All music has value




2 MUSIC HAS ITS VALUE FOR ALL OF US Appreciation for music requires fair framework conditions. What GEMA does for society ... s. 4 9 FOR YOUR USERS When the creative property of others is used in public, transparency is required. What GEMA does for its customers ... s FOR YOUR AUTHORS Composers, lyricists and music publishers represent common interests. What GEMA does for its members ... s

3 4 What GEMA does for society. What GEMA does for society. 7 MUSIC ACCOMPANIES OUR LIFE AND ENRICHES OUR CULTURE. Appreciation opens up new room for composers and lyricists. When a live concert enchants the entire audience, when a hit becomes an anthem for generations, or when young people deal with the political content of songs, then music proves its high status as an elementary part of our lives. A society that wants to preserve and cultivate its cultural diversity must honor the creative work of creative people as soon as their works are used in public.

4 4 What GEMA does for society. What GEMA does for society. 7 MUSIC DESERVES FAIR FRAMEWORK CONDITIONS AND PUBLIC APPRECIATION IN THE AGE OF DIGITIZATION. Compositions and lyrics are protected by copyright as intellectual property. This protection is the foundation for their economic exploitation and must also be expressed in public appreciation. GEMA's commitment therefore extends far beyond its role as a collecting society. GEMA assumes responsibility by protecting the creative performance of the individual and thus preserving the value of creative music creation for society and cultural diversity. Only in this way can music remain a key element of cultural life.

5 8 What GEMA does for society. What GEMA does for society. 9 SOCIAL CONTRIBUTION Music deserves our appreciation. To this end, GEMA is active on a cultural and political level. That is why I advocate modern copyright law, among other things, which ensures you, the creators of musical works, a fair and appropriate share of the income from your work, even in the digital age. Monika Grütters, Minister of State for Culture and the Media As a collecting society, GEMA is the central institution for musicians to stand up for the protection of their works and to exercise their rights. GEMA sees its social responsibility in securing the prerequisites for a diverse music landscape and in creating broad social awareness of the value of creative achievements. MUSIC AUTHORS IN THE SPOTLIGHT GEMA's cultural commitment includes awarding public awards and providing funding for the next generation of musicians. Since 2009, the collecting society has been awarding the German Music Author's Prize annually to honor composers and lyricists for the outstanding quality of their works. The independent expert jury consists of composers and lyricists from various musical genres as well as producers. There are ten categories, including the prize for the young talent, which is the only one that is endowed with euros. Since 1989, the most important German lyricist award, the Fred Jay Prize, has been given under the patronage of the GEMA Foundation. The award commemorates the Austrian lyricist Fred Jay () and was donated by his widow Mary Jay-Jacobson. In addition, GEMA supports the Music Initiative, a funding institution of the music industry and the federal government, which supports young musicians and the dissemination of music from Germany at home and abroad in a variety of ways. The radio stations also make an important contribution to cultural diversity, which GEMA has recognized every year since 2015 with the award of the Radio Culture Prize. It thus highlights stations that campaign for a lively music culture in Germany through program diversity, niche repertoire or editorial content. ALLOCATION OF FOUNDATION FUNDS The GEMA Foundation supports composers, lyricists and music publishers (and their families) in need through earmarked training grants and grants for musical productions, pilot projects, competitions and publications. It also awards prizes or supports research projects with a special focus on contemporary music. THE GEMA AS AN ADVOCATE FOR COPYRIGHT The voice of musicians must also be heard in the social debate. In order to secure and further develop copyright protection, GEMA is committed both at the federal level and internationally. It participates in public consultations and is available as a point of contact for politicians and other social actors. 56 million more Germans listened to concerts in 2016, which means that the radio inspires more fans every day. than every second. * The CD had a market share of 72.7% in growth, reported the audio German music market It is streaming in 2016 and for the first time landed the largest revenue generator in second place in the German music industry. . * * Source: Federal Association of the Music Industry

6 10 What GEMA does for its customers. What GEMA does for its customers. 13 NO MATTER WHETHER CONCERT ORGANIZERS, BROADCASTERS OR ONLINE PLATFORM: EVERYONE WHO USES MUSIC PUBLIC, IT IS ALSO OF ECONOMIC INTEREST. The public use of music is usually associated with an economic advantage: attractive clubs attract guests, supermarkets create a buying mood, cinema films captivate their audiences, television and radio stations generate advertising income as well as online music or video platforms. As different as the types of music use are, it should be easy to obtain the appropriate usage rights. Music users need legal certainty and reliable foundations in order to be able to operate successfully in the market.

