New German Game Rights Body VHG Launches After 2.5-Year Approval Process
The German music rights landscape is evolving with the establishment of the new collective management organization for computer game manufacturers, VHG. This comes after a two and a half year approval process by the German Patent and Trademark Office (DPMA). Meanwhile, GEMA is offering a special discount for live and background music during Christmas markets to cash-strapped municipalities.
The VHG, not to be confused with a 'Games-GEMA', promises game manufacturers risk-free and bureaucracy-free additional profits through its future revenue distribution model, which will include participation from publishers and studios. Last year, nearly 60 million euros were collected from fees paid by hardware manufacturers for devices like laptops, USB sticks, and smartwatches. These funds come from a private copying levy, and negotiations are ongoing regarding a possible levy for video game consoles.
The establishment of VHG could lead to both industry and customer costs increasing. The ZPÜ, another collective management organization, is determined to bill game console manufacturers like Sony, Nintendo, and Microsoft for a new, separate tariff, potentially expanding the fee cake. GEMA, which asserts the rights of musicians, producers, lyricists, and composers, continues its role in managing public performance rights.
The new VHG, approved after two and a half years, brings changes to the revenue distribution for computer game manufacturers. While promising risk-free and bureaucracy-free profits, it may also lead to increased costs for both industry and customers. Meanwhile, GEMA supports municipalities with a special discount for live and background music during Christmas markets.
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