Tariff overview

Royalty rates vary depending on how music is used. For example, the rate for concerts is higher than for the rate for background music in retail outlets. This is because of the different value of music in these contexts:  people go to a concert primarily for the music, whereas when they go shopping, the music played in the background is of secondary value. You may contact SUISA's customer service at any time for a non-binding estimate of the fees for any given use. 

The fees for the various types of music uses are regulated in our tariffs. 

Overview of tariffs
 

The copyright law requires all Swiss copyright societies to issue tariffs for their royalties. The tariffs are negotiated with representative user associations. The Federal Arbitration Commission, an equal representation body elected by the Federal Council, approves the tariffs which are then published in the Swiss official trade journal (Handelsblatt/Feuille Officielle Suisse du Commerce). This procedure is designed to ensure that the tariffs are not abusive.

The tariffs of the five Swiss collecting societies must be adequate. This is a requirement of the Federal Copyright Act (Article 59 FCA). In practice, SUISA takes the following points among others into account in setting tariff rates:

• the revenues generated by the use of the works, or the costs associated with such use;
• the type and number of works used; and
• the breakdown between protected and non protected works.

As a rule, fees should not exceed 10% of the proceeds (for example, ticket sales) or costs (for example, performers' fees).

Do I have to pay royalties 

• when admission to an event is free?
• for events that are not commercial?
• for events that make a loss?

Yes. The economic success of an event is the organiser’s affair. Royalties are fixed costs like beverages and lighting, and must be paid whether or not the event turns a profit. 

Do I have to pay royalties for

• private events, or
• club events that are not open to the general public?

For private events you do not need a licence and you do not have to pay royalties. However, the term “private” is restrictively defined by law: it applies only to a single individual who enjoys music with a small circle of close friends or relatives (Article 19(1)(a) of the Copyright Act). It follows that, even though they are not open to the general public, events organised by clubs, associations, companies, army units and the like are not private events. In case of doubt, it is advisable to contact SUISA and inquire whether royalties are payable for the planned event. 

Musicians’ fees remunerate their performance. Their fee does not cover the authors’ creative work, nor the right to perform the authors’ works. The performer and the author are two legally separate persons, even when they are united in one and the same individual. Both of the legally independent persons are entitled to remuneration: the authors is entitled to royalties and the performer is entitled to a fee.

Yes. If the performer is also the composer, lyricist or arranger (i.e. the author), and is a member of SUISA, he or she has assigned his or her rights to SUISA and SUISA asserts the royalty rights royalties on his or her behalf.  Accordingly, the author no longer holds those rights and cannot settle directly with the organiser. The royalty settlements are thus handled through SUISA. It is important to understand that, a musician onstage is often both performer and  author in one natural person; legally speaking however, the performer and the author are two separate juridical persons. 

No. But you still have to provide SUISA a complete, detailed list of all the works. If the musicians only performed works in the public domain, naturally you will not be charged for royalties.

Yes. You have to send SUISA a list for all the artists. SUISA is entitled to collect royalties even for authors who are members of foreign collecting societies. If the author has not transferred his rights, you have to pay him individually. Royalties are not due for works which are not arranged and whose author has been dead for 70 years or longer.

SUISA can take legal action against you if you do not declare an event and/or do not pay royalties.  SUISA can also impose a 100% surcharge if the requisite information is not provided despite a reminder. If payment is refused repeatedly, SUISA may issue a music ban and prohibit you from using music publicly.