Tag Archives: SESAC

Summer meeting of the SUISA Board

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

Summer meeting of the SUISA Board

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

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

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

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

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

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

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

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

Related articles
Mint Digital Services: FAQsMint Digital Services: FAQs SUISA and SESAC, a US collective management organisation, have established Mint Digital Services as a joint venture. Mint Digital Services will take over the invoicing and administration services for SESAC and SUISA’s online licensing activities. The joint venture will also offer services to publishers and collective management organisations. Warner/Chappel Music, a major publisher, is already using Mint’s services. Here the main FAQs. Read more
Overall, a positive financial year 2018Overall, a positive financial year 2018 The SUISA Board and its Committees for Tariffs and Distribution as well as for Organisation and Communication met for their regular spring sessions on 9 and 10 April 2019 at the SUISA head office in Zurich. Read more
Changes in the distribution of revenues from radio usesChanges in the distribution of revenues from radio uses The classifications for radio broadcasting stations have been changed. Starting with the 2019 settlements, a uniform factor of 0.25 will be applied for level D uses (sound logos, jingles, background music, etc.), and a factor of 1.5 for level E (other music). In addition, calculations will be made on a per-second instead of a per-minute basis. Read more
Collapse article

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.

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

Summer meeting of the SUISA Board

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

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

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

The first year of SUISA Digital Licensing AG

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

The first year of SUISA Digital Licensing AG

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

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

SUISA Digital’s responsibilities

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

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

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

Joint licences

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

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

The negotiations

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

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

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

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

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

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

Distribution

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

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

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

Outlook

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

Related articles
SUISA creates Joint Venture with SESAC: Mint Digital LicensingSUISA creates Joint Venture with SESAC: Mint Digital Licensing SUISA has founded a Joint Venture together with the US American collective management organisation SESAC under the name Mint Digital Licensing. The new enterprise shall licence the online usage of works by SUISA and SESAC members on a Europe-wide basis. The service range offered by the Joint Venture is also open to other market players such as (major) publishers or international collective management organisations. An interview with SUISA’s CEO Andreas Wegelin on the advantages and the significance of this cooperation. Read more
Copyright Act Review: Authors and publishers must benefit more from the online exploitation of their worksCopyright Act Review: Authors and publishers must benefit more from the online exploitation of their works The Federal Council has adopted a dispatch on the new Copyright Act. SUISA is in principle content with the current version of the law. The solutions achieved in the working group for the Copyright Act (AGUR12 II) were implemented. In order for authors, performers, publishers and producers to benefit better from the digitisation, it is necessary to adopt important additions. Read more
Stream ripping – tape recorders on the internetStream ripping – tape recorders on the internet Stream ripping software records audio and video streams. A copy of the entire stream can thus be saved as a file. Swiss copyright legislation provides for a private copy remuneration which is applicable to recording and storage media. Stream ripping apps are not covered by the statutory obligation to pay a levy – just like the tape recorders in the past. Read more
Collapse article
  1. Walter Thut says:

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

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

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

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

    Was stimmt hier nicht?

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.

