(1) In order to establish joint remuneration agreements, authors’ associations together with associations of users of works or individual users of works are to set up an arbitration board if the parties have agreed this or one of the parties has requested that arbitration proceedings be conducted.
(2) The arbitration board consists of an equal number of assessors appointed by each of the respective parties, and an impartial chairperson, the appointment of whom both parties are, as a rule, to agree upon.
(3) If the parties do not reach agreement, the higher regional court competent pursuant to section 1062 of the Code of Civil Procedure (Zivilprozessordnung) takes a decision, upon the application of one of the parties, on
1. who is to be appointed chairperson,
2. the number of assessors,
3. the conditions applicable to arbitration proceedings concerning
a) the ability of the users of the work and associations of users of the work and authors to be a party to the arbitration proceedings (section 36 (1) sentence 1 and (2),
b) proceedings before the arbitration board conducted at the request of only one of the parties (section 36 (3) sentence 2).
Until such time as the place at which the arbitration proceedings are to be conducted has been determined, that higher regional court is responsible for the decision in whose district the respondent has his or her principal place of business or habitual residence. Sections 1063 and 1065 of the Code of Civil Procedure apply accordingly to the proceedings before the higher regional court.
(4) A request for arbitration proceedings in accordance with section 36 (3) sentence 2 must contain a proposal for the establishment of a joint remuneration agreement. The arbitration board sends the request for arbitration proceedings to the other party and calls on that party to comment in writing within one month.
(4a) Each party may, within three months after learning of the arbitration proceedings, demand that the arbitration board call on other associations of authors to participate if the proposal referred to in subsection (4) sentence 1 concerns works or associated works which can generally only be created with the involvement of other authors who are represented by the aforementioned associations. Subsection (4) sentence 2 applies accordingly. If the association of authors participates, then it and the party representing the users of the work each appoints additional assessors.
(5) The arbitration board decides by majority vote following an oral consultation. The decision is initially taken by the assessors; if a majority vote cannot be obtained, then, following further consultation, the chairperson participates in a renewed vote. If one of the parties does not appoint any members or if the members appointed by one of the parties do not take part in the session despite a timely invitation to do so, the chairperson and the members who have attended decide on their own in accordance with sentences 1 and 2. The arbitration board’s decision is to be set forth in writing, signed by the chairperson and delivered to each party.
(6) The parties bear their own costs as well as the costs of the assessor they have appointed. The other costs are borne by the parties representing the authors participating in the proceedings and the parties representing the users of the work to the extent of one half each. As joint and several debtors they are required, at the request and for the receipt of the presiding judge, to make requisite advance payment for the arbitration board’s work.
(7) The parties may lay down the details of proceedings before the arbitration board in the form of an agreement. The arbitration board informs any participating associations of authors pursuant to subsection (4a) of the progress of proceedings.
(8) The Federal Ministry of Justice and Consumer Protection is authorised to regulate, by statutory instrument not requiring the approval of the Bundesrat, further details of the procedure before the arbitration board, as well as further provisions on the costs of proceedings and the reimbursement of members of the arbitration board.