Tag Archives: SUISA

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 membership in numbersSUISA membership in numbers More than 38,000 authors and publishers have instructed SUISA with the management of their rights. Where are they from, how old are they and are there more men or women who are composers? The figures and graphics below provide an insight into SUISA’s membership structure. Read more
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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

When SUISA does politics

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

When SUISA does politics

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

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

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

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

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

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

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

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

When SUISA does politics

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

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

SUISA membership in numbers

More than 38,000 authors and publishers have instructed SUISA with the management of their rights. Where are they from, how old are they and are there more men or women who are composers? The figures and graphics below provide an insight into SUISA’s membership structure. Text by Claudia Kempf

SUISA membership in numbers

(Graphics: Crafft Communication)

Age distribution

The majority of members is between 31 and 60 years old. This is due to the fact that authors have an average age of 33 years when they join SUISA and that there has been a steep increase in new members over the last 20 years.

Age distribution

Gender

The overwhelming majority of active members are men. There is, however, a slight notable change: 45% of active female authors have joined SUISA in the last ten years.

Gender

Language composition

The language composition within SUISA roughly correspond with the linguistic distribution within Switzerland, except for the fact that French-speaking authors are represented in slightly higher numbers.

Language composition

Residence

Unfortunately, notifications on the change of address to SUISA sometimes gets forgotten. As a consequence, SUISA does not know the address of around 15% of its members. In the case where SUISA does not hold a valid correspondence address during a period of five years, the respective Rights Administration Agreement and membership lapse at the end of that year. The rights then fall back to the author and are no longer managed by SUISA.

Residence

Associate members, full members

Music creators and publishers are, first of all, accepted asassociate members. Once they have been registered for at least one year with SUISA and have reached the minimum threshold of CHF 2,000 in revenue from authors’ rights, they become full members with voting and election rights. Subsidiary publishing entities can never attain full membership status; this explains the high share of publishers that do not have voting rights.

Associate members, full members

Membership years

The graphics provide an impressive insight into the strong growth of new member numbers over the last few years, especially among authors. Compared to that, new memberships among publishers have remained constant for quite a few years now.

Membership years

All information correct as of April 2018.

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More than 38,000 authors and publishers have instructed SUISA with the management of their rights. Where are they from, how old are they and are there more men or women who are composers? The figures and graphics below provide an insight into SUISA’s membership structure. Text by Claudia Kempf

SUISA membership in numbers

(Graphics: Crafft Communication)

Age distribution

The majority of members is between 31 and 60 years old. This is due to the fact that authors have an average age of 33 years when they join SUISA and that there has been a steep increase in new members over the last 20 years.

Age distribution

Gender

The overwhelming majority of active members are men. There is, however, a slight notable change: 45% of active female authors have joined SUISA in the last ten years.

Gender

Language composition

The language composition within SUISA roughly...read more

Personnel changes in SUISA’s Music Department

At the end of September 2018, Ernst Meier, Head of the Music Department, retired after 33 years’ work for authors and publishers. His successor is Andres Pfister. Text by Irène Philipp Ziebold

Personnel changes in SUISA’s Music Department

Ernst Meier, in his office in the SUISA branch at the Bellariastrasse in Zurich in September 2018. The long-term head of the Music Department is now enjoying his retirement. (Photo: Sibylle Roth)

Ernst Meier applied back in 1985 as a musicologist for an assistant’s position in the then Swiss music archives of SUISA, today’s “Music Department”. His passion for music was ignited early on: At the young age of 14, he began to play the organ. By studying musicology at the University of Zurich, he turned his passion consequently into his profession.

As head of the Music Department, Ernst Meier answered many specialist questions which required specific musicological knowledge. He thus examined cases where the suspicion of plagiarism arose, or checked registrations of arrangements of works that were no longer protected to establish whether the work qualified as a derived copyrighted work.

Mid 2011, the “Programmdienst” (Programme Services) team was integrated into the Music Department. Ernst Meier and his six staff members made sure that protected works were correctly identified on performance programme lists. In their work, they were supported by Ernst Meier especially regarding concert programmes of contemporary and classical music. These details form the basis for exact invoicing to the event organisers and the correct distribution of copyright remuneration based on programmes.

