The use of the SGAE or foreign repertoire of dramatic works or Major Right works requires a different management regime from that for audio-visual or musical works, since dramatic works are managed under a mandate, with the rights holder retaining the exclusive right to authorize or not the express conditions for use, which means that the copyright amount or fee charged for the use of the Major Rights repertoire is a power exercised exclusively by the rights holders.
The kind of tariff applied for the Public Communication of dramatic works is usually a percentage of the box-office revenue but the amount depends on several factors: where the aim is to put on an adaptation of the original work, a percentage is usually reserved for the adapter; when the work requires the authorization of third parties with rights over any music to be included or synced; when there are other registered holders of works included in the final result, … In other words, after a process of negotiation between the party requesting authorization and the different registered holders of the rights to the work, a final fee is agreed on and this is the rate applicable to the performances of the dramatic work.
Since the fee is applied in the form of a percentage of the box-office revenue, it could happen that the event’s sponsors either do not establish any ticket price, do not declare it or else arrange for free admission or subsidized or promotional offers, all of which end up impacting on the tariff set in the authorization by the rights holder since the percentage is not being applied to the real basis of the business in question. For this reason, rights holders often set a minimum fee per performance, i.e. a minimum amount that ensures a sufficient consideration and this will prevail in those cases where the percentage applied to the box-office prices turns out to be lower.
At the same time, these minimum fees enable the SGAE, as part of its responsibility to manage the collection of royalties, to apply these rates when there are no box-office records or no information is available about the takings at these performances.
Through its Stage Arts Area, the SGAE processes the authorizations requested for dramatic works in order to generate a specific licence for each work in accordance with the mandate received from the rights holders. These licences regulate the tariffs mentioned and the conditions for use: territories, adaptation, exclusivity, languages, duration, … This licence processing activity includes the SGAE’s own repertoire and the foreign repertoires of other management societies or Dramatic Agents who engage the SGAE to manage their rights.