What do the tariffs contain? Tariffs set out the prices, rules and procedures that enable the use of copyright-protected works and performances in Switzerland and Liechtenstein. Without tariffs, one would have to obtain dozens, if not hundreds, of licences or make individual purchases. Legally speaking, they are standardised licence terms of general application. Collective management organisations are responsible for drawing up and applying the tariffs. They pool copyright to manage it collectively – rather than individually – which minimises the administrative burden for all parties involved.
What tariffs are there? Most tariffs have been in existence for decades. Their scope reflects the history of copyright over the last 30 years. The tariffs involving statutory royalties are numbered and clearly labelled, whilst also being legally accurate. They are best distinguished according to the types of use. Classification according to statutory provisions is more complicated, but can be understood by referring to the relevant documents. The tariffs can be found on the collective management organisations’ websites. Other tariffs of individual collective management organisations, e.g. those relating to musical works administered by SUISA, are not mentioned here.
- Communication networks. Tariffs 1 and 2 relate to the retransmission of radio and TV programmes. Their origins date back to the era of communal aerials and analogue cable networks. Revenues amount to over CHF 100 million annually. Suissimage acts as the managing body and retains the largest share of the revenue, as the tariffs primarily concern audiovisual works (film, radio and television productions).
- Background use and storage media. Tariffs 3 and 4 relate to public performance and private storage. Retail and service sector premises, users of background music for purposes other than personal use, and importers of mobile phones and tablets are liable to pay royalties. Revenues amount to around CHF 50 million annually. SUISA is the administering body and also retains the largest share of the revenue, as it primarily covers musical works (sound recordings, music files, music streaming).
- Libraries and video rental shops. Tariff 5 covers rental. Whilst the Copyright Act permits free lending without paying royalties, it requires royalties and an approved tariff for all cases in which consideration is paid for the transfer of use. Revenues amount to around 500’000 annually. ProLitteris is the administering body and retains the largest share of the revenue, as the tariff primarily covers books. Film rental has declined significantly.
- Schools and organisations of all kinds. Tariffs 7 (uses in schools) and 8 (uses in organisations) relate to copying royalties for teaching purposes or for internal information. Reproduction represents a core business within copyright law, formerly known as reprography, and is widespread internationally. Both analogue and digital copies are covered. Revenues amount to around CHF 10 million annually for each tariff. ProLitteris acts as the managing body and retains the largest share of the revenue, as this primarily concerns teaching materials and academia, media and journalism, non-fiction and fiction.
- Swiss libraries for the blind. Tariff 10 covers use by organisations that make works accessible to visually impaired people. Annual revenue is less than CHF 100,000. ProLitteris is the managing body and retains the largest share of the revenue, as this primarily concerns texts, for example for the production of audiobooks and other audio files.
- Replay TV. Tariff 12 applies to time-shifted radio and television. Telecoms companies and internet service providers enable their consumers to make private recordings using a multimedia application. Suissimage is the managing body and retains the largest share of the revenue, as the tariff primarily covers audiovisual works (film, radio and television productions).
- Works without a clear author. Tariff 13 applies to orphan works, i.e. items in collections whose rights holders are unknown or cannot be traced. Revenues are well below CHF 100,000 per annum. Typical users include memory institutions, archives, historians and private individuals who reproduce catalogued items or make them available online. ProLitteris is the managing organisation. The shares of the collective management organisations are determined according to the specific uses.
- Video on Demand. Tariff 14 covers the provision of video streams and video downloads. The law takes a distinctive approach here by defining not a right of use, but merely a claim to remuneration on the part of authors and performing artists. SSA, Société suisse des auteurs, is the managing organisation. The shares of the collective management organisations are determined according to the specific uses.
The missing tariff numbers are due to historical reasons. ProLitteris simplifies tariffs and merges them where possible. Tariff 6 previously applied to Liechtenstein; ProLitteris integrated it into Tariff 5 on a flat-rate basis several years ago. Tariff 9 concerned digital copies; ProLitteris merged it with Tariff 8 several years ago. Tariff 11 permits broadcasters to use archive works: in practice, this takes place outside the scope of collective management on a contractual basis.
What are ‘Common Tariffs’? Common Tariffs are shared by several collective management organisations. They enable a one-stop shop, reducing the administrative burden and red tape for all parties involved. The four cooperatives involved are SUISA (music), ProLitteris (text and images), Suissimage (film) and SSA (film and stage), as well as the association SWISSPERFORM (performers’ and producers’ rights). The collective management organisation whose repertoire of works is most affected acts as the managing organisation. The other collective management organisations receive agreed shares based on data and estimates, depending on the significance of the work categories in the respective use of protected works and performances.
Are tariffs binding? The tariffs are generally binding, for two reasons. Firstly, copyright lies with the collective management organisations, just as image rights may lie with an agency, media content with a publishing house and film rights with a distributor. Furthermore, tariffs for which the law has defined exemptions from usage are approved by a state arbitration commission, and the collective management organisations hold a licence from their supervisory authority. Negotiations with industry associations take place regularly prior to tariff approval. Those responsible and the copyright experts on both sides almost always manage to reach an agreement. The tariffs and their quality are therefore legitimised on multiple grounds. One example is the copying royalties for businesses, which the Swiss Trade Association has approved. Conversely, ProLitteris made concessions in the tariff, for example by waiving royalties for businesses with up to 14 full-time positions, provided they operate in trade, industry or commerce.
Why are tariffs useful? Without tariffs, one would have to go to great lengths to obtain permission for specific uses. The Common Tariffs combine the categories of works from several or even all collective management organisations, i.e. rights to texts and images, to audio recordings containing music and/or speech, and to films and videos of all kinds. In this way, authorised users and organisations pay just a single invoice per area of application. Without tariffs, such use would be prohibited or entail legal risks. Individual licences would have to be obtained and paid for separately from publishing houses, authors, musicians and filmmakers.
How much revenue do the tariffs generate? The revenue and the shares of the five collective management organisations per tariff are transparently set out on the website of Swisscopyright, the umbrella organisation for Swiss collective management organisations: https://www.swisscopyright.ch/einnahmen-und-verteilung/geldfluesse/kennzahlen.html. The collective management organisations’ website also contains information on political issues relating to copyright law.
How are the royalties distributed? Each collective management organisation distributes its share to its rights holders, who are affiliated with it through management agreements or who collaborate within the network of international organisations. ProLitteris administers statutory royalties (mandatory collective management) under broadcasting-related and reproduction-related tariffs and distributes them to authors, visual artists, photographers, publishing houses and other rights holders in a main annual distribution. The main distribution comprises the Print, Online and Broadcast distributions. These differ according to the form in which protected works have been published and are available for use. The distribution regulations, which have been approved by the Swiss Federal Institute of Intellectual Property and are periodically updated, are decisive. 10 per cent of the revenue goes towards social benefits and cultural promotion. On a smaller scale, ProLitteris provides legally compliant licences for the use of texts by broadcasters (audio sector) and for the reproduction of works of art (art management area). Foreign rights corresponding to the uses covered by the Swiss tariffs are collected via reciprocal agreements and are also distributed to Swiss authors, publishing houses and artists. ProLitteris operates on a non-profit basis.