UK Music Royalties: Songwriters Missing Millions

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Songwriters are perhaps losing out on millions of pounds each year due to royalties that go unclaimed, primarily managed by Prs For Music. This collection agency,responsible for distributing royalties,faces increasing criticism and legal action over its handling of these funds,often referred to within the industry as the “black box.”

At numerous live performances ranging from classical concerts to pop gigs,Prs has collected a portion of ticket sales intended for songwriters. However, a notable amount remains unallocated due to incomplete song details. In fact, according to internal documents, £2.7 million alone was not allocated in 2019.

This issue has led to legal disputes, with artists questioning the fairness and transparency of Prs’s distribution methods. A high court case is in progress, with an option dispute resolution meeting scheduled for September 25.

The extent of the problem is showcased on the Prs website, which lists “concerts available for distribution.” This list includes over 106,000 performances dating back to 2022 where royalties have been collected but not yet distributed.

Did You know? Approximately three-quarters of these unallocated royalties are linked to pop gigs, typically held in smaller, grassroots venues.

While many artists on the list are lesser-known, names like Ronan Keating, The Jesus And Mary Chain, and 10Cc also appear. Venues range from O2-sponsored Academy sites to prestigious locations like the Jazz Cafe, Ronnie Scott’s, Durham Cathedral, and Leicester Racecourse.

Prs redistributes unclaimed money after three years using its own formula. Critics argue that this formula disproportionately favors larger artists over smaller acts.

According to Mark Davyd, Founder of The Music Venue Trust, this process is akin to a “reverse Robin Hood,” as Prs collects royalties but struggles to distribute them effectively, resulting in funds that cannot be allocated correctly.

Prs claims that it dedicates substantial resources to match live performances with the correct songwriters. This includes piloting tools that convert handwritten setlists into readable text.

A Prs spokesperson stated that they employ a team focused on researching setlist details manually and provide online tools to simplify setlist reporting for members. Staff are also sent to events to collect setlists in person.

Despite these efforts, some artists who have participated in Prs’s promotional materials about submitting setlists still appear on the list of unallocated royalties.

Dave Rowntree of Blur initiated legal action against Prs, alleging violations of competition rules in handling “black box” income, claiming the current system benefits music publishers more than songwriters. Additionally, the suit claims that Prs unfairly favors larger publishers to the detriment of smaller self-reliant publishers and self-published songwriters. The Competition appeal Tribunal is currently reviewing the case to determine whether it qualifies as a class action.

Pro Tip: Songwriters should meticulously document and submit their setlists promptly to ensure accurate royalty allocation.

Despite the controversies, Prs reported paying out a record £1.02 billion to rights holders in the past year, an 8% increase from 2023. Prs represents over 180,000 members and manages over 45 million musical works, collecting royalties for public performances, broadcasts, downloads, and streams both within the Uk and globally.

How transparent do you think royalty collection agencies should be? What measures could be implemented to ensure equitable distribution of music royalties?

The issue of unclaimed music royalties is not new, but it highlights critical aspects of the music industry’s infrastructure. Royalties are the lifeblood for many artists,providing income derived from the use of their creative works. When these royalties go unclaimed, it impacts artists directly, especially those in the early stages of their careers who rely on this income to sustain their creative endeavors.

The complexities in royalty collection and distribution often arise from incomplete data, lack of standardized reporting, and the sheer volume of performances and broadcasts. As technology evolves, so too must the systems in place to manage these transactions effectively.

Did You Know? According to a recent report by the international Confederation Of Societies Of Authors And Composers (Cisac), global collections for creators reached €9.2 billion in 2022, emphasizing the significant economic impact of royalties.

Society	Region	Key Focus	Unclaimed funds Handling
Prs For Music	Uk	Public Performance royalties	Redistribution after three years
Ascap	United States	Performance Rights	Distributes unclaimed funds to members based on market share
sacem	France	Multi-rights Management	Uses a similar redistribution model, prioritizing known rights holders

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The UK music industry is a global powerhouse, generating billions annually.However, beneath the surface of chart-topping hits and sold-out concerts, a significant problem persists: manny songwriters are missing out on their rightful music royalties. This article delves into the complexities of royalty collection, the reasons behind these losses, and what songwriters can do to ensure they get paid.

Understanding the different types of royalties is crucial for songwriters. This includes:

Several key players are involved in the complex process of collecting and distributing music royalties in the UK. Here’s a brief overview:

Several factors contribute to the issue of songwriters missing out on their royalties:

Association	Primary Role	Royalties handled
PRS for Music	Collects and distributes royalties for public performances and mechanical uses.	Performance, Mechanical (in part)
MCPS	Focuses on mechanical royalty governance.	Mechanical
Music Publishers	Manage song copyrights, license music, and collect royalties.	Performance (in partnership with PRS), Mechanical, Synchronization
Collecting Societies (e.g., PPL – phonographic Performance Limited)	Collect royalties for the use of sound recordings.	Sound recording royalties (paid to performers and record labels)

A 2023 report by PRS for Music estimated that millions of pounds in royalties go unclaimed annually. This can be due to incorrect or missing information that prevents payments from going to correct parties. This impacts not only songwriters but also the financial health of the organizations that represent them.

The Future of Music Royalties in the UK

The music industry is constantly evolving. Technological advancements and changing consumer behavior continue to impact royalty collection.