A song can start in a thousand ways, from some notes in your notebook to an improvisation in a rehearsal with your group. But just when it seems to be finished, the big question arises: how do you register a song to protect it? In Spain, a song is protected by copyright from the moment it is created. It is not necessary to register it in any registry for that protection to exist. Royal Legislative Decree 1/1996, which approves the Consolidated Text of the Intellectual Property Law, recognizes that the author of a work is the holder of a series of personal and patrimonial rights from the moment of its creation. Therefore, registering a song is not mandatory. However, it can be highly recommended. Above all, because when a conflict arises, it is not enough to say "I did this". You have to be able to test it. What is the purpose of registering a song? Registration serves, primarily, to establish the authorship of a work, proof with declared ownership and a certain date. Pursuant to Article 145 of the Consolidated Text of the Intellectual Property Law, it is presumed, unless proven otherwise, that the registered rights exist and belong to their holder in the manner reflected in the registry entry. And this, in the musical field, can be quite important. Many works are born collectively, without much (or any) documentation. One person brings a melody, another develops the lyrics, another builds the foundation, and another introduces arrangements that end up being recognizable in the final song. As long as everything is going well, nobody usually dwells too much on those details. The problem arises when the song starts generating income, when a sync proposal is received for a campaign, when a label asks to sign a contract, or when someone leaves the project. At that point, having well-documented authorship ceases to be a formality and becomes a practical matter. What can be protected in a song? When talking about registering a song, it is important to keep in mind that a musical creation can incorporate different protected elements and that not all of them generate the same rights. A song can include lyrics, a melody, an instrumental composition, arrangements, a performance, and a recording. From a legal point of view, each of these elements may have its own relevance. Copyright on the musical work The musical work (the composition and, where applicable, the lyrics) is protected by copyright. These rights belong to their creators or to those who have legitimately acquired ownership through a contract. The protection applies to the intellectual creation itself, regardless of the specific version that is subsequently interpreted or recorded. Related rights over recording and performance When that musical work is performed and fixed in a recording, other rights besides copyright come into play. On the one hand, performing artists may hold rights over their performance. On the other hand, the resulting recording (the so-called phonogram or master) may generate rights in favor of the phonographic producer, when one exists. This distinction is especially important in musical practice: the musical work is not the same as the master recording that we usually listen to on digital platforms, radio, or physical media. Each one may belong to different owners and require different authorizations for its exploitation. How to register a song in the Intellectual Property Registry One of the usual ways to register a song in Spain is to go to the Intellectual Property Registry, whose process requires: identifying the work, indicating who its authors or owners are, providing the corresponding documentation, presenting a copy that allows recognition of the creation; in the case of musical works, it may be necessary to provide the score or other materials that allow identification of the composition. If the song is a collaboration, it's best to draw up a contract beforehand. When a song is composed as a group, it's advisable to agree on who contributed to what and in what percentage under a contract, to avoid problems in the face of possible future conflicts. An internal agreement helps to regulate situations such as: the distribution of rights and income, the use of the song, decision-making regarding licenses, the departure of a member of the group, and the possibility that a brand, an audiovisual production company, or a label may use the work. And after registering the song? Once the work is protected, the next question is how to manage the rights that may arise as the song is used, distributed, or commercially exploited. Depending on the project, different actors may come into play: collective management entities, music publishers, phonographic producers, digital platforms, record labels or companies interested in using the music in advertising campaigns, audiovisual productions or video games. In Spain, collective management is mainly channeled through SGAE (authors and publishers), AIE (performing artists) and AGEDI (phonogram producers), entities that are responsible for collecting and distributing the rights generated by the use of music. It is not necessary to resolve all these issues from the outset, especially in projects that are just starting out. However, knowing them helps to avoid mistakes and make better use of opportunities that may arise. The group's name also matters. Protecting the song is essential, but it's not always enough. If the musical project has an artistic name, a group name, a logo, or a recognizable visual identity, it may be advisable to consider protecting it as a trademark, as we saw in this analysis of the trademark strategy of Rosalía's latest album. Copyright protects musical works. A trademark, on the other hand, protects a sign that identifies a business origin. In practice, it can be useful to prevent third parties from using the same or a similar name for musical activities, entertainment, merchandising, or other products related to the project. Furthermore, the brand is territorial. If a group begins to grow outside of Spain or sells products associated with its name, the protection strategy must be considered with a certain degree of care...Read more

