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Consent reached about tariffs in the events area: GEMA and Bundesvereinigung der Musikveranstalter e.V. sign master contract

After extensive negotiations about the tariffs in the events area, the GEMA (PRS for music) and the Bundesvereinigung der Musikveranstalter e.V. (National association of music event organisers, BVMV) have come to an agreement which will be effective as of January 1, 2014.

The master contract regulates the license compensation of the originators and their publishers for the use of their musical repertoire in what will be four tariffs: individual events with live music (U-V) or playback sound (M-V) as well as the use of music in music pubs (M-CD II 1) or clubs and discos (M-CD II “). The newly agreed upon tariff structure is structured linearly, which means: the bigger the event space and the higher the entrance charge, the higher the license compensation to be paid by the organizer. The structural reform does not involve concerts for which a separate tariff has been in place since 2010.

The base for the tariff negotiations between the GEMA and the BVMV was the conciliation suggestion by the arbitration board of the German Patent and Trademark Office which was published in April of 2013. Following the suggestion of the arbitration board, the tariff structure was differentiated further: aside from the two tariffs for individual events, two independent tariffs for music pubs and clubs / discos were developed together.

Joachim König, EVVC President, comments: “A large number of rejections in the GEMA fee plans have been turned into orderly options in compliance with sector reality with this agreement. The fee increases, largely moderate now, mostly comply with the conciliation suggestion and are along the lines of reason and do-ability for the sector. In the future, it will be important to ensure this path of reason will not be left again in the pursuit of unrealistic targets and claims. This needs to be accompanied by a changed public perception and communication of this important topic.

Addressing this topic in the current coalition agreement makes for a good path, should it be walked on in said way.”

More information about the new tariff structure here