Tag Archives: Performing rights

Corporate events with music: what and how much is payable in licence fees?

Christmas dinners, team events and New Years’ cocktail parties – winter is the peak season for corporate events. If music is involved, the event must be reported to SUISA and licence fees are due. Text by Martin Korrodi

Corporate events with music: what and how much is payable in licence fees?

Winter is the peak season for corporate events. If music – live or recorded – is involved, please remember that remuneration is due. (Photo: Poznyakov / Shutterstock.com)

Neither the events a company organises for its employees, nor those it organises for its customers qualify as events accessible to the public. It is often assumed, therefore, that these are private events which need not be reported to SUISA since the copyright rules for private use apply.

Not open to the public, but not private either

Music use is only considered private when it takes place within a small circle of people with close ties to each other, like relatives and close friends. This is not generally the case with corporate events. That is why, for copyright purposes, these events do not qualify as private use – a licence (permission) to use music must therefore be obtained from SUISA.

Live bands and DJs for dancing and entertainment

Companies often hire live bands for events like Christmas dinners and cocktail parties to entertain guests while they eat and accompany the dancing afterwards. Or dinner may be followed by a party with a DJ set. The use of music – live or recorded – at these events is regulated by Common Tariff Hb (CT Hb) which covers music uses for dancing and entertainment.

If the event is held in a venue with a capacity of less than 400 people, the flat rate for small events (from CHF 33.30) applies. These flat rates apply as long as any entrance fee charged is less than CHF 17.00. If the capacity of the venue exceeds 400 people, the licence fee is 5% of the music-related costs, i.e. notably, the fees of the performing musicians in the case of live music, or 6.5% in the case of recorded music.

General meetings with musical intermissions

General meetings and product presentations are not entertainment events as such, but music regularly plays an important role in such occasions. Musicians perform live, or music may be played from recordings, at the start, at the end, or during breaks between discussions and presentations. Musical intermissions at such events are also covered by CT Hb – licence fees are calculated in the same way as for the above-described events.

Workshops, seminars, and training courses

Music may also play a role in a completely different type of corporate event, for example when music is used in the framework of a business workshop or in videos during seminar presentations and training courses. Such uses are generally licensed under Common Tariff 3a (CT 3a), which applies to background music in particular.

Sometimes the conference hall operator holds a permanent licence under CT 3a and the organiser of the event does not have to do anything. Otherwise, a flat rate based on the relevant surface area applies (from CHF 19.20 per month).

Such events may also involve uses which are not covered by CT 3a. For example, if a feature film is projected, Common Tariff E applies and, in addition, the performance rights must be obtained from the film renter; if live music is played in the framework of the event, CT Hb applies.

Concerts for staff

Certain companies organise private concerts with well-known live acts for their staff. The purpose of a concert is not to provide musical accompaniment for a social gathering or to animate the dance floor – the focus is solely and entirely on the music played by the band.

Concerts are regulated by Common Tariff K (CT K) which, in the case of small concerts (less than 1000 persons), provides for a licence fee of 9% of the music-related costs. In addition to concerts, CT K applies to other performances like stand-up comedy shows or magician’s shows, albeit with lower rates.

Musical events for customers

And finally, there are events which are specially organised for customers: for the opening of a new location, for example, or to celebrate a corporate anniversary. Unless a concert is involved, these events are licensed in accordance with CT Hb. Here too, in the absence of ticket revenues, licence fees are determined based on music-related costs.

Links to the application forms on SUISA’s website
CT Hb: www.suisa.ch/hb
CT 3a: www.suisa.ch/3a
CT K: www.suisa.ch/k
A set list with information about the songs, composers and playing duration must always be attached to applications under CT K; for applications under CT HB, a set list is only required in the case of live music.
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Christmas dinners, team events and New Years’ cocktail parties – winter is the peak season for corporate events. If music is involved, the event must be reported to SUISA and licence fees are due. Text by Martin Korrodi

Corporate events with music: what and how much is payable in licence fees?

Winter is the peak season for corporate events. If music – live or recorded – is involved, please remember that remuneration is due. (Photo: Poznyakov / Shutterstock.com)

Neither the events a company organises for its employees, nor those it organises for its customers qualify as events accessible to the public. It is often assumed, therefore, that these are private events which need not be reported to SUISA since the copyright rules for private use apply.

