GEMA Hikes Venue Performance Royalties 500%, Threatens Germany's Underground Club Scene
from the 'creative'-destruction dept
GEMA is killing the music industry. Despite needing artists to survive, GEMA seems particularly hellbent on destroying any venue these artists might use to make money in its quest to secure even more money. It takes a certain level of diabolical shortsightedness and greed to "elevate" yourself above the rest of the PROs into "Most Hated" status. Considering other PROs have done such endearing things as shakedown the Girl Scouts and non-profit charities for spare change, GEMA has its work cut out for it.
Maybe it's the famous German industriousness that has provided GEMA with the impetus to turn Youtube into a massive collection of "Sorry, this content is not available in your country" messages. Maybe it's some form of corporate sociopathy that has turned it into a self-destructive monster capable of destroying artists' futures in the name of artists' "rights."
The latest move by GEMA has sparked protests, a claim that most other PROs can't make. GEMA, in its infinite wisdom greed has decided that the underground music scene just isn't paying its fair share. The fix? Raise rates 1,400% and if a few clubs go under because of the hike, well, that's just part of the price of doing business.
GEMA, the organisation responsible for collecting mechanical copyright fees on behalf of some 65,000 artists in Germany, have announced a price hike which could spell the end for some of Berlin's most revered clubs. If the changes go unchallenged, the legendary Berghain - facing a fee hike of 1,400% - will shut after its NYE party this year; the similarly monolithic Watergate is likely to go the same way, claiming its mechanical copyright fees will be increased from €10,000 per year to €200,000.As is par for the course in instances like these, it's all about "fairness" and "putting money in the pockets of artists." But like every other PRO, GEMA exists to collect fees and redistribute them to the artists, starting at the top. Those most heavily represented by chart success, airplay and radio exposure get the largest chunk, with little to nothing reaching those artists operating outside the mainstream (like, say, THE UNDERGROUND), many of whom may not even be registered with GEMA.
Ostensibly, GEMA is attempting to streamline its fee structure, but doing so in such a way that the most direct beneficiary is GEMA itself. On top of that, an additional levy targets underground clubs, and their lengthy events, nearly exclusively:
In the new scheme, commencing 1st January 2013, the complex existing system of eleven different fee structures is being replaced with just two: monthly charges will be calculated as a percentage of ticket price and relative to the size of the venue. There will, however, be a 50% surcharge if events last longer than five hours, and a similar increase after another three hours. Der Spiegel calculates that, "for an average Berlin club with 410 square meters of space, charging €8 entrance and running two events per week from 10 p.m. until 5. a.m, the price paid to GEMA will rise from the current €14,500 to some €95,000 - an increase of 560%". It seems evident that these plans favour venues (such as bars and gig spaces) with shorter opening times, placing a disproportionate financial burden on clubs. Legendary spots like the Berghain, renowned for the kind of marathon all-weekend sessions largely prohibited in the UK due to stricter licensing, will fare the worst.GEMA has it all figured out, though. You can nearly hear the condescending smirk wrapped around this statement by Regional Manager Lorenz Schmid.
"The way I see it, [clubs have] been paying far too little in the past. I see no problem for a club manager if he has to pay €1.20 out of €12".Of course you think it's manageable. You're the one collecting the fees. When you're on that end, it all seems like a drop in the bucket. Those on the other side see it differently. It's another unexpected cost to factor in, and when you're running a club that caters to the underground, you don't really enjoy the sort of profit margins that more mainstream events and entities do. GEMA is killing off some of the few outlets for underground artists in order to further reward the top of the heap. Makes sense. Fortunately, the underground scene isn't taking this lying down.
The Berlin community isn't taking the change lying down: on 25th June, 5,000 gathered to protest outside GEMA's summer party; on the 30th, more than 2,000 clubs across the country stopped the music for five minutes to raise awareness of the new fees... High profile artists including Alec Empire, Blawan, The Black Dog, Mike Paradinas and Steffi have spoken out against GEMA's plans. The German patent office are apparently investigating the legality of the scheme, but they won't reach a decision before the fees come into effect - which may be too late for many of Berlin's clubs.There is also an online petition, which you can sign here. Given the historical importance of Germany's underground club scene, as well as its contribution to Germany's tourist industry (more than 35% of visitors cite the city's nightlife as a major reason for their visit, according to the Guardian), it would be incredibly disappointing to see it killed off by a rent-seeking agency looking to further reward the top 5% of artists. Maybe this backlash will highlight the stupidity of destroying outlets for artists in the name of "protecting" artists.
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Filed Under: collection society, copyright, fees, gema, germany, rates
Companies: gema
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...I don't think they understand that "Lower costs = more people able to pay", and "higher costs = fuck you all".
