- Internet; MP3; burning CDs
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Why are royalties charged on blank CDs?
Private copying is allowed. Personal data or music can be copied onto blank CDs. It is impossible to check who is copying what. That is why a royalty fee is also charged on blank CD data carriers (CD-R data). At 5 cts per hour or per 525 MB storage capacity, the royalty is significantly lower than for blank audio CD-Rs or audio cassettes, which are subject to a charge of 33 cts per hour or per 525 MB storage capacity. The rates were set taking into account the fact that personal data can also be stored on these carriers.
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Why is SUISA demanding a licence fee on MP3 players?
No remuneration is charged on CDs or music files purchased on the internet for private use. Nor is any remuneration due since private use is authorised by law. Anybody who wants to copy music files from a CD or the internet for his private use can do so unrestrictedly. The law provides for a fee on blank media carriers (CD, DVD, MP3 players and the like), payable by the maker or importer (not the buyer). The consumer never has to pay a royalty. The producer or importer may, however, pass on the cost to the consumer.
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Are you allowed to burn your own CDs or DVDs?
You may burn your own CDs and DVDs provided
- the CD or DVD is for your own private use, or
- the CD or DVD is a gift for a close friend or relative.
You may not burn your own CDs and DVDs if
- you intend to sell the them without having obtained the authorisation of the record company or a licence from SUISA, or
- the CD or DVD is a gift for someone other than a close friend or relative.
The Copyright Law authorises the use of a work «in the personal sphere or within a circle of persons closely connected to each other, such as relations or friends». According to case law and literature, the circle is construed very restrictively. Moreover, you have to burn the CD or DVD yourself; you cannot pay a reproduction facility or anyone else to do it for you. In burning your own CDs or DVDs, you should bear in mind that you are not just damaging the record companies, you are jeopardising the livelihood of authors and performing artists.
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How is music on demand regulated?
For whole music titles offered (generally against payment) on demand (MOD), and for video on demand (VOD), contracts are negotiated individually with the users. For music and audio, the contracts are based on the rules agreed with the recording industry. Currently, the royalty is 8% of income with a minimum of CHF 0.10 per use (download or listening) for works not exceeding 4 minutes.
Information, tariffs, forms and licences are available from:
for German-speaking Switzerland and Canton Ticino:
SUISA Zurich, Frank Dietiker, +41 44 485 66 66
for French-speaking Switzerland:
SUISA Lausanne, Olivier Mottier, +41 21 614 32 32 -
What are broadcasting uses?
Broadcasting uses are (generally) direct transmissions via internet of live music or events, or radio and television programmes broadcast via internet. These online uses of music are analogous to broadcasts.
Royalties are charged as a percentage of the income or costs for the relevant use in accordance with the tariff for broadcasting rights (CT S). All amounts paid to the broadcast provider by way of sponsoring, bartering, advertising, subscription or access fees, etc. qualify as income; on the other hand, all expenditures in connection with the use of the music including, for example, for recording equipment, server storage space or personnel costs in connection with the «broadcast» qualify as costs.
Deferred transmissions qualify as on demand.
Information, tariffs, forms and licences are available from:
for German-speaking Switzerland and Canton Ticino:
SUISA Zurich, Frank Dietiker, +41 44 485 66 66
for French-speaking Switzerland:
SUISA Lausanne, Olivier Mottier, +41 21 614 32 32 -
What about the use of music on the internet for advertising and promotional purposes?
If you use music in combination with images or other content (e.g. if you synchronise a sound or video track), you first have to obtain the synchronisation rights from the right-holders.
In principle, SUISA charges royalties in accordance with the VN Tariff. This is the applicable tariff for the production of audiovisual media carriers; since 2008, under certain conditions, it also applies to lump-sum licences for music offered online.
Information, tariffs, forms and licences are available from:
SUISA Lausanne / Lysander Gelewsky (phone 021 614 32 32) -
Are royalties due for online sound samples?
Sound samples are short excerpts of individual titles published online in a CD catalogue, on a band’s website or designed to promote a band or an event. As a rule, sound samples are simply audio-files freely made available on a website.
Royalties for promotional sound samples are generally charged on a lump-sum basis. The lump-sum royalty is CHF 100.- (not including VAT) per quarter, or CHF 50.- (VAT excl.) if no more than 20 samples are placed on the server per quarter.
Information, tariffs, forms and licences are available at:
for German-speaking Switzerland and Canton Ticino:
SUISA Zurich, Roger von Rotz, +41 44 485 66 66
for French-speaking Switzerland:
SUISA Lausanne, Olivier Mottier, +41 21 614 32 32 -
Is it lawful to download music from file-sharing sites?
It is common ground that uploading, i.e. the placing of protected works online, is subject to the consent of the right-holders (authors, or copyright collecting societies on their behalf, record producers etc.). Users of file-sharing sites who do not have such consents are acting unlawfully. The prevailing view, however, is that private downloading in Switzerland does not require the author’s consent – even if the music was unlawfully made available. Since there is no legal precedent so far, the question cannot be conclusively decided (in Germany, for example, it is unlawful to download music files that are «clearly» illegal).
In practice, the question never arises in this form. If you have relatively recent P2P software, the titles on your hard disk automatically become available online. This is illegal and unless you obtain the necessary licences you may be exposing yourself to prosecution. Besides, P2P sites largely contribute to the steep decline in record sales; they damage the music industry and jeopardise the livelihood of authors and performers. When you engage in P2P file-sharing, you cause prejudice to the very artists you love.
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Who is responsible for obtaining a licence to use a musical work on internet?
First and foremost, the provider. The provider is the natural or legal person who makes a protected work publicly available on a server. As the provider, he is also responsible for the website’s contents and must apply for all the necessary licences. Secondly, responsibility lies with the service provider, who can be made liable.
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Do I have to pay royalties if I offer music for free online?
Yes. Basically, it makes no difference whether or not a musical work is used commercially on the internet.
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What terms and conditions are applicable to online uses of musical works?
Online uses of musical works are basically no different from any other uses. SUISA applies its existing tariffs and calculates the royalties by analogy.
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What specific forms of use apply to the internet?
There are three categories of uses on the internet:
- uploading musical works on a server;
- making musical works available online;
- downloading musical works from the internet.
The internet is not a legal no man’s land. The Copyright Law regulates all uses clearly. For example: Uploading a musical work on a server is equivalent to (digitally) reproducing that work.
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Can I publish my compositions on internet?
Yes. As the author of the music or lyrics of a musical work, you alone can decide how the work is used. If you have assigned part of your rights, you should be aware of the two following points:
- If you are a member of SUISA, you may only publish your work free of royalties on your own website. If your work is published on a third-party website such as MP3.com, the owner of the website has to apply for a licence and pay the licence fee.
- If you have a contract with a publisher or a recording company, you have transferred certain rights to them. If you publish a work online that is covered by such a contract without the consent of the publisher or the recording company, you will be infringing your contract.