Madrid, May 13, 2026 – ELZABURU has been recognized as Law Firm of the Year in Spain at the 2026 Media Law International (MLI) Awards, an award that annually distinguishes a single firm per jurisdiction for its excellence in providing legal counsel to the audiovisual, media, and entertainment sectors. The award was accepted in London by Mabel Klimt, Managing Partner of ELZABURU and Head of the Media & Entertainment practice, during the gala organized by Media Law International. The MLI Awards recognize firms that have demonstrated outstanding performance over the past year, not only for the technical quality of their work, but also for their ability to lead complex and strategic matters within the audiovisual and content industry. In this edition, Media Law International, one of the leading international directories specializing in the audiovisual and content sector, recognized 17 leading firms in various jurisdictions for the excellence and specialization of their teams, including ELZABURU in Spain. This recognition comes just weeks after ELZABURU was included in the Media Law International 2026 ranking in the Tier 1 category in Spain for its Media & Entertainment services, making it the only firm specializing in industrial and intellectual property to be included in this category. In the words of Mabel Klimt: “This recognition is a significant endorsement of the work of a highly specialized team committed to an industry in constant transformation. It also reflects the trust that producers, platforms, audiovisual companies, and industry stakeholders place in us to support increasingly complex and international projects.” With this recognition, ELZABURU consolidates its position as one of the leading firms providing legal advice to the audiovisual and entertainment industry in Spain, in a context marked by technological evolution, the internationalization of content, and the growing strategic importance of intangible assets.

In international sporting competitions, music is an essential part of the spectacle. In certain disciplines (such as figure skating or rhythmic gymnastics, among others), the musical choice not only conditions the choreography and the performance, but also activates a complex set of intellectual property rights. In public debate, this reality is often simplified by talking about "the rights of a song" as if it were a single authorization. However, from a legal point of view, the use of music in a globally broadcast event involves different layers of rights, owners, and acts of exploitation. Understanding this structure is key to avoiding legal, economic, and reputational risks. Musical composition and phonogram: two distinct rights When a song is incorporated into a sports routine, at least two distinct legal categories are involved. Copyright on the work The musical work (the composition and, where applicable, the lyrics) is protected by copyright. These rights belong to the creators or those who represent them contractually. The protection applies to the intellectual creation itself, regardless of the specific version used. Related rights over the recording (master) The specific recording heard on the track constitutes a phonogram. It is subject to related rights that may belong to the phonographic producer (if there is one) and to the artists, performers or interpreters. The “work” is not the same as the “master” that we usually hear, and that difference is crucial. The different acts of exploitation in sports entertainment The use of music in a sporting event is not limited to the song “playing” in the venue. It is necessary to analyze the different legal acts that occur. Public communication before the audience present. The music played in the pavilion constitutes an act of public communication. This use is usually arranged through specific or general licenses with the corresponding management entities, which in certain cases are managed by the event organizer. Audiovisual recording and exploitation In contemporary sport, the performance is recorded and broadcast through multiple channels: television, streaming, social media and on-demand platforms. From an intellectual property perspective, this implies: Reproduction (fixing the music in an audiovisual recording). Public communication. Interactive availability. In practice, this is articulated through “synchronization” licenses (a contractual term) and, when using a commercial recording, authorizations to use the master. Therefore, what may be sufficient in a national championship may prove insufficient in an international competition. The change is not due to a regulatory variation, but to the territorial