SABAM
Licensing GuruHits five-second song clips took a nearly four-year correspondence (1998–2001) with SABAM, Belgium’s authors-rights society, because no online-music tariff existed yet — making it one of the first licensed online music-clip services in Belgium.
Licensing a music quiz in 1998 meant asking a question nobody had answered yet. Belgium had no tariff for music on the internet, and the society that would have to grant permission — SABAM, the Belgian authors' rights society — was still inventing one. What follows is the paper trail: four years of letters, in three languages, that turned a hobby into a licensed, paying, legal online service.
A question with no answer yet (1998)
It began on 9 April 1998 with a student's email and a common assumption. Joe described a music game — guess the singer and title from the first ten seconds of each song in his CD collection — and asked the question that everything turned on: he had read, years before, that you could use up to fifteen seconds of a song without paying royalties. Was that still correct?
FRJe voudrais créer un site sur Internet avec un jeu musical : les visiteurs du site doivent deviner le chanteur et le titre de la chanson en écoutant les 10 premières secondes de chaque chanson que j'ai dans ma collection de CD. […] Il y a quelques années, j'ai lu qu'on peut utiliser jusqu'à 15 secondes d'une chanson sans devoir payer des droits d'auteur. Est-ce que c'est toujours correct ?
ENI'd like to create a website with a music game: visitors guess the singer and the title of the song by listening to the first 10 seconds of each song in my CD collection. […] A few years ago I read that you can use up to 15 seconds of a song without having to pay royalties. Is that still correct?
▸ The question that started everything — and the belief SABAM was about to demolish: that a clip short enough was royalty-free.
It was not. SABAM's reply two weeks later set the tone for everything that followed: permission is required no matter how short the clip, and SABAM itself was only just drafting an experimental online regime — to be billed on the total duration of the music used.
FRNous vous rappelons que toute reproduction ou toute communication au public d'une œuvre protégée est soumise à ces autorisations, quelle que soit la durée de l'utilisation, même minime. […] la Sabam travaille à l'heure actuelle à un règlement (expérimental) pour la communication des œuvres musicales via Internet. Nous espérons rendre public un tarif et un contrat-type d'ici quelques semaines. Le décompte des droits d'auteur s'effectuera sur la base de la durée totale de la musique utilisée.
ENWe remind you that any reproduction or public communication of a protected work requires authorization, however minimal its duration. […] SABAM is currently working on an (experimental) regulation for communicating musical works via the Internet. We hope to publish a tariff and a model contract within a few weeks. Royalties will be calculated on the basis of the total duration of the music used.
▸ Before any model existed: SABAM was still drafting an experimental online tariff — and even the shortest clip needs clearing.
Those two phrases — "however minimal its duration" and pricing "on the basis of the total duration of the music used" — shaped the whole design of GuruHits: five-second clips, and a catalogue measured in minutes. The same day, Joe wrote back describing the project — a multiple-choice quiz on the first seconds of each song, with points and a global ranking (and even a harder mode with the songs played backwards). His own reasons for keeping the clips short had nothing to do with licensing yet:
FRJ'ai une collection de +/- 200 CDs et je voudrais mettre les 10 à 15 premières secondes de chaque chanson sur Internet en format RealAudio. […] Il y a deux raisons pourquoi je veux seulement mettre 10 à 15 secondes de chaque chanson sur Internet : la taille des fichiers sonores n'est pas très grande pour des courtes durées (pour économiser de l'espace […] et aussi de la bande passante) ; et quand le clip est trop long, alors c'est trop facile pour deviner le titre et l'interprète.
ENI have a collection of about 200 CDs and I'd like to put the first 10 to 15 seconds of each song online in RealAudio format. […] There are two reasons I want to use only 10 to 15 seconds of each song: the sound files aren't very large for short durations (saving disk space and bandwidth); and when the clip is too long, it's too easy to guess the title and the performer.
▸ Joe's own 1998 rationale for short clips — bandwidth and difficulty — three years before the licensing-cost logic reinforced the very same choice.
Bandwidth and difficulty came first; the licensing-cost logic would reinforce exactly the same choice three years later. And the cost was on Joe's mind from the very start: in a May 1998 ideas memo to his father, the music-quiz concept already carried a one-word flag next to it — "Problem: SABAM? Kosten?". While SABAM went quiet over the following weeks, the family mapped the wider Belgian rights landscape — SCAM, SOFAM, and the then-new Reprobel — before SABAM's terms finally took shape.