Not open to the public, but not private either

Music use is only considered private when it takes place within a small...read more

Going through times of crisis with strong cooperational partners

At a round table discussion, Christoph Bill and Alexander Bücheli, two representatives of SUISA customers from the promoter and event organising sector, and Irène Philipp Ziebold, SUISA COO, spoke about crisis management during the pandemic. Cooperation with SUISA was also a topic. Presentation and transcript: Markus Ganz, guest author

Going through times of crisis with strong cooperational partners

Round table discussion with Christoph Bill (Heitere Events AG and President SMPA [Swiss Music Promoters Association]), Irène Philipp Ziebold (SUISA COO) and Alexander Bücheli (Managing Director Bar & Club Commission Zurich). (Photos: Manu Leuenberger)

How have you and the companies you represent experienced the COVID-19 crisis so far?

Christoph Bill: As president of the industry association SMPA, I believe it caught all our members on the wrong foot; we were not prepared for such a scenario. But we reacted relatively quickly as an industry, got together, defined immediate measures (e.g. regarding tickets in the event of postponements and cancellations) and continuously discussed the next steps. The rest is history.
Alexander Bücheli: We were also caught on the wrong foot; these were simply conditions and situations that could not be foreseen, let alone anticipated. After that, the associations gained importance for their members; with us, they specifically gained an important function of translating civil servants’ German into the language of our members. Another, moral component occurred in our case: In the pandemic, we realised that we are considered a fun society, that parties have a different reputation compared to festivals or concerts. After the incidents in Ischgl in March 2020, we were made to feel that without us, COVID-19 would not exist; this was also emotionally difficult for our members. And, against this moral question, we are afraid again now that the case numbers are on the rise again: Will there be a call for club closures again?
Irène Philipp Ziebold: Recent times have also been challenging for SUISA. On both sides that we serve, namely that of our members (authorsand publishers) and that of our customers (music users), revenues have declined very quickly and sharply in certain markets. One segment of revenues was hit hard where we had not expected such a decline: in the performing rights, where collections had been rising steadily in recent years, especially in the concert sector, while they had been declining for years in the reproduction sector. As a consequence, we were not prepared for that and could not simply compensate for this with other revenues.
The new situation has also challenged us greatly in providing our services, especially when it comes to giving advice and counsel. But it has also brought about positive sides. Firstly, it showed us that we can see ourselves as a partner to our members and customers, because we acted relatively quickly and took action. And secondly, from an internal perspective: Within two weeks, 90 percent of our employees were working from their home offices. In the process, we also realised that we are technologically capable of continuing to run the company with around 250 employees by working remotely. The changeover was more difficult on a human level, the social element, which has a dynamic effect even in such a large company, and which fell away from one day to the next.

Were there no emergency scenarios in case everything was closing?

Christoph Bill: I have often wondered if we should not have made our members aware of such a potential risk. But such a scenario was very far away, even if it appeared in a few contingency plans. I have also accused myself of this from time to time, but what would we have done differently? We reacted immediately and got involved as an industry in a straightforward manner. By that I don’t just mean the SMPA, in fact we have managed to give a voice to the culture and events industry as a whole. This is a great advantage on the political and media level, and we should have done this a long time ago, now it has just triggered the pandemic. And it turns out that despite the breadth of culture represented, we have a lot of common denominators.

Insurance and streamed concerts

Mr. Bücheli, in the club scene, there have been problems on a small scale for years, such as threatened closures because of drugs and noise complaints – that’s why the Bar & Club Commission Zurich was founded …

Alexander Bücheli: Yes, but the pandemic is a whole different problem because you can’t get a defence counsel against it like you do with noise complaints. And that’s what’s so extreme about it: You just have to grin and bear it. For example, we tried to learn something (regarding virus transmission in bars and clubs) by sending inquiries to the Science Taskforce but to no avail. None of the businesses had contingency plans, but 80 to 90 percent had epidemic or pandemic insurance, but many insurers dodged paying. In Zurich, we were fortunate that many members had participated in a pool solution that covered the pandemic period, even twice: the second lockdown was considered a second claim. This type of insurance was, however, cancelled then by the insurance companies at the end of 2021 – and no longer exists.
We also had no alternatives to just closing like the restaurants: We were not able to offer take-away club nights. We did organise the virtual club festival “Limmatstream” in March 2021, where people could dance through the clubs as avatars. This attracted over 3,000 participants and you could also do video chats with other avatars there. That was kind of great, but couldn’t replace a real club experience. In addition, there was the question of whether people would have been willing to pay 10 to 15 francs for such a virtual experience, which you would need, as an organiser, to get by financially; we offered it for free.
Christoph Bill: Regarding the insurance issue: With our members, it was exactly the other way around; at most, 20 percent had insurance and they usually paid up. But if we look back, the beginning of the pandemic was actually easier because there was a clear ban on major events. As early as at the end of April 2020, we knew that the “Heitere” festival could not take place in August, which is a comfortable situation for organisers in terms of time. All colleagues knew at that time that they would have to postpone their events within a certain period of time. This means a huge effort, but there was a lot of understanding from all sides. Things did, however, get difficult after that, when waiting times for specifications for the subsequent periods were long and there were no clear requirements and information, or they differed from canton to canton. Accordingly, we had to plan at shorter notice and taking different scenarios into account.

