Tag Archives: Work exploitation on the internet

Copyright 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. Text by Vincent Salvadé

Copyright law revision: work starts in the parliamentary committees

Revision of Swiss copyright law: work has started in the Federal Palace in Berne. (Photo: Simon Zenger / Shutterstock.com)

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.

Each time, SUISA acted in association with Swisscopyright, the entity which brings together the five Swiss collective management societies in the field of copyright and neighbouring rights. SUISA started by underscoring that the main objective of Swisscopyright was to ensure fair remuneration for cultural creators, including in the digital age. For this reason, the five collective rights management societies supported the compromise achieved at AGUR12 II level and, consequently, the Federal Councilʼs proposal. However, the societies asked for changes in the provisions governing the new entitlement to remuneration for video on-demand (VoD) with a view to ensuring that the new regulations better reflect the AGUR12 II compromise and secure fair remuneration for creators.

1. General appraisal of the FCʼs bill

Swisscopyright welcomed the Federal Council’s intention to introduce an “extended collective licence” (Article 43 FCA-B). Collecting societies could thus grant blanket authorisations for certain uses, including on behalf of rightholders they do not contractually represent; this would foster cultural projects while assuring remuneration for entitled parties. The blanket authorisation would apply to uses which cannot be individually controlled by rightholders; collecting societies would act as an “insurance” (of a sort) for users. The extended collective licence is perfectly consistent with the function of a collective rights management society, which is to facilitate and simplify rights management for all stakeholders.

Generally speaking, Swisscopyright welcomes all the measures designed to improve collective rights management: according to the FCʼs proposal, users would be required to communicate their declarations to collecting societies in electronic form to facilitate automatic processing (Article 51 FCA-B); collecting societies would be authorised to exchange the data delivered by users (Article 51(1bis) FCA-B); accelerated tariff appeals procedure (Article 74(2) FCA-B); and the Federal Arbitration Commission in charge of tariffs would be permitted to hear witnesses (see draft of new Article 14(1) lit. g of the Administrative Procedure Act). These new rules are designed to increase efficiency, reduce management costs and ensure more money is available for distribution to cultural creators.

“Swisscopyright believes these new anti-piracy measures are necessary to foster legal offers ensuring fair remuneration for creators.”

Swisscopyright also supports the Federal Councilʼs proposals for new anti-piracy measures since they contribute to improving the situation. According to Article 39d FCA-B, platforms presenting significant piracy risks would be obligated to actively combat copyright infringements (stay down obligation). The possibility of processing data for criminal prosecution purposes (Article 77i FCA-B), must be included in the FCA since the Federal Supreme Court ruled that collecting information on pirates and hackers (in particular their IP addresses) is not currently admissible under the Law on Data Protection (ATF 136 II 508). Swisscopyright believes these new anti-piracy measures are necessary to foster legal offers ensuring fair remuneration for creators.

Swisscopyright accepted the proposed copyright exception for the use of works for scientific research (Article 24d FCA-B), but only in the context of the AGUR12 II compromise. The fact that – conversely to what had been proposed in the original draft in 2015 – this exception is not accompanied by a claim to remuneration is indeed problematic for rightholders in the literary field. Swisscopyright underscored that no further concessions to the scientific community would be accepted on the backs of cultural creators.

2. Right of remuneration for VoD

Online platforms making available feature films (cinema and TV) have replaced DVD rental. Whereas, under Article 13 FCA, authors and artists used to receive a share of DVD rental revenues, this is no longer the case for online availability. The revised legislation must ensure that authors and performing artists, as the primary creators of value, participate in this new economic model: Swisscopyright welcomed the introduction of a right to remuneration in Articles 13a and 35a FCA-B. The collecting societies underscored that the right to remuneration must be supplemental to the fees paid to the creators by producers (for the commissioning of works, the performances therein and the corresponding rights). The FCʼs proposal is not clear in this respect; Swisscopyright argues that the parliamentary debates must make it clear that the right to remuneration is supplemental to, and not in lieu of, such fees.

“The composers and publishers of film music entrust their rights to collective rights management societies like SUISA which act directly vis à vis the VoD platforms. The contractual system for music assures composers more favourable financial conditions than they would have under a statutory remuneration right.”

Moreover, the exclusion of music works from the new right to remuneration was an essential element of the AGUR 12 II compromise; regrettably, the FC has not included this exclusion in its proposal. Since the voluntary collective management model functions well in the music sector, we should come back to the solution advocated by AGUR12 II. The music and the audiovisual sector diverge significantly in this respect. The composers and publishers of film music entrust their rights to collective rights management societies like SUISA which act directly vis à vis the VoD platforms (alongside the aggregators who handle all other rights in the film). The contractual system for music assures composers more favourable financial conditions than they would have under a statutory remuneration right.

