to the budget due to Covid-19

The Board of Directors has adapted the budget to the continuing corona situation for the current year. As early as in December 2020, a cautious budget had been passed for 2021. Nevertheless, the income side must be adjusted to reflect a minus of 1.5% which is expected compared to the original budget. Expenditure is anticipated to be 2.2% less.

Another topic at the meeting was the situation regarding the handling of the double taxation provisions between the Italian sister society SIAE and SUISA. SUISA, just like other European sister societies, is going to approach the Italian tax authorities in order to keep withholding tax deductions for SUISA rights owner members who have their residence outside of Switzerland as low as possible.

Finally, the Board of Directors approved an amendment to the distribution rules regarding the pay-out of licensing income of streaming and download platforms. For another amendment regarding the question how long SUISA can process adjustment distributions for online usages, the Board is going to wait for a more detailed report by the Executive Committee.

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On the day before the General Meeting, the SUISA Board and its committees usually hold a physical meeting at the venue of the General Meeting. This year, it was different for the second time in a row. Report from the Board of Directors by Andreas Wegelin

SUISA Board of Directors holds a physical meeting for the first time in 15 months

SUISA partition wall set up at a venue: The meeting of a nearly full Board of Directors took place for its regular June sessions in Muri near Berne. (Photo: Natalie Schlumpf & Wolfgang Rudigier)

While the General Meeting could only take place by postal vote due to the precautionary measures taken in the context with the corona pandemic for the second time, the Board of Directors decided to hold a physical meeting for the first time in 15 months in Muri near Berne on 24 and 25...read more

A worthy result despite Covid

2020 was an annus horribilis for many music creators. Concerts and other events were by and large prohibited. Most organisers, artists and authors thus lost a large part of their income. Thanks to the good performance in other areas and to its prompt action, SUISA managed to contain the financial damage for many entitled parties. Text by Andreas Wegelin

A worthy result despite COVID

Concerts were hardly possible from February 2020 onwards. However, thanks to an increase in the online sector, SUISA’s annual result turned out relatively good. (Photo: Oleksii Synelnykov / Shutterstock)

After being hit by the Covid pandemic, the world went into a state of shock. The pandemic impacted – and continues to impact – large segments of the economy. The cultural sector, and music creators as part of it, were hit especially hard. “First to close, last to open”. Creators and organisers were the first to be affected by the shutdowns and restrictions, and they will be the last able to fully resume their work.

Needless to say, the difficult situation for the cultural sector also affected SUISA’s annual results. After all, in the past, performance rights, i.e. revenues from concerts and other performances, music usage in businesses and restaurants, and music for parties, accounted for 35% of SUISA’s rights administration revenues. After nearly all events were prohibited in March 2020, it was clear that SUISA’s revenues – especially from performance rights – would fall short of the prior year’s. It was hard to predict, however, how steep the downturn would be, and whether revenues from other rights would also be adversely affected.

The steep downturn in revenues from performance rights was partially compensated by other rights revenues

As it fortunately turned out, SUISA’s turnover was less severely impacted than had been feared. Last year, SUISA recorded total revenues, domestic and international, of CHF 138.5m: this is 12% less than the prior year (CHF 155.2m). As expected, the shortfall in performance rights accounted for greater part of the downturn: while in 2019, revenues from performance rights had attained CHF 51.2m, in 2020 they only reached CHF 34.4m, i.e. 34% less.

SUISA managed to make up for this shortfall in other areas. Revenues from broadcasting rights increased slightly – from CHF 63.6m in 2019 to CHF 64.3m in 2020. Downturns that had been feared, for example in advertising revenues from TV and radio broadcasts following the cancellation of many large events, failed to materialise.

Positive trend in online business thanks to SUISA Digital Licensing and Mint

The trend in revenues from online uses was extremely positive: online revenues climbed from CHF 8.8m in 2019 to CHF 11.4m last year. This was especially thanks to the growth in revenues realised by SUISA’s subsidiary SUISA Digital Licensing. The latter succeeded in acquiring a number of new customers including foreign sister societies and music publishers, and also managed to negotiate improved contract terms with online providers of streaming and downloading platforms.