Alienation from practice and lack of planability

Alexander Bücheli: This is an important point: There was no clear announcement by the Federal Government. Once you know whether you can remain open or have to close, then you can adapt accordingly. We still had an intermediate phase during which the Zurich cantonal government said you shouldn’t go dancing any more, that the clubs should actually be closed, but they didn’t give us the directive to close. The moral pressure became so great as we had never experienced before; there were even anonymous insults and threats.
Christoph Bill: At that time, I also noticed a lack of practical experience on the part of the authorities, and for a long time also a lack of willingness to engage in dialogue. We also approached many agencies, but they passed the buck to each other and nothing came back to us, it would have been better if they had involved us for comprehensible, practical measures with some lead time. It took so long before we were able to talk to people from the Federal Office of Public Health for the first time! After all, we are the last ones who want to pull off an event at any cost. But we have to have support from the authorities so that we can say in time that an event has to be cancelled or postponed. Roll-over planning out to three months would have been ideal for us. You might be able to open a club from one week to the next, but for a big concert or a festival, you do need this lead time.

So by banning events, you could more or less adjust to a situation. Did this lead to short-time work, lay-offs or even bankruptcies?

Christoph Bill: There has not been a single bankruptcy among our members so far. The aid packages worked quickly and well; we also expressed our thanks for them. But the problems are far from over: Demand is still subdued, for example, and supports are being cut and we are lacking skilled workers. That’s why I’m not so confident in the short term; the moment of truth is yet to come.

Rapid assistance and few redundancies

Alexander Bücheli: The speed of Covid loans and short-time work support: That was very important for us, also how unbureaucratic the process was how it was allocated- a key experience. With regard to the so-called “A-fonds-perdu” money [loans which the lender writes off as bad debt and do not have to be paid back], which is important for survival, it must be said, however, that it took six to eight months before the first amounts were paid out; moreover, they were only compensations for cultural enterprises. We had to do a lot to ensure that clubs were also recognised and compensated as cultural enterprises – and this only succeeded in certain cantons. Businesses that then received hardship funds had to wait over a year for assistance.
Christoph Bill: The cantonal differences in interpretation were also a problem among our members, and continue to be that to this day. Instruments that are in themselves effective, such as the current protective shield for public events, have not been introduced at all in some cantons and are applied very differently in many others. The reserves that you have built up over 20 or 30 years in a business with very thin margins are used up pretty soon. After all, the response to short-time work was very quick and unbureaucratic.
Alexander Bücheli: There were only a few redundancies in our space. It was more like employees were asking to be made redundant because they wanted to work in a different sector. Bankruptcies occurred in companies that were already not doing so well, or those that had just entered the market. Thanks to private and company reserves, there were few bankruptcies.

There have been much fewer concerts in the last 20 months, so one could assume that there was also much less to do at SUISA …

Irène Philipp Ziebold: No dismissals occurred at our company because of COVID-19. In cases where we no longer replaced people, it was for general reasons, mainly because we can automate many simple jobs, that is, replace them with computers. But there was talk about short-time work, precisely with the argumentation of the cancelled concerts. We then took a close look at this. The membership and documentation department as well as the customer service for the media and online area were hit less hard by COVID-19 and we had more work there because many people sought advice and we also set up an emergency fund.
Only the customer service for the performing rights or events had less to do. This provided an opportunity to work through backlogs and staff could be deployed in other departments, such as online, where more work was required due to COVID-19. That’s why we didn’t have to lay anyone off or put them on short-time work contracts because of COVID-19. And if you look at the 2020 operating result, we also achieved a relatively good result in this crisis.

Emergency budget and additional work

Does this also have to do with the fact that SUISA worked with an emergency budget that was adjusted on a rolling basis?

