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The Live Music Forum Rights Campaign

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This is a list of questions that we have put to PRS and PPL who have both graciously agreed to respond. Thus we hope to move to a greater understanding of how copyright revenues could be collected more fairly and better reach the struggling musicians who really need them.


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If you have any comments or stories of copyright collection or distribution difficulties please email us at,

editor@livemusicforum.co.uk

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PRS Answers

What kind of musician would benefit from being a member of PRS ?

It only makes sense to join PRS for Music if you are a songwriter or composer, not if you're a performer. We pay royalties to the creators of music and those who publish it.


What qualification does a writer need to join PRS ?

Your music needs to have been played in public such as performed live or used on radio, TV or online.

When would a small business such as a pub, restaurant, shop, factory or office, need a licence from you ?

If a business is using music then they would need a licence. They can contact us free – and confidentially – by calling 0800 0684828 to discuss their licensing requirements. There are some incidences where a licence would not be required for example for lone works.

How do you calculate the revenue distributed to members and what data sources are used ?

We calculate the revenue distributed to members through a variety of sources including set lists, play logs, sampling work and statistical models that we call analogies. Wherever possible – and cost effective – we get the most accurate data of what music is used and when. We can't be everywhere and listen to everything so we sometimes have to base our calculations on samples of specific business types, such as factories, and review this on a quarterly basis.

We are also using music tracking technology like the Sound Mouse system to enhance the accuracy of our data. In 2011 we received 26 billion streams of data of how our members' music was used.


How many members responded to the self-reporting process for live gigs in PRS venues last year ?


We set up our Gigs & Clubs scheme in 2004 for members to report their performances to us. In 2011 we had over 72,000 set lists submitted through the scheme and it was used by nearly 5,000 members. We're really happy with how our Gigs & Clubs scheme is working and have launched in Malta too where we are the collecting society for Maltese songwriters and composers.

We'd encourage any member who is performing live to submit their set list to us so we can check this with data we receive from venues or other sources.


How many local radio stations in the UK currently submit data on performances of songs by local bands ? Could a self-reporting process be introduced for plays on local radio stations ?

Over 90% of radio stations that we licence send us accurate digital log files of all music used, this includes songs played, jingles and bedding tracks.


Do you ask for playlists of tracks played in clubs which you license? If not, could a self-reporting process be introduced?


Yes we do. We're also looking at ways to improve music tracking technology in clubs to help with this process. We don't have details to announce yet, but hope to shortly.


Do you ask for or receive playlist information for small festivals where you issue a licence? If not, could a self-reporting process be introduced?


Yes we do. We have 100% set list collection record for all the festivals we license. We're very proud of this!

We also encourage our members to submit their set lists when they perform live, both in the UK and internationally, to help us collect and verify this data.


How do you calculate the distribution of revenue collected from:-

Pubs and clubs
Festivals
Radio stations
Shops and offices

All of these are documented in our distribution policies that are available online to members. Details are located at:

http://www.prsformusic.com/creators/memberresources/PRSforMusicroyalties/distributions/Pages/PRSdistributionpolicy.aspx



Pubs & Clubs / Shops & Offices – calculated using a combination of:

1) Census – A method of calculating music usage for royalty distributions, which attempts to include every instance of music use of every musical work used

2) Sample- A proportion of actual performance data, and

3) Analogy - A set of data deemed to be representative of actual usage processed for distribution purposes, instead of any actual usage data


Festivals
Based on actual set list data collected from festivals and other pop concerts - tThis is the same as the census method.


Radio stations
The majority of radio station royalty money is calculated using census data which is the most accurate way to pay royalties.


What recent steps have you taken and what plans in the pipeline do you have for distribution to a wider number of members along the lines we have mentioned ?


We always look to improve the accuracy of our distributions within the confines of being cost-effective. Our board is responsible for our distribution policy and it is reviewed regularly.


Do you support the idea of a "single copyright licence" ?