SUISA has had a seat on the Board of the RISM Schweiz («Répertoire International des Sources Musicales») since RISM was founded as an association. Ernst Meier represented SUISA there in his role as a musicologist and therefore was able to maintain valuable contacts regarding his field of study. He also got involved in the Schweizerische Vereinigung der Musiksammlungen (IAML, Swiss Association of Music Collections).

After 33 years in the service of authors and publishers, Ernst Meier retired at the end of September 2018. With his love for music and his enormous knowledge and instinct, especially regarding all musical matters, he has left a mark on the Music Department at SUISA over a long period. Management thanks Ernst Meier for his valuable work for SUISA and wishes him all the best for his future.

SUISA Music Department from autumn 2018
Andres Pfister, 31 years old, has been working as Ernst Meier’s successor and musicologist for SUISA since 01 September 2018. He lives in Berne and has been studying musicology and social anthropology at the University of Berne. He successfully concluded his studies with a Masters Diploma in the summer of 2018. Andres Pfister already pursued many different work-related activities during his time as a student. He was active as a tutorial assistant at the Institute for Musicology at the University of Berne or worked at the Institute for Culture in the educational directorate of the Canton of Berne. He also moderated the classical music programme “Ostinato” as a radio DJ on RaBe (Radio Berne) and was responsible for the editorial management of the broadcast. He continues to sporadically work for the radio.
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At the end of September 2018, Ernst Meier, Head of the Music Department, retired after 33 years’ work for authors and publishers. His successor is Andres Pfister. Text by Irène Philipp Ziebold

Personnel changes in SUISA’s Music Department

Ernst Meier, in his office in the SUISA branch at the Bellariastrasse in Zurich in September 2018. The long-term head of the Music Department is now enjoying his retirement. (Photo: Sibylle Roth)

Ernst Meier applied back in 1985 as a musicologist for an assistant’s position in the then Swiss music archives of SUISA, today’s “Music Department”. His passion for music was ignited early on: At the young age of 14, he began to play the organ. By studying musicology at the University of Zurich, he turned his passion consequently into his profession.

As head of the Music Department, Ernst Meier answered many...read more

Introduction of a process-oriented organisation chart at SUISA

SUISA’s organisational structure changes from 01 January 2019 onwards. The Board had decided to implement the project “Horizon 2019” upon the request by General Management. Text by Andreas Wegelin

Introduction of a process-oriented organisation chart at SUISA

SUISA’s organisation chart, valid from 2019 (Status: November 2018). (Graphics: Crafft Communication)

The objective of the reviewed organisation chart is to further optimise SUISA’s internal process efficiencies. Procedural responsibilities will be aligned with the core process of our work.

SUISA’s core activities are licensing and distribution processes. Licensing fees are collected from users such as concert and event organisers, radio stations, discotheques, producers of sound recordings, online providers of music etc. The collected monies are subsequently distributed to rights owners i.e. the authors and publishers, nationally and internationally.

Core process combined in one department

This core process is increasingly supported by IT and – unlike before – practically no longer separable into pure licensing and distribution tasks. Following these developments it is sensible to unify the core process in one department, with one person in charge of it all.

The core process does, however, not work without principles and prerequisites which first have to be worked out and made available. Among these are legal regulations such as tariffs, distribution rules, user agreements and rights administration agreements. Furthermore, a comprehensive work documentation, i.e. the information on which rights owner (composer, lyricist, arranger, publisher, sub-publisher) has a share in a specific work, is also part of the basic principles which need to be made available for licensing and distribution tasks.

On top of that, our relationships with the sister societies, i.e. the organisationswhich offer copyright management services in other countries, are also part of the basic principles. We also need agreements in this area to ensure the conditions under which the relevant rights are managed in the respective territories. This is – especially with a view to the global online dissemination of SUISA repertoire – of increasing importance.

SUISA organisation chart from 2019 onwards

SUISA’s organisational structure will continue to be split into three departments. The responsibility of the core process shall rest with the new department “Operations”. The department “Regulations” for legal prerequisites and international work documentation as well as the department “Services” for all cross-sectional services, especially IT, Finance, HR and Communications.

As a consequence, there will be changes regarding the responsibility for departments and divisions with regards to the 3-person executive management team:

Irène Philipp Ziebold, previously Director of the Members and Distribution Department, will become Chief Operating Officer (COO). She heads all departments where licensing or distribution is carried out in practice, which means: where reports on music use are processed, invoices are issued and licensing fees are distributed.