The first real terms (1999)
A year on, with still no published tariff, Joe pressed for specifics. SABAM's Média department gave the first concrete answer: a Belgian company needs SABAM's authorization wherever its audio is hosted, subdomains without audio need none, lyrics must be cleared separately with the publishers, and the list of works is declared twice a year.
FRLes fournisseurs de contenu et/ou les organisations ou sociétés, ayants leur siège social sur le territoire belge, ont une obligation de solliciter une autorisation auprès de la Sabam. En principe, la localité des fichiers audio n'influence pas cette compétence de la Sabam. […] Pour l'utilisation de paroles des chansons, il faut prendre contact avec les éditions musicales concernées. La déclaration de la liste des œuvres utilisées peut se faire une fois par semestre.
ENContent providers and/or organisations or companies having their registered office on Belgian territory are obliged to seek authorization from SABAM. In principle, the location of the audio files does not affect SABAM's competence. […] For the use of song lyrics, you must contact the relevant music publishers. The list of works used may be declared once per semester.
▸ The first concrete terms: a Belgian seat means SABAM authorization wherever the audio is hosted; lyrics are cleared separately; works declared twice a year.
Bringing in a lawyer (2000–2001)
By 2000 the project was real enough to need legal advice. Joe brought in Tom Heremans — then at Allen & Overy in Brussels, today a partner at CMS — whose letters to and from Joe are in the sources below. The principle that decided everything was simple: royalties follow the company's registered seat, not the server. Just before launch, his full opinion identified two ways SABAM could classify the site — a cheap "online record-shop window" rate versus a per-minute "music promotion" tariff — and spotted that the contract said nothing about which works filled the licensed hour. The catalogue could rotate freely under a fixed duration cap.
To apply the 5000 BEF rate, it is also required that the objective of your site is to sell disks… If Sabam does not accept this strategy, you will have to pay the much higher fees set out in article 1.2 … 30.000 BEF per year. The SABAM contract does not say anything about the composition of the number of hours of music, and therefore it is in my view permitted to permanently change the content as long as you never offer more than 1 hour … of music to the public.
▸ The pre-launch opinion: the cheap "vitrine virtuelle" rate vs the per-minute tariff — and the key insight that the catalogue may rotate freely under a fixed duration cap.
The dead-ends that fixed the path (2001)
Two alternatives were tested and closed in the weeks before launch. The neighbouring-rights bodies — which represent performers and producers, not composers — were the first stop. Joe wrote directly to Rémunération Équitable (SIMIM), noting that SABAM's contract did not cover those rights for online broadcast (and, in passing, that the song bank already held 695 tracks from a 1,500-CD collection):
FRJe suis en train de créer un jeu sur Internet qui utilise la musique. Les visiteurs du site doivent écouter 5 secondes d'une chanson et deviner son nom. […] À ce moment il y a 695 chansons dans ma banque de données. […] Les chansons sortent de ma collection personnelle de 1500 CDs. Je suis déjà en contact avec la SABAM, mais leur contrat ne couvre pas les droits voisins pour la diffusion sur Internet.
ENI'm creating an online game that uses music. Visitors listen to 5 seconds of a song and guess its name. […] At the moment there are 695 songs in my database. […] The songs come from my personal collection of 1,500 CDs. I'm already in contact with SABAM, but their contract doesn't cover the neighbouring rights for broadcasting on the Internet.
▸ The neighbouring-rights inquiry itself: SABAM covers only the authors, so Joe asks SIMIM separately — 695 songs already banked from a 1,500-CD collection.
The reply was another dead-end: they had no online tariff at all, only rates for radio. And licensing through a foreign society, Germany's GEMA, proved impossible for the same reason SABAM had given in 1999: online use is licensed where the provider is established.
DEOnline-Musiknutzung wird von der Verwertungsgesellschaft des Landes lizenziert, in dem der Hauptfirmensitz des Anbieters liegt. Das heisst, die GEMA lizenziert Internetseiten der Anbieter, die ihren Hauptfirmensitz in Deutschland haben.
ENOnline music use is licensed by the collecting society of the country in which the provider's principal place of business is located. That is, GEMA licenses the websites of providers whose principal seat is in Germany.
▸ Forum-shopping closed: like SABAM, GEMA licenses by the provider's seat — so a Belgian company must license in Belgium.
