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GVL obtains temporary injunction against Sonixcast

Canadian web radio provider advertises and creates the false impression of holding a licence/ Regional Court Hamburg declares German law to be applicable.

GVL has obtained a temporary injunction under competition law regulations against the Canadian web radio provider Sonixcast from the Regional Court Hamburg. The injunction prohibits Sonixcast from creating the false impression that web radio operators in Germany can legally broadcast in Germany with a licence of the Canadian authors' society SOCAN. In fact, this licence does not cover neighbouring rights and obligations to pay licence fees which GVL usually collects on behalf of performing artists and record labels. GVL has now served the temporary injunction to Sonixcast which has not been legally binding so far.

"Web radios are an important market for growth in the music sector. We are entitled to enable their operations by issuing an adequate licence and thus contribute actively to a change in media usage", impress Guido Evers and Dr. Tilo Gerlach, both Managing Directors at GVL. "The decision by the Regional Court Hamburg is a legal confirmation of our licensing operations." The SOCAN licence via Sonixcast is insufficient for web radio providers in Germany and does not replace the necessary licence fee payments for broadcasting sound recordings to GVL.

"The Regional Court Hamburg has declared German law to be applicable as the intended access point for these web radios is Germany. It is therefore not relevant that the broadcast is based on technical infrastructures based abroad – in this case in Canada", explains GVL Head of Legal Affairs, Burkhard Sehm on the matter of issuing a temporary injunction. German web radio operators are therefore subject to a duty to pay licence fees to GVL which distributes the remuneration collected to performing artists and labels.

GVL is the only collective management organisation for artists and producers of sound recordings in Germany. GVL was founded in 1959 and now represents more than 140,000 artists and event organisers worldwide, plus more than 28,000 labels with regards to administering 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.