In recent years, bar and restaurant owners in Spain have faced pressure from the Sociedad General de Autores y Editores (SGAE) in the form of claims and overpayments for the use of music in their establishments. Sometimes, these claims have led to abusive situations that have generated discomfort and legal conflicts.
Recently, in our office, we achieved an important judicial victory that underlines the rights of owners in the face of the excesses of the SGAE. In this article, we want to share the details of this case and how it can benefit other entrepreneurs in the industry.
The case: a disproportionate claim
Our client, owner of a bar in Cártama, was the subject of a claim by the SGAE that demanded a considerable amount of money in royalties. However, as demonstrated during the legal proceedings, the customer did not play any music or video in his establishment. Although it had music and television equipment installed, these had not been used since the cancellation of the service was required.
However, the SGAE refused to process the deregistration, arguing that the mere possession of these devices made it possible to publicly communicate the protected works. It therefore required the removal of the communication elements in order to terminate the contract, which is not established in that way in the contract. This argument was based on current case law, which establishes a rebuttable presumption, which allows evidence to be presented against such a presumption.
After analyzing the situation, we detected several key points:
- Lack of concrete evidence: The SGAE could not prove that music or videos subject to copyright managed by them were being used.
- Coercive practices: The client had received intimidating communications, something that we consider inappropriate.
Legal Defense
Our team presented a defense based on:
- Documentary and witness evidence: We demonstrate that the music and television equipment installed in the premises were not used since the termination of the contract.
- Legal argumentation: We highlight the irregularities in the SGAE’s claims and question the application of the rebuttable presumption without evidence.
- Protection of the rights of the employer: We argued that the practices of the SGAE could constitute an abuse of rights.
The court ruling
The court ruled in favour of our client, dismissing the SGAE’s claim. This ruling, issued by the Commercial Court No. 3 of Malaga, stated the following:
- Lack of accreditation of public communication: Although the premises had a television and music equipment, it was demonstrated by witnesses that these had remained turned off since the termination of the contract.
- Nullity of automatic presumptions: The court rejected the presumption that the mere existence of apparatus implied the use of protected repertoire.
- Procedural costs: The SGAE was ordered to pay the legal costs, stressing the importance of not making unfounded claims.
Impact and Tips for Bar Owners
This ruling sets an important precedent for entrepreneurs in the hospitality sector. If you own a bar or restaurant, keep the following tips in mind:
- Document the origin of the music you use: If you use royalty-free music or have alternative licenses, keep all contracts and receipts.
- Consult with a lawyer: If you receive claims from the SGAE, do not give in immediately. Seek advice to assess the situation.
- Inform your staff: Make sure everyone on your team is aware of the music practices in your venue.
In our firm, we are committed to protecting the rights of employers against abusive situations. If you have received a complaint from the SGAE or are concerned about this issue, do not hesitate to contact us. Our experience can make all the difference.