With forum-shopping ruled out, a Belgian SABAM licence was the only road — and GuruHits launched on 20 September 2001.
Confirmed, then closed (2003–2014)
In 2003 SABAM put the arrangement in writing in the clearest possible terms: a fifteen-minute cap, with the works free to change week to week underneath it — exactly what Heremans had predicted.
FRDans la mesure où la durée totale de la musique proposée sur le site est limitée à 15 minutes, nous pouvons marquer notre accord pour que cette durée serve de base à la tarification des droits d'auteur. Ceci vous laisse bien évidemment la possibilité de changer, chaque semaine ou chaque mois, les œuvres musicales proposées sur le site, et ce dans la mesure où la durée totale de la musique en ligne ne dépasse pas les 15 minutes.
ENInsofar as the total duration of the music offered on the site is limited to 15 minutes, we can agree that this duration serves as the basis for calculating the copyright royalties. This of course leaves you free to change the musical works offered on the site each week or each month, as long as the total duration of the online music does not exceed 15 minutes.
▸ SABAM confirms in writing exactly what the lawyer predicted in 2001: a 15-minute cap, with the catalogue free to rotate underneath it.
GuruHits ran on that basis for over a decade. In 2014 Joe wound it down — the streaming switched off, the contract closed at the end of the year, after roughly thirteen years online.
Primary sources
The full set of recovered letters, in chronological order. Original-language excerpts are quoted verbatim from the archive, with English translations beneath; third parties are shown by first name and initial.
FRJe voudrais créer un site sur Internet avec un jeu musical : les visiteurs du site doivent deviner le chanteur et le titre de la chanson en écoutant les 10 premières secondes de chaque chanson que j'ai dans ma collection de CD. […] Il y a quelques années, j'ai lu qu'on peut utiliser jusqu'à 15 secondes d'une chanson sans devoir payer des droits d'auteur. Est-ce que c'est toujours correct ?
ENI'd like to create a website with a music game: visitors guess the singer and the title of the song by listening to the first 10 seconds of each song in my CD collection. […] A few years ago I read that you can use up to 15 seconds of a song without having to pay royalties. Is that still correct?
▸ The question that started everything — and the belief SABAM was about to demolish: that a clip short enough was royalty-free.
FRNous vous rappelons que toute reproduction ou toute communication au public d'une œuvre protégée est soumise à ces autorisations, quelle que soit la durée de l'utilisation, même minime. […] la Sabam travaille à l'heure actuelle à un règlement (expérimental) pour la communication des œuvres musicales via Internet. Nous espérons rendre public un tarif et un contrat-type d'ici quelques semaines. Le décompte des droits d'auteur s'effectuera sur la base de la durée totale de la musique utilisée.
ENWe remind you that any reproduction or public communication of a protected work requires authorization, however minimal its duration. […] SABAM is currently working on an (experimental) regulation for communicating musical works via the Internet. We hope to publish a tariff and a model contract within a few weeks. Royalties will be calculated on the basis of the total duration of the music used.
▸ Before any model existed: SABAM was still drafting an experimental online tariff — and even the shortest clip needs clearing.
FRJ'ai une collection de +/- 200 CDs et je voudrais mettre les 10 à 15 premières secondes de chaque chanson sur Internet en format RealAudio. […] Il y a deux raisons pourquoi je veux seulement mettre 10 à 15 secondes de chaque chanson sur Internet : la taille des fichiers sonores n'est pas très grande pour des courtes durées (pour économiser de l'espace […] et aussi de la bande passante) ; et quand le clip est trop long, alors c'est trop facile pour deviner le titre et l'interprète.
ENI have a collection of about 200 CDs and I'd like to put the first 10 to 15 seconds of each song online in RealAudio format. […] There are two reasons I want to use only 10 to 15 seconds of each song: the sound files aren't very large for short durations (saving disk space and bandwidth); and when the clip is too long, it's too easy to guess the title and the performer.
▸ Joe's own 1998 rationale for short clips — bandwidth and difficulty — three years before the licensing-cost logic reinforced the very same choice.
FRLes fournisseurs de contenu et/ou les organisations ou sociétés, ayants leur siège social sur le territoire belge, ont une obligation de solliciter une autorisation auprès de la Sabam. En principe, la localité des fichiers audio n'influence pas cette compétence de la Sabam. […] Pour l'utilisation de paroles des chansons, il faut prendre contact avec les éditions musicales concernées. La déclaration de la liste des œuvres utilisées peut se faire une fois par semestre.