This satisfactory development in the online area is all to the benefit of the authors and publishers whose works are increasingly streamed on the various platforms. Even Mint, the joint venture with the US society SESAC, continued its expansion last year as a provider of services to various music publishers and foreign sister societies.

SUISA has responded to the crisis

The fact that, from the outset of the pandemic, SUISA responded promptly – with a view to cutting costs on the one hand, and to distributing as much as possible to authors and publishers on the other – also contributed to the relatively good year.

Projects that were not urgent were deferred or even cancelled and, wherever possible, staff departures were not replaced. Certain expenditures, such as sponsoring contributions and travel expenses, disappeared anyway because of the pandemic. And SUISA did everything possible to invoice all and every use of music – including those pertaining to prior years – and collect the revenues. At a time when nearly all performances have been barred, the royalties from SUISA are more important than ever for many music creators.

Supplemental distributions from released settlement liabilities

In 2021, SUISA was again able to allocate a supplemental distribution of 7% on all settlement amounts from the released provisions for settlement liabilities which could not be distributed after five years in absence of the necessary information on the entitled parties.

Understanding for customers

Its efforts to collect the greatest amount in revenues does not mean, however, that SUISA is blind to the circumstances of its customers. On the contrary: precisely in the case of the inns and restaurants which were severely affected by the shutdowns ordered by the authorities, SUISA demonstrated goodwill with regard to invoice payments, granting extended payment terms for example, and permitted refunds to customers who had made down payments but had no music usage in the period. Ultimately, it is in the interest of SUISA and its members to ensure that businesses, organisers, and other music users survive and continue to use music. After all, there will be a time after the Covid-pandemic, and SUISA must do its utmost to ensure that, in that future, it can continue to distribute the largest possible amount in royalties to the authors and publishers of music.

SUISA’s detailed 2020 results can be found in the 2020 Annual Report, in which this article (on pages 9/10) also appeared: www.suisa.ch/annualreport

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2020 was an annus horribilis for many music creators. Concerts and other events were by and large prohibited. Most organisers, artists and authors thus lost a large part of their income. Thanks to the good performance in other areas and to its prompt action, SUISA managed to contain the financial damage for many entitled parties. Text by Andreas Wegelin

A worthy result despite COVID

Concerts were hardly possible from February 2020 onwards. However, thanks to an increase in the online sector, SUISA’s annual result turned out relatively good. (Photo: Oleksii Synelnykov / Shutterstock)

After being hit by the Covid pandemic, the world went into a state of shock. The pandemic impacted – and continues to impact – large segments of the economy. The cultural sector, and music creators as part of it, were hit especially hard. “First to...read more

Full speed ahead

The Corona pandemic continues to direct the course of SUISA’s business. This was clearly perceptible at the Board meeting in April. Which is why it is all the more important to set the course for the future. Report from the Board of Directors by Andreas Wegelin

Report from the Board of Directors: Full speed ahead

Despite adverse circumstances, the Cooperative Society SUISA stayed its course in the interest of its members and principals. (Photo: Lobroart / Shutterstock.com)

Business as usual – this expression may sound odd in Corona year 2. And yet, at the last spring meeting, much remained the (new) same. After one year of Corona, SUISA’s Board and Executive Committee have grown accustomed to meeting via videoconference. Just as they have become inured to the rolling budgeting rendered necessary by the uncertain situation in the cultural sector.

And yet, this year, the first Board meeting was special. After a bumper year in 2019, SUISA saw a downturn in revenues in 2020 – as was only to be expected given the pandemic. However, the decline was less steep than had been feared. Turnover dropped 12% overall. This was primarily due to the drastic fall in revenues from performance rights. Corona-related bans on events, and recurrent business shutdowns led to a 34% decline in revenues from this sector. The most affected were concert licence fees (–51%), restaurants (–46%), entertainment events (–47%) and cinemas (–59%).

