As a result of an investigation by the National Commission for the Defense of Competition (CNDC), the Ministry of Commerce fined the Argentine Society of Authors and Composers of Music (Sadaic) for US $ 1,567,945. The survey determined that Sadaic charged “excessive prices” on copyright fees paid by hotels and other establishments for music reproduction in hotels guest rooms.
To determine this fine, the CNDC made an international comparison of the tariffs paid for the reproduction of musical works and the result of the investigation determined that in Argentina hotels and other establishments pay between six and nine times more than the average of the reference countries.
These fees imply a fee payment for copyright for playing music in hotels. With the calculation methodology used by Sadaic, each hotel must pay the fee for having televisions in the rooms, regardless of whether the room was occupied or not and if musical works were even used.
“This measure implies an improvement in the competitiveness of the tourism sector and enables the reduction of tariffs for rights of authors and composers charged for the secondary reproduction of TV and music content in hotels,” according to the president of the CNDC.
Finally, the CNDC recommended to the Executive Branch that the tariff fixing system be restructured based on a criteria of “reasonableness, non-discrimination, transparency, fairness and limited scope.” The CNDC suggested that the collection management system must be modernized in order to expand users and reduce tariffs, “without substantially affecting income.”