In many circumstances a single licence would be the easiest solution for business. We offer a combined PRS and MCPS licence to many of our broadcasters and online services. We're also working with our counterparts at PPL to provide joint licensing solutions and have recently launched a joint licence for the community buildings sector. We hope to increase joint licensing provision where possible over the next years.


What benefits, for musicians and promoters, would come from the media copyright hub, recently proposed ?

The scope of the copyright hub is still being defined but PRS for Music has been actively involved in the consultation regarding it and has worked directly with Richard Hooper with his feasibility study. Wherever possible we share the aim of making licensing simpler for businesses and believe the hub could provide a good solution for many licensing situations. There will still be many circumstances where organisations, such as large broadcasters/businesses/digital services would want to negotiate directly but for smaller scale licensing we think the hub would be a good edition to the mix.


Could the copyright hub facilitate the self-reporting processes suggested above ?

Potentially this could be factored in to the hub – it would all depend on the scope and how it is built.

3rd September 2012
PRS


PPL Answers

What kind of musician would benefit from being a member of PPL ?

Any person who has performed on, or owns the copyright in a sound recording that has received UK radio or television airplay or that has been played in public could be eligible to receive royalties if they become a PPL member.
Joining PPL is free and the application process can be completed in a number of different ways, including online at our website www.ppluk.com

What qualification does a writer need to join PPL ?

PPL acts on behalf of record companies and performers. In this context:

“Record companies” can effectively include any person or corporate entity which owns (or exclusively controls) the copyright in a sound recording in the UK, and you may find that we use terms such as “recording rightsholders” to describe these members.
“Performers” are those who have performed on recorded music, whether as the contracted/featured artist or a non-featured artist such as a session musician.

More information about joining PPL can be found on our website at www.ppluk.com including step by step guides on how to join as a member, register repertoire and make claims as a performer, as well as more detailed information about the data that PPL needs about recordings and a list of qualifying countries for performers.

When would a small business such as a pub, restaurant, shop, factory or office, need a licence from you ?

A PPL licence is required when recorded music within PPL's repertoire is broadcast, including radio and TV, or played in public. There is no statutory definition of 'playing in public' (also sometimes referred to as 'public performance') but the UK courts have given guidance on its meaning and ruled that it is any playing of music outside of a domestic setting – so, for example, playing recorded music at a workplace, public event or in the course of any business activities is considered to be 'playing in public'. In contrast, any recorded music being played as part of domestic home life or when there is an audience entirely comprised of friends and/or family (such as at a private family party) does not require a PPL licence.

When a PPL licence is required a licence will also be required from PRS for Music who represent the rights of songwriters, composers and music publishers. Where only live music is played (as opposed to recorded music), a PPL licence is not needed, but a PRS for Music licence will usually be needed to cover the use of the musical compositions and lyrics.

A PPL licence is also not required if none of the recorded music played is owned by any of PPL's members – such as recordings where the copyright has expired, or recordings sometimes referred to as 'copyright free' music (although the 'copyright free' music provider may still charge you a fee to use their recordings). The vast majority of recorded music is licensed by PPL – you can use the PPL Repertoire Search as a guide to what recorded music is covered by a PPL licence.

PPL also operates discretionary licensing policies for lone workers and home offices. If these apply to a business, then (despite the strict legal position) PPL will not require the business to obtain a licence. More detail on these discretionary policies can be found on our website at www.ppluk.com .

How do you calculate the revenue distributed to members and what data sources are used ?

PPL allocates revenue on a track level basis (i.e. revenue is allocated to specific tracks rather than at a record company level) in proportion to the amount licensees use each track and in proportion to how much revenue is generated by different licensees. This usage may be in the form of broadcasting the recordings, playing the recordings in public or copying the recordings for the purpose of subsequently broadcasting the recordings or playing them in public.

