Promoters Want Copyright Income

Germany’s major promoters are launching a collection society to chase the money they believe they’re due from the exploitation of live recordings made at their gigs.

It would mean they’d receive a royalty for tracks that fetch up on live albums released in Germany, radio and TV broadcasts or postings on social network sites such as YouTube.

Promoters from all over the world are invited to join as they too would be entitled to a cut if a track recorded at one of their shows should be released on record or broadcast in Germany.

On Nov. 7, members of the Bundesverband der Veranstaltungswirtschaft (BDV) – Germany’s biggest promoters association – decided it’s time to press ahead with collecting the money due from what are known as “neighbouring rights.”

The first step is the formation of what will be called the Collection Society for Neighbouring Rights of Promoters, which will then need to apply for a license to operate as a copyright collecting society.

The promoters’ entitlement to neighbouring rights royalties is enshrined in Section 81 of German copyright law, although it’s very rarely been used.

“German promoters don’t read law books and they don’t hire lawyers until they have to,” said BDV lawyer Johannes Ulbricht, explaining why it’s taken so long to implement Section 81. Ulbricht will head the new collection society.

Until a tariff has been set it’s impossible to say how much the promoters will collect each year, but Ulbricht reckons a conservative ballpark estimate would amount to around euro 5 million.

The setting of the tariff will likely be the contentious issue and something of a role-reversal for the BDV, which is usually opposing any hike in live performance royalties that the GEMA collection agency is trying to impose.

BDV president Jens Michow believes the royalty money will provide a fairer reward for promoters who have previously had to depend solely on the commercial success of their concerts and tours.

He says he doesn’t anticipate too much opposition from the record companies, although they may have to accept a smaller slice of the royalty pie from live recordings and broadcasts.

The feedback he’s so far received leads him to believe they will see that potentially having an equity stake in what’s recorded at their shows will encourage the promoters to invest in emerging talent.

As for the artists, it’s doubtful if they will be aware of the promoters’ new income for very long before they try to claw some of it back.