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

The first year of SUISA Digital Licensing AG

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

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

131.4m Swiss Francs for composers, lyricists and publishers

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

131.4m Swiss Francs for composers, lyricists and publishers

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

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

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

General Assembly of SUISA on 22 June 2018 in Berne

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

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

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

Mint Digital Services, the joint venture

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

Related articles
Since December 2017, statements are made available via “my account”Since December 2017, statements are made available via “my account” Thanks to the password-protected members’ area “my account”, our members can keep an overview of their distribution statements and distribution settlements. Many members asked us to stop the dispatch by post. We have taken this request into account and introduced the option to renounce on the postal dispatch. Read more
SUISA General Assembly 2018: Your opinion counts!SUISA General Assembly 2018: Your opinion counts! SUISA’s ordinary General Assembly takes place on 22 June 2018 in the Bierhübeli in Bern. It will be opened with a music performance by the ad hoc formation Swiss Ländlermix in line with the theme; “Folk music – Switzerland crossways”. Important business items on the agenda are the review of the Articles of Association, the new Complaints Committee and an election of a substitute for the Distribution and Works Committee. Danièle Wüthrich-Meyer, President of Swissperform will attend as guest speaker. Read more
SUISA’s financial year 2018: an outlookSUISA’s financial year 2018: an outlook In the Committee and Board meetings towards the end of the year, framework conditions for the following financial year are set. As such, the meetings of the SUISA Board in December 2017 continued to be characterised by budgets, cost rates, staffing plans, roadmaps, politics and quite a bit more. Read more
Collapse article

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.

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

131.4m Swiss Francs for composers, lyricists and publishers

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

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

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

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

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

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

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

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

SUISA improves its competitiveness in the online market

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

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

Wanted: Active participation of our cooperative members

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

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

See you on 23 June 2017 in the Kaufleuten Zurich.

Related articles
Attend the SUISA General Assembly 2017 and take part in the decision-making processAttend the SUISA General Assembly 2017 and take part in the decision-making process SUISA’s ordinary General Assembly shall take place on Friday, 23 June 2017 in the Kaufleuten Festsaal in Zurich. How did financial year 2016 go? Who will be newly elected into the Distribution and Works Committee? What’s next for the “Service Public” at SRG? What are the aims of the recently created JV Mint Digital Services? Read more
Commentary on SUISA’s annual results for 2016Commentary on SUISA’s annual results for 2016 SUISA can report a very successful financial year 2016. The result reflects an all-time high regarding the income from domestic copyright exploitation. In the Cooperative Society’s history of more than 90 years, this is a record sum in terms of remuneration that is due for distribution. The average cost coverage deduction remains low – about CHF 88 per CHF 100 of the income collected can be paid out to authors and publishers that are entitled to receive such remuneration. Read more
SUISA member services: one look back, one look forwardSUISA member services: one look back, one look forward Quicker pay-outs due to quarterly settlements, simpler data processing via online works registrations, digital access to statements via “my account”, more efficiency via online forms … What’s next – settlements in “real time”? Will there be no more paper dispatched in future? Read more
Collapse article

Leave a Reply

All comments will be moderated. This may take some time and we reserve the right not to publish comments that contradict the conditions of use.

Your email address will not be published.

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

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

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

SUISA can look...read more

Meeting of the SUISA Board – April 2017

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

Meeting of the SUISA Board - April 2017

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

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

Annual accounts 2016 of the Pension Fund

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

SUISA General Assembly 2017 on 23 June in Zurich

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

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

SRG & “Service Public”

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

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

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

SUISA prepares for the future

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

IPI system: What may it cost?

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

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

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

Related articles
Attend the SUISA General Assembly 2017 and take part in the decision-making processAttend the SUISA General Assembly 2017 and take part in the decision-making process SUISA’s ordinary General Assembly shall take place on Friday, 23 June 2017 in the Kaufleuten Festsaal in Zurich. How did financial year 2016 go? Who will be newly elected into the Distribution and Works Committee? What’s next for the “Service Public” at SRG? What are the aims of the recently created JV Mint Digital Services? Read more
Swiss music lives thanks to SRG’s special interest stationsSwiss music lives thanks to SRG’s special interest stations The Transport and Telecommunications Committee of the National Council has moved to close down six SRG special interest stations and has filed a motion in this sense. For Swiss music creators the consequences would be devastating. These stations are precisely those that play and promote local Swiss music. Sign the online petition “Hands off special interest stations” now! Read more
SUISA expects significant rise in streaming collectionsSUISA 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%). Read more
Collapse article

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.