Relatively good performance thanks to broadcasting rights and online uses

That total sales “only” declined by 12% was due to a slight increase in broadcasting rights and, above all, to the growth in revenues from online business. Good secondary income and strong cost awareness within SUISA also contributed.

It follows, therefore, that the amount distributable to authors and publishers also declined – by 10.5% overall. Moreover, the Board decided to allocate an unchanged additional distribution of 7% from the released settlement provisions on all uses of works to be settled in 2021.

The business activities of our subsidiary SUISA Digital Licensing, responsible for global online licensing, developed satisfactorily. In 2020, SUISA Digital Licensing generated about CHF 5.5m in revenues. The Board acknowledged the financial situation of SUISA Digital Licensing and the current status of the joint venture Mint Digital Services. Since both companies are still in development, the Board decided the necessary measures to ensure the equilibrium of SUISA Digital Licensing’s balance sheet. SUISA’s claims on Mint for business development costs (under del credere provisions) were extended for an additional year and the additional claim from 2020 was in its turn written off in the financial statements.

The 2021 General Meeting will take place by written correspondence again

In view of the continuing uncertainty with regard to indoor assemblies, the Board decided that the General Meeting would perforce be held for a second time by written correspondence. The Board nominated State Councillor (FDP/Freibourg) to succeed Géraldine Savary who was withdrawing. Video messages from Johanna Gapany, SUISA President Xavier Dayer, and CEO Andreas Wegelin, and information about the 2021 General Meeting to be held by written correspondence is available under www.suisa.ch/en/members/general-assembly.html and on the SUISAblog.

Status of 2021 budget with the ongoing Corona crisis

The uncertain situation in the cultural sector owing to the Corona crisis continues to cause concern. When and how performances will be able to be staged anew, and music halls and theatres will be able to open, is still unknown. As a result, rolling budget planning continues to be the order of the day as in past months. The Board’s Finance Committee will decide in early June 2021 whether the budget approved in December 2020 needs re-adjusting because of Corona.

Thanks to the emergency Corona fund, the Pension Fund for authors and publishers, and the extended rules on advances, SUISA has been able to support its members in these difficult times. In this regard, the Board decided to extend the time limit for the repayment or compensation of advances against current settlements until the end of June 2022.

Mint joint venture to be strengthened

Apart from music publishers – including BMG for Australia, Africa and India – Mint’s customers for online licensing now also include European sister societies. Mint offers their repertoires in bundles to online providers such as Spotify, Apple Music, or Youtube.

By bundling repertoires, Mint is strengthening its market position in online music rights. Despite the small Swiss repertoire, SUISA has become a serious negotiating partner thanks to Mint and SUISA Digital Licensing and the bundling of its repertoire. Depending on the country, its market share of the global repertoire varies between 4 and 10%. At the meeting, the Board defined the conditions to be applied to large European collecting societies wishing to participate in the Mint joint venture. This will further strengthen Mint’s market position in the constantly growing market for online music rights.

Adapting the range of services for members and principals

In the Report on the December meeting, we mentioned that the Board was looking to reorganise the services provided to members and principals with a view to saving costs. As of 2022, principals will only be able to access SUISA’s extended range of services through the online service portal. Comprehensive information on revenues and invoicing will be even easier for principals to find on the portal thanks to the new functionalities. Instead of time-consuming inquiries by phone, letter or email, principals will be able to call up all the data on their relationship with SUISA online through their individual “My account” access. Voting members will have access to these same services via the online service portal; in addition, however, they will continue to be entitled to personal advisory services.

As the above-mentioned Report says, in December 2020, the Board decided that authors and publishers would be admitted as members with full voting rights once they have been principals for at least one year and have received over CHF 3000 (previously 2000) in settlements since first registering as principals. Moreover, members who have received distributions totalling less than CHF 3000 over the last ten years would revert back to the status of principal. This change is in accordance with Article 5.5.4 of SUISA’s Articles of Association. Principals do not have voting rights in the Society, but they are entitled to the same licensing and distribution of revenues from the use of their works; principals have no financial disadvantage over voting members.