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Public relations are for wankers. True business is only effective it can be used for extortion, bribery and control.
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Of course, we know that if the petition achieves absolutely nothing it'll be for different reasons than they imagine.
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Dear Music Collection Agencies
Oh, that's right, you are not interested in music or musicians. You are only interested in your own profits and controlling what we listen to, and how/when/where we listen to it.
Up yours.
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Re: Dear Music Collection Agencies
the more you download and pirate, the more you prove them right
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Those people then goto the clubs where they are played or are having a show, then GEMA demands a huge fee "for the artists" and cuts into what the band might have made at their show and sends that money to groups who had nothing to do with that show...
Bad idea one - assuming everyone who dislikes the cartels is a dirty dirty pirate.
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Re: Re: Dear Music Collection Agencies
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Re: Re: Dear Music Collection Agencies
True story: the only music I've pirated in the last 6 months is music that is not available via Grooveshark.
Also true story: I pay a monthy subscription of $9 to Grooveshark. This is more than I spent buying CDs in my teenage years before I became a heavy pirate in my early 20s.
the more you download and pirate, the more you prove them right
The more the legacy players try to close off legal services and venues, or keep their music off them, the less money they get.
So, coming from a completely unapologetic self-identifying pirate, this should mean something: I'm perfectly willing to pay money for useful services that are reasonably priced and convenient to me. I'm happy to give money when I know that it will benefit the artists that I care about. But I do not care about your out-dated business models that revel in wastage and inefficiencies to siphon off nearly everything that I pay to end up in the pockets of people who do nothing to benefit the artists I care about, or society as a whole. I will route around those inefficienies every chance I get. So if you want my money, stop being a barrier and start being an enabler.
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Re: Dear Music Collection Agencies
Two big middle fingers in the Air to GEMA.
This is a job for those mysterious German Anarchists.
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You've missed the point ;-)
It actually makes perfect sense, if you just put a couple words in (you surely must have omitted them by mistake).
It should really state:
'Destroying outlets for SOME artists in the name of "protecting" OTHER artists.'
- feel free to put your own definition of SOME (like those that don't bring any money to GEMA, record labels, well actually anyone that matters) and OTHER (those they can best profit from)
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At least organizations like GEMA have to obey the laws. Yes, maybe those laws are mostly devised by them or their roofing bonds, but still.
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But hey, GEMA is only "for the artists"...at the top.
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from the article
"GEMA is killing off some of the few outlets for underground artists in order to further reward the top of the heap. "
This is the PURPOSE of the hike. Eliminate all of the privately owned venues where non-label acts can be seen.
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And.. damn Godwin.
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That GEMA who enjoys the legally granted position of we say it must be covered so it is, you have to do the effort to prove us wrong... and even if you do we can still screw you.
GEMA who blocked 'Sita Sings the Blues' (HI NINA!) and kept doing so even after Nina provided them with the paperwork showing she had worldwide license to the material?
And the shakedown and "fee collection" game was exported to the UK then the US and is moving to Canada because the courts here are starting to figure out that 4 German Companies operating under 15 names might be lying about their tech... the tech that was thrown out of German courts and go them sued by a partner lawfirm because they hid the flaws to protect their revenue stream.
They obey the laws... maybe the problem was letting them influence how the law was written to benefit only them.
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Secretly anti-copyright?
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Re: Secretly anti-copyright?
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A new collection society
Maybe I'm just being naive and hopeful.
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Re: A new collection society
This collection agency is actually the state of art example of greed, corruption and sense of entitlement.
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Re: A new collection society
As far as GEMA is concerned, all music belongs to them, so following that 'logic' it would be completely impossible to play non-GEMA owned music, ever.
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In any case, GEMA (BREIN, FACT, the MAFIAA) are the main reasons I pirate. I will gladly donate to the artist directly or go to the shows but I refuse to give my money to such rotten pieces of garbage.
I say let GEMA destroy everything. Maybe once copyright is escalated enough to the point that everything is infringing and the creative process is brought to a halt then our wise and honest politicians will actually do something to fix (like scraping everything and starting from zero).
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Some thoughts
I don't have that much rent, just shy of $500 a month, if I'd have to pay $2500 in half a year, I'd be looking for soft spots under the bridge as it's more then I make even before taxes. If I'd have to pay $7000, I'd be stocking up on gasoline to make sure the one destroying me won't have a house for himself as well.
Then there is this: The music played in the underground bars is not from the artist you'll be paying most.
So back to the rent: I will have to pay enough to break my back, it will not be used to actually pay someone who services my house, or owns the ground it is on, or even is in the same area, these will still be poor.