7 10 What GEMA does for its customers. What GEMA does for its customers. 13 WHEREVER MUSIC IS PLAYED IN PUBLIC, MUSIC USERS NEED QUICK LICENSING POSSIBILITIES AND RELIABLE RATES, SO THAT EVENTS AND BUSINESS MODELS WITH MUSIC CAN BE PLANNED. Granting music licenses is a responsible task. Important aspects such as the range of a radio station, the number of subscribers to a streaming portal or the number of participants in a concert event are taken into account and are incorporated into a balanced tariff structure. The type of music used also plays a role, live or from a sound carrier such as a CD or record, in the center of the action or only in the background. As a licensor for organizers, clubs, broadcasters, online platforms, record producers and other music customers, GEMA guarantees quick access to the relevant usage rights and thus to almost the entire world music repertoire. GEMA ensures smooth processes with extensive services.

8 14 What GEMA does for its customers. What GEMA does for its customers. 15 LICENSORS AND SERVICE PROVIDERS We ensure simple licensing, reasonable tariffs and fair distribution. REGISTER FIRST THEN USE 3 steps to the license 1. Registration of the planned music usage (digital, by telephone, in writing) EUROPE-WIDE LICENSING Digital music services can obtain licenses for the entire online repertoire Europe-wide from a single source: Together with their sister collecting societies PRS for Music (Great Britain ) and STIM (Sweden), GEMA has founded a joint venture for this purpose: ICE (International Copyright Enterprise) combines the documentation of the music repertoire, the licensing of digital music providers and the processing of digital usage reports. REMUNERATION WILL BE DISTRIBUTED TO THE AUTHORS IN THE form of royalties. The income is passed on to the music authors and publishers via a distribution plan that is decided at the GEMA general meeting. This distribution plan takes into account the various types of music use and the number of publications and also regulates the proportion of remuneration that each individual music maker (composer, lyricist and music publisher) is entitled to. Through the distribution of the so-called royalties to the GEMA members, the authors receive an appropriate remuneration for the use of their works. THE WORLD REPERTOIRE FROM A SINGLE SOURCE As one of the largest collecting societies in the world, GEMA offers easy access to the global music repertoire. The purchase of a license is a prerequisite for legal public music use. The tariffs negotiated with the associations of music users must be reasonable and their processing must be as simple as possible. As a reliable service provider, GEMA guarantees fair, transparent market conditions for all market participants and a high degree of predictability for music customers. By distributing the license income to the authors, GEMA creates the basis for music creators to make a living from their work. TRANSPARENT TARIFF SYSTEM The GEMA tariff system consists of main tariffs and many individual tariffs. In order to do justice to the abundance of uses of music, it is continuously adapted to relevant market developments in negotiations with industry associations. If necessary, new individual tariffs are added. The rapid development of online music usage in particular requires such additions. THE MOST IMPORTANT PUBLIC MODES OF USE OF MUSIC Broadcast (TV, radio, etc.) Performance (concert, event) Duplication (LP, CD, DVD, USB, etc.) Online area (download, streaming, etc.) Licensing is quick and easy, either online or via GEMA customer service. Music users tell GEMA how they want to use music: once or several times, on the radio or over the Internet, duplicated as CDs, performed as a live concert or as background music / music? The GEMA employees help to find the right tariff options. 2. Calculation of licenses by GEMA 3. Acquisition of licenses GEMA DOESN'T MAKE ANY PROFITS As the trustee, GEMA does not generate any profits from the license income for the use of music, it forwards this to the GEMA members and only covers their operating costs and investments. This is also reflected in the organization of GEMA as an association. It is GEMA's aim to provide its services as quickly, flexibly and customer-oriented as possible and to continuously improve quality. That is why it offers innovative online services for research and registration, for example. It also works closely with its European partners to simplify Europe-wide licensing.