scope and the multiplicity of exploitation windows. Adaptations, mixtures and moral rights In many sports routines, the music is not used in its original, complete version. It is common to perform cuts, medleys, or rearrangements. From a legal point of view, when such modifications exceed a sufficient creative threshold to be legally classified as transformations (arrangements) of the work. It wouldn't be enough to "have permission for it to play". Specific authorization from the copyright holder is required. In addition, the moral right of integrity may come into play, which allows the author to oppose alterations that affect their creation. The result is a paradox: the more iconic the music, the more likely the clearance will be a puzzle of headlines, territories, and windows. Hence, federations and organizers promote declarations and pre-authorizations: a risk management that turns the athlete into a manager of musical content with international reach. Sports entertainment is a global audiovisual product. And music is not a license, but several: work, master and audiovisual exploitation. A single flaw in one component is enough to force program changes, generate reputational conflicts, or open the door to financial claims. What consequences can there be to competing without the proper licenses? Using music without the appropriate licenses or permits can lead to financial claims both nationally and internationally. These claims may come directly from the rights holders or from collecting societies if the rights have not been properly licensed. The possible consequences will depend on the type of right infringed, the seriousness of the infringement, and whether there is a recurrence. In some cases an economic agreement can be reached; in others, if an infringement is deemed to have occurred, a judge will determine responsibility and any potential compensation. As for responsibility, it does not fall exclusively on the athlete. Sports federations and event organizers may also be involved. However, the specific distribution and allocation of that responsibility will depend on the contractual reality and the risk management on the part of federations and organizers. In practice, it is common for federations to contractually transfer to the athlete the burden of ensuring that the music used complies with intellectual property requirements. Music generated by artificial intelligence: an evolving scenario The use of music generated by artificial intelligence currently raises numerous questions from the point of view of intellectual property and is a field in regulatory evolution. The legal analysis will depend on several factors, including: The way in which the AI ​​tool was trained. The degree of human intervention in the creative process. The instructions or prompts used. The licenses and conditions associated with the tool used. Furthermore, there are debates surrounding the possible existence of copyright on this type of creation, potential infringements arising from the training data used by the system, and the distribution of responsibilities between the technology provider and the end user. In this context, rather than a single answer, what exists today are different legal approaches that will depend on how the musical creation has specifically developed. Frequently asked questions about copyright in sports competitions: Is a license sufficient for music to be played in the venue? Not necessarily. Public communication in the pavilion does not automatically cover recording, retransmission or making available on digital platforms. Do I need authorization to...Read more

Madrid, April 7, 2026 – ELZABURU has been recognized in the 2026 Media Law International (MLI) ranking, achieving Tier 1 status in Spain for the services provided by its Media & Entertainment practice. It is the only firm specializing in industrial and intellectual property included in this category. Media Law International is one of the leading international directories in the legal field of the audiovisual and content sector, analyzing top firms in more than 60 jurisdictions based on qualitative research that assesses team capabilities, sector experience, and market positioning. This recognition highlights the positioning of ELZABURU's Media & Entertainment practice, which provides comprehensive advice to companies in the cultural and entertainment sectors. In 2025, the team managed more than 860 audiovisual and performing arts projects, a 169% increase over the previous year, mobilizing €18,2 million in tax-deductible investment in cultural projects, a 73% increase. Furthermore, this recognition is reinforced by the mention of Mabel Klimt, managing partner of ELZABURU and head of the Media & Entertainment practice, as Leading Lawyer, in recognition of her career advising agents in the audiovisual sector. In Mabel Klimt's words: “The Media Law International award reflects the consolidation of an area that has experienced remarkable growth in recent years and that responds to the increasingly complex and cross-cutting needs of the audiovisual industry.” This recognition strengthens ELZABURU's position in providing legal counsel to the audiovisual and entertainment sector, in a context marked by increasing regulatory complexity, the internationalization of productions, and the strategic importance of intangible assets in the cultural and creative industries.

