Tariff negotiations 2016 – an overview

While companies in other sectors are at their busiest during the Christmas period, SUISA “sales” hit their peak time during spring – this is when tariff negotiations must be brought to a conclusion and the approval for the tariffs to be valid from 1st January of the following year must be obtained from the Federal Arbitration Commission for the Administration of Copyright and Neighbouring Rights. Text by Anke Link

The Tonhalle Orchestra Zurich (see picture), www.tonhalle-orchester.ch, is a member of orchester.ch, an association of Swiss professional orchestras with which SUISA has successfully reached a new tariff for copyright licence fees for performances by concert consortiums. (Photo: Priska Ketterer / Tonhalle Orchestra Zurich)

SUISA and many of its negotiation partners have agreed upon adding a new clause to the tariffs in the last few years, allowing an automatic extension of the relevant tariff in cases where none of the parties desire a new round of negotiations. This has now shown its benefits: None of the relevant tariffs has been terminated so that it has not been necessary to hold negotiations for these tariffs.

This has opened up additional capacity for the negotiation of new tariffs that come to an end in 2016. At the same time, SUISA has also been able to participate intensively in the negotiation process for tariffs managed by its sister organisations Suissimage and ProLitteris.

As early as in autumn 2015, SUISA had agreed a new Tariff D with orchester.ch, the association of Swiss professional orchestras, which will come into force from 01 July 2016. The tariff has been edited in terms of the wording, but the remuneration and the tariff system remain unchanged. The same applies for Common Tariff HV (hotel TV) and Common Tariff 4 (blank media levy) where an approval of the associations for the new version of the tariffs from 01 January 2017 could be swiftly reached.

Agreement on a new concert tariff from 2017

The negotiation of the new Common Tariff K (CT K) for concerts, concert-like performances, shows, ballet and theatre required more time to settle. Negotiations for this tariff had already begun in December 2013. The preceding tariffs CT Ka and CT Kb had been extended twice, in order to provide enough time for the negotiation of the new tariff.

This turned out to be a good investment as the time was used so that SUISA and its negotiation partners could agree upon a new tariff CT K which will enter into force from 01 January 2017. The new CT K will apply to all concerts and performances which have previously been covered by CT Ka and CT Kb. Individual performance categories have been formulated more clearly in the new tariff.

The tariff structure has also been changed compared to the previous tariffs. A basic criterion – the fact that organisers pay a licence fee based on a percentage of their income – still remains the same. Depending on the type and size of the event, different percentages apply. The different percentage rates take it better into account that there may be additional artistic performances during concerts which influence the character of the performance.

If such additional performances take place they have a diminishing effect on the percentage. In return, the previous discounts were deleted. Only those organisers who are members of an association for organisers may be subject to rebates if the respective association collaborates with SUISA. Overall, the new CT K provides for a fair remuneration and also contributes to an increased legal certainty for all partners.

The importance of the legal certainty can be illustrated by the seemingly never-ending process which preceded the first legally binding and valid Common Tariff 4e (Levy for private copying via smartphones). Rights holders had to wait more than five years until the remuneration due to them could finally be collected. SUISA is trying, wherever possible, to avoid such situations.

Number of tariffs reduced

Negotiations for the new Common Tariff 4i (Levy for integrated digital storage media in devices) which is going to combine the previous common tariffs 4d (MP3 player and hard disc recorders), 4e (mobile phones) and 4f (tablets). Instead of three tariffs, there will only be one, the CT 4i. This is another step towards a reduction of the number of tariffs requested by the public and the politicians.

During the negotiations for the new CT 4i, SUISA and its negotiation partners agreed on a lowering of the tariff rates per GB for smart phones and tablets and a lowering of the tariff rates per GB for hard disc recorders with a storage space of more than 2 TB. That way, the established increased storage capacity of these devices in the market has been taken into consideration.

Unfortunately, SUISA could not reach an agreement for Common Tariff 3a (background music and making available of broadcasts). This tariff procedure is unfortunately in dispute and may – see above – drag on over a longer period of time.

SUISA cooperates with others for further tariff negotiations

Apart from these “main negotiations”, SUISA also supported its sister society ProLitteris with the negotiations on a new Common Tariff 7 (“School tariff”) and other new common tariffs 8  and 9 (levy on photocopying and remuneration for digital networks). All three tariff negotiations could be concluded with agreements whereby a slight increase could be reached for CT 8 and 9.

SUISA also supported the negotiations led by Suissimage for Common Tariff 1 (cable re-transmission) and Common Tariff 12 (virtual video recorders and catch-up TV). An increase could be reached with the negotiation partners for both tariffs.

The broadcasters, however, on the side of the rights holders, have not supported this agreement for the CT 12. They deem the option provided by catch-up TV to skip the ads to be a threat to their business models and therefore wish to directly represent their own interests in the impending tariff approval procedure with the Federal Arbitration Commission.

Even though it has not been possible to reach mutually agreed deals in all negotiations, SUISA and its sister societies did manage to reach agreements in the majority of cases and therefore continue to safeguard the interests of all of its members.

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