Vincent Salvadé (Deputy CEO) shall become head of the Department “Regulations”. He is in charge of all regulatory affairs and SUISA’s Compliance with the respective processes. He leads the Legal Department, the Department for International Documentation as well as the subsidiary, SUISA Digital Licensing, for its online business. He is also responsible for tariffs and distribution rules.

Finally, all service departments and divisions, especially IT, Finance, HR, Communications and the responsibility for the Joint Venture Mint Digital Services with our US-partner SESAC remain under the leadership of our Chief Executive Officer (CEO, Andreas Wegelin).

The new organisation chart will thus entail shifts in the areas of responsibility at Executive level and changes in terms of departmental subordinations. What this does not mean, however, is that there will be a reduction in workplaces. On the contrary: staff numbers might even increase slightly because SUISA will take over the collection of copyright licence fees for background music and the reception of broadcasts in shops, hairdressers, hotels, restaurants and companies of any kind from Billag from 01 January 2019 onwards.

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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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SUISA’s organisational structure changes from 01 January 2019 onwards. The Board had decided to implement the project “Horizon 2019” upon the request by General Management. Text by Andreas Wegelin

Introduction of a process-oriented organisation chart at SUISA

SUISA’s organisation chart, valid from 2019 (Status: November 2018). (Graphics: Crafft Communication)

The objective of the reviewed organisation chart is to further optimise SUISA’s internal process efficiencies. Procedural responsibilities will be aligned with the core process of our work.

SUISA’s core activities are licensing and distribution processes. Licensing fees are collected from users such as concert and event organisers, radio stations, discotheques, producers of sound recordings, online providers of music etc. The collected monies are subsequently distributed to rights owners i.e. the authors and publishers, nationally and internationally.

Core process combined in one department

This core process is increasingly supported by IT and – unlike before –...read more

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

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

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

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

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

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

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

Uses outside the private sphere are subject to licence fees

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

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

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

SUISA to manage CT 3a for businesses as of 2019

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

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

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

Multilingual CT 3a customer centre

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

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

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

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

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

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

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

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

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

Can the blockchain and the bass strike a harmonious chord?

Technological developments that affect the music industry are a constant focus of SUISA’s management committees. Blockchain technology was one of the many important topics on the agenda at the board meetings in October 2018. Report from the Board by Dora Zeller

Can the blockchain and the bass strike a harmonious chord?

To what extent is blockchain technology in harmony with the interests of music copyright holders and publishers? (Photo: Daphne.t / Shutterstock.com)

At the autumn meetings of the SUISA Board of Directors in Lausanne, musician and researcher Steffen Holly from the German Fraunhofer Institute provided a glimpse into the world of blockchain technology. He showed how blockchain was born from of a combination of existing IT possibilities, using practical examples to illustrate the theory behind the system. He also showed how the development of the music industry and technology are closely related: new instruments give rise to new music, new demand and new technical possibilities. Who would have thought it would be possible to rent music? But streaming services are now licensed by SUISA.

The scientist also recommended assessing whether blockchain is a viable solution for every business model. In other words, critically examining whether the blockchain and the bass really can strike a harmonious chord. He provided some prominent real-world examples (Airbnb, Uber, car rental) and also made reference to musicnow.eu. Launched on the basis of the EU Collective Rights Management Directive, this project aims to use blockchain technology to facilitate collaboration between authors, artists, collecting societies and content users.

Technological developments are a permanent area of focus for SUISA’s Board of Directors and management team. In the recently adopted Strategy 2020, SUISA states its intention to step up its research and development under the heading “New technologies give rise to new forms of use”. Following Steffen Holly’s presentation, the collecting society is looking to engage in dialogue with a member of the musicnow.eu project.

Status of tariff negotiations and personnel changes

In addition to addressing the forward-looking topic of blockchain, Vincent Salvadé reported on the current status of the tariff negotiations between the collecting societies and the user organisations. In recent months, the Federal Arbitration Commission has approved the VN (audio-visual media for screening, broadcasting, online use) and CT 3c (public viewing) tariffs. Approval of CT 4i (integrated digital storage media) is pending, while GT 12 (set-top boxes, virtual video recorders) was appealed by the broadcasting companies.

