This is no fun, I'd just invested in a new copyright tribunal hat, and then they go and reach an out of court settlement. So no hat wearing for me - well, not for the time being. Yep, large components of the previously reported dispute between the recording and publishing sectors of the British music industry were resolved yesterday, just hours before the dispute was due to go to court.
As previously reported, the BPI and the major download platforms and mobile operators have been in a long dispute with collecting society MCPS-PRS regarding what share of digital music revenues should go to the songwriters, composers and publishers which the royalty body represents.
For the last four years MCPS-PRS has said its members should receive 12% of digital revenues, almost double what they receive from physical CD sales because, they claim, the costs incurred by the record labels and retailers in delivering digital music are less. However, the labels and digital music sellers argued that they have to recoup the huge investments they have made in establishing the digital music market - something the publishing sector has not had to contribute to - and that therefore it was unfair for the songwriting community to be making such large demands at this time.
While MCPS-PRS had agreed to only charge an 8% royalty in the short term, essentially as an 'introductory discount', the society was still pushing to move up to 12%. With neither the BPI nor the major download platforms willing to take the necessary cuts to their own revenue share in order for MCPS-PRS members to enjoy such a royalty, they announced last year that they would take the collection society to a 'copyright tribunal' where an independent arbitrator would set a figure that all parties would have to adhere to.
That tribunal was due to begin on Monday, but was postponed until yesterday. Before the tribunal could start the BPI, MCPS-PRS and other parties announced that an out of court settlement had been reached that solved many key parts of the dispute - and in particular the royalty percentage. MCPS-PRS have agreed to a permanent 8% royalty, although with some guarantees on minimum pricing, which will shield the songwriting community to a certain extent from any price war in the digital music space. Certain streaming services will pay a 6.5% royalty.
The out of court settlement did not resolve all issues. Some of those issues will be dealt with in further out of court discussions, probably in November, while others are likely to still be dealt with at a smaller copyright tribunal, most likely sometime next month. But all parties yesterday agreed that the settlement provided a realistic framework that would allow all parties involved in digital music to move forward.
Confirming the deal BPI chief Peter Jamieson told Reuters: "This is a balanced voluntary settlement in which both sides can draw not just comfort, but excitement that they can go forward and build a business together based on an understanding that will work to the benefit of all".
EMI top bloke Eric Nicoli added: "Our collective focus must be on connecting our artists and consumers in every imaginable legal way and to returning our industry to growth".
Speaking for the other side, MCPS-PRS soon to be ex-boss Adam Singer said: "In a nutshell we're very happy about a voluntary settlement to go forward that is for both our benefits".