Nuuday / YouSee has sued Koda as part of a wider lawsuit demanding that payment for music creators’ content be reduced by more than 70 per cent.
Nuuday / YouSee has sued the rightsholders acting under the auspices of Copydan Verdens TV, UBOD and Koda, demanding that the payment for artists, producers of cultural content and TV stations’ content be reduced by more than 70 per cent. This will have major financial repercussions for thousands of Danish artists and producers of cultural content.
In their TV packages, Nuuday/YouSee sell access to large amounts of content provided by artists, producers of cultural content and TV stations. Nuuday/YouSee now demand that the payment for this content should be reduced by more than 70 per cent compared to what has been agreed and paid for the past several years. The demand for this drastic reduction is made even though the TV package product is the same in 2024 as the year before, and despite the fact that Nuuday/YouSee has for many years wanted to buy more rights, and Nuuday/YouSee are increasing prices for their own customers.
Artists and producers of cultural content will be hit hard financially
Wishing to avoid a conflict, the rightsholders under the auspices of Copydan Verdens TV, Koda and UBOD have been negotiating with Nuuday/YouSee for more than a year, seeking to reach an agreement. The rightsholders have also offered Nuuday/YouSee the option of entering into a temporary agreement to avoid uncertainties, ensuring remuneration for the rightsholders while also ensuring that Nuuday/YouSee can continue to offer their customers the content in the TV packages. However, Nuuday/YouSee instead elected to terminate all joint agreements and sue the rightsholders under the auspices of Copydan Verdens TV, UBOD and Koda.
'Demanding a reduction of more than 70 per cent is extreme by any standard' - Jørgen Ramskov
Deputy chair of Copydan Verdens TV, Jørgen Ramskov, says:
‘Obviously, the rightsholders shouldn’t have to pay for the failed investments made by a private equity fund. Demanding a reduction of more than 70 per cent is clearly extreme by any standard. I note that Nuuday/YouSee is making money from their TV activities, while their business as a whole is making a loss. Nuuday/YouSee have raised their prices aimed at consumers over several years – and now they want to pay significantly less for content that they themselves are selling at a higher price,’ says Jørgen Ramskov and continues:
‘A case like this can drag on for years, during which thousands of rightsholders will be hit hard financially. I can only take this as evidence that Nuuday/YouSee are taking artists and creators hostage in the hopes of wearing them down, making them willing to accept lower payment for content that Nuuday/YouSee make good money from.’
The lawsuit from Nuuday/YouSee entails a significant risk that payment to artists and creators for the content in the TV packages will be very limited in scope or cease completely. This is because even if Nuuday/YouSee are willing to pay an advance amount, the funds cannot be distributed to the individual artists and producers as the money may have to be returned to Nuuday/YouSee if, contrary to expectations, their claim of a reduction in excess of 70 per cent should find favour with the court.
‘We cannot ask tens of thousands of artists and creators not to spend their income because they may have to pay it back at some point in the future,’ says Jørgen Ramskov.
If Nuuday/YouSee chooses not to pay for their use of the content, this will unfortunately entail a risk of dead air. However, the rightsholders will go to great lengths to ensure that Nuuday/YouSee’s customers still have access to the content.
The rightsholders have brought the matter before an arbitration board
The rightsholders are required by law to respond to the claim submitted by Nuuday/YouSee before the Danish Maritime and Commercial High Court. The timeframe is not yet known, but cases like these can take several years to resolve.
The rightsholders have chosen to ask Danish special arbitration board for licensing tariffs, Ophavsretslicensnævnet, to assess the case. The Ophavsretslicensnævnet is a specialised board set up by the Danish Parliament, headed by a Supreme Court judge, specifically tasked with assessing what constitutes a fair price for rights in cases where the parties cannot agree. This means that it is always possible to clarify whether the price for rights is fair and reasonable and based on objective and non-discriminatory terms. In its assessment, the board is also obliged to take into account the principles and rules of competition law.
About Koda
Koda is a music rights organisation which represents more than 50,000 members consisting of composers, songwriters and music publishers. We work to ensure that our members receive fair payment from those who use the music, and to promote a stronger music scene through initiatives such as close international cooperation and a keen focus on making the music industry more sustainable.
More about Koda
About Copydan
Copydan is a non-profit rights organisation created and governed by creative and performing artists as well as television, music and film producers. Behind Copydan are more than thirty member organisations which represent the many thousands of artists and producers of cultural content who ensure the production of music, films, TV broadcasts and more in Denmark. Acting on behalf of artists and producers of cultural content, Copydan enters into agreements regarding payment for the rights to content they have created and contributed to. Copydan then distributes the revenues to its member organisations, which in turn ensure that they reach the individual rightsholders.
More about Copydan Verdens TV
About UBOD
UBOD (Union of Broadcasting Organizations Denmark) is a union comprising primarily European public service television stations such as ARD, ARTE, DR, NRK, RAI, RTL, SVT, TVE, TV 2, TV 4 and ZDF. The organisation protects the interests of these television stations in Denmark as regards third parties’ use of their content is concerned.
More about UBOD