In the field of music, however, it is necessary to ensure that the revenues distributed by collecting societies are properly apportioned between the composer and the publisher. The composer must in any event receive an equitable share. Article 49(3) FCA already guarantees this for concerts, radio broadcasts and recordings. But this rule only applies to areas under federal regulation, and therefore not to VoD. As a result, Swisscopyright proposes rewording paragraph 5 of Article 13a FCA-B to stipulate the composerʼs right to a fair share of the voluntary collective management revenues, in line with SUISAʼs current practice.

The plenary debates in the National Council (expected in autumn) will show whether the parliamentary committees were sensitive to the argumentation put forward by Swisscopyright.

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Changes to the distribution of collections for internet useChanges to the distribution of collections for internet use New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Read more
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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. Text by Vincent Salvadé

Copyright law revision: work starts in the parliamentary committees

Revision of Swiss copyright law: work has started in the Federal Palace in Berne. (Photo: Simon Zenger / Shutterstock.com)

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...read more

M4music copyright debate: Streaming = Goldmine?

At the M4music 2018, SUISA is going to hold a panel discussion on Streaming. Participants discuss, among other subjects, whether artists get their fair shares in a booming streaming market and – if not – what needs to change. Text by Erika Weibel

M4music copyright debate: Streaming = Goldmine?

The 21st M4music takes place between 22 and 24 March 2018. (Photo: M4music)

The turnover of Streaming providers are on the rise: Videos, text and lyrics, images and music files are used via the internet as intensively as never before. It’s not just authors of the works that benefit from this but also big players such as Google, Facebook etc. What does it look like in future if the value creation is mainly happening at the big internet companies while the providers of the contents i.e. the creators and artists remain empty-handed?

What would potential scenarios and paths that could guarantee a fair – or at least fairer – income for creators and artists?

We are looking forward to a large audience which is of course invited to participate in the conversation.

Event details:

Friday, 23 March 2018 at 5.00pm
Matchbox in the Schiffbau, Zurich

The panel will be held in German and translated into French.

The 21st M4music takes place between 22 and 24 March 2018. The pop music festival of the Migros-Kulturprozent in Lausanne and Zurich provides a diverse programme again: Concerts by over 50 national and international acts, panel discussions and workshops on current topics of the music business.

www.m4music.ch/en/conference

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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
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
Changes to the distribution of collections for internet useChanges to the distribution of collections for internet use New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Read more
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At the M4music 2018, SUISA is going to hold a panel discussion on Streaming. Participants discuss, among other subjects, whether artists get their fair shares in a booming streaming market and – if not – what needs to change. Text by Erika Weibel

M4music copyright debate: Streaming = Goldmine?

The 21st M4music takes place between 22 and 24 March 2018. (Photo: M4music)

The turnover of Streaming providers are on the rise: Videos, text and lyrics, images and music files are used via the internet as intensively as never before. It’s not just authors of the works that benefit from this but also big players such as Google, Facebook etc. What does it look like in future if the value creation is mainly happening at the big internet companies while the providers of the contents i.e. the creators and artists...read more

2018 – a challenging year?!

Review of the Copyright Act, No-Billag-Initiative, online licensing, further development of “my account”… With such topics, SUISA continues to pursue the aim to offer its members efficient services and to create optimal framework conditions. We will face the challenge! By Irène Philipp Ziebold, Director

2018 – a challenging year?!

SUISA supports a NO to the No-Billag-Initiative: “If we did not do anything, we would not live up to our duties as a self-help organisation of music creators” writes Director Irène Philipp Ziebold. (Photo: Manu Leuenberger)

We want to continue to provide efficient services to our members in 2018 and to create optimal framework conditions for them. We have been pursuing these goals in a continuous process for quite a while. For this year we have made a clear note of these intentions and resolutions in our ‘to do’ notepads, since we are facing many challenges in 2018.

With respect to the framework conditions, for example, it is important that authors and publishers benefit better from the online usage of their works with the review of the Copyright Act, or that, in the interest of Swiss music, the reception fees made out of solidarity for public service media are not abolished. In an increasingly cross-border oriented competitive environment, it is, however, also of entrepreneurial importance to optimise the service range offered for members and customers alike.