These measures – especially the upgrading of services through the members portal – are designed to further enhance SUISA’s efficiency. And, as a result, to distribute a higher share of revenues to authors and publishers.

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The Corona pandemic continues to direct the course of SUISA’s business. This was clearly perceptible at the Board meeting in April. Which is why it is all the more important to set the course for the future. Report from the Board of Directors by Andreas Wegelin

Report from the Board of Directors: Full speed ahead

Despite adverse circumstances, the Cooperative Society SUISA stayed its course in the interest of its members and principals. (Photo: Lobroart / Shutterstock.com)

Business as usual – this expression may sound odd in Corona year 2. And yet, at the last spring meeting, much remained the (new) same. After one year of Corona, SUISA’s Board and Executive Committee have grown accustomed to meeting via videoconference. Just as they have become inured to the rolling budgeting rendered necessary by the uncertain situation in the cultural sector.

And yet, this year,...read more

Online licensing activities require early work registrations

From a sales perspective, online music distribution provides enormous opportunities. With little effort, music can be made available to a global audience within an instant. The distribution of copyright royalties, however, is complex when it comes to online usages. This is also due to the fact that the processes differ from those for performing and broadcasting rights. The most important advice is: First, register the work with SUISA as early as possible, then publish it online. Text by Andreas Wegelin and Manu Leuenberger

Online licensing activities require early work registrations

If you distribute your music via an online provider, it will be advantageous if you stick to the following rule of thumb: First, register the work with SUISA, then publish it online. (Photo: Anutr Yossundara / Shutterstock.com)

When it comes to the internet, trade activities are not halted by national borders. Especially in cases when the goods are not physical but only purely digital in terms of their transport from the provider to the customer – as is the case for music. Online music providers such as Apple Music, Spotify or YouTube take their products directly to the audience via streaming or download: On its journey between the internet platform and the playback devices of the listeners, the music product does not pass customs, nor are there any intermediaries (apart from the telecoms provider of the internet access).

The following is decisive in this chain of commerce: When it comes to online music-distribution, territorial limitations have not only been lifted to a great extent for the consumer but also with regards to the licensing of the copyright. The distribution process differs fundamentally from the existing practice in the “offline sector”, i.e. for performing or broadcasting rights or the licensing of sound recordings. SUISA only issues licences for the territory of Switzerland and the Principality of Liechtenstein in the offline sector, but for all works that have been used, including those of the members of our sister societies abroad. Reciprocal representation agreements ensure that the members of other sister societies obtain the share in the works that have been used in Switzerland. The same also applies vice versa: If works by SUISA members are performed abroad, the sister society in charge for the territory in question collects the remuneration and passes it to SUISA for onward distribution to its rightsholders.

This works differently in the online sector. Another practice has established itself since the Recommendation of the EU Competition Commission from 2005, according to which more competition should be created during the online exploitation of copyright. The corresponding EU Directive which was determined five years ago states that each rightsholder can choose for their online licences whether they want to issue them directly or whether they wish to instruct a partner such as a collective management organisation of their choice to manage them across Europe (also known as pan-European).

SUISA active since 2012 for online direct licensing

The major music publishers have assigned the rights management for the shares in their works on a cross-border basis 10 years ago. This type of licensing is called direct licensing. In the field of cross-border usages, rightsholders, i.e. publishers or collective management organisations, specifically account the royalties for their repertoire directly with the “Digital Service Providers” (in short: DSPs) such as Apple Music, Spotify or YouTube. This means: If users abroad listen to works by SUISA members on platforms by the online music providers, SUISA collects the remuneration for such usages directly from the provider. There are no more “intermediaries” between SUISA and the Digital Service Provider as it exists in the traditional offline sector by way of a foreign sister society.

Many societies in Europe have already transitioned to this global direct licensing practice of their members’ works. Since 2012, SUISA has been licensing the rights of its members not only for Switzerland but also for other territories on a cross-border basis, and that with a constantly increasing number of online music providers. In the beginning, these included the European countries, since 2018, more and more territories are added outside of Europe. In the meantime, SUISA is usually issuing global licences to the DSPs with the exception of the following: USA, Canada, South America, North Korea, South Korea, Japan, Syria and Australasia. There are plans, however, to expand into these territories in the future.

