Online Music Distribution - How Much Exclusivity Is Needed? by Nikita Malevanny
Author:Nikita Malevanny
Language: eng
Format: epub
ISBN: 9783662596999
Publisher: Springer Berlin Heidelberg
c) General Agreements
The CMOs are further obliged to conclude general agreements (Gesamtverträge) with associations of users pursuant to Sec. 35 VGG (formerly Sec. 12 UrhWG). The rates agreed upon in such general agreements supersede the rates determined solely by the CMO.148
Here German law again operates with the term “equitable conditions”, on which the general agreements have to be concluded.149 The CMO may refuse to conclude a general agreement, only if its conclusion cannot be reasonably expected, e.g. because the membership of the association is too small.150 General agreements are widely practiced by German CMOs and are considered to be mutually beneficial for both CMOs and users. In particular, CMOs benefit from cost savings stemming from administrative and monitoring simplification, as CMOs can conclude individual agreements with users who are members of the association without time-consuming negotiations and can rely on associations obliging their members to implement proper usage reporting standards.151 In return, users benefit from lower rates (discounts of up to 20% on regular rates) agreed upon in the general agreements.152
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