This Friday, at 10:30 am, a case will be heard in court against the radio station 100.9-Hits100 FM (Q-waves N.V) owned by Aldrich Croes. This will be the first case, a “test-case” style, brought by the DUCAPRO foundation to demand compensation for music authors. With this, the era where a radio station can simply play any song without compensating the artist is coming to an end.
Attorney Mr. David Kock will represent DUCAPRO, while attorney Mr. Gabriela Sjiem Fat will defend 100.9-Hits100 FM. The lawsuit aims to compel the radio station to stop playing music on air that is protected by the copyright protection organization Buma/Stemra.
RADIO STATIONS SIGNED BUT DID NOT COMPLY
It should be noted that this is an ironic situation because in May 2018, the radio stations, with Aldrich Croes himself as their representative, signed an agreement with BUMA/Stemra in the Netherlands to pay royalties to them and not to DUCAPRO. All 21 radio stations that signed the agreement initially have not seen any follow-up or execution.
Ironically, after years have passed and the radio stations did not formalize their agreement with the Dutch organization, BUMA-Stemra approached the same DUCAPRO to represent them in Aruba. Thus, the initial agreement with the radio stations fell through, and they continued with the original proposition. Today, it is the same BUMA-Stemra demanding the radio stations and prohibiting them from playing songs by artists they represent if they have no intention of paying.
COPYRIGHT
The perception is that, through their actions, radio stations do not want to pay anything. This is because when the lawyer from BUMA-Stemra sends them an offer, they try to buy time and stretch the process as long as possible, ultimately saying they do not accept, cannot, or do not want to pay. On the other hand, around the world, the process of paying royalties for the use of other artists’ work has been in place for many years. Nowhere in the world can a radio station play a song as many times as they wish without paying for copyright. This is a part of the operating costs for a radio station, and payment for copyright refers to both local and international composers. Even if a song becomes #1 on the music charts, indicating that it is the most requested and played on the radio, the artist may not feel the prosperity in their wallet. The radio, however, directly benefits because they sell advertising to cover their expenses, forgetting that the song they play is also part of their operating costs.
RADIO STATIONS ARE NOT POPULAR ANYMORE
There is also a reality that in Aruba, there are too many radio stations, and most of them are going through financially challenging times. For various reasons, including the fact that almost everyone now has a cell phone where they can store and listen to music whenever they want, the days of waiting for a radio station to play a song are over. Radio has become more of an entertainment industry, and people prefer listening to the news in their cars when they do not have time to listen via their phones. Even in the 80s and 90s, when the switch from AM to FM happened, most radio station owners were given two frequencies. Thus, the time came when Channel 90 got two permits but lost one along the way. Radio Carina got two, Top 95 has two, the late Janchi Arends got two, Radio Antiyana had both AM and FM at that time, and so on. Along the way, the economic situation made it difficult for some owners, leading them to manage two stations. Now, radio stations are struggling to cover their electricity costs, with most having few or no DJs anymore. Instead of having staff on-site, they chose to sell airtime when they needed to sell advertising to cover their costs.
RADIO CANNOT PAY 340 FLORINS PER MONTH
When people hear the term “royalties,” they usually think that musicians receive a high sum. However, the reality is different. Only 4% of a radio station’s revenue must go towards paying authors for playing their music. Of course, there are various components and formulas, as it depends on whether a radio station plays music all day or has talk shows or news that do not include music. This reduces the amount they must contribute. Considering the panorama of radio stations in Aruba, this would be an average of 4% of their monthly revenue. On top of that, there is a 15% discount on the monthly revenue. So, looking at the operating formula for radio stations in Aruba, many of them estimate around 10,000 florins per month (on average) in revenue. Taking into account that many radio stations have sold their time slots to announcers, the advertising money is not for the radio station but for the announcer’s company, which only pays a monthly fee for using the two or three hours of programming. If there are 10,000 florins in revenue, subtracting 15% (which brings it down to 8,500 florins) and then contributing 4% (which amounts to 340 florins) results in a monthly payment of 340 florins!
The commercial question is if a radio station cannot afford 340 florins per month to play music all day, then it is questionable whether the radio station has the right to exist. Because the majority of the songs are downloaded for free from the internet, the radio stations did not have to pay for them. This is different from the past when one had to purchase CDs with the most popular songs. Now, music can be obtained for free, but radio stations do not want to pay to play it. This contradicts the fact that playing a song is part of their operating costs.