Direct licensing has had the consequence that SUISA could only issue licence invoices for works for which it had the relevant documentation, since it is the individual work share that is now relevant, not just the fact whether an author is a SUISA member or not.

Nevertheless, it happens often that Digital Service Providers receive invoices from several collective management organisations for shares in the same work. This leads to so-called “overclaims” or “underclaims”. Such overclaims or underclaims (in terms of rights) result from a lack of clarity among the societies issuing the invoices who can claim the remuneration for which shares in a work in which territory for their principals. There is often also a situation of “no claims” i.e. when no society issues an invoice.

This has led to a scenario where the providers paid rightsholders more than the agreed remuneration in the case of “overclaims” and too little or nothing in the case of “underclaims” or “no claims”. There are also Service Providers which withhold the payment in the case of “overclaims”. If thus the claims of all invoicing collective management organisations for a work exceed 100% (shares), no royalties are paid as long as it is not defined who is actually permitted to invoice for which share.

Invoicing process with online music providers

A working group of the collective management organisations, major publisher and the most important online music providers has taken care of this issue and agreed to the following solution:

Issuing invoices to a DSP happens in several steps. The collective management organisation receives usage data from the DSP. Based on these usage reports, which contain a period of one or three months, the provider receives an invoice for all work shares in titles for which the society holds the usage rights of an author or a publisher. If the invoices that have been issued by various collective management organisations do not match for one work title, so-called “disputes” arise.

The societies have 18 months to resolve such conflicts of claims. Within said period, SUISA checks the data of the usage reports once more and compares it with the updated SUISA work documentation. If, during this search, new correlating entries are detected, they will be invoiced retroactively. Whatever has not been resolved after 18 months shall fall under the so-called “residuals”; this is the licensing remuneration for work shares which have not or only partially been invoiced (“underclaims” and “no claims”).

The “residuals”, the remuneration that has not been claimed from the DSP from “underclaims” and “no claims” shall be paid out by SUISA as a supplement to the works used in the same distribution period. A work that has not been registered at that point could therefore not receive a supplement.

Register the work first, then publish it online

The most important advice for SUISA members who make their compositions available via online music distribution channels, is: First, register the work with SUISA as early as possible, do not publish it online before!

If you follow this rule of thumb, you create a basis whereby works can be detected from the beginning in online usage reports and can be invoiced to the Digital Service Providers. The distribution process with the online music providers is subject to deadlines and the attention of the audience on the internet is often rather ephemeral. When you register works too late, there is the risk that usages are not detected and royalties cannot be allocated.

If the work registration takes place before the first recording of the work is published for streaming or downloading, SUISA can claim the work shares with the Digital Service Providers from the very beginning. In order to enable a simple automatic identification, the metadata of the works registration should be the same as the data which the DSP has for the work.

Metadata is additional information and particulars which describes other data in more detail. Thanks to such additional information, it is possible to determine and thus find individual elements during searches within big data volumes. A musical work title ideally comprises, apart from the usual details on composer, lyricist, publisher etc., information on the performer(s), and, if applicable, alternative work titles of versions in other languages as well as remix/edit versions, such as “song title – radio edit” or “song title – extended version”. Complete and correct metadata provides a great advantage when it comes to finding a concordance during the automated matching of the usage reports with the works database.

These requirements are vital for a work to be correctly distributed in all of the territories directly licensed by SUISA and with all of the online music providers directly licensed by SUISA.

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  1. Claire Chalut says:

    Vous ne parlez que de “Apple Music”, “Spotify” et “Youtube” (cette dernière plateforme touche surtout la VIDEO et quid ? de “Soundcloud” (destinée à l’audio). Qu’en est-il avec “Soundcloud” ? (qui est beaucoup utilisé), avez-vous des relations avec eux ??? ET, comment ?? Merci de votre réponse.

