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UrhDaG

On April 17, 2019, the EU Parliament adopted Directive (EU) 2019/790 on copyright and related rights in the Digital Single Market (Digital Single Market Copyright Directive - "DSM Directive"). The German legislator implemented this directive, in particular Art. 17 DSM Directive on the responsibility of service providers (hereinafter also referred to as "platforms") and Art. 18 DSM Directive on fair remuneration of rightholders, with the Act on the Copyright Liability of Online Content Sharing Service Providers (UrhDaG). The UrhDaG came into force on 01.08.2021.

The DSM Directive and the German implementation in the UrhDaG aim to promote and ensure fair remuneration for authors, performers and other neighbouring rights. Creators should be remunerated appropriately when platforms enable their users to upload copyrighted works or parts of works in their original or modified form for their own content ("user-generated content") and thus make them available to the public.

The core of the law is a fair balance of interests between creators, platforms and users.
Creators should receive a fair share of the platform's profits, while at the same time safeguarding users' freedom of communication and expression on the internet.

In order to achieve this goal, the German legislator has included statutory rights to information and remuneration in the UrhDaG, specifically:

  • Section 4 (3) UrhDaG, the so-called direct remuneration claim
  • Section 5 (2), the remuneration claim for the use of a copyrighted work authorized by law for communication to the public in the context of a parody, a pastiche or a caricature and
  • Section12 (1) UrhDaG, the remuneration claims for uses authorized by law

What does CESARights have to do with this?

The collecting societies concerned have commissioned CESARights to assert and enforce the claims resulting from the UrhDaG. To this end, the following collecting societies have already concluded agreements with CESARights on the assignment of the associated claims:

  • GEMA
  • GÜFA
  • GWFF
  • VG Bild-Kunst (except "Social-Media-Bildlizenz")
  • VG Wort
  • VGF

Further agreements are being planned (e.g. with VFF).

Accordingly, CESARights handles the operational processing of claims with the service providers.

We make sure that the statutory remuneration claims under the UrhDaG are realized and that the fair remuneration made possible by the law reaches the entitled persons.

We are the point of contact for all service providers and other relevant players for questions and concerns relating to the UrhDaG.

FAQ

What is a service provider according to UrhDaG?

A service provider within the meaning of Section 2 UrhDaG is a provider of services whose main purpose is the storage and making available to the public of copyrighted content uploaded by third parties or if the providers at least also pursue this purpose. These service providers organize and advertise such content for the purpose of making a profit and compete with online content services for the same target groups. This may include platforms such as video hosting services, social networks and other online services.

What specific claims does CESARights assert under the UrhDaG?

CESARights asserts the above-mentioned statutory remuneration claims. Specifically:

  • Section 4 (3) UrhDaG, the so-called direct remuneration claim
  • Section 5 (2), the remuneration claim for the use of a copyrighted work authorized by law for communication to the public in the context of a parody, a pastiche or a caricature and
  • Section 12, the remuneration claims for uses authorized by law as well as alternative claims for this
What obligations does the law impose on platforms and service providers?

According to the UrhDaG, service providers are responsible under copyright law for the content uploaded by their users if this content is made publicly accessible, see Section 1 UrhDaG.

Service providers must acquire licenses for publicly accessible content that is protected by copyright. Otherwise, they must take measures to prevent copyright infringements and respond to complaints and blocking requests from rights holders so that protected content is not available.

In addition, the UrhDaG regulates statutory remuneration claims (e.g. a direct remuneration claim for authors and performers as well as remuneration claims for legally permitted parodies or "pastiches" and for presumably permitted uses) for which fair remuneration must be paid by the service providers to the relevant rights holders.

Why is CESARights now asserting claims against service providers under the UrhDaG?

Since the UrhDaG came into force in 2021, the above-mentioned remuneration claims subject to collecting societies have existed and their assertion has been prepared since then. Collecting societies whose members hold claims under the UrhDaG now commission CESARights as a service provider to assert existing claims against platforms since 2021 out of court and, if necessary, in court and and to protect them from the possible onset of the statute of limitations. To this end, CESARights also offers the conclusion of waivers to the statute of limitations in order to initially avoid the assertion of claims in court and to enable negotiated solutions. The newly created legal foundations and their application represent an important step for the enforcement of copyrights in the digital world and demonstrate the important contribution that collective rights management plays in this regard.

How high will the tariff be for service providers?

So far, CESARights itself has not set and published any tariffs in accordance with Sections 38, 39 VGG to set the remuneration claimed for the managed rights. As soon as tariffs have been set up, you can find them on our website.

However, we would like to point out that GEMA has published the VR-OD 18 tariff for statutory remuneration pursuant to Section 5 (1) No. 2, (2) UrhDaG in conjunction with Section 51a UrhG, which you can find on the GEMA website (https://www.gema.de/de/musiknutzer/tarifuebersicht/). This tariff is also covered by the present assertion of claims. Accordingly, the remuneration asserted by CESARights is higher than GEMA's tariff, as CESARights also asserts claims for further repertoire.

The tariff of VG Bild-Kunst “Tarif zur Abgeltung von Nutzungen des stehenden Bildes durch Diensteanbieter für das Teilen von Online-Inhalten gem. §§ 1 und 2, § 4, § 5 Abs. 2, § 6 Abs. 1 und § 12 Abs. 1 UrhDaG”, the so-called “Social Media Image Licence” (“Social Media Bildlizenz”), is expressly excluded from our assertion of claims (both information and remuneration claims). However, claims for further repertoire of VG Bild-Kunst (e.g. claims of directors and cameramen), which are not covered by the “Social Media Bildlizenz”, were also assigned to us by VG Bild-Kunst.

Why does the information have to be provided in this form?

The UrhDaG and the VGG (in particular Section 39 VGG) provide indications of the requirements for the tariffs for the claims in question.

According to Section 41 VGG, the collecting societies may request information on the use of those works and other protected subject matter for the use of which they assert remuneration claims under the UrhDaG, insofar as this is necessary for the collection of revenue or distribution.

Indications for the scope of the information to be provided can also be found in Section 19 UrhDaG.

The relevant statutory provisions thus provide for extensive rights to information. In particular, these are intended to enable the collecting societies to collect and distribute remuneration in the best possible way based on usage.

Are there ways for service providers to avoid a legal dispute at this point in time, even if no information can be provided or payments made in the short term?

In order to avoid a legal dispute, in particular before binding tariffs on the remuneration rates of the individual remuneration claims have been determined, we offer the service providers the conclusion of a waiver to the statute of limitations. However, if such an agreement is not reached with individual service providers, CESARights must take further measures to suspend the limitation period for its above-mentioned claims from 2021, e.g. enforce its claims through legal action.

Do you have any questions?