Competition demands that AIE stop applying its rates to television stations

A raíz de la denuncia de Telecinco por establecer de modo unilateral tarifas abusivas y arbitrarias en el uso de su repertorio, la Comisión Nacional de la Competencia multa a la Entidad de Artistas Intérpretes o Ejecutantes (AIE) con 770.000 euros y le exige el cese de la aplicación de sus tarifas a las televisiones.

The historic fight maintained by Telecinco against what, in its opinion, are abuses committed by the management entities in the establishment of their rates for television stations has taken another important step by getting the National Competition Commission (CNC) to issue a resolution contrary to the procedure for setting these by the Entity of Performing Artists or Performers (AIE), who is also obliged to pay a fine of 770,000 euros.

Following Telecinco's complaint against the AIE for unilaterally establishing inequitable, abusive and discriminatory general rates that, in addition, have caused anti-competitive disadvantages compared to other operators, the CNC has resolved the following:

First. Declare that the Entity “Performing Artists, Management Company of Spain” (AIE) has violated articles 6 of Law 16/1989, on the Defense of Competition, and 82 of the TCE, by having demanded inequitable and discriminatory rates from Gestevisión Telecinco in relation to the remuneration of the rights of performers for the public communication of audiovisual recordings.

Second. Impose on the Entity “Performing Artists, Management Company of Spain” (AIE) a fine of SEVEN HUNDRED AND SEVENTY THOUSAND EUROS (770,000 Euros) for the commission of the accredited conduct.

Third. Urge “Performing Artists, Management Company of Spain” (AIE) to refrain from publishing and demanding general rates such as sanctioning or other equivalent rates that could distort the market for the management of rights of artists, performers or performers for the public communication of audiovisual recordings.

Room. The Investigation Directorate of the CNC will monitor and ensure compliance with this resolution.

Competition and the Supreme Court agree with Telecinco

This resolution ratifies the criteria previously established by the CNC against AGEDI (Intellectual Rights Management Association) after the complaint also filed by Telecinco, which with these actions leads the rebellion of television stations in the fight against abuses by intellectual property rights management entities.

Furthermore, it adds to the ruling handed down by the Supreme Court also against AIE on March 30, after upholding the appeal filed by Telecinco against a ruling by the Provincial Court of Madrid arising from the lawsuit in which AIE demanded that the network collect general fees for the public communication of its repertoire in audiovisual recordings.

Although the establishment of these rates by the management entity and the communication of these to the Ministry of Culture is a mechanism provided for in the current Intellectual Property Law, both the resolution of the CNC and the ruling handed down by the TS agree with Telecinco and put an end to the abuse of the monopolistic position of the management entities that, under the pretext of the Law, have been unilaterally imposing on television stations general rates set based exclusively on the income obtained by each channel, without having take into account any other criteria.

Both organizations thus recognize that AIE's remuneration must above all be “equitable”, as the Intellectual Property Law itself establishes. To guarantee this equity, the Supreme Court has established a series of parameters, such as the effective use that television makes of the management entity's repertoire, which until now had not been taken into account by entities such as AIE.

Likewise, the Court has indicated as another of the criteria the content or breadth of the AIE repertoire, as well as the value that its use brings to the product, that is, the contribution of the interpretations of the AIE members in the broadcast of audiovisual recordings on television.

Likewise, it has proposed that AIE establish a criterion of proportionality between television stations, avoiding disproportionate, excessive and unjustified differences in treatment between the rates established in the agreements with the different channels.