UK considers changing copyright law for foreign music producers and performers
Options being examined, including ‘reciprocal’ system based on UK nationals’ rights abroad | IPO invites views from those affected until March.
The UK government is considering changes to copyright law regarding how foreign record labels and artists are paid when their music is broadcast or played in public.
On Monday (January 15), the UK Intellectual Property Office (IPO) launched a consultation which proposes different options for amending the law, inviting views from those who could be affected.
The consultation focuses on remuneration from broadcasting, such as radio, and the playing of music in public places such as nightclubs and gyms.
UK copyright law gives performers, such as musicians, and rights owners, such as record labels, the right to be paid when their sound recordings are broadcast or played publicly in the country.
Almost all foreign copyright owners qualify for this right, but foreign performers only qualify if they come from a country that provides similar rights to UK nationals.
Public performance rights (PPR) differ around the world—in the US, producers and performers are paid for certain digital transmissions of their music but not for other forms of broadcasting and playing.
The government said it intended to change how certain rights were extended to foreign nationals “to ensure UK law works for both creators and users and is consistent with the UK’s international commitments”.
Venues paying to play foreign music, even though users in those countries do not pay to play British music, resulted in costs “likely in the tens of millions of pounds per year, that do not have any clear corresponding benefits to the UK creative industries, to UK users, or to UK consumers”, the government said.
Impact on music industry
In the UK, PPR are administered by PPL, the collecting society for producers and performers of recorded music which issues licenses to venues allowing them to play recorded music to the public.
The government stated that in 2022, PPL collected over £188 million ($238 million) for the broadcasting and public playing of music in the UK.
Under the consultation, the options being considered are: providing PPR to producers and performers of sound recordings on a broad basis (option 1); providing PPR on material reciprocity terms (option 2); and applying option 1 to pre-existing sound recordings and performances, and option 2 to new sound recordings and performances (option 3).
The IPO estimated that option 1—where foreign performers would be compensated as well as producers—could cost US record labels £170 million from 2024 until 2033, with gains passed on to US recording artists.
It said it did not favour option 2, which may offer large savings for UK users but could also “lead to large costs to UK labels and artists and undermine investor confidence”.
Option 3 “could reduce costs to UK users and may results in gains for UK record labels and artists”, the Office said, but “could also lead to significant costs to the UK music industry. If this is the case, option 1 may be favoured”.
Adam Williams, chief executive of the IPO, said: “This consultation is focused on an important and complex issue, and it’s crucial that we gather a range of evidence and views. We strongly urge anyone with an interest in this topic to have their say and respond to the consultation by March 11.”
More information on the consultation and how to respond can be found on the government’s website.
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