Tuesday, 24 February 2015

SGAE Misses Crucial Tariffs Deadline

Promoters in Spain are considering putting on concerts without signing – or paying – licence agreements with performing rights society SGAE, after the organisation missed a government imposed deadline to change its “abusive” 10% tariff.

The Spanish competition watchdog (CNMC) had ordered SGAE to propose a new tariff for concerts by 6 February. Instead the collection society filed an appeal with the High Court, Audiencia Nacional, and requested that the CNMC decision be suspended, despite the fact that the court had already ruled, in April 2009, in favour of promoters association, Asociación de Promotores Musicales – a decision confirmed by Spain’s supreme court in December 2012.

However, if the suspension is granted, the High Court would be required to secure a banking bond from SGAE to cover any possible damages – a complicated process as it would involve the court deciding what a fair tariff would be.

In the meantime, Spain’s promoters consider that they can legitimately organise shows without paying any licence fees, or paying just a provisional amount that they deem fair, because there is no longer a legal tariff.


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