ProLitteris therefore also enables the broadcasting of texts and images, the streaming of audiovisual works, the copying of specialist texts in schools and businesses, the reproduction of works of art – and so on. The collective management organizations work in a transparent, efficient and customer-friendly way. Yet sometimes people do not know them yet, or there are misunderstandings. With 7 questions and answers we try to provide clarification and clear things up.
1. What is managed?
The collective management organizations administer selected rights of authors, performers, producers and publishing houses and broadcasting organizations, in Switzerland and abroad. They always work on the basis of a mandate and always supported by the law. Either the Copyright Act (URG) transfers individual direct rights to the collective management organizations, for example the copying royalties. Or the rightsholders decide to transfer their rights because they cannot or do not want to take care of them individually, for example the broadcasting rights. You can look up the rights under management on the websites of the collective management organizations. Even without collective management organizations these rights would be exploited – only in a more complicated, less transparent and less consistent way.
2. Where does the money go?
The royalties compensate the holders of copyright for the fact that they could not decide on the respective use, and that their works were used in statistical terms. Authors and artists and publishing houses whose works have been published in books and journals, on the internet or on radio and television participate in the distributions of ProLitteris. The distribution takes into account over 10000 beneficiaries. 10% of the revenue goes into social benefits for authors with low income and into cultural promotion.
3. Who owns the collective management organizations?
The Swiss collective management organizations are four cooperatives and one association, they belong to their members, all of whom are holders of intellectual property rights under the Copyright Act (URG). Every person who publishes legally protected creative material and can expect royalties from the collective management organizations for this is allowed to become a member. Members can participate in decisions on representation on the board of directors and on the strategy.
4. Who supervises the collective management organizations?
The collective management organizations are subject to double supervision: The Swiss Federal Institute of Intellectual Property (IGE) supervises the management. In addition, an arbitration commission approves all generally applicable tariffs of collective management. The license costs that cannot be avoided must be negotiated with the business and user associations and are reviewed by an authority and additionally by the price supervisor for their appropriateness. The supervisory authority for foundations of the Canton of Zurich is responsible for the welfare foundation and the cultural fund foundation.
5. Are the collective management organizations companies or administrations?
Collective management organizations are companies with an economic purpose: granting licenses and collecting royalties. The collective management organizations operate on a non-profit basis, since the entire revenue is distributed to the holders of copyright after deduction of administrative costs. The expenses of ProLitteris have fallen significantly in recent years and now amount to around 13% of revenue. A rule-based and economical administration is prescribed and supervised.
6. Do the collective management organizations receive subsidies?
No. The collective management organizations are private institutions without subsidies. The royalties and the entire revenue are based on civil law, private law. The collective management organizations finance their expenses from the royalties to the rightsholders and distribute the money in full, without profit. In some cases the law stipulates that a collective management organization is centrally responsible for all uses, for example in the case of copying royalties.
7. Are the invoices from ProLitteris binding?
ProLitteris works on a legal basis in the Copyright Act (URG) on behalf of the federal Institute of Intellectual Property and the rightsholders whose works and performances are used. ProLitteris issues invoices on the basis of the declaration of certain data in accordance with the tariff, or makes an estimate if necessary. The subsequent invoice must be paid, because otherwise ProLitteris has to initiate legal debt collection. In the area of copying royalties, the claim of ProLitteris feels like an invoice for fees, although it is not taxes or fees.