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

Meeting of the SUISA Board - April 2017

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

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

Mint Digital Services: FAQs

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

Mint Digital Services: FAQs

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

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

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

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

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

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

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

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

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

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

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

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

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

 Related articles
SUISA creates Joint Venture with SESAC: Mint Digital Licensing SUISA has founded a Joint Venture together with the US American collective management organisation SESAC under the name Mint Digital Licensing. The new enterprise shall licence the online usage of works by SUISA and SESAC members on a Europe-wide basis. The service range offered by the Joint Venture is also open to other market players such as (major) publishers or international collective management organisations. An interview with SUISA’s CEO Andreas Wegelin on the advantages and the significance of this cooperation. Read more
Sustainable growth for members Cooperative societies excel by their solid economic activities. This is also true for SUISA. The cooperative society for composers, lyricists and publishers of music has slightly increased its income in 2015. SUISA pays out approx. 88% of its income to the rightsholders. That’s a total of CHF 125m. The cooperative society thus makes a substantial contribution to the financial livelihood of its members. Below is an analysis of the annual result. Read more
Why our members don’t have to notify SUISA whether their works are on Youtube Members have recently asked us along the lines of ‘how, where and when can I tell SUISA that my works are on YouTube’. We explain in the following reply to a member’s query why authors do not have to notify SUISA whether their works are available on the video platform. Read more
Collapse article

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.

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

Mint Digital Services: FAQs

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

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

The fight for the copyright review gets tougher

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

The fight for the copyright review gets tougher

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

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

Copyright review: The devil is in the detail

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

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

Cooperation with the American organisation SESAC

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

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

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

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

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.

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

The fight for the copyright review gets tougher

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

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

SUISA creates Joint Venture with SESAC: Mint Digital Licensing

SUISA has founded a Joint Venture together with the US American collective management organisation SESAC under the name Mint Digital Licensing. The new enterprise shall licence the online usage of works by SUISA and SESAC members on a Europe-wide basis. The service range offered by the Joint Venture is also open to other market players such as (major) publishers or international collective management organisations. An interview with SUISA’s CEO Andreas Wegelin on the advantages and the significance of this cooperation.

SUISA creates Joint Venture with SESAC: Mint Digital Licensing

Important step in terms of online licensing: SUISA and SESAC found the Joint Venture Mint Digital Licensing (Photo: Rawpixel.com / Shutterstock)

SUISA communicates its cooperation with the US American collective management organisation SESAC at the beginning of August 2016. What are the plans of the two societies?
Andreas Wegelin: SUISA and our US American sister society SESAC intend to cooperate in the online music business. More specifically, they want to provide international licensing of music offers which are available online. To this end, we will create a Joint Venture with SESAC: Mint Digital Licensing. The new enterprise is going to issue licences to providers of music streaming and download services for the repertoire of SUISA and SESAC for all of Europe. The Joint Venture is also going to offer its services to third parties; for example to major publishers which can assign their online rights in Europe directly, or other collective management organisations which are not in a position to carry out international licensing themselves.

SUISA and SESAC will jointly negotiate with the online service providers within the remit of the Joint Venture. And the negotiations in this case will not just be with providers with which SUISA already has agreements. Agreements with new providers are also going to be part of the negotiation process.

How did the cooperation between SUISA and SESAC come about?
SESAC was looking for a reliable partner for the markets outside of the USA in order to license its repertoire successfully in those territories. During this process, the US American sister society approached SUISA and asked to enter into a cooperation.

Which advantages does the Joint Venture have for both societies?
Both collective management organisations have the aim to create financial benefits for their members from online exploitation of their works. The Joint Venture represents repertoire of more than 11.5 million works of SESAC and 4.5 million works of SUISA, of more than 110,000 composers, lyricists and publishers in total. Thanks to the size and relevance of the joint repertoire both societies strengthen their negotiation position vis-a-vis the online service providers. As a consequence, the most important benefit of the Joint Venture is to be able to represent the interests of the SUISA and SESAC members in the negotiations with Spotify, Apple, YouTube and others with more gravity. The fair remuneration of authors and publishers for online music uses is therefore the main concern.