Registering a trademark linked to a musical project has become an essential tool within the industrial and intellectual property strategies of contemporary artists. Rosalía's recent application for the European trademark "LUX", months before the release of her new album, illustrates how trademark law can anticipate the market and protect the commercial value of intangible assets associated with artistic creation. Early registration and legal priority Filing an application for a European Union trademark before the launch of a cultural or musical product allows you to set a priority date and obtain a presumption of legal protection against third parties. In the case of “LUX”, the artist filed the application on June 6, 2025 for classes 9, 25 and 41, which include musical recordings, clothing and entertainment services. This strategy prevents potential opportunistic registrations by third parties seeking to benefit from the commercial value of the mark and facilitates the preparation of license agreements (merchandising, distribution, etc.) with greater legal certainty. Currently, the application is under examination by the European Union Intellectual Property Office (EUIPO). Once this stage is completed, a three-month period will open for prior rights holders to file objections on relevant grounds. Consequently, opposition could still occur if similar prior trademarks exist. Risks of not registering the trademark in other jurisdictions One of the fundamental principles of trademark law is its territorial nature. This means that the protection obtained through a European Union trademark only has effects within that territory. Failure to register the trademark in relevant jurisdictions may leave the owner exposed to unauthorized use or prior registration by third parties. In this case, Rosalía has also applied for registration in the United Kingdom and the United States, which is consistent with the international relevance of her previous Motomami World Tour. However, at the moment, there is no record of an application in China, where the release of the album before registration could have made it easier for a third party to get ahead. Without a local registry, it would be more difficult to take action against possible infringements or misuse of the “LUX” trademark in that market. The distinctive character of “LUX” One of the key aspects for granting a trademark is its distinctive character. The EUIPO examines applications to reject generic or descriptive signs in accordance with the absolute prohibitions of the EU Trademark Regulation. Although “LUX” means “light” in Latin and is commonly associated with luxury, this term does not directly describe the protected products or services (such as clothing, music recordings, or entertainment services). Therefore, there are no apparent legal impediments to its registration. Figurative and symbolic trademarks: particularities In parallel, another of the registered trademarks related to “LUX” is a symbol. These figurative trademarks can also be registered, provided they are not limited to generic shapes and possess sufficient distinctiveness. Unlike word marks, their distinctiveness is assessed from a visual perspective, considering whether the graphic sign allows identification of the business or artistic origin of the products and services offered. Publicity and transparency in applications In the case of European Union trademark applications, it is common practice that the timeline and information relating to possible oppositions are not shown until publication. This is because, while the application is in the examination phase, the opposition period has not yet opened and certain data are only accessible to the holder or their authorized representative before the Office. The European Union Intellectual Property Office does not provide for the confidential processing of applications, therefore, this would not be a confidentiality strategy. Once the application is published, all essential information would become public. Trademark ownership and relationship with the record label In this case, in order for the record label to claim part of the income derived from the exploitation of the trademarks, we must base ourselves on what was agreed between the parties. In principle, without a formalized licensing agreement with the record label, the artist herself will receive the income generated by the use of the trademarks registered in her name. Legal strategies to capitalize on intangibles In the strategy to capitalize on the release of a record, various variables come into play, depending on the creativity of the artist or the work team. An example of how to exploit intangibles in this context is the case of Rosalía's album cover, presented at a massive event in Callao. To create the cover, it is necessary to transfer certain rights from the collaborators involved, such as the photographer or the designer, and these rights are usually owned by the record label, in this case, Columbia Records. Another way to capitalize on the launch, exploiting intangibles, is through Listening Parties, a format originating in the United States and used by major artists such as Ye (aka Kanye West). These types of events serve not only as a promotional tool to generate excitement, but also as a unique experience for fans, who can listen to the album for the first time with the artist. Rosalía, in particular, has opted for a more intimate format than other artists, thus creating a more personal connection with her audience and expanding the experience surrounding the release. This has undoubtedly made it necessary to consider a series of legal actions to protect this activity. For example, formalization of contracts with the spaces, public communication licenses, data processing conditions, access. In short, as with almost all music releases, it is the collection of legal actions that makes a difference in whether a product can be successful. Common Mistakes in Intangible Asset Management: The starting point for capitalizing on intangible assets to avoid future problems...Read more

