Germany | Rate and SC

GEMA vs IFPI - Arbitration Proceeding on the mechanical rate & the application of the Standard Contract

On 12 April 2005, after nearly one and a half years of proceeding, Schiedstelle rendered a favourable decision for GEMA regarding the Standard Contract. This decision constituted a proposal of an agreement for the two parties – maintaining the PPD royalty rate of 9,009% and all important provisions of the Standard Contract, such as the minimum royalty and the maximum number of works and fragments. The national IFPI group  finally decided not to appeal the decision. Therefore the Arbitration Body's proposal constituted using the Standard Contract applicable as of 1 July 2000 to 31 December 2005.