April 18, 2021

Culture prohibits the SGAE anticipate the distribution of revenue to its partners | Culture

The SGAE denounces a multiple tax fraud that would affect "members of the entity" | Culture



The Ministry of Culture has sent a new requirement to the General Society of Authors and Publishers (SGAE) and on this occasion it prohibits the granting of advances-loans to the partners of the entity. In this way, it controls a flight of capital from the company, which the SGAE values ​​at 2.5 million euros, days after the minister, José Guirao, announce the request for judicial intervention. From this moment, the payment of said loans must be verified by Culture "once verified that its concession does not compromise the final result of the distribution of rights", as indicated by the text to which EL PAÍS has had access, signed this Wednesday by the deputy general director, Carlos Guervós Maillo.

The letter was sent in the afternoon to the SGAE and it can read how the Ministry of Culture uses Article 177 of the Intellectual Property Law to remind the entity that advance payments to members will only happen "when its grant is based in non-discriminatory rules and does not compromise the final result of the deals ". At this time, the distribution of the benefits of December 2018 was suspended by 53% of the members at the end of last year.

According to the data offered by the president of the SGAE in the division made in December the partners distributed a total of 107 million

2.5 million euros

According to the data offered by the president of the SGAE, José Ángel Hevia, in the division carried out this month of December (another one takes place in June) the partners distributed a total of 107 million, of which 18 were destined to the music issued in the night band (of these half is intended for authors and the other half to music publishers). Despite not having been approved by most of the partners, the distribution was executed two weeks before the General Assembly, on December 10.

From the SGAE they consider that it is an "unusual measure that harms the partners". They underline the fact that 250 authors and 12 editors have run out of their advances, from the most famous to the least known. "Blocked advances exceed 2.5 million euros, as usual for years, they were going to be delivered on account of future collections", say from the entity, that this afternoon would have voted monthly advances. They also have an impact on the fact that it is a system that "enjoys great acceptance among the members". "It is a very serious situation, which leaves the members in a very delicate situation", they wanted to influence this newspaper from the SGAE.

More mismatches

The Ministry indicates in this respect that the situation that the SGAE is going through, since the Extraordinary General Assembly has not ratified the distribution of the rights, supposes that the concessions of loans (and amortizations) that were approved "could later increase the imbalances or disagreements between the parties and, even, to compromise the final result of the deals, even more than what can already in itself suppose a distribution effected but not ratified by the General Assembly of partners ".

In that general assembly the new norm of distribution of author rights was also approved, with 54.74% of votes in favor. This is one of the points that José Guirao, as announced last Friday, will expose the judge to obtain his permission to intervene on the accounts and the statutes of the largest copyright society in Spain.

In addition, the Ministry requires the SGAE to provide the list of approved loans, together with the preliminary reports prepared that have validated the granting of such payments.

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