UK Tribunal endorses Alliance online licensing approach

The UK Copyright Tribunal has returned its decision in relation to the rate paid to songwriters and composers when their music is used in online music services.

The Tribunal has endorsed a settlement agreement negotiated in September 2006 between the MCPS-PRS Alliance and the majority of the online music industry. The Tribunal concluded that this agreement, freely made between these parties, should be the basis for the template for online licensing in the future.

The Tribunal decision confirms that songwriters, composers and their publishers should receive 8% of gross revenues from online music service providers for on-demand services including downloads and subscription streaming services, 6.5% of revenues for interactive webcasting services and 5.75% for non-interactive webcasting. The concept of minimum royalties for all types of online use has been strongly confirmed, which was a key part of the Alliance’s case to protect its members’ rights and revenues.

Steve Porter, Chief Executive of the Music Alliance said: ‘This is a great result for music creators. We are happy that the Tribunal has endorsed our approach to the licensing of music used in online services.

‘The uncertainty has finally been removed and we have a template for the future that recognises and affirms the value of the creative process to the online music business.’