ALDRICH CROES: I WANT TO PAY A FAIR AMOUNT
Hits100FM, owned by Aldrich Croes, states that they, like all other commercial radio stations in Aruba, have been playing local and international music for almost 70 years. “Never before have radio stations been charged for author rights because copyright organizations did not consider these small islands like Aruba, Curaçao, Bonaire, and others as markets of interest due to their size and limited economy.” Later, Aldrich Croes declared “It is not against paying for copyrights; however, it must be at a fair rate, taking into consideration all the factors that have a negative impact on the well-being of radio stations in Aruba.”
AFTER SIX YEARS: MANAGEMENT COMES INTO EFFECT ON JANUARY 1, 2024
This discussion has been ongoing since 2018, but the parties did not reach an agreement at that time. Now, six years later, it seems that most understand and agree that musicians deserve recognition and compensation. Starting from January 1, 2024, especially radio stations, which constantly play other people’s music, will have to pay every month. It is estimated that radio stations will pay approximately 4% of their monthly revenue. To prove this, they will have to open their books and start paying DUCAPRO, the organization that manages the copyright of music creators in the Dutch Caribbean. They also represent other international organizations, so they will charge for every musician.
INDUSTRY DEVELOPED AND INNOVATED
What has also happened is that the world has innovated, and positive developments in digitization and modernization have changed all the rules. In the past, music creators depended on CD sales for revenue, but now there are no more CDs. Everything is online, and that’s where the money is. There are no expenses for printing CDs or transportation, and anyone worldwide can download a song, pay a small fee, and listen whenever and wherever they want. For musicians, the revenue is less than selling a complete CD for 35 florins, but their market has expanded infinitely. In the same vein, everyone is now charged for commercializing their creations. Playing it in your car is not a problem, but if you play it in a bar to sell more drinks, then you have to pay. If you are a DJ who charges to play at people’s homes or parties, you also have to pay. The tariffs are based on international regulations that were not created to break businesses that use music commercially. A small user, for example, might only have to pay a symbolic sum of 200 florins per year!
DUCAPRO: RIGHTFULLY PAY THE AUTHOR
DUCAPRO advocates for the correct use of music in the Dutch Caribbean. Music producers make a great effort to create music, so their rights must be protected. Commercial users of music must be able to reproduce music publicly with ease, in an agreement where creators receive fair compensation for its use. DUCAPRO acts as an intermediary that safeguards the rights of musical creators and grants licenses to commercial music users, collecting the corresponding fees and ensuring the best possible distribution for its members.
DUCAPRO manages the communication and public execution rights of its members’ musical works in the Dutch Caribbean territory. It acquires the rights of its members and grants them in the form of a license to music users, including radio stations and establishments (HORECA) playing music. It also represents the rights of foreign societies affiliated in the DUCAPRO territory. In reciprocity, these foreign societies represent the rights of all DUCAPRO members in their respective territories.
WHO SHOULD PAY?
Commercial establishments, radio stations, digital platforms, local television stations, hotels, bars, nightclubs, restaurants, live entertainment providers, concerts, festivals, and local fairs using music for a better experience for their customers, all must pay for copyright. Even in a store where there is background music to make the customer’s experience more enjoyable, they must be aware that behind the music are creators who deserve recognition and compensation for the use of their music.
DIFFERENT APPLICABLE RATES
DUCAPRO has established licenses and rates defining the applicable license fee for various uses of music. Using the collected license fees, DUCAPRO can compensate the creators (both local and international) and the owners of the rights to the music used in these places.
ARUBA WAS FIRST, BUT OTHER ISLANDS ARE FOLLOWING
DUCAPRO decided to start in Aruba first, and it is expected that in the second quarter of 2024, they will implement the same management for the other five islands: Curaçao, Bonaire, St. Maarten, Saba, and St. Eustatius. Although the impression is that attorney David Kock will benefit from the organization, it is good to clarify that DUCAPRO is a foundation, and the musicians, the creators of music in the Dutch Caribbean, will elect a board and lead the foundation themselves, which is non-profit, so they cannot make a profit. All the money generated will go to local musicians or organizations representing international music creators.