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

Something we at SUISA can determine as a Cooperative Society is whether a member can access its settlements via “my account”. Since December 2017, only those who have had access to “my account” have been receiving their distributions electronically. It is important in this context that we approach such developments in the interest of our members and never lose sight of the goal to offer high-quality efficient services. Driven by such a motivation, we have continued to improve our services for our members throughout the last few years.

Above and beyond that, we also have the duty as a collective management organisation for copyright to make social and political statements and to create optimal framework conditions as a consequence. Compared to the above mentioned “internal” processes and services, we cannot make the “right” decisions ourselves but influence matters so that the interests of our members are being taken seriously.

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

We thus engage ourselves to ensure that the creatives, our members as the content suppliers for online platforms do not come out of this empty-handed and that they can expect a modern Copyright Act.

We therefore also support a NO to the No-Billag-Initiative. For many of our members, the public service idea, especially the opportunity to disseminate music and culture, is essential. In this case, the broadcasters of SRG SSR as well as the 35 state-licensed TV and radio stations play a fundamental role. If the reception fees made by Swiss households out of solidarity for their public service media would be abolished, then important platforms for our members for the dissemination of their works would fall away.

Subsidised broadcasters offer more variety and more SUISA repertoireSubsidised broadcasters offer more variety and more SUISA repertoire
Subsidised radio and TV broadcasters in Switzerland and Liechtenstein tend to create more broadcasting space for the music of SUISA members than privately financed channels. Moreover, the majority of the broadcasters supported by the Swiss Federation play more diverse music titles than their counterparts which are focussed on advertising revenue. In the interest of our local music creation and the cultural diversity, we therefore have to reject an abolition of the solidarity-based fees for public service media. Read more

SUISA therefore supports the activities of creators and artists and their associations such as Sonart – music creatives Switzerland, Suisseculture or the Swiss Music Council against No-Billag. If we did not do anything, we would not live up to our duties as a self-help organisation of music creators. And that’s why we take on the challenges 2018 is going to throw at us!

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Review of the Copyright Act, No-Billag-Initiative, online licensing, further development of “my account”… With such topics, SUISA continues to pursue the aim to offer its members efficient services and to create optimal framework conditions. We will face the challenge! By Irène Philipp Ziebold, Director

2018 – a challenging year?!

SUISA supports a NO to the No-Billag-Initiative: “If we did not do anything, we would not live up to our duties as a self-help organisation of music creators” writes Director Irène Philipp Ziebold. (Photo: Manu Leuenberger)

We want to continue to provide efficient services to our members in 2018 and to create optimal framework conditions for them. We have been pursuing these goals in a continuous process for quite a while. For this year we have made a clear note of these intentions and resolutions in our ‘to do’...read more

Changes to the distribution of collections for internet use

New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Text by Irène Philipp Ziebold

Changes to the distribution of collections for internet use

SUISA changes its distribution keys for the income from streaming and downloads. (Photo: Rawpixel / Shutterstock.com)

For years, the distribution split between authors and publishers in terms of the allocation of the collections from performing and broadcasting rights on the one hand, and reproduction rights on the other hand has been agreed separately. SUISA has accordingly provided for different distribution keys in its distribution rules for the two rights categories.

For online uses, there is no separate distribution key which could be directly agreed on by the contracting parties. As a consequence, the collections from online uses are on the one hand distributed in analogy with the performing rights distribution key and on the other hand in accordance with the reproduction rights distribution key (cf. item 2.1.2 of the distribution rules).

Up to now, SUISA has been distributing 100% of collections from streaming in accordance with the distribution key for performing rights and 100% of collections for downloads in accordance with the distribution key for reproduction rights. This meant, however, that SUISA held a special position internationally and, at the same time, this practice no longer met the latest developments in the online sector.

New distribution keys for downloads and streaming

Apart from taking a look at the usual rules applicable abroad, technical procedures were also evaluated with a view to the analysis that led to the determination of the new distribution ratios of the distribution keys for download and streaming. Technically speaking, the making available of a work is based on the creation of a copy of the work on the server of the provider, the transmission of the copy to the consumer as well as the performance resp. potential storage on the terminal device of the consumer.

During discussions among the various committees (Distribution and Works Committee andBoard) with respect to the proposed changes, various views regarding the performing and reproduction rights shares existed with respect to the weighting of the distribution keys.

In particular the question arose how the aspect of transitoriness resp. repeated playback of a work should be considered for streaming, and which percentage should reflect this for the weighting of the performing share.

In the end, the following split was agreed:

  • Download: 25% of collections shall be allocated to the performing rights distribution key and 75% to the reproduction rights distribution key.
  • Streams: 75% of collections shall be allocated to the performing rights distribution key and 25% to the reproduction rights distribution key.

