Collective management organisations are private-law organisations that unite authors as well as related rightholders for the purpose of enforcing their legal rights. These claims often concern the equitable remuneration for the use of the works created or performed. Since their works are often used in many different ways and in large numbers, it is almost impossible for individual creatives to keep track of every single use process.

As a matter of principle, every person needs permission to use a copyrighted work. However, users often do not know who to contact to obtain the necessary licenses. Collective management organisations thus act as a point of contact for both sides: they grant licenses according to the conditions set up in their tariffs and divide the resulting income according to fixed rules among the rightholders.

In addition to their fiduciary activities, CMOs usually also hold a monopoly position, since most of the time they are specialised in a certain field (e.g. the GEMA in musical works). Because of their fiduciary nature and their monopoly, the CMOs are subject to supervision by the DPMA. As a federal supervisory authority, the DPMA only acts in the public interest and makes sure that the CMOs comply with the statutory provisions of the Act on Collective Management Organisations (CMO Act — Verwertungsgesellschaftengesetz). The CMO Act imposes many duties on the CMOs — not only regarding the internal processes of their organisation and the rightholders they represent, but also regarding the external relations concerning their users. For example: the CMOs have to fulfil specific requirements regarding their distribution plans, which determine the allocation of the income from the rights amongst the rightholders. Furthermore, the CMO Act provides rules regarding the setting of the tariffs, which detail the amounts due for a desired use. As a supervisory authority, the DPMA as a matter of principle acts ex officio. However, it can also carry out supervisory audits on the basis of submissions made by rightholders or users.

At present, there are 13 CMOs in Germany authorised by the DPMA. Together, they had a revenue totalling around 2 billion euros in 2023. The following table shows the amounts generated by each CMO.

CMOs always have to act in accordance with the applicable legislation. This also means they have to adhere to court decisions regarding the interpretation of the relevant European law. Since the end of 2024, the Court of Justice of the European Union (CJEU) has been conducting a preliminary ruling procedure reviewing whether CMOs have the right to support works of cultural importance and if so, under which circumstances. The reason for this procedure is a lawsuit initiated by an author who wants to prevent the defendant, a CMO, from using the income from the authors’ statutory remuneration rights for supporting works of cultural importance and thus decreasing the plaintiff’s share of this income. The CJEU’s decision will impact the promotion of cultural works by all European collective management organisations. It remains to be seen whether German CMOs will have to adapt their support measures depending on the result of the proceedings.