Germany | T-Mobile and others vs GEMA

T-Mobile and others vs GEMA - Arbitration Proceedings on conditions applicable to the downloading of Musical Works

In a decision of 11 December 2006, in the T-Mobile v. GEMA case, the arbitration Board considered that, for downloading musical works, a royalty rate of 11% of the public price with a minimum of EUR 0.13 was adequate.  Moreover, the Arbitration Board reaffirmed that the possibility of intensive use of musical works from sites proposing music on demand, by comparison with use made by audio and audiovisual carriers, justified the application of a higher royalty rate.

This royalty level was subsequently confirmed through the decisions in GEMA v. CTS Eventim, AOL v. GEMA and Chart Radio v. GEMA.

In each of the cases, as one or both of the parties raised objections to the decision, none of the decisions are legally applicable.
On the side of the authors’ society, the objections concerned the level of the percentage rate of the royalties, whereas the minimum and the royalty base were fully accepted.

The result of the objections is that the decisions are legally not effective.