Music fees – Who has to pay them?

Music is royalty-free when the exploitation of music rights has not been entrusted by the creators to a collecting society such as GEMA, AKM, or SUISA. These are the major collecting societies in the DACH region.

GEMA (Society for Musical Performance and Mechanical Reproduction Rights) manages the rights to musicians’ music on their behalf. This is contingent upon the musicians having authorized GEMA to do so through GEMA membership. In general, music whose authors died at least 70 years ago is in the public domain. A GEMA exploitation right therefore exists only if the author of a musical work

1. as a member of GEMA, has GEMA manage their collection rights, and
2. the authorship of a musical work dates back no more than 70 years.

Music quality even without GEMA

Not being a member of GEMA says nothing about a musician's professionalism or talent. It merely means that the musician wants to decide how their music is utilized. All royalty-free tracks offered by MUSIC2BIZ have been carefully selected by competent music editors and meet high quality standards.

GEMA membership is losing significance

The online marketing opportunities associated with the global spread of the internet have led to a growing number of talented professional artists deciding against membership in a collecting society. Royalty-free music is often also referred to as freely available music. This does not mean that this music may be used automatically free of charge.

Self-marketing via online channels

Current opportunities for self-marketing via online channels often give artists more influence and, not infrequently, significantly better commercial terms. Self-marketing eliminates the need to help finance the administrative apparatus of a copyright collection society. The accusation of poor quality, which is still leveled against royalty-free music from the past days of cheaply composed and produced „elevator music,“ is groundless today.

The repertoire of MUSIC2BIZ

The royalty-free repertoire of MUSIC2BIZ is characterized by a high professional quality standard. All musical pieces are hand-picked by professional music editors. The repertoire is continuously expanded and updated. MUSIC2BIZ offers 40 music genres in all plans, covering the background music needs of most companies and industries. Custom license-free playlists are also created on behalf of customers.

What role does GEMA play?

• The GEMA is an association, not a government agency. Established as a legally recognized association in Germany, GEMA monitors the commercial use of music across all German media. This includes television, radio, and the Internet, as well as the use of music in public spaces, such as hotels, bars, restaurants, shopping centers, and fitness centers.
• The stated goal of GEMA is to protect the intellectual property of music creators and ensure fair compensation for the use of music.
• Copyright holders must be members of the GEMA. To do this, the GEMA requires the consent of the rights holders. The GEMA can only manage the rights of its members, because it has only obtained consent to do so from those composers, lyricists, and music publishers who are voluntary members.
• No jurisdiction without a member order. As an association, the GEMA acts only on behalf of its members and exclusively for their music. It does not hold a general exploitation right for all commercially used pieces of music.

How does the GEMA association perform its tasks?

Works by music creators are protected by copyright in Germany and many countries around the world. Only the music creator themselves is authorized to permit the commercial use of their works. This permission is generally granted in the form of a license.

• Media monitoring. Monitoring the media and public spaces for the use of protected music is complex and practically impossible for the individual music creator.
• The GEMA assumes this task for its members and simultaneously acts as their collection department.
• On-the-spot inspections. Among other things, the GEMA conducts inspection visits to restaurants, hotels, trade fairs, and retail establishments. It is checked whether the operators can present written permission from the artist or the GEMA for the public performance of the respective work for commercial purposes.
• Use GEMA-liable music. Anyone who wants to use music by members of GEMA must acquire a public music performance license from GEMA. The revenues from these license sales are distributed by GEMA to its members according to a fixed procedure, minus the costs for monitoring and administration.

Benefits of royalty-free music from MUSIC2BIZ

The costs for using the royalty-free repertoire of MUSIC2BIZ are significantly lower compared to using the repertoire subject to GEMA, because the GEMA institution does not need to be co-financed.

MUSIC2BIZ involves royalty-free music creators in its revenues through a transparent tariff model. The amount depends on how often each piece of music is played.

The use of royalty-free music streams is possible via an online order on the MUSIC2BIZ website. The acquisition of usage rights takes place as part of a subscription. Subscriptions and used music channels can be managed online by the customer.

Businesses can receive and play the GEMA-free flat-rate music services on many internet- and audio-enabled devices: PCs, Macs, audio receivers, tablets, cell phones, routers, and internet radios. The server infrastructure provides the music programs year-round. The MUSIC2BIZ software player stores two hours of music in case the internet connection drops out.

Legally secure use of GEMA-free music

MUSIC2BIZ has written clearance declarations from the musicians for all music tracks licensed as royalty-free. The GEMA clearance declaration names the composer of the music track and confirms in writing that the music track is not subject to GEMA fees.

A confirmation of the GEMA exemption is made available by MUSIC2BIZ to all customers for the regular reviews carried out by the GEMA.

This confirmation is important because GEMA generally assumes that every music creator has concluded a contract with GEMA. As long as a user cannot prove otherwise, GEMA assumes that GEMA fees must be paid.

The MUSIC2BIZ confirmation of the GEMA exemption serves as proof during on-site inspections that the subscribed music flat rate is royalty-free and the user therefore does not have to pay GEMA fees.