Irène Philipp Ziebold: Absolutely. The Board wanted to know where the journey was headed: Can we reduce costs at the same rate our collections are collapsing? This would only have been possible with a massive reduction in staff. We knew, however, that if we laid people off, they would be missing on day X when business returned to normal. A great deal of expertise needed for these tasks would no longer be available; new employees always need a certain training period. It would therefore have been negligent to lay off many people in such a situation.

How much extra work do organisers have to do due to ever-changing COVID-19 regulations?

Christoph Bill: It is an unbelievable level of additional work that the members of the SMPA have to do because of this, I can also say that from personal experience from the “Heitere” festival. Developing and adapting a number of scenarios, obtaining, negotiating and implementing the permit from the health authorities, drawing up and implementing the precautionary measures, safeguarding against risks, dealing with uncertainty and keeping everyone involved at it was and remains an enormous amount of work for an event organiser, not to mention the additional expenses on site for infrastructure and personnel. At the “Heitere”, we launched a virtual festival in 2021 in addition to the on-site edition, which was a valuable experience, but at the same time also an enormous effort.

What is the situation in neighbouring sectors, such as technicians and security?

Christoph Bill: The shortage of skilled workers is likely to become an increasing problem, on the one hand due to lay-offs that some companies had to announce despite everything. On the other hand, more and more people from these sectors are orienting themselves differently the longer the crisis lasts, even if you would like to keep them. And those who are now working as electricians, for example, will wait a while before returning to the audio engineering profession; they may also have come to appreciate the more regulated working hours.
If anything, the need will be even greater than before, because our members have postponed many events until 2022; this will give a big ramp up of demand at certain times, because the postponed and new events will come together. You have to manage that somehow. And someone has to buy these tickets.
Alexander Bücheli: Early 2022 will be crucial for us, depending also on how pre-Christmas business will fare with corporate events, which in some companies can account for 30 to 50 percent of annual sales.

A single voice and rapid response

How important was it that various associations got together early on to have a single voice, especially with the federal government?

Christoph Bill: That was absolutely crucial. Even though there was no real dialogue for a long time, many of our messages got through faster than we felt they did. What was implemented was largely in the right direction. It was important to bring together the voices from the cultural and event sectors instead of rushing forward individually. It is enormously important, especially for politicians, that they are not bombarded with statements from all sides, but that there is a lowest common denominator – that is what we have always been looking for. As an association, we suddenly played a bigger and more visible role. We have already created a climate of openness and togetherness over the last six to ten years. We were able to build on that.

How has SUISA’s position changed during this time of crisis?

Irène Philipp Ziebold: On the side of our members and publishers, we were strengthened because we were there for them and did not disappear into short-time work. Advice and counsel were immensely important to the members. We continued to do our job to generate money – the 2020 financial statements show that we did not do badly. We have also created an emergency fund, where we are still a bit more pragmatic, especially in contrast to certain federal support measures. We are neither superficial nor negligent, but we ask for less information and can therefore provide certain support more quickly. We have also changed our advance payment rules, made them more generous, but always weighing up the risk. We also have a Pension Fund for authors and publishers that provides support as well. In other words, we acted, and this has once again strengthened our standing among our members.

And among the customers?

Irène Philipp Ziebold: There, too, we reacted very quickly and also took measures that we would not have had to take, such as extending payment deadlines and suspending reminders. We were quite agile and acted in a cooperative way on that. This has brought us a lot of goodwill.

And what about one single voice?

Irène Philipp Ziebold: Here I can refer to the Swiss Music Council. As its member, we are well represented in the “Taskforce Culture”. For the first time, organisers and members have come to the same table with the same demand with a single voice, so to speak, and this has also worked well with politics. The “Taskforce Culture” was able to exert a certain influence and was involved in discussions with Federal Councillor Berset. It was and remains a success that should be carried forward.

Uncomplicated solutions and delayed normalisation

How do the organisers rate the crisis cooperation with SUISA?

Christoph Bill: Even if it has affected SMPA members less, SUISA has found quick and straightforward solutions in some areas. Thank you, my compliments! The dialogue with us as an association was already good before, but it got even better. We felt there was an awareness of being in the same boat. And it also became clear that the future can only be mastered together and that perhaps new paths must be followed.
Alexander Bücheli: It was a bit like the “Taskforce Culture”. We wrote to SUISA at the beginning because we have the problem that clubs pay invoices on a quarterly basis and not on the basis of events that take place. SUISA has found a very straightforward solution for which we are very grateful. Regardless of COVID-19, we should increasingly try to understand each other and also meet [face to face]. And it’s a good sign that none of our members have complained to me about SUISA since the pandemic, so it’s working.