Did you know that on November 6, 1975, after four years of development, overcoming all kinds of obstacles, the rock opera "Jesus Christ Superstar" premiered at the Alcalá Palace theater in Madrid? The musical, produced and starring Camilo Sesto, had a huge impact on the world of culture and copyright in Spain at that time. Let's recall some milestones and lessons. The international trajectory of the musical "Jesus Christ Superstar" was created in 1967 by a young Andrew Lloyd Webber and Tim Rice, and its commercial exploitation followed a paradigmatic path: first, it was recorded on an album (October 1970, with Ian Gillan of Deep Purple as the singer!); then it premiered in the theater (Broadway 1971, London 1972); next, it became a film (1973); the film's soundtrack was then released on an album (1973); after that, the musical began to tour the world with various productions and stage revisions that continue practically to this day; and finally, the title was registered as a trademark of the European Union (...). Its arrival in Spain: The reception of the musical in Spain, due to the political and market situation, presents a very different profile. The film was presented at the Valladolid Film Festival on May 5, 1974, and would not reach commercial theaters until February 1975; the theater premiere took place in November of that same year; and the soundtrack in Spanish, sung by the main trio (Camilo Sesto, Teddy Bautista and Ángela Carrasco) would reach record stores at Christmas 1975. Private production and legal obstacles The musical in Spain was an entirely private production. "The tax structures/AIEs of today did not exist then, and Camilo Sesto could not find sponsors or backers," Mabel Klimt tells us. Camilo Sesto risked his personal fortune in the endeavor. In order to obtain the rights, the organizers traveled to London to meet first with the record label; then with Lloyd Webber's representative agent; and from there with his lawyers. The Spanish version of the libretto also had to be authorized later. Obtaining a license for a Spanish company must have been quite an achievement, because the legislative difference in copyright compared to the UK was significant. Although Spain had ratified the Berne Convention for the Protection of Literary and Artistic Works in 1973, our Law dated back to 1879. It was not until Law 22/1987 that Spain would undertake the modernization of its legal system. Censorship and social repercussions Back in Spain, the production of the musical had to fight against the censors of the time. There were tweaks to the script, cuts in necklines, and adjustments to the staging. And plenty of cunning to overcome the difficulties! Camilo Sesto's live performance of the legendary theme song "Getsemani" on television programs awakened many consciences, scandalized a few, and marked for others the very beginning of the political transition in Spain. A musical and documentary legacy As Antonio Castán points out: "If a melodic artist like Camilo Sesto was able to embrace the cause of rock in a religious opera, what wouldn't be possible in Spain at that time!?"  For those who wish to delve deeper into the subject, we recommend the documentary "Jesus Christ Superstar; a milestone in the history of the Spanish musical," by Marta García Sarabia, produced in 2018 and still available on Filmin. It offers a tasty overview of the trials and tribulations suffered by the producers to obtain the license, evade censorship and build from scratch a pioneering musical in every aspect (technical, artistic, social, political, spiritual).  Meanwhile, let us sing, if you please, the "Hosanna, hey-sanna-sanna-sanna / Hosanna, hey-sanna, hosanna…"

Recent legal reforms have significantly improved the funding of the cultural sector. Theater, music and audiovisual productions can now benefit from tax incentives that promote their development and dissemination, and that have a significant positive impact on society. The role of tax incentives in the cultural sector These are measures that not only alleviate the tax burden of those who support cultural projects, but also open new avenues of financing for producers, causing the system to benefit both promoters and creators as well as investors. Access to funding remains one of the main challenges for those who produce cultural projects. In recent years, tax regulations have incorporated measures that partially alleviate this obstacle, opening up new possibilities for certain projects to access other sources of financing with the greatest possible legal guarantees. Evolution of the legal framework Currently, cultural productions of various kinds such as audiovisual works, plays, concerts or dance performances can benefit from a system that recognizes the right to apply tax deductions in the Corporate Income Tax. These deductions can be used by the producers