Czech Collective Rights Management Organisation OSA Abused its Dominant Position

OSA - Ochranný svaz autorský pro práva k dílům hudebním, z. s., is a professional association of composers, lyricists and musical publishers performing activities of the collective management of ownership copyrights to musical pieces with or without lyrics and to other copyrighted works within the meaning of the Copyright Act and disclosure of these works to the public and related activities on the basis of an authorization granted by the Ministry of Culture of the Czech Republic.

OSA is an entity entrusted with collection of royalties from accommodation facilities with TV and radio receivers in their rooms and other premises. The Office for the Protection of Competition considered OSA’s practice, which required the accommodation facilities to pay royalties for all the rooms situated in the hotel, regardless of whether these rooms were occupied or not. The Office considered OSA’s demand of payment of royalties in cases where the licensed copyrighted work could not have been used at as unfair commercial practice and abuse of its dominant position in violation of both the Czech and the EU competition rules. The Office for the Protection of Competition applied (and found violation of) the EU competition law due to the that OSA represented foreign authors; therefore, the Office concluded that the trade between the EU member states has been affected.

Consequently, by its first-instance decision the Office for the Protection of Competition imposed a fine on OSA in the amount of CZK 10,676,000 (EUR 430,000). The decision can now be appealed with the President of the Office.