What are the expectations for normalisation of the situation, has there been a pent-up need among the public for events?

Christoph Bill: This still feels like looking into the crystal ball for me. No, I don’t think there’s a lot that has been pent up there. Many people will only slowly and hesitantly return to concerts and festivals. This is reflected in the fact that, with a few exceptions, demand for our members’ events is 20 to 30 percent lower than usual and that a higher proportion of guests who have a ticket do not show up. This delay must be considered in addition to the lead time required for organising the events: We are trying to get live operations going again. But we can’t just pull the lever. This will probably also require start-up support and instruments such as SUISA continuing to extend payment deadlines.

The roundtable discussion was held on 12 November 2021. The participants were: Christoph Bill, Heitere Events AG and SMPA President(Swiss Music Promoters Association); Alexander Bücheli, Managing Director Bar & Club Commission Zurich; Irène Philipp Ziebold, SUISA COO and Vice President Swiss Music Council.

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At a round table discussion, Christoph Bill and Alexander Bücheli, two representatives of SUISA customers from the promoter and event organising sector, and Irène Philipp Ziebold, SUISA COO, spoke about crisis management during the pandemic. Cooperation with SUISA was also a topic. Presentation and transcript: Markus Ganz, guest author

Going through times of crisis with strong cooperational partners

Round table discussion with Christoph Bill (Heitere Events AG and President SMPA [Swiss Music Promoters Association]), Irène Philipp Ziebold (SUISA COO) and Alexander Bücheli (Managing Director Bar & Club Commission Zurich). (Photos: Manu Leuenberger)

How have you and the companies you represent experienced the COVID-19 crisis so far?

Christoph Bill: As president of the industry association SMPA, I believe it caught all our members on the wrong foot; we were not prepared for such a scenario. But we reacted relatively quickly as an industry, got together,...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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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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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

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

Changes in distribution for Common Tariff K and Z revenues

The CHF 20 limit for the distribution of revenues under Common Tariffs K (concerts) and Z (circuses) has been eliminated. As a result, amounts previously allocated to distribution category 4C will be otherwise regulated. The changes concern points 4.1, 4.2, 5.4 and 5.5 of SUISA’s Distribution Rules. Text by Irène Philipp Ziebold

Changes in distribution for Common Tariff K and Z revenues

SUISA has optimised its distribution rules for revenues from live performances. (Photo: Tabea Hüberli)

Revenues from CT K and CT Z had hitherto been allocated to two different distribution categories. Amounts over CHF 20 per work were allocated to DC 4B “Concerts and other performances with revenues of more than CHF 20 per work”. Distribution in this category was made on a per file basis. On the other hand, performance revenues of less than CHF 20 per work were allocated to DC 4C “Concerts with revenues of up to CHF 20 per work” and were then distributed on a flat-rate basis.

As is in the nature of flat-rate solutions which at best only approximate real circumstances, this practice did not always produce satisfactory results. In the case of DC 4C, a flat point value, calculated based on the revenues and programme information of all the events assigned to this distribution category, was applied.

Distribution based on actual usage is more advantageous

The flat point value actually applied could be higher or lower than the actual point value of an individual event. Therefore, it could happen that entitled parties would receive a higher amount than that actually paid by the organiser in respect of an event for which only the minimum fee under Tariff K had been paid. Naturally, the opposite was equally possible. The changes made in the Distribution Rules now eliminate the potential disadvantage or advantage for the beneficiaries of DC 4C.

In practice, these changes remove the CHF 20 limit and eliminate distribution category 4C altogether. Henceforth, all revenues from CT K and CT Z – regardless of amount or point value per work – will be allocated to and distributed in DC 4B. The rules for DC 4B itself remain unchanged; only the name of this category has been changed. It is now called: “Concerts & concert-like performances.”

The revenues previously allocated to DC 4C will henceforth flow into DC 4B as well. These consist in the allocations from revenues without programme information from Tariffs Hb, L, Ma, 3a, 7, 8, K and Z, as well as Tariff B revenues from orchestra consortia (with programme information).