themselves or, under certain conditions, transferred to third parties interested in participating in the project, that is, to investors. The audiovisual sector has traditionally enjoyed the greatest tax recognition, as the first specific incentives were introduced in 1995, although they were small and unattractive measures. They were consolidated following substantial modifications to the regulations in 2015 with the reform of the Corporate Tax, which established an attractive framework for national and international productions. In recent years, this favorable treatment has been progressively extended to other disciplines, such as the performing arts and live music, which did not have their own regime until 2015, when a specific deduction was incorporated for the first time. Although differences in scope and percentages still exist between sectors, the regulations have evolved towards a broader and more integrated approach to all cultural activities. Benefits for producers and investors For many producers, these tax incentives in film have provided a complementary source of financing, enabling them to carry out projects that would otherwise be more difficult to realize, thus contributing decisively to the development of the industry. As we announced, the tax regulations also include benefits for those who decide to participate by contributing an economic amount in cultural projects developed by third parties that, under certain conditions, can be used by private investors. This model allows companies and professionals to collaborate in cultural development with the possibility of obtaining a deduction in Corporate Income Tax or, in some cases, in Personal Income Tax. It is not about subsidies, but a system that channels part of the tax effort towards cultural activities with social and economic impact. Challenges in cultural regulations Investor participation in these types of initiatives has increased in recent years, driven by regulatory clarity and the appeal of combining a cultural purpose with tax optimization. Although there are still many areas for improvement, such as in the equalization of tax treatment between different disciplines and models, the current framework increasingly offers tools that can contribute significantly to the access, production and preservation of culture in its many forms.   Inés de Casas, Senior Associate in the Media & Entertainment area

In the audiovisual sector, every frame counts… also from a legal perspective. A film or television work may include elements that, if not managed properly, can lead to claims, distribution blocks, or even legal action. Therefore, legal clearance is an essential step in any production. What is Clearance in the cinema? Clearance is the legal review process for an audiovisual work to detect elements protected by third-party rights (such as musical works, trademarks, artistic works, or personal data), verify whether those rights are valid, and, if applicable, obtain the necessary authorizations for legal use. This work includes: Identifying protected content in the work. Check whether the rights are in force or have entered the public domain. Negotiate licenses with copyright holders where necessary (e.g., synchronization licenses or inclusion of pre-existing works). If you're interested in learning more about what clearance is and how it's applied in practice, you can watch this explanatory video: What is Clearance in Film? – Elzaburu video https://www.youtube.com/watch?v=yMeC3Z38uM8 What third-party rights may be involved? Several types of rights may come together in the development of an audiovisual project. The most common are: Copyright They affect any pre-existing artistic creation: Cinematographic works, literary works, paintings, photographs, sculptures Photographic works and mere photographs Music Fonts: many fonts are protected by copyright Industrial property rights Trademarks: their use may require authorization if it involves improper use or may generate confusion about the origin of the product Industrial designs Personal data License plates, telephone numbers or real documents may be considered personal data. At Elzaburu, we always recommend avoiding the use of real personal data, since even if we obtain the data subject's authorization during the recording process, it may change ownership later. Right to honor, privacy and one's own image Especially relevant in productions based on real events, true crime or docu-realities, where directly or indirectly identifiable people may appear. When should I hire a clearance coordinator for my audiovisual production? Clearance should be part of the project from the beginning: Development: review of the script to identify possible conflicts Pre-production: collaboration with the art department to verify sets, signage, objects or fonts Production: analysis of elements that may arise during filming Post-production: review of the assembly and issuance of legal reports before final delivery This monitoring allows to minimize legal risks, optimize resources and avoid costly last-minute changes.   