The Appeals Board Of Barcelona has confirmed an earlier judgement in the dispute between Spanish collecting society SGAE and newer rights management organisation Unison, confirming that Unison is due damages as a result of SGAE's previous anti-competitive conduct.
A statement from Unison explains, "The appeal judgement substantially dismisses the appeal filed by SGAE against the first-instance judgement and confirms that the [collecting society] prevented the mass exodus of clients [by] implementing a series of anti-competitive practices".
"In this way", it goes on, "competition in the market for the management of intellectual property rights was severely distorted at a crucial and historic moment of 'liberalisation', preventing the entry and development of Unison as a new player. The Appeal Board Of Barcelona also acknowledges Unison's right to compensation for the damages caused by SGAE's anti-competitive practices".
Unison launched as a competitor to SGAE in the Spanish market in 2017, capitalising on changes in European law that sought to bring about more competition into the collective licensing marketplace across Europe. It has since had various run-ins with the often controversial SGAE.
This legal battle stemmed from an investigation by Spain’s competition regulator after SGAE was accused of putting in place barriers to stop songwriters and music publishers from moving their rights to Unison.
At the time, SGAE was embroiled in various controversies about the society's governance and, more specifically, how it was distributing broadcast royalties. That resulted in SGAE being kicked out of global collecting society grouping CISAC for a time. All of which meant there was considerable interest among songwriters and publishers to move their rights to another society within Spain, but SGAE made doing so very difficult.
The Spanish Competition Authority ruled against SGAE and fined it €2.95 million. Although the issues around moving rights out of SGAE have more or less been addressed since then, Unison sued over the damage caused during the period when the anti-competitive practices were in force. It won that case at first instance last year. SGAE appealed, but the appeals court has now basically upheld the original ruling.
It's not the only dispute between Unison and SGAE that resulted in an investigation by Spain's competition regulator. A second investigation relates to SGAE's blanket licences for broadcasters, with allegations that they were not appropriately amended to comply with the changes in the laws governing collective licensing.
That investigation, and accompanying litigation pursued by Unison, is ongoing, although the competition regulator is expected to publish its findings in the next month or so.