Overview of changes in Distribution Rules

Here, in a nutshell, are the advantages of the changes in the Distribution Rules:

  • Even smaller amounts will be equitably distributed per file when programme information is available. This corresponds to a per-work distribution where the proceeds from an event will be distributed directly to the entitled parties.
  • Hitherto, only the entitled parties under DC 4C had the benefit of the above-listed allocations. Since both distribution categories (4B and 4C) relate to concert repertoires, there is no objective reason not to take into account DC 4B works in the distribution of allocations. Thanks to these changes, this will now be the case.
  • By introducing per-file distribution for all performances subject to Tariffs K and Z, settlement statements will be more transparent. Members will now be able to clearly see the make-up of their revenues from live performances under this Tariff.

The changes in the Distribution Rules will first be implemented in the September 2019 distribution.

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The CHF 20 limit for the distribution of revenues under Common Tariffs K (concerts) and Z (circuses) has been eliminated. As a result, amounts previously allocated to distribution category 4C will be otherwise regulated. The changes concern points 4.1, 4.2, 5.4 and 5.5 of SUISA’s Distribution Rules. Text by Irène Philipp Ziebold

Changes in distribution for Common Tariff K and Z revenues

SUISA has optimised its distribution rules for revenues from live performances. (Photo: Tabea Hüberli)

Revenues from CT K and CT Z had hitherto been allocated to two different distribution categories. Amounts over CHF 20 per work were allocated to DC 4B “Concerts and other performances with revenues of more than CHF 20 per work”. Distribution in this category was made on a per file basis. On the other hand, performance revenues of less than CHF 20 per work were allocated to...read more

Income from performing rights set to rise in 2019

SUISA’s December Board meetings usually focus on the figures for the coming year. Budgets, staffing plans and cost coverage deductions for business year 2019 were thus the central discussion point. Report from the Board by Dora Zeller

Report from the Board: Income from performing rights set to rise in 2019

Neuchâtel Reggae band Moonraisers, shown on the main stage of the Label Suisse Festival in Lausanne in September 2018; the event is co-supported by SUISA. Regarding the income from performing rights, including concerts, SUISA expects an increase during business year 2019. (Photo: Anne Bichsel / Label Suisse)

For the second time in SUISA’s history, the Board inspected the group budget of SUISA on top of its regular inspection of the budget of SUISA, the Cooperative Society and parent company. The latter comprises the numbers of the parent company, the 100% subsidiary company SUISA Digital Licensing (SUISA Digital) and the 50% share in the Joint Venture Mint Digital Services AG. The budgets of SUISA Digital and Mint are approved by the respective administrative boards of the two companies; the relevant numbers are then incorporated into the group accounts.

Increase in income thanks to performing rights

SUISA’s budget for 2019 provides for an increase of the income from the exploitation of copyright in Switzerland and Liechtenstein, especially due to the income from performing rights (more events, higher admission charges). The decline in mechanical/reproduction rights is set to continue. In the case of compensation claims, growth is expected; the same applies to online usage income. Foreign income has been calculated analogously to 2018, secondary income has been set higher.

For business year 2019, a total turnover of CHF 166.5m has been budgeted (2018: CHF 152m). Costs are expected to rise from CHF 29.5m in the previous year to CHF 32.5m. This is due to higher staff costs required for collections regarding Tariff CT 3a (background entertainment) and additional positions in the IT department.

Cost deductions, Articles of Association, Regulations

With respect to the cost deductions, the Board sets a percentage each year in relation to the distribution of the income that is to be deducted in the following year. For 2019, the percentages of the previous year will be retained in the offline sector. Cost deductions in the online business, however, are subject to change; the reason for this is the outsourcing of licensing and partially distribution activities to the subsidiary companies.

SUISA members had agreed to various changes to the Articles of Association at the General Assembly in June 2018. The revision of the Articles of Association also took place in the context of the alignment with the Liechtenstein Collecting Societies Act and the EU Directive on Collective Rights Management (CRM Directive). As a consequence, the division of powers and the organisational policies had to be adapted, and rules of procedure for the newly created Complaints Committee had to be drawn up. The Board has ratified all of these policies.

FONDATION SUISA and Revision of the Swiss Copyright Act

The SUISA Board Committee for Organisation and Communication and the responsible parties of the FONDATION SUISA have established an “annual dialogue” which takes place at the end of the year. This time, Marc Savary, President of the Foundation Board of the FONDATION SUISA reported on the amendments in the respective Statutes and regulations/policies. He also provided an overview on the activities of SUISA’s foundation for music promotion and answered questions of the Committee members.