Distribution of the collections from video on demand (VOD)

At the same time, the provisions regarding the distribution of collections from video on demand were adjusted. The respective revenues shall now be distributed in analogy to download and streaming “per file” (per work). Prior to that, the revenues from video on demand had been supplemented to the remuneration for broadcasts of pay TV. The change now also permits in this sector that collections are distributed in a more exact and pinpointed manner.

For further information see the distribution rules of SUISA.

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New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Text by Irène Philipp Ziebold

Changes to the distribution of collections for internet use

SUISA changes its distribution keys for the income from streaming and downloads. (Photo: Rawpixel / Shutterstock.com)

For years, the distribution split between authors and publishers in terms of the allocation of the collections from performing and broadcasting rights on the one hand, and reproduction rights on the other hand has been agreed separately. SUISA has accordingly provided for different distribution keys in its distribution rules for the two rights categories.

For online uses, there is no separate...read more

Copyright Act Review: Authors and publishers must benefit more from the online exploitation of their works

Last week, 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. The “Transfer of Value”, for example, is extremely disappointing for creators and artists: Internet giants’ platforms continue to be the ones that cash in on the online exploitation of music and films. Creators and artists – and thus the suppliers of the content – are almost left empty-handed. Text by Andreas Wegelin, CEO

The Copyright Act urgently requires provisions for the online exploitation of works protected by copyright. The value creation nowadays completely passes by creators and artists – and thus the producers of the content. It is especially the powerful internet industry that benefits strongly thanks to the revenue from advertising and usage data. (Image: yaichatchai / Shutterstock.com)

Many creators and artists, users’ associations and other target groups are likely to have received the current version of the Copyright Act with relief: The legal text is a giant step compared to the half-baked draft which the Federal Council had presented at the end of 2015, and which had caused nearly all interest groups to shake their heads. The outcome was that up to March 2016 a record number of more than 1,200 position papers were submitted. The working group on copyright AGUR12 II was also reactivated. We had already reported on this earlier this year, in March, via our SUISAblog.

Parliament supposed to blaze the trail for a modern Copyright Act

The working group is made up of creators and artists, producers, users, consumers, internet service providers, the Federal Office of Justice as well as additional representatives of the administration has obviously done a good job: In the current version, the proposals of the working group were adopted to a large extent. It is now down to the Parliament to blaze the trail for a modernised version of the Copyright Act. SUISA as well as other Swiss collective management organisations support the compromise.

This does, however, not mean that the current version does not need any improvements. On the contrary – the biggest problems of digitisation for creators and artists remains unsolved: Protected works in videos, texts, images and music data have never been used at the same intensity levels as they are today via the internet. Some major internet companies are the profiteers of this exploitation while the value creation almost completely passes by creators and artists – and thus the producers of the content.

Thanks to the internet: Music lovers can nowadays access an enormous number of films, music pieces, books and news articles, nearly from anywhere and at any time. There is no longer a need for physical work copies. The availability in the Cloud or access via streaming is now enough. Apart from online distributors such as Apple, Spotify, Netflix or Amazon, music and films are nowadays mainly shared via social media platforms such as YouTube or Facebook.

Many internet providers hardly take care of copyright

Online distributors usually take care of copyright and enter into licensing agreements with producers and collective management organisations. This leads to musicians, producers and other creators and artists to receive a remuneration for their work. In the case of intermediaries, e.g. social media platforms and aggregators such as Tunein, the situation is different. The technical services they offer also allow users to disseminate works protected by copyright. In such models where protected content is shared, the providers hardly look after the copyright. On the contrary: They regularly pass the responsibility on to the users who upload the contents.

Add to that the fact that social media platforms and aggregators are the competitors of online distributors such as iTunes or Spotify – they yield high financial gains without participating the authors adequately. A European study shows that value added for the operators of such platforms is very high thanks to works such as music and films protected by copyright. 18% of Google’s income, for example, is made on the back of protected works e.g. via sponsored links. If the protected works were to fall away, the click rate and therefore the attractiveness of the search engine would drop. The value creation on platforms such as YouTube is even higher – they yield 2/3 of their turnover with contents protected by copyright – mainly from advertising, but also sales of profile data. They do, however, defer the act of clearing the copyright to those uploading the contents, even though the latter are not even in a position to do so.

