SWA reaches agreement with Suisa in dispute over license prices in online campaigns
The Swiss Association of Advertisers (SWA) has reached an agreement with the copyright collecting society Suisa on the new licensing fees for music used in online campaigns. The new terms take effect immediately. The compromise has reduced prices, simplified processes, and restricted the scope of licensing.
At the beginning of last year, SUISA introduced new license fees for the use of music in online advertising campaigns of up to 3.3% of media spending. Advertisers were obliged to notify the collecting society of the media budget, the name of the composer, the length of the spot and the proportion of music. The SWA rejected these licence fees on the media budget and the complex process and, together with other industry organizations, conducted negotiations with Suisa. These talks did not lead to any results.
Since January 2017, Suisa and the SWA have once again been negotiating in small groups to find a solution. Last week, the SWA Board approved the compromise that was reached. For the association, it was important that the process be simplified, costs reduced and the scope of licensing restricted.
From May 1, advertising clients will have to send less information to Suisa. The basis is now a self-declaration, but Suisa has the right to request supporting documents. The complicated "pro rata" calculation of the proportion of music in the total length of the commercial will also be abolished. The price for licensing is now 2.15 percent of the cost of placing the commercials on third-party platforms. Commercials that are produced entirely abroad and are only adapted in Switzerland do not generally have to be licensed. In addition, commercials without music or commercials with so-called "Suisa-free" music are not affected by this licensing.
Since last year, Suisa has wanted to grant the license for making music available on the internet directly to advertising clients. This is in contrast to the practice in TV and radio, where broadcasters settle with SUISA and add the costs to the media prices. With the new industry solution, the SWA was able to reach an acceptable agreement with SUISA that provides legal certainty and simple copyright management. SWA. Members receive a 10 percent discount on the license prices.