Furthermore, the Board was concerned about the news that the National Council intends not to adhere to the compromise by the Working Group on Copyright (AGUR12) in its deliberations on the Copyright Revision and plans to provide for an exception regarding TV reception in guest rooms in the law. As a consequence, the new law would be worse than the previous one. The Board has instructed Management to undertake measures so that the Council of States corrects the decision of the National Council.

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SUISA’s December Board meetings usually focus on the figures for the coming year. Budgets, staffing plans and cost coverage deductions for business year 2019 were thus the central discussion point. Report from the Board by Dora Zeller

Report from the Board: Income from performing rights set to rise in 2019

Neuchâtel Reggae band Moonraisers, shown on the main stage of the Label Suisse Festival in Lausanne in September 2018; the event is co-supported by SUISA. Regarding the income from performing rights, including concerts, SUISA expects an increase during business year 2019. (Photo: Anne Bichsel / Label Suisse)

For the second time in SUISA’s history, the Board inspected the group budget of SUISA on top of its regular inspection of the budget of SUISA, the Cooperative Society and parent company. The latter comprises the numbers of the parent company, the 100% subsidiary company SUISA Digital Licensing (SUISA...read more

“Hands-on” – the new Common Tariff K

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

“Hands-on” – the new Common Tariff K

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

What’s new?

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

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

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

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

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

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

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

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

What has not changed?

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

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

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

Answers to frequently asked questions

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

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

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

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

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

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

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

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

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

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

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

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

“Hands-on” – the new Common Tariff K

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

What’s new?

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

SUISA expects significant rise in streaming collections

At the top of the agenda for the SUISA Board meeting in December 2016 was the budget for the following financial year. It was with satisfaction that the Board established a continuation of the positive developments from the past years in relation to the collections (+3.2%). Expenditure remains stable and the distributable amount increases slightly (+2.91%). Report from the Board by Dora Zeller

SUISA expects significant rise in streaming collections

The remuneration pot for streaming exploitations is expected to fill up for authors and publishers even more: In its budget for financial year 2017, SUISA expects an increase in the online sector income of +13.4% compared to the previous year. (Photo: Manu Leuenberger)

The budget for financial year 2017 includes higher collections arising from broadcast and performing rights as well as compensation claims. An increase of approx. 11% is expected from tariffs CT 4i (smart phones) and CT 12 (set top boxes rental). A significant rise is also expected in the online sector, especially streaming (+13.4%). Due to the market developments, it is expected that reproduction rights are due to decrease (-3.8%). Regarding income from abroad, the amounts in the budget are also lower than previously (-4.5%).

Board and Management of SUISA also plan long-term: Apart from the roadmap for 2017, financial planning and strategy until 2020 were discussed. The Board discussed and ratified the drafts presented by Management.

Cost deductions stay the same

Another recurring agenda item for the end of the year are the cost deductions. The Board resolves which deductions will be taken in the subsequent year from collections in the current year. For Switzerland and the online sector, the percentages are between 10 and 15% just like in the previous year. An exception are the cost rates for the reproduction sector, in particular tariffs PI and VI which are subject to the Cannes Agreement (7.025% and 9.025%).

Furthermore, the percentage deducted from income from abroad in the last few years on the basis of reciprocal representation agreements was examined. Since various sister societies apply higher deductions, the pros and cons of an increase were thoroughly considered. The Board members decided, however, to keep deduction levels at 4%.

Benvenuti a Lugano

For the autumn meetings 2017, the Board members of SUISA will not travel to Lausanne, as they did before, but to Lugano instead. Why not hold the General Assembly in the Italian-speaking part of Switzerland? In line with SUISA’s planning it could happen in 2021.

By-elections in the Distribution and Works Committee

Alex Kirschner, composer for advertising and film music, steps back from his post in the Distribution and Works Committee (VWK) in summer 2017. Jonas Zellweger – SUISA member since 2009 – applies for the vacant seat; he is active in the same music category. The Board is going to unanimously propose his candidature to the General Assembly for election.

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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.

