If you’re dealing with the issue of copyright and copyright protection, you’ve probably already come across the topic of OSA music royalties. This issue affects not only authors, but also businesses that reproduce music in public. Fees are not payable in health care establishments, but other establishments are required to pay OSA fees for music in accordance with the terms of the license. Failure to comply with the obligation to pay OSA music fees may lead to penalties, including the recovery of unjust enrichment.
Author of a musical work versus performer
The composer is the creator of the work, which in the music world can be a song, a composition, a symphony, or a text that is subsequently set to music. In practice, it is quite often confused with the performer (though it is not impossible that the author can also be a performer), who is both the artist and the intermediary between the author of the work and the user. This could be, for example, a singer or a musician recording in a studio.
Tip for article
Hint: OSA takes care of authors’ rights, Intergram takes care of performers’ rights.
How do I protect my copyright work against theft?
In the article on copyright, we discussed that copyright arises automatically once the work is expressed in an objectively perceptible form, so there is no need to register the work anywhere.
However,the Copyright Act also applies the statutory presumption of authorship, which states that “The author of a work is the natural person whose true name appears in the work in the usual way or is indicated in the register of protected subject matter kept by the relevant collective administrator, unless the contrary is proved; this shall not apply in cases where the indication is contradictory to another indication so indicated. This provision shall also apply where the name is a pseudonym, provided that the pseudonym adopted by the author does not cast doubt on the identity of the author.”
It follows that by registering with a collecting society, you get some evidence of the date of creation of the work. You can also use it in the event of a legal dispute over authorship. Another option is to put the documents (sheet music, text or a recording) in an envelope, seal it and have it sent to you by registered mail.
Are you solving a similar problem?
Be assured of fair setup and copyright treatment
Are you about to sign a license agreement? Have it reviewed by an attorney to avoid any legal pitfalls and ambiguities. We’ll review it for you within 48 hours and handle it online.
I want to be guaranteed that the license agreement is 100%!
- When you order, you know what you will get and how much it will cost.
- We handle everything online or in person at one of our 6 offices.
- We handle 8 out of 10 requests within 2 working days.
- We have specialists for every field of law.
What is OSA?
The OSA, or the Authors’ Protective Association, is a non-profit civil association that represents and administers the copyrights of authors of music as well as songwriters, music publishers or heirs.
OSA then sells licenses for their works for public productions (festivals and concerts), but also for broadcasting and transmission (TV, radio) or films. It also currently handles online streaming of concerts and music productions.
The OSA is not only a copyright protector, the OSA also collects fees for music – whether it is for festivals, concerts or venues.
How does the OSA work from the perspective of the authors themselves?
Once you register, the OSA starts sending you royalties = you get a royalty from every use of the copyright work, in this case for example playing a song. This does not only apply to the Czech Republic, but worldwide. The amount of the royalty then varies according to the country and the circumstances of the use, but the author is always entitled to it.
OSA divides the income for authors into:
- identifiable = this includes income from festivals, concerts and other events where a playlist is submitted in advance, on the basis of which the author licenses the use of the songs and claims a royalty,
- and unidentifiable – royalties from restaurant, television or discotheque payments for which the specific playlist is not known and so a regular monthly lump sum is paid.
The OSA follows a royalty redistribution schedule, which can be found directly on the website of the authors’ protection association. Authors have to take into account a fee for the organisation, which is in the order of 10-15%.
An available attorney advises:
“Registration is recommended for all artists who use streaming services or frequently perform at commercial events. In both cases, a collective manager is the easiest way to protect copyright.”
How does OSA work from the perspective of entrepreneurs?
As an entrepreneur, you are obliged to pay a royalty if you have a radio, television or any other audio-visual device that reproduces sound and images in your premises or at an event. You cannot avoid the fee even if you play the device sporadically. In this case, there is a real possibility of dissemination of content.
Bars, restaurants, shops, beauty parlours and other service establishments, as well as owners of accommodation facilities and organisers of cultural or sporting events, will not escapeOSA charges .
Tip for article
Tip: For medical facilities, it depends on the specific situation. If the music is played only as background music for staff in non-public areas, there is often no charge. However, in common areas open to patients or the public, it may already be a public performance and OSA may require a license. Similarly, you generally do not pay fees for purely personal listening by employees on headphones or in a closed office.
Interesting fact: The Copyright Protection Association was fined CZK 10.68 million for abuse of a dominant position. The case concerned a case where the collective administrator demanded fees from accommodation facilities for TV in unoccupied rooms. The Antitrust Authority ruled that the payment of royalties was not a reasonable commercial condition if the use of the work could not be proven. The amount of the fine was also influenced by the fact that OSA represents foreign authors.
