Context
SAYCO is the only society authorized in Colombia to collectively manage authors’ economic rights for the public communication of musical works (radio, television, concerts, establishments). This position grants it significant power but also entails obligations of transparency and respect for free competition.
The SIC determined that SAYCO used this position to impose conditions that restricted musical authors’ ability to opt for individual management, which constitutes abuse of a dominant position under Law 1340 of 2009 and Andean Decision 608.
Key facts
The investigation revealed several practices that the SIC classified as deliberate obstruction of competition:
- Authors who reserved any modality for individual management were prevented from becoming members and were instead labeled as “administered holders,” denying them social benefits and participation in governing bodies.
- An additional 10% fee was charged to administered holders, allocated to SAYCO’s social and economic programs, which they could not access because they were not members.
- Conditioning the provision of collective management services on the obligation to entrust SAYCO with all forms of public communication.
- Contracts with restrictive clauses that made it difficult to reserve rights or regain individual management.
- Despite having the technical capacity, SAYCO failed to implement adjustments requested by the SIC in a previous sanction in 2016.
The SIC concluded that these practices not only harmed various authors but also obstructed the operation of individual management companies.
SIC orders
The sanctions imposed by the SIC include:
- A fine of more than COP 5.3 billion on SAYCO and eight of its executives.
- Modification of mandate contracts to allow individual management of certain forms of public communication.
- Clear communication to affiliates about their rights and management options.
- Implementation of a compliance program on competition law, supervised by the SIC.
Impact
This SIC decision adds to the previous sanction imposed on SAYCO in 2016 and sends a clear message to all collective management societies: they cannot abuse their dominant position in the market due to the nature of their services.
If you have repertoires managed by SAYCO and would prefer that some modalities of public communication be handled by other companies, we can assist you with the necessary changes to those contracts so that your repertoire is managed in the way that best suits you.
Remember that collective management societies for copyright and related rights collect a private fee, which arises when a company or establishment uses works or performances by third parties, such as music or audiovisual content. Since this is a private right and not a tax, the rate must be negotiated. We can help you with these negotiations.
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