Frequently Asked Questions About Clearance in Audiovisual Productions What exactly is reviewed during the clearance process? Elements that may be protected by third-party rights (music, trademarks, artwork, identifying data, etc.) to determine whether they require the required authorization or license. When is the best time to clear? From the conception of the script. The sooner risks are identified, the easier it will be to avoid them and adapt production without additional costs. Can a trademark be displayed without permission? It depends. If there is no prominent or promotional use of the trademark, authorization may not be required. However, each case must be analyzed individually. What if a song is only used for a few seconds? Even short fragments require a license if they are not in the public domain. Musical synchronization requires the owner's authorization, unless the work is in the public domain or under an applicable free license. What about license plates or phone numbers that are displayed on the screen? Although they may seem random, they can be considered personal data. As a precaution, it is best not to use real data. What happens if clearance is not made? Legal claims, distribution blockages, insurance issues, and lost business opportunities may occur. Is clearance mandatory? It is not a formal requirement by law, but it is an essential legal practice. In fact, many platforms, distributors, and insurers require it as part of the delivery process.   Are you developing an audiovisual work? From Elzaburu's Media & Entertainment Department, we assist producers, platforms, and studios in identifying and managing all third-party rights involved in their projects, minimizing risks from the script to the premiere. Our experience combines technical knowledge in intellectual and industrial property and image rights with a practical understanding of how audiovisual productions work. Claudia Fernández, Junior Associate in the Media & Entertainment Area at Elzaburu

In recent years, tax incentives for film have played a fundamental role in the audiovisual industry in Spain. These incentives have not only favored the creation of national productions but have also attracted important international co-productions, making Spain a prime filming destination. This article will address what tax incentives are in the film industry and how tax deductions operate, as well as the relevance of Economic Interest Groupings (EIGs) in this context, with special attention to recent legal developments affecting these entities. What are tax incentives in the film industry? Tax incentives for film are a key tool for financing film productions, helping to boost the audiovisual sector, both domestically and in its ability to attract international filming. One of the main tax incentives available in the country is film tax deductions, which allow film production companies to recoup part of their investment in audiovisual projects. These deductions, regulated by the Corporate Income Tax Law, are implemented through a system that allows producers to deduct a percentage of the expenses incurred in the production of a film, series, documentary, short film, or animation. They also apply to performing arts or musical shows. The tax deduction varies depending on several factors, such as the type of production (national or international), the location of the shoot, the use of local resources, and the involvement of Spanish companies in the production. These benefits allow Spanish film industry to remain competitive in a global market where tax incentives are a decisive factor when choosing a filming location. The role of EIGs in film tax incentives EIGs (Economic Interest Groups) are non-profit entities created to facilitate cooperation between various companies or professionals to carry out a common project. In the film industry, ISAs bring together various industry players to finance and produce films. The AIE is established as a producer, developing production as part of its activity, and thanks to its legal status, it can transfer the tax consequences of production to the partner in place as of December 31 in exchange for obtaining financing for the project. That is, taxpayers who wish to take advantage of the tax benefits generated by audiovisual production and live shows pay a price to become partners in an AIE and thus be able to claim the favorable tax results it offers, of course, always with a return that makes the transaction attractive to these investors. EIGs are crucially important in the film industry, as they not only provide access to tax incentives but also facilitate the financing of major productions. By being registered with the Institute of Cinematography and Audiovisual Arts (ICAA), AIEs can benefit from tax deductions for investments in film production, which significantly reduces production costs. How do tax deductions work through the AIE? Film tax deductions through AIEs function as a vehicle for tax transparency. This is an entity that transmits the tax consequences at its headquarters directly to its resident partners based on their participation percentage. This means that investors or producers participating in an AIE can obtain a percentage of the deduction generated by the film's production. From all of the above, the advantages of using an AIE for film investments arise, including: Flexibility, as it allows the use of an independent vehicle to make the investment, but with a more open structure than that of a company and its taxation. Tax benefits and incentives that are directly attributed to investors as if they had made the investment themselves. Possibility of increasing the investment volume in a vehicle with very flexible management and operation, thanks to the involvement of multiple investors. In the AIE, tax treatment is adjusted to the regulations in force at any given time. AIEs