ENContent providers and/or organisations or companies having their registered office on Belgian territory are obliged to seek authorization from SABAM. In principle, the location of the audio files does not affect SABAM's competence. […] For the use of song lyrics, you must contact the relevant music publishers. The list of works used may be declared once per semester.
▸ The first concrete terms: a Belgian seat means SABAM authorization wherever the audio is hosted; lyrics are cleared separately; works declared twice a year.
They say that it doesn't matter where the server is located but it depends on the "siège social". So if it's a Belgian company, then the royalties have to be paid in Belgium… The music quiz … fits SABAM price list a). In a first stage, this feature will require 600 songs x 5 seconds … Price list a) is based on the number of hours of music stored on the server.
▸ Joe takes the plan to his lawyer: a duration-priced quiz, and the "siège social" rule tying royalties to the company's seat, not the server.
To apply the 5000 BEF rate, it is also required that the objective of your site is to sell disks… If Sabam does not accept this strategy, you will have to pay the much higher fees set out in article 1.2 … 30.000 BEF per year. The SABAM contract does not say anything about the composition of the number of hours of music, and therefore it is in my view permitted to permanently change the content as long as you never offer more than 1 hour … of music to the public.
▸ The pre-launch opinion: the cheap "vitrine virtuelle" rate vs the per-minute tariff — and the key insight that the catalogue may rotate freely under a fixed duration cap.
FRJe suis en train de créer un jeu sur Internet qui utilise la musique. Les visiteurs du site doivent écouter 5 secondes d'une chanson et deviner son nom. […] À ce moment il y a 695 chansons dans ma banque de données. […] Les chansons sortent de ma collection personnelle de 1500 CDs. Je suis déjà en contact avec la SABAM, mais leur contrat ne couvre pas les droits voisins pour la diffusion sur Internet.
ENI'm creating an online game that uses music. Visitors listen to 5 seconds of a song and guess its name. […] At the moment there are 695 songs in my database. […] The songs come from my personal collection of 1,500 CDs. I'm already in contact with SABAM, but their contract doesn't cover the neighbouring rights for broadcasting on the Internet.
▸ The neighbouring-rights inquiry itself: SABAM covers only the authors, so Joe asks SIMIM separately — 695 songs already banked from a 1,500-CD collection.
Last night, I sent a message to the "service juridique" of BVergoed.be … Although they seem to be the right institution for the neighboring rights, they don't have any information about online distribution of songs (they do have some tariffs for radio stations, though). … I really like to get GuruHits online and tested before school starts again.
▸ The neighbouring-rights bodies have no online tariff either — only radio rates — the same pioneering gap, three years on.
DEOnline-Musiknutzung wird von der Verwertungsgesellschaft des Landes lizenziert, in dem der Hauptfirmensitz des Anbieters liegt. Das heisst, die GEMA lizenziert Internetseiten der Anbieter, die ihren Hauptfirmensitz in Deutschland haben.
ENOnline music use is licensed by the collecting society of the country in which the provider's principal place of business is located. That is, GEMA licenses the websites of providers whose principal seat is in Germany.
▸ Forum-shopping closed: like SABAM, GEMA licenses by the provider's seat — so a Belgian company must license in Belgium.
FRDans la mesure où la durée totale de la musique proposée sur le site est limitée à 15 minutes, nous pouvons marquer notre accord pour que cette durée serve de base à la tarification des droits d'auteur. Ceci vous laisse bien évidemment la possibilité de changer, chaque semaine ou chaque mois, les œuvres musicales proposées sur le site, et ce dans la mesure où la durée totale de la musique en ligne ne dépasse pas les 15 minutes.
ENInsofar as the total duration of the music offered on the site is limited to 15 minutes, we can agree that this duration serves as the basis for calculating the copyright royalties. This of course leaves you free to change the musical works offered on the site each week or each month, as long as the total duration of the online music does not exceed 15 minutes.
▸ SABAM confirms in writing exactly what the lawyer predicted in 2001: a 15-minute cap, with the catalogue free to rotate underneath it.
FRNous tenons à vous remercier pour votre collaboration. Nous vous enverrons dès que possible une note de crédit partielle.
ENWe thank you for your cooperation. We will send you a partial credit note as soon as possible.
▸ The end, after ~13 years: the streaming already switched off and the contract closed at 31 Dec 2014 — SABAM thanks Joe for the collaboration.
