The last few months, German collecting society GEMA caused controversy by introducing a new fee system for performances and recorded music. From 1 January 2013, the fee will depend on the ticket price, the size of the venue and the duration of the event, in opposition to the current flat rate. According to GEMA, 60% of the establishments will not see their fees increase. Some of them may even pay less.  However, many dance clubs fear for their existence.

Under GEMA's new fee system, events that last more than 5 hours will pay a surcharge of 50%. After another 3 hours, there is a similar increase. Many clubs are open for 10 hours or more. Some clubs have events that even last more than 48 hours. These clubs see their fees increase enormously. According to the Club Commission, an organization representing night clubs and the organizators of parties and cultural events, an average-sized club that now pays €28,000 a year is going to pay €180,000 a year. 

In June, there were several demonstrations and more than 264,000 people signed a petition against GEMA's plans. The German patent office (DPMA), the supervisory authority of GEMA, will judge the legality of the new fee system, but its decision is expected to take a year.

Of course, it's justified that artists and songwriters are rewarded for their works. However, it can be questioned if GEMA’s new fee system is proportionate, as it endangers the existence of several clubs and events. 

Read more about collecting societies on FutureOfCopyright.com: 

• European Commission proposes easier music licensing in the EU
• Dutch Parliament agrees on strict supervision of collecting societies
• Employees of Spanish collecting society SGAE face fraud charges

Source: The Guardian

By: Marjolein van der Heide