A discussion on the Transfer of Value must also take place in Switzerland

Authors, the actual creators of the works, receive no or hardly any remuneration at all in the case of such platforms. This calls for urgent action. In the EU there has been a discussion on the Transfer of Value on the internet for quite some time. It is therefore high time to bring this discussion to Switzerland. Urgent measures are needed in Switzerland so that the transfer of value away from authors can be stopped – and therefore the creeping expropriation of creators and artists. Social media platforms, aggregators and search engine operators must be obligated to pay a compensation for the works used via their technical platforms.

SUISA and other Swiss collective management organisations are therefore going to introduce these important additions to the legislative process. Creators and artists must get a fairer share in the value creation on online platforms.

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  1. sam says:

    danke für ihren einsatz

  2. Stevens says:

    They stole our revolution and now they steal our music.

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.

Last week, 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. The “Transfer of Value”, for example, is extremely disappointing for creators and artists: Internet giants’ platforms continue to be the ones that cash in on the online exploitation of music and films. Creators and artists – and thus the suppliers of the content – are almost left empty-handed. Text by Andreas Wegelin, CEO

The Copyright Act urgently requires provisions for the online exploitation of works protected by copyright. The value...read more

Blockchain – an ending or future for collective management organisations?

Dear members, everyone in the music industry is talking about “Blockchain” at the moment. But it’s not easy to find anyone who can explain in simple terms what it’s all about … By Vincent Salvadé, Deputy CEO

Blockchain - an ending or future for collective management organisations?

British singer songwriter Imogen Heap is said to be the pioneer in the practical application of Blockchain technology for music distribution: Since October 2015, her single “Tiny Human” can be purchased and licensed online via the platform Ujomusic. The payment of the parties involved is based on pre-defined distribution rules via crypto currency. (Photo: Screenshot ujomusic.com)

Blockchain is a technology, a database, a register. It enables the secure exchange of information in a network which is based on the contribution of qualified participants (miners) who check the validity of the transaction by means of the processing power of their computers. All transactions are grouped into blocks which are linked with one another and each participant can check whether the validation operation is correct. This is also how Bitcoin works.

You haven’t quite grasped all of the above? Me neither. It appears, however, that this technology which is based on “smart contracts” gets away without intermediaries: The composer could therefore be paid for concert tickets or music streaming directly. There is even word in the street that this could be the end of collective management organisations.

“Collective management of rights is more than just pure technology. It is based on an important value: a joint defence of creative work.”

Same old story: Since online music emerged about 20 years ago, people predicted that the internet would free authors and help them to become independent of intermediaries. Well, collective management organisations are still here and they constitute an indispensable counterweight to internet giants.

Collective management of rights is, after all, more than just pure technology. It is based on an important value: a joint defence of creative work. Authors will always need an organisation which supports them, which negotiates contracts for them (including smart contracts) and campaign for fair transaction conditions (even if they have been certified by the Blockchain).

But hold on a minute: This statement does not allow us to rest on our laurels. It’s the duty of collective management organisations to be interested in the Blockchain, to understand it and to try and use it for the utmost advantage of authors and publishers.

“Collective management organisations hold essential information which ensures that the remuneration is transferred to the right persons.”

SUISA collaborates with its sister societies to achieve this aim – in Switzerland and abroad. This technology could, after all, be instrumental in avoiding conflicts among rights holders with respect to a work or regarding their due remuneration.

Collective management organisations hold essential information which ensures that the remuneration is transferred to the right persons, and they also possess powerful IT instruments. So how would it be possible that they’re skipped in the transaction validation process?

One thing is for sure: You must not leave the technology companies alone to deal with these questions. Otherwise the Blockchain would become a blocking chain – at the detriment of creative work!

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To be continued: Our success story, spanning more than 90 yearsTo 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’. Read more
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
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Dear members, everyone in the music industry is talking about “Blockchain” at the moment. But it’s not easy to find anyone who can explain in simple terms what it’s all about … By Vincent Salvadé, Deputy CEO

Blockchain - an ending or future for collective management organisations?

British singer songwriter Imogen Heap is said to be the pioneer in the practical application of Blockchain technology for music distribution: Since October 2015, her single “Tiny Human” can be purchased and licensed online via the platform Ujomusic. The payment of the parties involved is based on pre-defined distribution rules via crypto currency. (Photo: Screenshot ujomusic.com)

Blockchain is a technology, a database, a register. It enables the secure exchange of information in a network which is based on the contribution of qualified participants (miners) who check the validity of the transaction by means of the processing...read more

Commentary 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. Text by Andreas Wegelin

Commentary on SUISA’s annual results for 2016

SUISA is going to pay authors and publishers remuneration totalling CHF 128.9m for financial year 2016. That is the highest ever distributable amount in the Cooperative Society’s history which spans more than 90 years. (Photo: Manu Leuenberger)

The best business yield achieved by SUISA previously, in 2008, has thus been topped by the results of 2016. The income from the usage of copyright in musical works in Switzerland and the Principality of Liechtenstein have never reached such high levels before. As a consequence, more than CHF 128m can be paid out to domestic and international authors and publishers entitled to receive such remuneration. That is the highest amount in our Cooperative Society’s history which spans more than 90 years.