must meet specific requirements established by the ICAA to access tax benefits. These entities are an attractive option for producers, as in addition to providing tax incentives, they provide a more flexible and efficient structure for project financing. This methodology has the approval and approval of the administration, which confirms the quality of the AIE as a producer, and even has the promotion of the Film Law, which in its article 21 states: “For a better use of the tax incentives provided for in the tax regulations (…) the Institute of Cinematography and Audiovisual Arts (ICAA) will promote: a) The constitution of AIE's to which the tax regime established in the TRLIS (art 48 and 49) will apply (…)” The National Court revalidates the AIE model for tax deductions in audiovisual productions Recently, the Spanish audiovisual sector has witnessed an important key ruling that reinforces the stability of tax deductions in the audiovisual sector and endorses the use of Economic Interest Groupings (AIE) as an investment engine. The National Court issued a ruling in January 2025 confirming that private companies can indeed obtain tax benefits from film productions, overturning a previous ruling by the Spanish Tax Agency (AEAT). This court ruling responds to a dispute between the AEAT (Tax Agency) and an IEA (Investment Company) that had requested a tax deduction for its investment in the production of a film. The AEAT had argued that the AIE did not meet the requirements to be considered a legitimate producer and, therefore, could not access the tax deduction. However, the National Court overturned this ruling, establishing that AIEs, as production and financing vehicles, have the right...Read more

Artificial intelligence (AI) has been transforming our lives for decades through automation and mechanization processes. From personalized ads to algorithms on platforms like Netflix, this technology is already part of our daily lives. However, generative AI has represented a paradigm shift by being able to create content on its own, generating a revolution in the creative and cultural industries, especially in the audiovisual sector. The Impact of Generative AI on Cinema Cinema, as an industry based on intellectual property, faces significant challenges in the face of generative AI that experts have not yet been able to solve. Some argue that creations using this technology are not protectable, as regulations require human intervention in order for intellectual property to be protected. While others argue that the author is the one who provides the prompter. However, under current regulations, the person who formulates an idea is not considered its author, so this debate about authorship remains open and has profound implications for the future of the industry. Adaptation and Response of Film Professionals to Artificial Intelligence Faced with uncertainty, film professionals have opted for two main paths: Restriction and control: Some prefer to limit the use of generative AI until clearer regulatory frameworks are established. Experimentation and change: Others see AI as an opportunity to push the boundaries of creativity and explore new forms of production. Generative AI, a global phenomenon The recent entry into force of the European Regulation on Artificial Intelligence raises questions about how this issue is regulated in other key markets such as the United States, the mecca of cinema. Although the differences are minor, the EU focuses on protecting privacy and preventing intrusion, reflecting a shared concern at a global level. Cinema, as an industry with an international vocation, cannot ignore the impact of generative AI. Major platforms are already promoting local productions with global reach, demonstrating that these technologies have the potential to transform current dynamics. The democratization of audiovisual creation One of the most promising aspects of generative AI is its ability to democratize content creation. Now, individual creators can also access advanced tools, reducing the technical and financial barriers that previously limited quality production. Technical professionals are exploring these tools in pre- and post-production, achieving surprising results. However, this raises new questions about intellectual property rights in an environment where human-machine collaboration redefines the boundaries of creativity. Legal aspects of generative AI in entertainment The relationship between generative AI and intellectual property is especially delicate in the audiovisual sector. For example, some actors are including clauses in their contracts to prohibit the use of their image in AI training or the generation of content without their authorization. In this regard, many platforms are already incorporating restrictions into their contracts, showing a cautious stance while legislation evolves. Towards a regulated and sustainable future for Generative AI The development of a balanced regulatory framework will be key to ensuring the sustainability of the audiovisual sector. Regulation that takes into account the interests of creators, companies and viewers, allowing this technological revolution to boost creativity without jeopardizing the economic viability of the industry. The combination of human talent and generative AI tools can lead to an unprecedented explosion of creativity, provided that legal and ethical challenges are addressed responsibly. Mabel Klimt, managing partner of Elzaburu