License fees for online music use under fire

The Swiss Advertisers Association (SWA) opposes Suisa's new regulations on the licensing of music in advertising spots in online campaigns or on microsites.

Photo: Dan Zen - flickr.com

Since the beginning of this year, Suisa has been charging advertising clients new license fees for music in advertising spots in online campaigns or on microsites, according to a press release from the Swiss Association of Advertising Clients (SWA). Instead of the previous flat rate of 100 to 200 francs, the copyright company is demanding up to 3.3 percent of the online media budget for the music. This would require customers to disclose their confidential media plans.

The SWA and the associations Leading Swiss Agencies (LSA), Allianz Schweizer Werbeagenturen (ASW), Interessengemeinschaft Elektronische Medien (IGEM), IAB Switzerland and the Goldbach Group have opposed the new regulations without being able to reach an agreement with Suisa. 

The SWA has now decided to reject the new license costs and the "impracticable process". At the same time, the association expects Suisa to seek a solution with the platforms that technically distribute the commercials on the internet for compensation for making them available.

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