Concept and Legal Nature of the Library Lending Remuneration (Bibliotheksgroschen)
The Term Bibliotheksgroschen refers to a financial remuneration in German copyright law, paid as a compensation entitlement for the lending of copyright-protected works by libraries. This entitlement is part of the so-called ‘public lending right’ under § 27 of the German Copyright Act (UrhG) and serves to compensate for the use of copyright-protected works as a result of public lending. Library lending remuneration is granted to authors, translators, and other rights holders whose works are lent by public libraries.
Legal Foundations
Copyright Act and Public Performance
The German Copyright Act (§ 27 UrhG) stipulates that the lending of copies of works by libraries is generally subject to remuneration, provided that the works are copyright-protected. According to § 27 (2) UrhG, the lending right cannot be asserted against public and scientific libraries that are accessible to the public. However, a statutory entitlement to remuneration is granted to rights holders for this permitted use.
Entitled Parties and Debtors
The right to remuneration is held by authors, translators, and, where applicable, other performing artists or rights holders. The debtors of the Bibliotheksgroschen are the federal states, municipalities and towns as institutions responsible for public libraries, as well as universities and other bodies supporting scientific libraries.
Functionality and Practical Implementation
Collection and Distribution
The payment of the Bibliotheksgroschen is not made directly by the lending library to the rights holder, but through so-called collecting societies, in particular the VG Wort und VG Bild-Kunst. Libraries make annual lump sum payments to the collecting societies, which then distribute these funds proportionally to the entitled authors according to fixed distribution plans.
Amount of Remuneration
The specific amount of the Bibliotheksgroschen is not calculated individually per loan. Instead, the remuneration depends on the number of borrowings and the size of the collection of the respective library, whereby the exact calculation methods are based on statistical analyses. The collecting societies regularly conduct random sampling to ensure fair distribution.
Legal Classification and Significance
Relationship to the Exclusive Lending Right
The Bibliotheksgroschen constitutes a statutory right to remuneration which restricts the fundamental exclusive lending right of the author (§ 17 para. 2 UrhG) with regard to public libraries. The legal exception in favor of public libraries is a socio-political measure intended to promote objectives serving the public good, such as education and science, without neglecting the interests of rights holders.
European Law Requirements
The German remuneration system for library lending implements the Directive 2006/115/EC (formerly Directive 92/100/EEC on the rental right and lending right), which grants authors in all member states of the European Union a right to equitable remuneration for library lending. Therefore, the institution of the Bibliotheksgroschen is not limited to Germany, although its specific design is determined by German law.
Court Judgments and Supreme Court Decisions
The structure of the Bibliotheksgroschen has frequently been the subject of judicial review. In particular, decisions by the Federal Constitutional Court and the European Court of Justice have strengthened the importance of the principle of equitable remuneration and the admissibility of collective rights management.
Payment Procedures and Enforcement of Claims
Registration and Distribution by Collecting Societies
Authors must register with the relevant collecting society and report their works in order to participate in the distribution of the Bibliotheksgroschen. Individual enforcement of claims against individual libraries is excluded due to the statutory transfer of duties.
Limitation and Cut-off Periods
Remuneration claims are subject to the regular statutory limitation period (§§ 195, 199 BGB). The exact registration deadlines with the collecting society are determined by their distribution plans and may provide for different cut-off periods.
Tax Treatment
Income received from the Bibliotheksgroschen is taxable as remuneration from the exploitation of copyrights. As a rule, it qualifies as income from self-employment according to § 18 EStG. Collecting societies are obliged to deduct statutory charges, such as the artists’ social security levy, if the legal requirements are met.
Distinction from Other Entitlements to Remuneration
Difference from the Copying Remuneration Claim
The Bibliotheksgroschen is clearly to be distinguished from the so-called device and blank media remuneration or the remuneration claim for reproductions under § 54 UrhG. While the Bibliotheksgroschen relates to lending, the copying remuneration claim concerns the making of private copies.
International Differences
Although the model of the Bibliotheksgroschen is predetermined by European law, there are differences within EU member states regarding the collection methods, entitlement requirements, and distribution mechanisms. In Germany, the system of centralized collection and lump-sum calculation has proven to be practical.
Reform Discussion and Current Developments
Digitization and Lending Right
The growing offer of digital media and e-books by libraries raises new questions regarding the scope of § 27 UrhG. The current legal situation provides for lending exclusively of ‘physical copies of works’; whether and how the Bibliotheksgroschen is to be paid in the future for digital lending services is the subject of political and legal debate.
Critical Opinions and Interests
Rights holders regularly demand an increase in library remuneration, while library sponsors point to their limited budgets and orientation towards the public good. The legislator faces the task of ensuring a fair balance between authors’ interests and public access to knowledge.
Conclusion
The Bibliotheksgroschen is an essential component of German copyright law and serves as financial compensation for authors for the lending of copyright-protected works by public libraries. It creates a balance between the freedom of access to knowledge and information on the one hand and the economic interests of rights holders on the other. The system is based on collectively managed claims by collecting societies, is shaped by both national and European regulations, and is currently undergoing dynamic development in light of digital media.
