Starlite must pay 363,000 euros to SGAE as royalties

The General Society of Writers and Editors (SGAE) filed a lawsuit against Bendeus Productions AIE, the organizer of the Starlite Festival, over its debt. 363,993.89 Euro royalty For their concerts in the 2018 and 2019 editions of the event. Judge ruled in favor of board, music event appealed and now The Madrid Provincial Court of First Instance gave its final verdict: The original sentence was preserved.

It was claimed from Starlite that “Some artists had given their permission In order for his works to be directly communicated to the public, he must be excluded from the management unit’s claim,” the following was claimed from the Marbella festival: SGAE rates are “malicious and one-sided.”

The Thirty-Second Division of the Provincial Civil Court of Madrid conclusively refutes both allegations. Regarding the first one, SGAE emphasizes the importance of managing organizations such as: “The distribution of goods and the provision of services involving the use of intellectual property rights in principle require the consent of their owners, but their individual granting is not always effective and in many cases may even become unsustainable due to unaffordability of prices. Transaction costs of the requesting user. Therefore, collective management is emerging, traditionally carried out by IPR management organisations. “And it also allows intellectual property rights owners to be paid for the use of their works that they cannot individually control.”

Regarding SGAE rates, the decision, from which only appeal is possible, provides that: 8.5% of box office revenue from recitals It is proportional (applied in the case of Starlite). Regarding unilateralism, the court ensures that: “There is no evidence that the appellant made any effort to negotiate the fee individually.” On the contrary, “in requesting permission for the application of general rates in accordance with the model provided, he expressed his desire to comply with them, taking into account: “The appellant is part of the Music Promoters Association (APM) with whom SGAE negotiated the rate applied.”

Source: Informacion

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