Several reasons contributed to this record result. Broadcast and retransmission rights’ collections, in particular, (Tariff CT S, broadcasters except SRG, CT Y, pay TV, and CT 1 & 2), and the time-shift usage of broadcasts (Tariff CT 12, rental of set-top-boxes) could be increased. The licensing of music performing rights, in particular for concerts (Tariff CT K) and film screenings(Tariff CT E, cinemas) also saw a sustained increase.

Regarding the licences for the distribution of music recordings, the trend continues to move away from physical sound recordings towards online exploitation. Regarding online music exploitation, downloads are increasingly replaced by streaming. Remuneration for private copying, regarding Tariff CT 4, has also grown. The latter can be attributed to the expansion of the storage capacity of devices (smartphones, tablets).

Cost coverage deductions remain low

While the costs for rights management have slightly increased, the proportion of this increase compared to the income remains low. The result is that the applicable cost deductions for settlements to rightsholders entitled to receive a payment are a very reasonable 12.37%. About CHF 88 per CHF 100 will therefore be paid out by SUISA to authors and publishers.

Furthermore, there will be a supplementary distribution on top of all regular settlements, at a level of currently 7%. This consists of monies for which the parties entitled to receive a payment could not be traced. After a period of 5 years, such income will be paid out by SUISA as a supplementary distribution on top of all settlements.

Successful negotiations – still a lot of work to do for SUISA

Such positive annual results are a proof of successful negotiations for tariffs and terms and conditions of use, and of reliable customers and business partners. It also shows that music exploitation is on the rise and SUISA can negotiate and enforce licences for music in relation to new technologies accordingly.

Particularly with regards to internet usage, there is still a lot of work to do. SUISA is increasingly managing online rights for cross-border usage directly. This sector is expected to turn into an important pillar of our work for our members.

Further information:
«SUISA 2016 results: CHF 128.9 million for authors and publishers», Press release, 30 May 2017

SUISA’s annual report 2016 is available as pdf for download. For the third year running, the annual report is published together with the brochure “Where the music is new”. It contains portraits of five SUISA members from different music genres. SUISA focusses on musical diversity. A collective management organisation is putting itself at the service of its members and thus promotes and supports music creatives such as the five personalities portrayed in the brochure. The brochure “Where the music is new” can also be downloaded as a pdf. It is also possible to order printed versions of the brochure and the annual report.
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SUISA settlement dates 2017 – an overviewSUISA settlement dates 2017 – an overview SUISA members whose works are performed, broadcast, reproduced or used online a lot can look forward to receiving remuneration at least four times per year for their work on lyrics or compositions or their publishing activities. In 2017, SUISA will continue with its quarterly distributions that it had successfully introduced previously. Minor modifications serve the purpose of distributing the income swiftly and cost-effectively. Read more

 

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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. Text by Andreas Wegelin

Commentary on SUISA’s annual results for 2016

SUISA is going to pay authors and publishers remuneration totalling CHF 128.9m for financial year 2016. That is the highest ever distributable amount in the Cooperative Society’s history which spans more than 90 years. (Photo: Manu Leuenberger)

The best business yield achieved by SUISA previously, in 2008, has thus been...read more

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. Text by Manu Leuenberger

Stream ripping works just like a tape recorder on the internet: Audio and video streams can be recorded in their entirety by means of an application. The statutory obligation to pay a levy exists pursuant to Swiss copyright law for the resulting reproduction on the storage medium, but not for the actual software. (Photo: Evgeniy Yatskov / Shutterstock.com)

The consumers are happy: Thanks to streaming, music collections, video shop stock, radio and TV transmissions are available – always and anywhere. All you need is an internet connection. Contents which are otherwise only available online are now also accessible offline due to stream ripping. Special software applications for this purpose make it possible to create complete copies of the streamed audio or video files on a storage medium. The saved file can then also be played back without an internet connection.

From a technical perspective, a permanent flow of data packets is being transmitted via an internet connection from a server to a receiving device. Receiving devices can be smartphones, tablets or computers, for example. The incoming data packets are played back via such devices by means of a stream player software as a continuous music piece or video. After playback, the data packets are deleted on the receiving device at once.

