GVL increases balance for 2012 by EUR 18.6m arising from the specification of receivables
GVL announced that it succeeded in increasing its total income during financial year 2012 by EUR 18.6m to EUR 146.9m. The increase is nearly entirely due to income from the copying sector and results from a partial specification of receivables by the ZPÜ (central collection and distribution organisation for private copying levies in Germany) vis-a-vis manufacturers and importers of devices and storage media for private copies.
"The refusal to cooperate of the hardware industry continued to lead to significantly lower income in 2012 than in the previous years where the then statutory regulations worked well. At least we can now name a part of our claims and reflect them in our balance as receivables", add Guido Evers and Dr. Tilo Gerlach. The two Managing Directors of GVL stress at the same time that these receivables are not yet available for distribution but are only appearing in the balance: "The income thus reflected is very high and we can therefore not pass it on due to lack of incoming payments. This leads to massive losses for our members." The amounts previously blocked from payout in 2012, EUR 17.8m, are significantly above the previous year's funds (EUR 2.0m). The fees for reproduction/copying led to proceeds amounting to EUR 18.7m in 2012 (previous year: EUR 2.4m).
Apart from that, GVL's income situation in all other areas is stable and corresponds roughly to the results from the previous year. In the broadcasting sector, a total of EUR 80.4m could be collected in financial year 2012 (previous year: EUR 79.1m). The result with regards to public performance could be increased again and rests at EUR 39.9m in 2012 (previous year: EUR 38.9m) – significant increases are envisaged, the relevant model case proceedings are pending before the Federal Court of Justice (BGH). With regards to the income from rental and lending, GVL had to register a drop to EUR 2.9m (2011: EUR 3.4m). The reason for this is that income relating to other periods was collected for library levies in the previous year. The cable-retransmission of artistic performances that did not relate to sound recordings and music video clips, reached an income of EUR 2.1m (previous year: EUR 2.2m). The interest earned decreased due to the continued low interest level to EUR 1.7m in 2012 from EUR 1.8m in the previous year.
The administration costs increased again by a significant 7.2% i.e. EUR 10.4m compared to the previous year (EUR 8.9m). The increase results mainly from the migration of the distribution system for performing artists and the resulting significant increase in staff requirements. For cultural, politico-cultural and social purposes, GVL used EUR 4.0m in 2012 (previous year: EUR 3.4m).
GVL's annual surplus in 2012 before tax and distribution amounts to EUR 128.8m (previous year: EUR 112.3m). After deduction of grants and funds held in suspense, the distributable amount stands at EUR 107m (previous year: EUR 106.9m).
A slight increase of income is expected for financial year 2013. "The currently unresolved situation granting the hardware industry a rather lopsided advantage with regards to private copying remains unchanged and will continue to have a negative effect on short and mid-term solvency", illustrate Gerlach and Evers and request that the legislator should "finally fill the gaps in the legal process by introducing fair regulations." GVL continues to press ahead with the conclusion of reciprocal agreements with foreign sister societies in 2013 in order to administer the rights abroad and collect remuneration accrued abroad on behalf of GVL members for onward payments to them. In addition, general agreements with private and public service radio broadcasters are currently being renegotiated.
GVL was founded in 1959 and, in its role as a collective management organisation, it now represents more than 140,000 performing artists, producers of sound recordings, producers of video films and event organisers and administers their neighbouring rights. The German Orchestra Association (registered association) [DOV] and the Federal Association of the Music Industry (registered association) [BVMI] are equal associates of GVL.