Frequently Asked Questions
When does the entitlement to payment of the Bibliotheksgroschen arise?
The entitlement to payment of the Bibliotheksgroschen arises when a public library acquires copyright-protected works for its collection and makes these works available to its users for permitted use for their own purposes. The basis for the payment claim is § 27 para. 2 UrhG, which governs public communication by lending and the underlying rights. The obligation to remunerate authors and related rights holders is practically implemented via the collecting society Wort (VG Wort), as well as other collecting societies where applicable. However, claims may be asserted exclusively by entitled parties through the respective collecting society, not directly against the lending library or its sponsor. A prerequisite is that a work is acquired and made available for lending by the library for the first time after the relevant legal provision comes into force; no further claim can arise for works in private ownership or previously acquired works.
Who is entitled to assert claims from the Bibliotheksgroschen?
Entitled to the Bibliotheksgroschen are, in principle, the authors (e.g., writers, translators, editors), as well as holders of related rights (e.g., publishers) of those works that have been acquired by public libraries and made available for lending. These claims are usually asserted collectively through collecting societies (notably VG Wort for authors and publishers of literary and scientific works). Individual assertion outside of collective rights management is legally prohibited (§ 27 para. 3 UrhG). A beneficiary must be a member or at least a registered rights holder with the respective collecting society and must have reported their works there in order to participate in the distribution process. The exact entitlement is tied to the copyright protection in the German-speaking library sector and, where applicable, to contractual agreements between author and publisher.
How is the amount of the Bibliotheksgroschen calculated and distributed?
The amount of the Bibliotheksgroschen is based on the annual payments received from library sponsors, which are regulated by framework agreements between these sponsors (e.g., federal states and municipalities) and the collecting societies (§ 27 para. 2 UrhG). The remuneration to be paid is based on statistically determined borrowing figures and the number of new copies acquired by the libraries. The total amounts received are distributed by the collecting societies to the individual beneficiaries according to an internal distribution plan. Differentiated distribution models are applied, taking into account factors such as the number of available copies and the borrowing frequency of a title, as well as the proportion between authors, translators, and publishers, which is usually governed by the statutes or distribution plans of the collecting societies. The exact procedures can vary annually and are publicly available (e.g., via VG Wort distribution plans).
Are payments from the Bibliotheksgroschen subject to taxation?
Yes, payments that an author or rights holder receives under the Bibliotheksgroschen are taxable under German tax law as income from self-employment (for natural persons) or as business income (for legal entities). Collecting societies are required to provide beneficiaries with an annual overview of the distributions received, which are to be used for income tax returns and, if applicable, VAT declarations. The application of VAT depends on the status of the beneficiary; if the beneficiary qualifies as an entrepreneur under the VAT Act, the remuneration is generally subject to VAT, unless the small business regulation applies. In cross-border cases, taxation under double taxation agreements may also be relevant.
How does the Bibliotheksgroschen differ from the compensation scheme for private copies?
The legal basis for the Bibliotheksgroschen is found in § 27 para. 2 UrhG and concerns the public lending of copyright-protected works by libraries, whereas the private copying remuneration (see § 54 UrhG) relates to permissible reproduction of works for private use (private copies). The remuneration claims for private copies arise from mere reproduction by end users, regardless of any lending transaction. By contrast, library compensation payments always require an actual act of lending by a public institution. The payment and distribution mechanisms for both systems often rely on the same collecting societies, but each is subject to its own statutory bases for claims, triggering events, and accounting procedures.
What role do framework agreements between libraries and collecting societies play in the context of the Bibliotheksgroschen?
Framework agreements pursuant to § 36 UrhG are central for the legally secure and standardized administration of the Bibliotheksgroschen. They govern the collective payment obligations of library sponsors—usually states, municipalities, or other public institutions—to the collecting societies on the basis of lump-sum calculation methods (statistical lending data, new acquisitions data, etc.). Framework agreements exclude individual renegotiations or single settlements and provide planning and legal certainty for both sides. Without such agreements, every individual provision and lending of copyright-protected works could result in separate claims, leading to disproportionate bureaucratic effort. The content of these framework agreements is subject to antitrust control to ensure fair participation for rights holders and appropriate financial impact on the public sector.
How long can the claim for payment of the Bibliotheksgroschen be asserted (Limitation Period)?
The claim for distribution of remuneration from the Bibliotheksgroschen is subject to the regular limitation period under § 195 BGB. This means that the claim becomes time-barred three years after the end of the year in which the claim arose and the beneficiary became aware, or should have become aware without gross negligence, of the circumstances giving rise to the claim. The collecting societies’ statutes or general terms and conditions regularly specify the deadline by which a notification or proof of one’s own works must be submitted in order to participate in the distribution. After expiry of the deadlines or if notification is missed, the payment entitlement expires irrevocably. The limitation provision serves to provide planning certainty for collecting societies and to ensure the legal certainty of distribution results.
