Exploitation rights • Music law in Germany and Europe

German music law is a complex field that encompasses various legal areas, including copyright law, contract law, and competition law. The primary legal framework for music rights in Germany is the German Copyright Act (Urheberrechtsgesetz, UrhG), which protects the rights of composers, lyricists, performers, and other creators in the music industry. Below is a comprehensive explanation of German music law, the relevant collecting societies, and key legal cases.

1. Copyright Protection in Music

Under the German Copyright Act, musical works are protected as intellectual property. This protection includes:

Composition Rights: The melody, harmony, and structure of a musical work are protected.
Lyric Rights: The text of a song is protected as a literary work.
Related Rights (Leistungsschutzrechte): Performers, producers, and broadcasters have rights related to their contributions (e.g., a recording artist’s performance or a record label’s production).

Copyright protection lasts for 70 years after the death of the creator (for compositions and lyrics) or 70 years after publication (for sound recordings).

2. Exploitation Rights

Reproduction Rights: Copying or recording music.
Distribution Rights: Selling or distributing physical or digital copies.
Performance Rights: Public performances, including live concerts, radio, and streaming.
Synchronization Rights: Using music in films, advertisements, or video games.
Adaptation Rights: Creating derivative works, such as remixes or translations.

3. Collecting Societies (Verwertungsgesellschaften)

In Germany, collecting societies manage the rights of creators and ensure they receive royalties for the use of their works. The main collecting societies in the music industry are:

a) GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte)

Represents composers, lyricists, and publishers.
Manages performance rights, mechanical rights, and synchronization rights.
Example: GEMA collects royalties when a song is played on the radio, performed live, or streamed online.

b) GVL (Gesellschaft zur Verwertung von Leistungsschutzrechten)

Represents performers and producers.
Manages rights related to sound recordings and broadcasts.
Example: GVL collects royalties for the use of recorded music on streaming platforms or in public spaces.

c) SUISA (Swiss Society for the Rights of Authors of Musical Works)

Although based in Switzerland, SUISA collaborates with GEMA for cross-border rights management.

4. Key Legal Concepts

a) Equitable Remuneration (Angemessene Vergütung)

Copyright holders are entitled to fair compensation for the use of their works.
Example: Streaming platforms must pay royalties to artists and rights holders.

b) Extended Collective Licensing (Erweiterte Kollektivlizenz)

Allows collecting societies to license works on behalf of all rights holders, even non-members.
Example: GEMA can license music for public performances without individual agreements.

c) Private Copying Levy (Privatkopieabgabe)

A levy on blank media and recording devices to compensate rights holders for private copying.
Example: A fee is added to the price of blank CDs or USB sticks.

5. Landmark Legal Cases

a) Case: “Metall auf Metall” (BGH, I ZR 112/06)

Issue: Sampling without permission.
Ruling: The Federal Court of Justice (BGH) held that sampling a sound recording requires the consent of the rights holder.
Significance: Established that sound recordings are protected under related rights, and unauthorized sampling constitutes copyright infringement.

b) Case: “Reha Training” (CJEU, C-117/15)

Issue: Whether a rehabilitation center playing music publicly requires a license.
Ruling: The Court of Justice of the European Union (CJEU) ruled that any communication of music to a public audience requires a license.
Significance: Clarified the scope of public performance rights under EU copyright law.

c) Case: “YouTube vs. GEMA” (LG München I, 33 O 27581/12)

Issue: Royalty rates for streaming music on YouTube.
Ruling: The court ruled in favor of GEMA, stating that YouTube must pay higher royalties for streaming music in Germany.
Significance: Highlighted the tension between digital platforms and collecting societies over royalty rates.

d) Case: “Sampling Case” (BGH, I ZR 115/16)

Issue: Use of a two-second music sample.
Ruling: The BGH ruled that even minimal sampling requires permission if the sample is recognizable.
Significance: Reinforced the strict protection of sound recordings under German law.

6. Challenges and Developments

Digitalization: The rise of streaming platforms has led to disputes over royalty rates and licensing models.
EU Copyright Directive: The implementation of the EU Copyright Directive (2019/790) has introduced new rules for online content sharing and fair remuneration.
Transparency: Collecting societies face criticism for lack of transparency in royalty distribution.

7. Conclusion

German music law provides robust protection for creators and rights holders, with collecting societies like GEMA and GVL playing a central role in managing rights and collecting royalties. However, the evolving digital landscape and cross-border issues continue to pose challenges for the music industry. Legal cases such as “Metall auf Metall” and “YouTube vs. GEMA” have shaped the interpretation and enforcement of music rights in Germany.

Musicians Copyrights : Infos from your German Legal Team

If you are a musician and you are willing to know a bit more about European and German Musicians Rights, the following information are for you.

The exploitation/utilization rights are regulated in §§ 15 to 24 UrhG. These include the: reproduction right, distribution right, right of exhibition, and the right of communication to the public.
These rights belong solely to the author, i.e. the composer, and cannot be transferred to other persons. Only upon the composer’s death do the exploitation rights pass to his or her heirs. However, it is possible to grant a right of use to others.

Sections 31 to 44 UrhG regulate the rights of use of the authors. The composers may decide to grant their musical works to third parties for exploitation – e.g. record companies, publishers or musicians.

The moral rights of an author are found in §§ 12 to 14 UrhG. A composer always has the right to be named as the author of his or her work. The author is also protected by law against distortion of the work; this means that the author’s personal interests in his/her work are endangered – e.g. in the case of deterioration or distorted representation of the work.

Is the copyright of musicians transferable?
A composer cannot transfer the copyright in a musical work as such. This is also not possible by means of a contract. However, it is possible to grant others a right to use the work. To do this, a licence agreement is concluded which contains the most important information about the scope of use and the remuneration.

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Tag Exploitation rights