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[SAE Alumni Berlin] Status C3S, October 2014, incl. comparison w/GEMA

Three years of conceptual work, more than one year of founding, and almost half a year in developing later, it is time to look at where C3S stands now – the fellowship that started with the vision of shaping and building a modernized collecting society.

The aim has changed from just enabling members of the collecting society to make use of Creative Commons licensing. Now, it stands for full fledged flexible licensing, voting rights only for creators, fair distribution of royalties, comprehensive transparency and re-thinking music industry. The advantage of being a collecting society’s member has to become available for even those who tend to avoid them. Because the strength of a community representing today’s musicians’ interests, allowing them to join the market and make a living from their music is in strong demand.

But, there’s loads of work to be done, and the administrational process to be granted the licence to work as a collecting society in Germany is complex and blurred.

Since June and August 2014, tasks and challenges are getting much more precise and focused. It is the transition from concept to prototype. Expect to be introduced to the challenges of building C3S which aims at offering an alternative to GEMA – and beyond. Expect to learn how C3S works hard to meet the challenges. Expect to see how the initiators of C3S are strictly following their goal to involve the community.

Last but not least, you will get to know what to expect when from C3S, and to whom it’s recommendable to join C3S – and when.

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[SAE Alumni Berlin] Status C3S, October 2014, incl. comparison w/GEMA

  1. 1. C3S: An Unexpected Journey. @ SAE Alumni Conference :: Berlin 2014-10-23 :: Wolfgang Senges Share this presentation
  2. 2. What is the C3S? C3S = Cultural Commons Collecting Society • a pan-European collecting society for music • representing authors‘ rights for composition & lyrics • fair distribution of licence revenues • full control for authors
  3. 3. Why starting C3S? +++ Reason A +++ Payment for indie artists > Gap < • Creative Commons vs Collecting Societies • no integration of CC in Music Industries
  4. 4. Why starting C3S? +++ Reason B +++ Artists administrational effort • no member of a collecting society? • of course no payment from GEMA • but have to report to GEMA anyway
  5. 5. Why starting C3S? +++ Reason C +++ Licensees • feel uncomfortable with CC • legal uncertainty • due to missing collecting society
  6. 6. ... our humble opinion A new collecting society is in demand.
  7. 7. hhh Who should join?
  8. 8. Who should join? Two groups: Artists & Supporters
  9. 9. Who should join? Composers & Performers + Utilizing Members + • Creative Commons artists • non-members of other collecting societies • members of GEMA excluding at least one licence type from GEMA • members of GEMA who are not satisfied
  10. 10. Who should join? Supporters + Investing Members + • those who like C3S • those who would like to check out C3S • including members of other collecting societies
  11. 11. Who should join? Two groups: Artists: voting rights & Supporters: advisory option
  12. 12. hhh Essen/al Objec/ves
  13. 13. The Objectives participation & cooperation The artist decides.
  14. 14. The Objectives free choice of licensing & strategy The creator is in control.
  15. 15. The Objectives transparency See what you are paid for. See what the Board does.
  16. 16. The Objectives fairness Payments as exact as possible.
  17. 17. The Objectives fairness Striving hard? Get more. Making $$$? Support more.
  18. 18. hhh C3S vs. GEMA
  19. 19. C3S vs GEMA C3S • goal: easy to understand • if lump sum fee then distribution by list • otherwise tariff per track / per play GEMA • hard to understand • varied mix of tariffs and payments Distribu/on of Royal/es
  20. 20. C3S vs GEMA C3S (GEMA) Assump/on • no disadvantage for non-members • pressure only in clear case of infringement • C3S: real-time dashboard GEMA • deployment hampers non-members • execution at user too harsh • billing can hardly be understood Transparency
  21. 21. C3S vs GEMA C3S Exclusivity • select your works • types can be excluded (not CC) Licences • all CC licences • all rights reserved • licence per song GEMA • exclusive for all works • types can be excluded • no CC • all rights reserved • same licence, all songs
  22. 22. C3S vs GEMA C3S Structure • 2 groups of members • ca. 42% w/voting rights • voting: creators GEMA • 3 groups of members • ca. 5% w/voting rights • voting: creators, publishers, heirs
  23. 23. C3S vs GEMA C3S Impact by vote • each artist administering works at C3S has a vote • depends on holding at least one share • number of shares has no impact on number of votes or privileges GEMA • majority of creators have no direct vote • rights depend on revenues
  24. 24. C3S vs GEMA C3S Music Industry • integration can start with operational launch • only some licence types available at start Interna/onal Licensing • goal: one pan-European collecting society • advantage for business GEMA • fully integrated • representing some composers (CC excluded) • only by contract with other collecting societies • „noise“ in interfacing
  25. 25. hhh Challenges & Projects
  26. 26. Challenges 1. German Patent and Trademark Office. 2. Need for revenues. 3. The underlying models: • model of rates • distribution key (within a track) • membership fees 4. Software: • administration • workflow • monitoring
  27. 27. Current Projects • Voluntary Payment (micro payment) • Administration of Live Gigs (GEMA listings) • Registration of Works (with SafeCreative) • Label (providing label code)
  28. 28. hhh Roadmap
  29. 29. The Roadmap Q4/2014 * Crowdfunding for GEMA listings * development for Micro Payment Q2/2015 * administrational services for musicians (not as a collecting society) * Open Music Contest: roadshows & live gigs June 2015 * general assembly #2 Q4/2015 * submitting application papers to German Patent and Trademark Office 2016 (?) * operational start * collecting royalties for live music, film/ commercials/games, online use
  30. 30. hhh What does it take?
  31. 31. What does it take? at least one share per member: 50 € per share no membership fee now
  32. 32. hhh Suppor/ng the C3S
  33. 33. Participation Membership: Sustain: • monthly payment Everything counts... even in smallest amounts ;-) Voluntary supporters always welcome!
  34. 34. Become a member! hhh Wolfgang Senges Execu/ve Director