What commercial users of music subject to GEMA royalties should know about GEMA's new online strategy.
GEMA is currently finalising its entire customer service to digital processes. Although digitalisation offers customers the advantage of faster processing and simpler administration, it can also result in new risks for businesses, for example when cancelling or amending contracts. What initially sounds like an increase in efficiency turns out to be a potentially massive problem in practice in some cases: according to GEMA, even the cancellation of existing contracts will only be possible via its online customer portal in future. Written cancellations by e-mail, fax or even letter are allegedly no longer accepted. For commercial businesses that want to reorganise or terminate their music licensing, this is a risk - and possibly even a case for the courts. It should be noted that payments may still be due to GEMA if the business is not properly deregistered despite the business being closed down.
Reviews and customer feedback on GEMA's new online strategy have so far been mixed.
Digitalisation without freedom of choice
Many tradespeople have been working with GEMA for years. Those who professionalise their music use, e.g. by switching to specialised B2B services with GEMA-free music or customised solutions, in which certain areas of GEMA music are to be separated, usually has to cancel existing GEMA contracts and then, if necessary, conclude new contracts that have been adjusted accordingly. In order to be able to terminate a contract, compliance with the contractually agreed deadlines and the correct form are crucial.
But this is where the problem begins: without access to your online account with GEMA, none of this is possible - even if you send a legally valid cancellation in text form (e-mail or letter).
This practice is not only customer-unfriendly, but also highly questionable from a legal perspective. The duration of the contract plays an important role here, as late cancellation can lead to the contract being automatically extended until the end of the following year. The reason for the licence agreements with GEMA lies in the legal protection and the fulfilment of legal requirements. The purpose of these agreements is to protect the intellectual property of music creators and to enable the legally compliant use of music. When accessing the online customer portal, care should also always be taken to ensure a secure connection in order to protect your own data and contractual information.
Form and methods of cancellation: How GEMA terminates its contracts digitally
It is important that the cancellation can be clearly assigned to the contractual partner and has a legally binding signature.
Be sure to observe the terms and conditions specified in the contract or in the contract documents. to comply with the specified notice period. You can find the exact cancellation periods either directly in your contract documents, on the GEMA website or you can ask customer service for them. This is the only way to ensure that your cancellation takes effect at the desired time and that the contract is not automatically renewed.
Upon receipt of your cancellation notice, GEMA will send you a Cancellation confirmation - either by e-mail or, if you wish, by post. This confirmation is an important proof of the cancellation of your membership or contract. If you do not receive a confirmation within a reasonable period of time, please contact GEMA to clarify the status of your cancellation.
GEMA attaches great importance to the security and confidentiality of your data. All information that you submit as part of the cancellation process will be treated confidentially. Please note that the cancellation of a contract can only be made by the contractual partner itself. In case of doubt, GEMA will check the identity of the cancelling party in order to prevent abuse and ensure the legality of the cancellation.
Before cancelling your membership or a contract, it is advisable to have all relevant information and documents ready. Find out about the possible consequences, such as the Termination of the contractual relationship or a Possible repayment of fees. GEMA provides a wealth of information, articles and FAQs on its website to help you with the cancellation process. If you have individual questions or uncertainties, you can contact GEMA directly - by phone, email or via the contact form. In this way, you can ensure that your cancellation is correct and legally compliant in every step.
Legal doubts about the GEMA contract and GEMA practice
According to Section 309 No. 13 of the German Civil Code (AGB law), cancellations may not be linked to excessive formal requirements. An exclusive commitment to a web form or a proprietary customer portal could be just that - especially if access is technically disrupted or the access data is no longer available, which could result in cancellation deadlines expiring through no fault of the customer.
The following applies to commercial users: Cancellation must not be made artificially difficult. The Federal Court of Justice (BGH) has repeatedly clarified that contract cancellations must be possible at a low threshold. In comparable cases, providers have already been ordered to allow alternative cancellation methods.
What commercial enterprises can now do about the cancellation period
Anyone wishing to terminate their GEMA contract should note the following:
- Submit cancellation additionally in text form - by e-mail with read receipt or by registered mail.
- Save documentation - e.g. proof of dispatch, screenshots of the online portal, possibly screenshots of failed login attempts.
- Emphasise the right to terminate - with reference to Section 127 BGB (text form) and Section 309 No. 13 BGB (control of general terms and conditions).
- Request confirmation of cancellation - with a deadline (e.g. 14 days).
Conclusion
The digitisation of GEMA services may make sense from an administrative point of view - but it must not lead to legitimate terminations being hindered or delayed. Commercial users of GEMA-liable music, should not be intimidated by technical hurdles. Cancellation by email or letter remains legally permissible - and if you have good documentation, you are on the safe side in case of doubt. Individual legal advice in these cases can only be provided by a qualified lawyer.