Specifically from SUISA’s perspective, another aspect is important: We have invested some of our resources into the modernisation of our IT infrastructure in the past years. We did this to create a good starting position for us regarding the online music business. It is now possible for us to offer our IT services to other societies and publishers against payment, and to use the full capacity of our systems. Another effect will be that we will generate higher secondary income. Half of the profit from Mint Digital Licensing goes to SUISA, for example. Higher secondary income helps us to keep the cost deductions for the distributions to SUISA members at a lower level. Taking the supplementary distribution into consideration, the deduction we took in 2015 was an average of 6.76%.

A low administration cost rate will remain an important issue for us in future. It is possible that, in a few years, a competitive situation arises regarding the management of broadcasting rights, as we already experience it for online rights today. In a worst case scenario, part of the income from the administration of broadcasting rights might fall away. This would mean that we have less income, but more or less the same expenditure. Higher cost deductions from the settlements paid to our members would be the consequence. Said higher secondary income counteracts such measures.

Thanks to the cooperation with SESAC in the Joint Venture, SUISA can thus not only strengthen its market position in the online business, but also generate secondary income simultaneously, helping to keep cost deductions low – all of which is a benefit to SUISA members.

SUISA members will also have a simple access to controlling and managing their catalogues, licences and royalty settlements via the Joint Venture in future.

What changes for SUISA members following the Joint Venture?
The cooperation with SUISA remains the same for members, be it concerning the range of services offered by SUISA or the scope of rights management. There are no plans for a new rights administration agreement or changes to the distribution rules as a consequence of the Joint Venture. The member services of SUISA will continue to look after the members – there won’t be any changes regarding our members’ contact partners. The fact that licensing is now being executed by the Joint Venture does not entail a duplicate admin process for members; just like before, the cost deductions are only carried out once. Only the online service providers will be affected by the main changes: The SUISA repertoire will be licensed to online music services via the Joint Venture.

How many staff will be employed by the Joint Venture and where will the company be located?
The exact structure of the Joint Venture as well as the choice of the company location is still being defined at this stage. We intend to keep the organisational structure of Mint Digital Licensing as lean as possible. Both SUISA as well as SESAC have the aim to work together efficiently and to keep admin costs low.

What is the ownership structure of the Joint Venture? Are you going to sell a part of SUISA?
No. SUISA will remain 100% independent. It will provide its own services to the Joint Venture. Furthermore, both companies [SUISA and SESAC] will contribute a six-digit amount in order to cover the initial costs of the joint enterprise. SESAC and SUISA own 50% each of Mint Digital Licensing. This also means that both companies are equal partners within the Joint Venture.

What implications does the Joint Venture have for SUISA employees? Is a reorganisation or a staff reduction planned?
Personnel cutbacks are not going to be made at SUISA as a consequence of the Joint Venture. It might even lead to a slight increase in job positions. With regards the company organisation, some employees who already work for the online licensing area will continue their work in the name of Mint Digital Licensing from now on. A reorganisation at SUISA due to the Joint Venture is not going to take place.

The Joint Venture marks an important development for SUISA as an organisation: As mentioned before, cross-border competition exists regarding the rights assignment in the online music market in Europe. SUISA can now directly manage the online rights for its members across the whole of Europe. Vice versa, this also applies to international sister societies. As a consequence, relating to its online business, SUISA is in direct competition with collective management organisations such as SACEM, GEMA, PRS or the Swedish STIM. This competition in the online area is a new experience for SUISA. We are ready thanks to our range of specific services. Exciting times are ahead of us.