Other important items on the agenda related to the HR department and the 2019 board elections. Monica Hernandez took over as Head of Human Resources/Training & Development in mid-June. Thanks to her dedication, extensive expertise and wealth of experience, she has quickly settled into her new role. Her colleagues value her professionalism, service mindset and customer-oriented approach, as well as her open, positive attitude.

General board elections will be held at the 2019 Annual General Meeting. With the exception of Bertrand Liechti and Marco Zanotta, who are both stepping down after serving for the maximum period, all directors are eligible for a further term of office. The Board of Directors has appointed a Nomination Committee to look for suitable successors. Its members reported on the status of this search for candidates.

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A bird’s eye view of SUISA’s 2018 General AssemblyA bird’s eye view of SUISA’s 2018 General Assembly On 22 June 2018, 208 voting members streamed into the Bierhübeli in Bern. They were there to participate in shaping the destiny of their cooperative society, and to take advantage of the opportunity to network and exchange information. Members, Board members, Executive Committee members, guests from cultural and political spheres, and SUISA staff – all were attending the SUISA’s 2018 Ordinary General Assembly. Read more
Positive figures for the 2018 financial year to datePositive figures for the 2018 financial year to date The Board meeting held the day before the General Assembly in June 2018 had a multi-layered agenda to handle. In addition to preparing for the General Assembly, the meeting also reviewed the course of business for the year to date. Read more
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Technological developments that affect the music industry are a constant focus of SUISA’s management committees. Blockchain technology was one of the many important topics on the agenda at the board meetings in October 2018. Report from the Board by Dora Zeller

Can the blockchain and the bass strike a harmonious chord?

To what extent is blockchain technology in harmony with the interests of music copyright holders and publishers? (Photo: Daphne.t / Shutterstock.com)

At the autumn meetings of the SUISA Board of Directors in Lausanne, musician and researcher Steffen Holly from the German Fraunhofer Institute provided a glimpse into the world of blockchain technology. He showed how blockchain was born from of a combination of existing IT possibilities, using practical examples to illustrate the theory behind the system. He also showed how the development of the music industry and technology are closely related: new...read more

Positive figures for the 2018 financial year to date

The Board meeting held the day before the General Assembly in June 2018 had a multi-layered agenda to handle. In addition to preparing for the General Assembly, the meeting also reviewed the course of business for the year to date. Report from the Board by Dora Zeller

Positive figures for the 2018 financial year to date

Satisfactory revenue and distribution results for composers, lyricists and publishers: SUISA’s 2018 financial year got off to a good start in terms of results. (Photo: Manu Leuenberger)

Key figures for the start of the 2018 financial year are positive: domestic revenues totalled CHF 60.3 million as at 31 May 2018, exceeding the budget by 8% and the prior year by 7%. The amount distributed in the second-quarter settlement in mid-June was CHF 43.8 million. At CHF 13.2 million, expenses were within budget.

Review of business activities

The Board approved the comprehensive report and explanatory notes to the 2017 financial statements prepared by the Auditor. These are part of the documentation that SUISA is required to file with the Federal Intellectual Property Institute (IPI) each year for its review of SUISA’s business activities.

Following changes in the Financial Market Infrastructure Act and its implementing ordinances, SUISA had to amend its investment regulations, in particular as regards due care rules for derivatives trading. The Board laid down clear guidelines regulating SUISA’s activities on the investment market. SUISA is also required to submit any amendments to these regulations each year to the IPI, the competent regulatory authority.

Satisfactory income and distribution results for year-to-date 2018

For the year to date as at 31 May, revenues increased for all classes of rights compared both with the budget and the prior year. The growth in revenues from online uses – plus 174%, or CHF 4.7 million – was particularly noteworthy. When preparing the budget, it had been expected that all online contracts would be transferred to SUISA Digital Licensing or Mint Digital Services, and that the corresponding revenues would flow into these companies. However, negotiations with the online service providers are taking longer than expected. Until the new contracts are signed, the corresponding revenues will continue to flow to SUISA, the parent company.

Initial distribution results for 2018 are also positive. The remuneration collected under most tariffs is meanwhile distributed to rightsholders following a quarterly schedule. The first quarterly settlement comprised 8,879 individual settlements representing a total distribution of CHF 13.8 million; the second, in mid-June, comprised 11,800 individual settlements and a total distribution of CHF 43.8 million.