    Autre remarque (qui n’a rien à voir avec cet article) : comment se fait-il que l’on ne retrouve pas les oeuvres déposées dans votre banque de données (souvent il est réponde “inconnu” ou “pas trouvé”, etc.

    C. Chalout

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.

From a sales perspective, online music distribution provides enormous opportunities. With little effort, music can be made available to a global audience within an instant. The distribution of copyright royalties, however, is complex when it comes to online usages. This is also due to the fact that the processes differ from those for performing and broadcasting rights. The most important advice is: First, register the work with SUISA as early as possible, then publish it online. Text by Andreas Wegelin and Manu Leuenberger

Online licensing activities require early work registrations

If you distribute your music via an online provider, it will be advantageous if you stick to the following rule of thumb: First, register the work with SUISA, then publish it online. (Photo: Anutr Yossundara / Shutterstock.com)

When it comes to the internet, trade activities are not halted by national...read more

Corona budget up to the end of May has been met

For the second time, the Board of Directors had to hold its regular meetings as video conferences due to corona. Of course, the financial situation due to the pandemic was also the most important topic at these meetings. Report from the Board of Directors by Andreas Wegelin

Corona budget up to the end of May has been met

The impact of the corona crisis on the financial situation of the Cooperative was the main topic at the meetings of SUISA’s Board of Directors on 25 and 26 June 2020. (Photo: Bartolomiej Pietrzyk / Shutterstock.com)

The Board of Directors took note of the revenue figures up to the end of May 2020, which have fallen by 15.5% compared to the original budget for performing rights. In terms of total sales, the decline is still 7.7%. The Executive Committee therefore presented a corona budget as early as April. The budget could be met until the end of May. Revenues are even slightly higher (+3.1%).

It is important to know, however, that these revenues generated by the end of May originate from the time before the cancellation of all events. The impact on revenues due to the events that have been cancelled since mid-March will only be felt in the second half of the year. Savings were made on the cost side (–3%), but the current bonds and securities situation had a negative impact.

Audit report, Mint, PRS

The Board of Directors also acknowledged the comprehensive report of the auditors, BDO, and discussed various report points with the Executive Committee.

With regard to the joint venture Mint Digital Services with the American society SESAC, the Board of Directors was informed about the planning of licensing activities in the coming months and the roadmap 2020–24. It is planned to extend the direct licensing of our repertoire to India, Australasia and Africa. In this context, the Board of Directors decided to grant guarantees for the licensing of large publishing catalogues.

The renewal of the reciprocal representation agreement with the English sister society PRS was also a topic at the Board meeting. PRS is taking a critical stance regarding the deductions from revenues for social purposes as provided for in our Articles of Association. This could lead to a revision of the Articles of Association after further negotiations with the PRS.

Waiver of attendance fees in favour of emergency fund

In view of the difficult situation for many cultural performers and especially for SUISA members, the Board of Directors decided to waive its attendance fees in favour of SUISA’s recently established emergency fund. Executive Committee members also waive parts of their salaries in a similar amount in favour of a reduction in personnel costs.

Report of the task force of the SUISA Board of Directors – end of June 2020
In April 2020, SUISA’s Board of Directors set up a working group to respond as quickly as possible to the negative financial impact of the Covid-19 crisis on SUISA and to identify cost-saving measures together with the Executive Committee. Read more
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For the second time, the Board of Directors had to hold its regular meetings as video conferences due to corona. Of course, the financial situation due to the pandemic was also the most important topic at these meetings. Report from the Board of Directors by Andreas Wegelin

Corona budget up to the end of May has been met

The impact of the corona crisis on the financial situation of the Cooperative was the main topic at the meetings of SUISA’s Board of Directors on 25 and 26 June 2020. (Photo: Bartolomiej Pietrzyk / Shutterstock.com)

The Board of Directors took note of the revenue figures up to the end of May 2020, which have fallen by 15.5% compared to the original budget for performing rights. In terms of total sales, the decline is still 7.7%. The Executive Committee therefore presented a corona budget as early...read more