A stream ripping application thus allows a tape-recording of such audio and video streams, as it were. Such applications store the data packets from the streaming service permanently on the receiving device. Put together, the data packets stored in the memory of the target device result in a complete copy of the audio or video file retrieved from the streaming service.

Remuneration for private copies for authors

You could also refer to the stream ripping application as a recording software. The functionality corresponds to that of a tape recorder. Instead of an audio or video tape, the content is recorded onto a storage medium as a file. The final result is a copy of the played, transmitted, or streamed original.

The possibility to make tons of music copies on audio tapes led to private copying to be anchored into legislation nearly 25 years ago. Since then, it is permitted in line with the Swiss Copyright Act to make copies of protected works for the use in people’s private circles or home life. In return, rights holders have a statutory entitlement to receive a remuneration for such private copies.

Such a remuneration or levy must be paid by the manufacturers and importers of the recording and storage devices. The levies are collected by the Swiss collective management organisations (CMOs) and distributed to the rightsholders. The selection of blank media carriers subject to a levy has increased due to technological developments from audio and video tapes via CD/DVD blanks to digital memory in MP3 players, smartphones and tablets.

Blank media levies apply for recording and storage media

The statutory duty to pay a levy only applies to recording and storage media. In the analogue example, the recording medium would be the tape, not the tape recorder. In the digital equivalent, the blank media carrier is the storage item. The recording software is the recorder.

Since the law only covers blank data carriers, levies for private copying cannot be claimed and collected from the makers of stream ripping applications. For the same reason it is not possible to claim levies from the providers of such applications i.e. the operators of software or app stores. They do not qualify as importers of a recording or storage medium, but as software sellers.

The stream ripping software as a product meanwhile depends on the contents of third parties. That’s nothing new, as it was the same case with tape recorders back in the day. Whether someone records music from a vinyl on to a tape or an audio or video stream onto a digital storage medium: It always involves the creation of a copy. For such reproductions to be used for private purposes, the so-called blank media levy was introduced in Switzerland. On the basis of this levy, authors, publishers and producers of music and films get their due remuneration for the copies that are being made.

Stream ripping – an obsolescent model?

Users of stream ripping applications should be aware that they might infringe the usage conditions of streaming platforms. There are providers which permit only the streaming as per their terms and conditions, but no downloads or copying of the music tracks or videos. A potential consequence of a detected infringement could be that the personal user account is blocked or deleted.

The propagation of subscriptions for (mainly mobile) internet access without any limitations of the data volume could have an impact on the usage of stream ripping applications anyway. If the capacities are not limited, it is possible to constantly access streaming platforms. This could reduce the demand to copy audio and video streams and save them locally for offline use.

Legal streaming services pay licence fees for authors’ rights

On top of that, the legal offer of the streaming providers has become so comprehensive in the meantime that the consumer demand for niche repertoire can be satisfied much better. Furthermore, streaming services such as Tidal, Apple Music, Spotify or Google Play Music offer functions to listen to the music offline as an integrated part of their subscriptions. Stream ripping apps are therefore no longer necessary to locally store personal music preferences for offline usage.

Said legal streaming providers also conclude licensing agreements with the CMOs and pay licence fees for the copyright in question. Composers, lyricists and publishers of the used music thus participate in the collections from the streaming services.

After all, this is something any music or film lover should definitely know: If you buy a streaming app, you pay the software provider, not the creators and artists whose works you would like to listen to or watch.

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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. Text by Manu Leuenberger

Stream ripping works just like a tape recorder on the internet: Audio and video streams can be recorded in their entirety by means of an application. The statutory obligation to pay a levy exists pursuant to Swiss copyright law for the resulting reproduction on the storage medium, but not for the actual software. (Photo: Evgeniy Yatskov / Shutterstock.com)

The consumers are happy: Thanks to streaming, music collections, video...read more

Das Urheberrecht: ein Hindernis für die Informationsgesellschaft?

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Third party content on your own website must be paid for pursuant to Swiss legislation

If you operate a website, you cannot dispose of the copyright of third party contents without authorisation. If you use third party contents on your own website, you require an authorisation from the author pursuant to Swiss legislation in effect, irrespective of the type of the technical integration. SUISA issues licences for the online exploitation of music, including music in videos, and negotiates these case by case. Text by Manu Leuenberger

Third party content on your own website must be paid for pursuant to Swiss legislation

Pursuant to Swiss law, authors decide on the use of their works on the internet. (Photo: Manu Leuenberger)

Music, lyrics, films, photos or videos bring a website to life. Via the internet, anyone can usually access contents anywhere and at any time. The operator of a website makes content thus available for exploitation outside the domestic/personal sphere.