With regard to revenues from abroad, thanks to a new IT application, we managed to distribute a larger number of settlements from our foreign sister societies than ever before at this time of the year. Remuneration totalling CHF 4.1 million was distributed to SUISA members. Moreover, starting in autumn 2018, foreign revenues will also be distributed on a quarterly basis. This means that the second of the three foreign settlements for 2018 will be distributed in mid-September. The third settlement will then be made in mid-December.

Sponsoring commitments and distribution rules

Figures aside, on to sponsoring: SUISA is making itself seen and heard with a number of actions in the framework of various musical events. The overriding aim is always to inform the public about the purpose and activities of our Cooperative Society and to attract well-deserved attention and esteem for the creative work ofour members. In this context, the members of the Committee for Organisation and Communication learnt about SUISA’s commitment in support of the Walo Prize and the organisation of the successful Songwriting Camp. Other events (co-)sponsored by SUISA include a day of concerts in the “Offen für Neues” (“open for the new”) series at the Festival Murten Classics in August, as well as “Label Suisse” in mid-September in Lausanne.

At the meeting, the Board also spent considerable time debating the amendment of the Distribution Rules. The amendments proposed by the Executive Committee are first examined by the Distribution and Works Committee. They are then referred to the Committee for Tariffs and Distribution before being sent to the Board. Finally, the amendments must be submitted to the IPI and the Liechtenstein Office of Economic Affairs. The amendments come into force once they are approved by both institutions, and the document is published.

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The Board meeting held the day before the General Assembly in June 2018 had a multi-layered agenda to handle. In addition to preparing for the General Assembly, the meeting also reviewed the course of business for the year to date. Report from the Board by Dora Zeller

Positive figures for the 2018 financial year to date

Satisfactory revenue and distribution results for composers, lyricists and publishers: SUISA’s 2018 financial year got off to a good start in terms of results. (Photo: Manu Leuenberger)

Key figures for the start of the 2018 financial year are positive: domestic revenues totalled CHF 60.3 million as at 31 May 2018, exceeding the budget by 8% and the prior year by 7%. The amount distributed in the second-quarter settlement in mid-June was CHF 43.8 million. At CHF 13.2 million, expenses were within budget.

Review of business activities

The Board...read more

A bird’s eye view of SUISA’s 2018 General Assembly

On 22 June 2018, 208 voting members streamed into the Bierhübeli in Bern. They were there to participate in shaping the destiny of their cooperative society, and to take advantage of the opportunity to network and exchange information. Members, Board members, Executive Committee members, guests from cultural and political spheres, and SUISA staff – all were attending the SUISA’s 2018 Ordinary General Assembly. Text by Dora Zeller

A bird’s eye view of SUISA’s 2018 General Assembly

Voting in the packed hall of the Bierhübeli in Bern during SUISA’s General Assembly on 22 June 2018. (Photo: Manu Leuenberger)

Swiss Ländlermix, an ad hoc group consisting of Bruno Brodt, Jost Ribary, Dani Häusler, René Wicky, Robin Mark, Jacqueline Wachter, Kurt Albert and Stefan Schwarz, opened the General Assembly with a surprise folk-music medley. This cross-section of traditional and contemporary Swiss folk music got the public into the proper mood for the meeting.

Swiss Laendlermix

The General Assembly opened on a musical note with a medley of traditional and contemporary Swiss folk music by the ad hoc group “Swiss Ländlermix”. (Photo: Sibylle Roth)

Before the statutory business, a short film was presented showing the social media platforms launched at the beginning of the year. Apart from the SUISAblog, there are now SUISA Music Stories on Instagram, Facebook, and Youtube.

After the film, the General Assembly approved the annual report, management report, financial statements, cashflows, Notes and auditor’s report for the 2017 financial year. The Board and the Auditor were granted discharge for the reporting year, and the auditing mandate was renewed for 2018.

Amendment of the Articles and election of the Complaints Committee

The main business of the Assembly was the amendment of the Articles of Association. Andreas Wegelin explained why the Articles should be aligned with the Liechtenstein Collecting Societies Act and the EU Directive on Collective Rights Management (CRM Directive). He mentioned the main changes, namely: non-discrimination rules, additional powers to the General Assembly, and greater influence for members. After various suggestions, questions and clarifications, the General Assembly approved the proposed amendments with no negative votes.

