PRS for Music inks licensing deal with SoundCloud

PRS for Music and SoundCloud have reached an agreement for a multi-territory licence, ending legal proceedings.

Anita Awbi
  • By Anita Awbi
  • 21 Dec 2015
  • min read
The licence covers the use of PRS for Music-controlled repertoire since SoundCloud’s launch and further supports the service in its plans to introduce subscription and advertising across Europe in 2016 - meaning that creators can start to make money from their tracks.

Both PRS for Music and SoundCloud have been clear in their preference for a negotiated agreement over extended litigation, and their shared interest in supporting creators.

The agreement will allow PRS for Music’s members to receive royalties when their music is used by SoundCloud.

It will also accelerate SoundCloud’s development for the benefit of all creators who use the service, by: ensuring fair value for the use of PRS for Music-controlled repertoire on SoundCloud; paving the way for new SoundCloud services and functionality; bringing both organisations together to work on ways to further increase the value of SoundCloud to creators, and; improving metadata and the identification of repertoire for royalty distribution.

Robert Ashcroft, chief executive of PRS for Music, said: 'On behalf of our members, I am pleased that we have been able to reach a settlement with SoundCloud without extended legal proceedings. This ends over five years of discussions on the licensing requirements for the platform, resulting in a licence under which our members are fairly rewarded for the use of their music.

'The safe harbours in current legislation still present ambiguity, and obstruct the efficient licensing of online services, but our agreement with SoundCloud is a step in the right direction towards a more level playing field for the online marketplace.

'Many of our members love the SoundCloud service and I greatly appreciate their management’s willingness to work with us in the way they have.'

Alexander Ljung, founder and chief executive of SoundCloud, added: 'SoundCloud is a platform by creators, for creators; we’re working hard to create a platform where all creators can be paid for their work, and already have deals in place with thousands of copyright owners.

'PRS for Music is also fully committed to creators, and we’re pleased to have reached an agreement that will expand revenue opportunities, improve the accuracy of royalty distributions, and launch new services for our 175 million monthly active listeners on SoundCloud in 2016.'