Germany's indie labels' body VUT becomes GVL's fourth shareholder

By Emmanuel Legrand

VUT, the German Association of Independent Music Entrepreneurs, has become the fourth shareholder of GVL, the Berlin-based neighbouring rights society for Germany, alongside BVMI (the Federal Association of the Music Industry), DOV (German Orchestra Association) and BFFS (the Federal Association of Actors).

  VUT will represent on GVL's board the interests of independent music entrepreneurs. VUT counts independent labels as well as about 1,200 performers who control their master recordings. VUT Managing Director Jörg Heidemann will represent VUT in GVL's shareholder committees.

  VUT's share come from a transfer from some of BVMI's shares. DOV and BFFS shares remain unchanged. BVMI and VUT will now jointly supervise the sound recording side within GVL, noted Florian Drücke, Chairman & CEO of the BVMI.

Distributive justice

  "We are excited about our new role as co-shareholders of the GVL and are pleased that the independent music entrepreneurs now have another opportunity to participate in the GVL committees," said Heidemann, who added that the indie labels' organisation will bring international expertise through its work with European indie labels' trade body IMPALA, and plans to contribute "to the issues of transparency and distributive justice.”

  “We are pleased to have gained the VUT as another shareholder by our side, which is going to support members’ interests and give them a strong voice when it comes to managing their rights," said GVL Managing Directors Guido Evers and Tilo Gerlach.

  The inclusion of VUT was made possible by changes in the statutes and the organisational structure of GVL under the new Collecting Societies Act (VGG). The organisation's Assembly of Shareholders and Delegates is made up of its shareholders – BVMI, BFFS, DOV and now VUT – as well as the 22 delegates that have been elected by the Assembly of Rights Holders. The Assembly of Shareholders elects a supervisory committee where one representative per rights holder category (artists, producers) oversees the work of the Managing Directors.

  GVL represents the rights to 160,000 performers, producers of sound recordings and audiovisual recordings, music and music video clip producers as well as event organisers. It collects performance rights from the use of sound recordings in public and in the media as well as the proceeds from the private copying levy. In 2019, GVL posted total revenues of €215.5 million against €229.8m in 2018, down 6.3% year-on-year.