It will be paid to someone who already has enough, and of course to some shady baseball bat bearing types who drive around looking for a toe stepped out of line.
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Re: Some thoughts
Where's the like button? I'm all for a democratic process without violence but it seems it's not working these days.
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Underground clubs-- isn't that just another way to say "tax cheat"?
These underground clubs should move to Somalia where there is no government. They can pirate everything to their heart's content and they won't have to cut any moral corners. Oh wait. They don't want to do that because they want all of the security they get from the government they won't pay to support.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
They can't even laugh and go to a competitor like with almost every other cost center.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
Is it easier for you to get comfy with an abusive system if the victims have been accused of skirting their tax liabilities?
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
But enjoy your rant...
So when did Somalia replace paywall in your lexicon?
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No, that is just the way he was born.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
Secondly, and perhaps you can explain this stupidity, how does paying higher fees to GEMA translate to not paying to support the government?
Seriously, do you even think before you post? Please answer that one thing.
Also, you are aware kids in general don't pay taxes right. That's not just a German thing. That's happening here in America too. At least until they get their first job at about 17 or so. I mean think about that. There's nothing but "pirates" freeloading on roads and education in schools and hospitals and whatnot that I'm paying for! SOMEBODY PUT A STOP TO THIS IMMEDIATELY! /s
[shakes head in absolute befuddlement at the thinking process, or lack thereof, that bob shows in his comments]
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Re: Re: Underground clubs-- isn't that just another way to say "tax cheat"?
Underground means below ground level; the basement where rents are cheaper and the bear is cheaper, and the heat is higher because that is where the boiler was/is.
Translating this to regular English it means affordable like affordable housing.
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Re: Re: Re: Underground clubs-- isn't that just another way to say "tax cheat"?
And by readily understood I mean by most people, bob being the exception.
I do have one question though. These underground places you speak of, where can I find one? Because I'd like to live somewhere where "the bear is cheaper". Lol.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
Yes you is! Yes you is!
Have a biscuit boy. *Waves biscuit.*
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Re: Re: Underground clubs-- isn't that just another way to say "tax cheat"?
Make sure to use the axe, not the sword. Trolls from Zork tend to destroy swords, but the axe works every time. Trolling for trolls is the best way to rid Zork of the troll infestation, keep up the good work citizen.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
Seriously, for someone who claims to be an independent producer all you do here is bitch, bitch and bitch over how people are trying to get less big-name artists paid. But then we all know how you're an independent producer who has a vested interest in supporting John Steele and Evan Stone, and you have a burning hatred for libraries.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
I think it's time the people over there pulled down the Berlin Paywall the same as they did the one made of brick and stone.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
These 'rights' clubs should move to Somalia where there is no government. There they can threaten people to their hearts content and they won't have to cut any moral corners. Oh wait. They don't want to do that because somebody might actually stand up to them there.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
I hope GEMA makes up for the closed down clubs concerning tax collection. I'm fairly sure the MAFIAA generates pretty much all the tax revenue Governments around the world use to provide their citizens what they need.
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Re: Underground clubs-- isn't that just another way to say "tax cheat"?
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But...but...we are already paying
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Re: But...but...we are already paying
Not exactly correct. The door pays in part for the musicians who are performing that night. The GEMA fees pay the writers of the songs, which are being performed for profit.
Sometimes they are the same, often they are not.
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Sure not a perfect model but it could work. The fees should be reasonable and vary according to the revenue of each place.
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FTFY
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One of them sidles up to the Bruisers... and in a quiet voice "Hey man... I heard that you guys... you know... do ... music? can I come in and listen a while???"
Clearly GEMA are doing this for the children. See how my strawman turns music fans into drug addicts. For The Children!!!
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Simple solution
That's it. Simple.
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Re: Simple solution
The arguments against it has to do with the ease of transfer, but in a modern bureaucratic company, the paperwork has to be done to stay in business and that is what is killing the future. Hell for the future is paved with inflexible tax-systems.
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We're Sorry
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Please
The sooner they raise the prices so that nobody can access there music the better. At least then they will go out of business faster than is happening now.
Greed is a wonderful thing for those not consumed by it, as those consumed by greed normally destroy themselves look at any thief and when they get caught, they get caught because the more they steal and the more money they get the more chance they have of being caught.
Lets get copyright sorted , the sooner the better for the artists and consumers.
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Dammit Mike...
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Sorry ...
They never to do in no other case.
But here. They don't offer - like normal - on the right side videos to go on with.
They want to frustrate people.
That's misusing customers for own aggressive profit making.
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