SGAE postpones upcoming reform vote

Spanish collection society SGAE (Sociedad General de Autores y Editores) has postponed its general assembly – due to take place in October – to January 2020, when a number of current members will have departed from the society.

Members of the controversial SGAE, which was expelled from international authors’ rights association Cisac in May, were due to vote on statute reforms at the assembly on 15 October.

The society has failed to obtain a member majority on changes to statutes on three separate occasions. The reforms are necessary in order for the society to comply with European Union intellectual property law and with demands made by Cisac and Spanish Minister of Culture, José Guirao.

The decision to postpone the vote comes after members including Julio Iglesias, José Luis Perales, Iván Ferreiro, Ramón Arcusa (Dúo Dinámico) and Jorge Ilegal asked to terminate their membership to the society. By moving the vote to January, the departing members will no longer be able to participate.

“SGAE is postponing its assembly to 2020 to guarantee legal certainty following the request from the Ministry of Culture,” reads a post on the society’s Facebook page.

“SGAE is postponing its assembly to 2020 to guarantee legal certainty following the request from the Ministry of Culture”

The Ministry of Culture had demanded that SGAE “respect” members that wanted to leave, after various members, including Southern Music Española SL, Peermusic and Lugar Music, complained that the society had attempted to limit their right to vote after they announced their intention to leave.

However, according to the society, the Ministry of Culture had also demanded it implement article 27 of it current statutes, “under which asking to leave SGAE constitutes the loss of the right to vote in the general assembly.”

According to the SGAE, the Ministry of Culture has created a “legal paradox”. By moving the assembly to 2020, reads the society’s statement, any doubts relating to legal rights, are dissipated.

SGAE is no stranger to controversy. The society recently received a €2.95 million fine for anti-competitive practices by the Spanish competition regulator and has been linked to a scandal known as ‘the wheel’ (la rueda).

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SGAE suffers third statute reform failure

Spanish collection society, Sociedad General de Autores y Editores (SGAE), is facing increased pressure from the government and international author’s rights association Cisac, after failing to make reforms to its statutes.

The beleaguered collection society lacked member votes to implement reform at its General Assembly in Madrid on Monday (24 June). 62.8% of members voted in favour of the changes proposed by SGAE president Pilar Jurado, 4% short of the two-thirds majority required.

Of the 18,000 eligible members, only 1,356 participated in the vote.

Changes to the society’s statutes are necessary in order to comply with current European Union intellectual property law. In the run up to the vote, Jurado stressed that the society was facing its “last opportunity” and that failure to comply with the changes would be “terrible for creators”.

In failing to reform the collection society has also failed to meet the demands of Spanish Minister of Culture José Guirao and the International Confederation of Authors’ Societies

In failing to reform – for the third time – the collection society has also failed to meet the demands of Spanish Minister of Culture José Guirao and the International Confederation of Authors’ Societies (Cisac).

Last week, the National Assembly rejected Guirao’s call for governmental intervention in light of SGAE’s upcoming General Assembly. Following the decision, Guirao stated that failure to pass the reforms would leave “no other option other than to strip SGAE of its authority.”

In May, Cisac temporarily expelled SGAE as a member, due to the society’s failure to convince the body of its commitment to reform. The sanction, which “can be lifted or adjusted at any time” provided positive change is made, remains in place.

Earlier this month, the society received two fines from the Spanish competition regulator, one of €3.1m in relation to “abusive” 10% concert tariffs, and the other of €2.95 for anti-competitive conduct.

SGAE has been embroiled in controversy surrounding a scandal known as ‘the wheel’ (la rueda) since 2017.

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