The General Assembly also approved the list of candidates for election to the new Complaints Committee. Board members Marco Neeser and Christian Fighera, as well as Danièle Wüthrich-Meyer as external representative (Vice President of the Federal Competition Commission), were elected by a large majority. The same applied for substitutes Roman Camenzind and Zeno Gabaglio (both members of SUISA’s Board) and for external representatives Daniel Alder and Gregor Wild (both attorneys-at-law and members of the Federal Arbitration Commission). Bernhard Wittweiler, Head of SUISA’s Legal Department, was designated Chair of the Complaints Committee. He is a member ex officio of the Complaints Committee and does not have to be elected by the General Assembly.

Natalie Riede

Publisher Natalie Riede (in the picture), a representative of the Swiss electronic music scene, was elected to the Distribution and Works Committee. (Photo: Manu Leuenberger)

Natalie Riede was elected to the Distribution and Works Committee where she replaces Guido Röösli. Through her publishing house, Black Music Management, Natalie Riede has been member of SUISA since 2014; her main focus is on electronica and she represents the Swiss electronic music scene.

In her presentation as Guest Speaker, Danièle Wüthrich-Meyer, President of Swissperform, outlined the activities of the five collective administration societies from the formal, statutory perspective, from the consensual contract- and Articles-based perspective, and from the factual angle.

Podium

SUISA’s Executive Committee reported on the 2017 business year. On the podium, from left to right: Irène Philipp Ziebold, Vincent Salvadé, President Xavier Dayer, Vice-President Marco Zanotta and Andreas Wegelin at the lectern. (Photo: Sibylle Roth)

Vincent Salvadé and Irène Philipp then provided information about the current business year. Andreas Wegelin reported on the Mint Digital Services joint venture and explained a number of current political developments which were liable to impact SUISA’s business activities. Lastly, Urs Schnell, Director of FONDATION SUISA, reported on the business year of SUISA’s foundation for musical promotion.

SUISA’s President, Xavier Dayer, closed the General Assembly, which had been as substantial as it was interesting, at about 2 pm. He indicated that the next General Assembly would be held on Friday, 21 June 2019, in Biel.

After the meeting, participants were invited to a buffet lunch in the garden of the Bierhübeli, where they had the opportunity to exchange views and pursue discussions with other participants and with SUISA staff members.

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131.4m Swiss Francs for composers, lyricists and publishers131.4m 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. Read more
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All comments will be moderated. This may take some time and we reserve the right not to publish comments that contradict the conditions of use.

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On 22 June 2018, 208 voting members streamed into the Bierhübeli in Bern. They were there to participate in shaping the destiny of their cooperative society, and to take advantage of the opportunity to network and exchange information. Members, Board members, Executive Committee members, guests from cultural and political spheres, and SUISA staff – all were attending the SUISA’s 2018 Ordinary General Assembly. Text by Dora Zeller

A bird’s eye view of SUISA’s 2018 General Assembly

Voting in the packed hall of the Bierhübeli in Bern during SUISA’s General Assembly on 22 June 2018. (Photo: Manu Leuenberger)

Swiss Ländlermix, an ad hoc group consisting of Bruno Brodt, Jost Ribary, Dani Häusler, René Wicky, Robin Mark, Jacqueline Wachter, Kurt Albert and Stefan Schwarz, opened the General Assembly with a surprise folk-music medley. This cross-section of traditional and contemporary Swiss folk music got the...read more

Strong together

22 June 2018: it’s that time of the year again. As a member of the Cooperative Society SUISA entitled to vote you will be able to decide on the future of your copyright society and to take stock with respect to the past business year at the General Assembly in the Bierhüebli in Bern. By Andreas Wegelin, CEO

Strong together

Voting at SUISA’s General Assembly: The umbrella of the co-operative joins the collective weight of authors’ and publishers’ votes. (Photo: Juerg Isler, isler-fotografie.ch)

Cooperative societies are usually alliances of persons or institutions who have the same or similar goals and interests. The idea behind such associations is as simple as it is effective: Together, we are strong! Economic, social or cultural issues that are presented in a unified manner often gain more momentum and impact than just the voice of an individual.

As your Cooperative Society for authors and publishers of music, we can support your interests. The main objective is to generate fair conditions and guarantee a fair remuneration for music creators. Collective management of rights has become an ever more significant aspect: These days, SUISA negotiates with some corporations which act globally. The market power of such negotiation partners may only be faced with the support and strength of a unified community.

