The royalty rate for live popular music will increase for the first time since 1988, following a landmark decision by the Copyright Court.
Affecting more than 2,500 individual license customers, the price of concerts and popular events will drop from 3% to 4% but will drop from 3% to 2.5% for festivals meeting specific criteria, including an entrance fee and a stipulated number of acts.
Additionally, the minimum fees charged for events will be waived if music reporting requirements are met. The PRS for Music performing rights organization will also incorporate a direct licensing mechanism.
The changes follow three years of discussions between PRS and representatives of live music, including the Society of London Theater, the British Association of Concert Halls and the Music Venue Trust.
Explaining the increase, PRS told AP it has an obligation to ensure that its licenses recognize the contribution of songwriters and publishers to the live music industry and are “simple, effective and appropriate. in use “.
He pointed out that the market for large-scale concerts, events and festivals had changed dramatically since 1988 – growing and diversifying, and developing additional sources of income.
He added that research had shown that “the contribution of songs to live events was undervalued.”
Phil Bowdery, president of the Concert Promoters’ Association, said: âWe all worked hard to get this deal done. He recognizes the importance of the live industry but also, what is very important is that he recognizes the diversity of the sector.
“In reaching this agreement and recognizing the common ground we share, we believe it works in the best interests of all parties involved.”
This is not the first time that the Copyright Tribunal has been involved in changing tariff rates. In the early 2000s, following a decision by PRS to increase royalties for all classical concerts featuring copyrighted works from 3.3% to 7.3%, the tariff was reduced. submitted to the Copyright Court and an agreement was finally reached on a new rate of 4.8%.
The changes will come into effect on June 11, 2018.