According to Swiss law in effect, authors have the sole right to decide on the usage of their works. This includes that only the author has the right to “make [his work] available in such a way that persons have access to it from places and at times of their choice”. This right is established in the URG (CopA), Article 10 (2) c.

Legally relevant: From where the content is accessible

From the point of view of Swiss copyright, the “making available” is actually authoritative. In other words: The deciding issue in Switzerland is from where “the door is opened” to the content. The door-opening is done via the website where works can be viewed, read or listened to. It’s the website that enables the access to the content. Plus it ideally benefits from the attractiveness of the media which can be perceived there.

This function of a door-opener applies specifically to websites which contain embedded content. ‘Embedding’ means that third party content can be embedded via hotlinking, inline linking or framing, resp. inline frames into your own offering. YouTube, for example, actively provides HTML code for embedding videos apart from the hyperlink for sharing the video on its platform.

Website operators require an authorisation for the exploitation of the work

Irrespective of a technical solution, an exploitation takes place via the making available of works on a website. This exploitation is subject to a duty to pay copyright remuneration pursuant to Swiss law. In other words: The authors need to provide their authorisation for the use of their works in the form of a licence and are due a remuneration for the usage.

The website operator must obtain the licence in the case of work usages on the internet, or more specifically: the owner of the domain via which the works are made available. What must be considered in this context is that SUISA only issues licences for the repertoire that has been assigned to it.

SUISA does not represent all potential entitled parties

Especially in the case of multimedia content, many entitled parties may be involved, in particular: Producers (of film and sound recordings), photographers, lyricists, some publishers as well as scriptwriters, actors, artists, broadcasters and possibly others.

Some of these rightsholders represent themselves, for example the big film and sound recording producers, others such as composers have assigned a collective management organisation with the administration of their rights. There is an overview at www.swisscopyright.ch about which collective management organisation represents which type of rightsholders. SUISA is only responsible for the rights management of music. This also applies to music included in online videos.

SUISA’s focus is currently not on private websites and blogs

SUISA continues to negotiate the licence and the remuneration level for the usage of music on websites just as before. Its focus is on clearly commercial offers. Private websites and blogs without any commercial intent and without advertising revenue (e.g. from Google Ads) are not in SUISA’s focus. Regarding the latter, the proportion between the effort and the income is currently not reasonable. In other words: As long as collecting licence fees costs more than the amount thus secured, licensing does not make any sense.

Simple and efficient solution for Social Media remuneration suggested

Not only in this context but especially with regards to an efficient management it would be welcome if the work exchange on the internet in social networks could be remunerated via the collective management systems. This subject was discussed by the working group initiated by Federal Councillor Simonetta Sommaruga concerning copyright, “AGUR12”.

The working group suggested to the Federal Councillor that the options for the creation of a simple blanket remuneration solution for work usages in social media should be examined. With such a solution, a blanket licence for the usage of music, photos, videos etc. on social media would only be issued by one single collective management organisation. Swiss users would, in return, have the authorisation to share protected content by third parties via social networks.

Based on the well-established system of collective management organisations a cost-efficient distribution of the remuneration would be guaranteed. This way, authors whose music, lyrics, films, photos or videos make the internet so attractive, will receive the remuneration they’re due pursuant to Swiss legislation in effect for the online use of their works.

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Swiss Copyright Review: SUISA in charge of a working groupSwiss Copyright Review: SUISA in charge of a working group Given the diverging reactions to the preliminary draft for the copyright law review, Federal Councillor Simonetta Sommaruga consulted the AGUR12 again in the summer of 2016 – the latter is a working group consisting of representatives from the affected sectors. The working group had the goal to look for conjoint solutions. 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.

If you operate a website, you cannot dispose of the copyright of third party contents without authorisation. If you use third party contents on your own website, you require an authorisation from the author pursuant to Swiss legislation in effect, irrespective of the type of the technical integration. SUISA issues licences for the online exploitation of music, including music in videos, and negotiates these case by case. Text by Manu Leuenberger

Third party content on your own website must be paid for pursuant to Swiss legislation

Pursuant to Swiss law, authors decide on the use of their works on the internet. (Photo: Manu Leuenberger)

Music, lyrics, films, photos or videos bring a website to life. Via the internet, anyone can usually access contents anywhere and at any time. The operator of a website makes content thus available for exploitation outside the domestic/personal sphere.

According to Swiss law in effect,...read more