Under such circumstances, it is even more positive that 2017 has been the best year in SUISA’s history from a financial perspective. An overall amount of CHF 131.4m in copyright remuneration can be paid out to rightsholders and sister societies. That is more than ever before.

SUISA annual results: online usage of music exceeds physical formats for first timeSUISA annual results: online usage of music exceeds physical formats for first time
Authors and publishers of music will receive CHF 131.4 million from SUISA this year. Last year the collecting society received CHF 150 million in copyright from domestic and international sources – CHF 2.9 million more than the previous year. In particular, reimbursements from private copying and the online sector contributed to this growth. For the first time, revenues from online music recordings exceeded those from sales of physical formats. But there is still a pressing need for action in the area of streaming. The internet platforms continue to benefit almost exclusively from this growth market, rather than composers, lyricists and publishers of music. Read more

During the coming GA, a revision of SUISA’s Articles of Association is planned for ratification. This has become necessary because a Directive at EU level has been passed with new provisions, especially regarding the transparency of our work. And this is something that affects SUISA, too: SUISA is responsible for Liechtenstein and operates for online usages on an European market level.

Exploitation rights in the EU and review of SUISA’s Articles of AssociationExploitation rights in the EU and review of SUISA’s Articles of Association
Liechtenstein has been – other than Switzerland – a member of the European Economic Area since 1995 and must, as such, accept a major proportion of the European Union legal provisions. What do EU exploitation rights have to do with the revision of the SUISA Articles of Association? Read more

During the GA, you are also going to have the oppoertunity to meet the President of Swissperform. She is going to report on the cooperation among the Swiss collective management organisations.

Why SUISA members should also consider joining SWISSPERFORMWhy SUISA members should also consider joining SWISSPERFORM
Composers and lyricists who are SUISA members and are also active as artists and/or producers and whose performances are broadcast by Swiss or foreign radio and TV channels are entitled to receive a remuneration from SWISSPERFORM. For all those authors-composers-artists/producers, a membership with SWISSPERFORM is thus a necessary addition to their SUISA affiliation in order to safeguard their rights and the full remuneration they are entitled to. Read more

FONDATION SUISA also has got some news on its support activities, and its foundation Director is going to elaborate on that. Finally, the ongoing copyright law revision is expected to be a topic for discussion, since hearings took place among the parliamentary committees last April and May.

New support strategy: “We want to look ahead”New support strategy: “We want to look ahead”
FONDATION SUISA reinforces its activities regarding the support of music in Switzerland and the Principality of Liechtenstein: Each year, four music projects shall be launched under the motto “Get Going!”, and every other year, a bigger amount shall be allocated to works under the slogan “Carte Blanche”. Read more
Copyright law revision: work starts in the parliamentary committeesCopyright law revision: work starts in the parliamentary committees
On 22 November 2017, the Federal Council presented its Message on the revision of the Federal Copyright Act (FCA), and referred the copyright bill (FCA-B) to the two houses of Parliament. The bill reflects the compromise reached by the AGUR12 II working group at the beginning of March 2017. Parliament has started working on the bill, and SUISA was invited to present its point of view on 12 April 2018 at a hearing organised by the Science, Education and Culture Committee of the National Council. SUISA also had the opportunity to state its views before the Legal Affairs Committee of the National Council, first in writing and then orally on 18 May 2018. Read more

All of these topics will be covered by our SUISAblog and SUISAinfo, one of which you are currently reading. Of course, you’ll find out more information and more details if you travel to the GA in Bern. I look forward to welcoming as many of you as possible in person then.

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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
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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.

22 June 2018: it’s that time of the year again. As a member of the Cooperative Society SUISA entitled to vote you will be able to decide on the future of your copyright society and to take stock with respect to the past business year at the General Assembly in the Bierhüebli in Bern. By Andreas Wegelin, CEO

Strong together

Voting at SUISA’s General Assembly: The umbrella of the co-operative joins the collective weight of authors’ and publishers’ votes. (Photo: Juerg Isler, isler-fotografie.ch)

Cooperative societies are usually alliances of persons or institutions who have the same or similar goals and interests. The idea behind such associations is as simple as it is effective: Together, we are strong! Economic, social or cultural issues that are presented in a unified manner often gain more momentum and impact...read more