9 16 What GEMA does for its members. What GEMA does for its members. 19 IN THE BEGINNING ALWAYS THE CREATIVE WORK OF A MUSIC CREATOR. ITS INTELLECTUAL PROPERTY DESERVES MORE THAN THE PROTECTION BY THE LAWS. The moment when a melody is composed that touches the audience, when a new song is created that later becomes an anthem, can be playfully easy. Or the result of a long, exhausting journey. He's one thing for sure: creative, creative and unique. Composers and lyricists create works that inspire many people. The protection of your intellectual property is anchored in copyright law. Therefore every music author has the right to an appropriate economic participation if his work is used in public. But how can you still check when and how often your own works are used, be it live or on the radio, as a sound carrier or as a streaming file, nationally or even internationally? Only when the use of copyrights is managed in trust can creatives concentrate fully on their creative work again and rely on the fact that they will receive appropriate remuneration.

10 16 What GEMA does for its members. What GEMA does for its members. 19 COLLECTING SOCIETIES LIKE GEMA ENSURE THE INTERESTS IN APPROPRIATE REMUNERATION. WHAT SOUNDS SO NATURAL TODAY HAS TO BE FIGHTED HARD FIRST. Paris, The chanson composer Ernest Bourget is sitting in a café and enjoying sugar water, a very popular drink at the time. The music program heats up the mood and thirst of the guests, the cashier rings at the landlord. But suddenly Bourget is taken aback: in the café you play your song without asking him. He is beside himself. When the bill is brought to him, he refuses to pay his sugar water. The dispute between the chanson composer and the café owner goes down in history as a sugar-water trial: because Bourget is right. As an author, he must be paid appropriately for the public use of his intellectual property. This judgment laid the foundation. The world's first collecting society was founded just two years later. What drove the founders from the very beginning moves GEMA to this day. Without a strong community of interests like GEMA, the authors could never enforce their claims against music users or politicians, not nationally and certainly not internationally.

11 20 What GEMA does for its members. What GEMA does for its members. 21 ON ORDER OF THE MEMBERS We stand up for the value of music, support the authors and promote a community of music-making members and rights holders from all over the world who represent GEMA. GEMA's collective management of rights gives the individual author a strong voice in the discourse on sustainable usage models with the digital industry. Dr. Harald Heker, CEO of GEMA As a GEMA member, musicians benefit from many services and advantages that put their creative work on a secure footing: GEMA stands up for their interests and supports them worldwide in exercising their legal claims. Today more than members, including composers, lyricists and music publishers, rely on it. In addition, through representation contracts with foreign collecting societies, there are over two million rights holders from all over the world. This makes GEMA one of the largest authors' societies for works of music. COLLECTIVE EXPLOITATION OF RIGHTS The composition and texts of a musical creation are the intellectual property of the author and remain so until 70 years after his death. However, no author or publisher can sufficiently check for themselves where, when, how often and for how long their title is played. In addition, it means an unmanageable effort for the individual to ensure that he actually receives the remuneration for his performance. With the transfer of the rights, GEMA takes over the fiduciary exploitation of the copyrights in the collective. It takes care of the efficient issuing of licenses to music users of all kinds and regularly distributes the income from these licenses as royalties to its members. All members have to do to enable their works to be licensed and to secure the subsequent distribution of the royalties is: register their repertoire with GEMA in full and in good time. Because without the registration of the musical works, there can be no distribution. GEMA provides convenient online services for this. STRONG SOLIDAR COMMUNITY The most important activities of GEMA are decided jointly at the annual general meeting. One of the central issues is the fair distribution of license revenue across all musical genres. In addition, 10 percent of the license income goes into social and cultural projects of the community. The GEMA Social Fund supports socially disadvantaged members with one-time or regular donations. In addition, there are many other services for members such as showcases, workshops or insurance specifically tailored to the needs of musicians. The service catalog shows all services at a glance. WORLDWIDE REPRESENTATION OF COPYRIGHT INTERESTS As one of the world's largest authors' societies for works of music, GEMA is also involved internationally in securing and further developing copyright protection. It is a member of GESAC (Groupement Européen des Sociétés d Auteurs et Compositeurs) and CISAC (Conféderation Internationale des Sociétés d Auteurs et Compositeurs), an international association of copyright societies from 108 countries. In the course of the European unification process, GEMA is committed to cultural diversity and fair framework conditions for creative people in the European Union.

12 22 Imprint PUBLISHER CONCEPT AND DESIGN GEMA Society for Musical Performance and Mechanical Reproduction Rights RED Branding Design Communication DIRECTORATE GENERAL BERLIN Bayreuther Strasse Berlin T F E PRINT G. Peschke Druckerei GmbH DIRECTORATE GENERAL MUNICH Rosenheimer Strasse Munich T F E