How to avoid problems?
You can buy a licence agreement for your premises on the website of the Copyright Protection Association and pay a monthly flat fee. If you are hosting an event, you must fill out an online form and include a list of all the songs that will be played at the event.
Tip for article
Hint: You must also enter songs where the author is unknown or not represented by OSA.
The music fees paid to the OSA vary based on the location, the number of people living there, and the use of the work. For events, it is calculated based on the price of admission and the number of attendees at the event.
An available attorney advises:
“Want to avoid OSA fees altogether? In that case, you should only play songs by composers not represented by the organization. But you have to assume in advance that these will not be well-known songs.”
OSA and fines
The Copyright Protection Association initiates hundreds of inspections per month. The moment they find out that you don’t have a copyright on your songs, they give you an additional period of time to enter into a license agreement retroactively. If you don’t, they will start charging you for unjust enrichment (=double the royalty you should have paid). If the dispute then ends up in court and you lose, you must also pay the court fees and the legal costs of the other party.
What about downloading songs from the internet?
If you download your favourite song from a legitimate (legal) source for your own private listening, you are generally not breaking copyright law because you are using the reproduction for personal use exception. The situation would be different if you played the downloaded music to the public (e.g. in a business) or redistributed or sold it to third parties – there you always need the permission of the rights holder.
At the same time, exceptions to copyright must not unduly interfere with the legitimate interests of the author. Following the case law of the CJEU, it is understood that the private use exception does not justify downloading obviously pirated or otherwise illegal sources. In practical terms: you should only download music from legal services (streaming, download, licensed stores), not from unauthorised “pirate” servers.
In criminal law, there have been previous conclusions that the end-user does not always have to examine the legality of the source in detail. However, following the CJEU’s decision in ACI Adam and subsequent Czech case law, the interpretation that the private use exception does not apply to manifestly illegal sources and the user should address the legality of the source at least to a basic level is being promoted.
In cases involving the Uloz.to repository, Czech courts have repeatedly held that the operator of such a service must actively prevent the further dissemination of obviously illegal content (e.g., selected Czech films) and may be liable if it fails to comply with its obligations. The courts have thus effectively confirmed a stricter approach to online repositories and to the question of the legality of download sources.
Want to be sure about music copyright?
If you want to be sure of the accuracy of your music licensing agreements and OSA royalty payments, contact us. We will draw up or check the license agreement so that you avoid all risks in granting and using the copyright. We’ll make sure it’s set up fairly without ambiguity or kinks. We can handle this online, nationwide and normally within 2 days.
Summary
The protection of musical works is crucial for both authors and businesses reproducing music in public. Copyright arises automatically with the creation of a work, but registration with a collective manager such as the OSA provides evidence and ensures rewards from the use of the work. The OSA administers the rights of authors and collects fees for the public use of music, and businesses are required to pay these fees when reproducing music on their premises. Fees can be avoided by playing works by authors not represented by OSA. Checks on copyright compliance are frequent; non-compliance can lead to sanctions. Litigation over the legality of downloading music from the internet shows the lack of clarity in this area, with liability often assessed by the source of the content.
Frequently Asked Questions
What exactly is the OSA and who does it represent?
The OSA, or the Copyright Protection Association, is a collective administrator that represents music authors, songwriters, music publishers and rights holders in the Czech Republic. It provides licensing of their works and collects royalties for their public use, for example at concerts, in venues or on the radio.
When does a business have to pay OSA music royalties?
OSA music royalties are payable whenever there is a public performance of protected music – that is, when the music is audible to customers or the public. This includes restaurants, shops, bars, hotels, hairdressers, fitness centres and cultural events.
How are OSA's fees for music in venues calculated?
The amount of OSA fees for music depends on the type of establishment, size of the space, location, population in the community, and type of use (background music vs. active production). The OSA sets the rates in its price lists, which are available online. Most businesses pay a flat rate in the form of a licensing agreement.
Do I have to pay OSA if I only play music occasionally or for employees?
Yes, in most cases, yes. If there is a real possibility of the music being heard by the public or customers, it is a public performance and the Copyright Protection Association may require a licence. The exceptions are purely personal listening by employees (e.g. on headphones) or closed offices that are not open to the public.
Can I avoid OSA music fees?
Legally, yes – but only if you only play music that OSA does not represent. These are usually songs by free-licensed authors or open-licensed music (e.g. some “royalty-free” libraries). The downside is that it won’t be well-known songs that are commonly played on radio or streaming services.