(Photo: isler-fotografie.ch)

Christian Fighera, co-founder of Two Gentlemen and Board members of SUISA, comments on the Joint Venture:

“I am very happy about the step SUISA has taken to enter into this Joint Venture with SESAC. In a world where the online distribution has been completely liberalised, it is an advantage that our members are treated as equals to famous international composers. Thanks to the Joint Venture, we can license a comprehensive and attractive repertoire on a worldwide basis. At the same time, we can strengthen our competences and our relationships with new partners. New authors and well-established artists alike will be able to benefit from this Joint Venture. It also shows that SUISA can make progress and develop itself further while offering member and customer-oriented high-quality services.”

Who is SESAC?
SESAC is one of the three big US American collective management organisations for performing rights. The company was founded in 1930 and its legal form is subject to private law. John Josephson has been CEO and Chairman of SESAC for the last two years. He is pursuing an innovative strategy with its organisation in order to absorb the fast structural and technological change in the music business and to continue developing SESAC to an integral music rights organisation – a one stop shop.
As a consequence, he invested in state-of-the-art IT systems and made sure they were brought to cutting-edge technology levels. They are comparable to the SUISA systems. In 2014, SESAC bought and incorporated Rumblefish, a company specialised in micro-licensing. Last year, SESAC bought the Harry Fox Agency (HFA), a big organisation for mechanical rights. HFA represents about 48,000 US American music publishers.
SESAC looks after music creators such as Bob Dylan, Neil Diamond, Beyoncé, Green Day, Mariah Carey and many other globally successful artists. Among the film composers looked after by SESAC are Christophe Beck, Jeff Beal, Danny Lux, Jon Ehrlich, Dennis C. Brown or Bruce Miller. SESAC also represents SESAC TV shows such as Grey’s Anatomy, How I Met Your Mother, Parenthood, Dateline NBC, Dr. Phil, Seinfeld or The Doctors.On the Harry Fox Agency:
HFA has been looking after the mechanical rights of music publishers in the USA since 1927. For years, HFA has grown to become one of the biggest licensor of mechanical rights, representing about 48,000 music publishers and thus a repertoire of more than 6.7m compositions as of today. After the takeover by SESAC, the repertoires were merged and are now managed by the SESAC systems.
Related articles
Stream ripping – tape recorders on the internet Stream ripping software records audio and video streams. A copy of the entire stream can thus be saved as a file. Swiss copyright legislation provides for a private copy remuneration which is applicable to recording and storage media. Stream ripping apps are not covered by the statutory obligation to pay a levy – just like the tape recorders in the past. Read more
Dual memberships: SUISA, and what else? SUISA manages the rights for its members globally. You should carefully review and consider the relevant effort and income if you wanted to become a member of several authors’ societies. SUISA has entered into reciprocal agreements with over 100 sister societies globally. These agreements provide SUISA members with a big advantage: They can exercise their musical activities outside of Switzerland – the payment of the relevant copyright remuneration is made in the usual manner by its trusted society, SUISA. Read more
Why our members don’t have to notify SUISA whether their works are on Youtube Members have recently asked us along the lines of ‘how, where and when can I tell SUISA that my works are on YouTube’. We explain in the following reply to a member’s query why authors do not have to notify SUISA whether their works are available on the video platform. Read more

 

Collapse article

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.

SUISA has founded a Joint Venture together with the US American collective management organisation SESAC under the name Mint Digital Licensing. The new enterprise shall licence the online usage of works by SUISA and SESAC members on a Europe-wide basis. The service range offered by the Joint Venture is also open to other market players such as (major) publishers or international collective management organisations. An interview with SUISA’s CEO Andreas Wegelin on the advantages and the significance of this cooperation.

SUISA creates Joint Venture with SESAC: Mint Digital Licensing

Important step in terms of online licensing: SUISA and SESAC found the Joint Venture Mint Digital Licensing (Photo: Rawpixel.com / Shutterstock)

SUISA communicates its cooperation with the US American collective management organisation SESAC at the beginning of August 2016. What are the plans of the two societies?
Andreas Wegelin: SUISA and our US American...read more