At the top of the agenda for the SUISA Board meeting in December 2016 was the budget for the following financial year. It was with satisfaction that the Board established a continuation of the positive developments from the past years in relation to the collections (+3.2%). Expenditure remains stable and the distributable amount increases slightly (+2.91%). Report from the Board by Dora Zeller

SUISA expects significant rise in streaming collections

The remuneration pot for streaming exploitations is expected to fill up for authors and publishers even more: In its budget for financial year 2017, SUISA expects an increase in the online sector income of +13.4% compared to the previous year. (Photo: Manu Leuenberger)

The budget for financial year 2017 includes higher collections arising from broadcast and performing rights as well as compensation claims. An increase of approx. 11% is expected...read more

New distribution key for performing and broadcasting rights

The SUISA distribution key for performing and broadcasting rights will be changed from 01 January 2017 onwards. For works with an original publisher, the share of the author shall be 66.67% and that of the publisher 33.33%. The distribution rules are thus adapted to the CISAC key which is applied at international level. Text by Irène Philipp Ziebold

8/12 for authors, 4/12 for publishers: SUISA will adapt its distribution key for performing and broadcasting rights to European standards again. (Photo: Manu Leuenberger)

The majority of SUISA’s European sister societies apply the so-called “CISAC key” when it comes to originally published works in the performing and broadcasting rights sector. CISAC is the international umbrella for collective management organisations (Confédération Internationale des Sociétés d’Auteurs et Compositeurs). The shares of the distribution key recommended by the umbrella organisation for performances and broadcasts amount to 66.67% for authors and 33.33% for publishers.

SUISA’s distribution key

SUISA’s distribution key had deviated from the internationally established CISAC standard in the past. Up to now, SUISA distribution rules provided that the shares for originally published works for performing and broadcasting rights was 65% for authors and a maximum of 35% for publishers. Regarding the production of sound and audio-visual recordings, the composers receive 60% and the publishers 40%.

In the case of works with a sub-publisher, the author has an entitlement as per the distribution rules to receive 50%, and the publisher and sub-publisher to claim the remaining 50% for performances and broadcasts. Regarding the production of sound and audio-visual recordings, the composers receive 40% and the publisher and sub-publisher share the remaining 60%. In this context, it is worth mentioning that SUISA usually adopts the contractually agreed split between the publisher and the sub-publisher in the case of sub-published works. Only in the absence of such agreed splits will SUISA apply the keys established by the distribution rules.

Alignment with the European CISAC standard

The distribution keys by SUISA will now be adapted in the case of originally published works in the performing and broadcasting rights to European standards. The keys relating to the production of sound and audio-visual recordings (mechanical reproduction rights) shall remain unchanged in the distribution rules. Strictly speaking, the application of the CISAC key of 67% for authors and 33.33% for publishers is nothing new, but rather a re-introduction of a previous provision.

The key applied on a Europe-wide level is actually expressed in fractions 8/12 (author’s share) resp. 4/12 (publisher’s share). When SUISA began working with IT systems back in 1962, the aim was to avoid decimal places after the decimal point. As a consequence, SUISA changed the key, and rounded it to 65%, resp. 35%. The majority of the other European societies kept the translated fractions i.e. 66.67% and 33.33%.

Effects of the changed distribution rules

Thanks to the adaptation of the distribution keys, authors will be remunerated with the share that is deemed as standard in the European area. While the publisher share will be decreased by 1.67%, they will, together with the authors, benefit from positive effects which the changes bring about.

Apart from the harmonisation with other European societies, the (re)introduction of the CISAC key for originally published works entails further significant advantages:

  • Important increase in efficiency during work registration: Processing of SUISA works with international contributors will become simpler. Difficult conversions in the case of joint productions with international authors become redundant.
  • Processing distributions of the sister societies will be significantly simplified: The matching distribution keys will facilitate the processing of distributions by international sister societies to a great extent.

Validity of the changes to the distribution rules

Both the SUISA Board of Directors as well as the Swiss Federal Institute of Intellectual Property (IPI) have agreed to this change. The new distribution keys will come into force from 01 January 2017 without any retroactivity. This means, that all works declared after 01 January 2017 will be registered with the new distribution key. In the case of works that had been registered before that date, the distribution key in place shall remain valid. These works will not be changed.

The decision of the IPI dated 28 July 2016 is published at the SUISA website.

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The SUISA distribution key for performing and broadcasting rights will be changed from 01 January 2017 onwards. For works with an original publisher, the share of the author shall be 66.67% and that of the publisher 33.33%. The distribution rules are thus adapted to the CISAC key which is applied at international level. Text by Irène Philipp Ziebold

8/12 for authors, 4/12 for publishers: SUISA will adapt its distribution key for performing and broadcasting rights to European standards again. (Photo: Manu Leuenberger)

The majority of SUISA’s European sister societies apply the so-called “CISAC key” when it comes to originally published works in the performing and broadcasting rights sector. CISAC is the international umbrella for collective management organisations (Confédération Internationale des Sociétés d’Auteurs et Compositeurs). The shares of the distribution key recommended by the...read more