The broad stages in the process of allocating revenue to tracks are as follows:
(1) PPL's revenues and costs for the relevant exploitation period are prepared and then audited.
(2) The audited operating costs are allocated to the revenue streams (such as for example, broadcasting revenue from commercial radio stations, public performance revenue from shops) that the costs relate to. This results in a number of funds that are used to pay the relevant record companies and performers.
(3) Usage information is applied to particular funds in order to calculate the monies allocated to particular tracks.
(4) The resulting monies for each track are then divided between the record company that owns the track and performers whose performance is on the track. Revenues from public performance and broadcast are preliminarily split 50/50 between the record company and performers, subject to differing costs for administering the payments and whether the performances on the track are “qualifying performances”.

PPL utilises a number of datasets to ensure this process is done accurately and receives:

 Full airplay reporting from all major TV and radio broadcasters as well as a number of public performance customers who utilise tailored radio services and music playout systems within their premises.
 Full airplay reporting, identified using audio recognition technology, used to identify members' recorded music within licensed DVD and download-to-own programme sales.
 Music copying returns received from broadcasters copying music into TV and radio programmes as well as from licensed music copiers who supply music playout systems to our public performance customers.
 3rd party data sources - as received from market research, charts and airplay monitoring companies.
 Commissioned music usage surveys.
 Sample returns from small and specialist public performance sources.

The usage information applied to a particular fund will either be information that is directly related to licensees who provided the revenue for that fund, or will be derived from usage profiles built from information provided by other licensees, and weighted and applied according to information we have gathered about the kind of music played by the licensees whose revenue contributes to the fund.
The funds and profiles are approved by a Distribution Committee appointed by the Board of directors of PPL and drawing on representatives from performers and record companies.

Do you have any methods for members to report their own performances ?

PPL works with its licensees to secure comprehensive recorded music usage return data wherever possible and practical to do so. Where music is used by a broadcaster and a member does not receive a payment in that respect, PPL has an established music usage investigation process in place to enable members to query any missing payments.
Members wishing to use this process should complete a Music Usage Investigation Request Form available from our website. Investigating missing usage can be a time-consuming process and the amount of royalties in question is often small. This service is offered free of charge within 6 months of a distribution, although thereafter is subject to a £50 fee to request an investigation which is refundable if the member receives royalties of more than £50 following the investigation.

How many local radio stations in the UK currently submit data on local band performances or plays ? Could a self-reporting process be introduced for plays on local radio stations ?

PPL receives full reporting from all major commercial radio stations, therefore local band performances will be reported where one of their commercial recordings is used by the radio station.
It is important to note that PPL does not license live or specially recorded performances and therefore would not make a payment in these circumstances. It appears your question is more directed at live performances.

Do you ask for playlists of tracks played in clubs which you license? If not, could a self-reporting process be introduced ?

PPL does not currently receive playlists of tracks played in clubs. PPL would very much like to receive playlist information and is currently in discussions with the relevant trade body about better recorded music reporting from clubs.

Do you ask for or receive playlist information for small festivals where you issue a licence ? If not, could a self-reporting process be introduced ?

We do not receive recorded music airplay information from small festivals.

With regard to self reporting, PPL is currently developing a small claims process to enable members to make claims for airplay in places where no reporting is otherwise available.

How do you calculate the distribution of revenue collected from ? :-

Pubs and clubs

Pubs and Clubs revenue is distributed against surrogate usage based on a breadth of radio and music playout system data.

Festivals

Festivals revenue is distributed against surrogate usage based on selective radio airplay data.

Radio stations

Revenue from major radio stations is distributed against full radio airplay returns received from the stations. Revenue from smaller radio stations, (where reporting is unavailable) is distributed against surrogate usage. Surrogates are constructed by surveying the stations to identify the type and genre of music played, which is then matched against a reporting station or stations with a similar genre profile.

Shops and offices
A number of methods are used to distribute shops and offices revenue.
 Where they are licensed on a tariff that indicates that they are playing the radio, reflective radio airplay data is used.
 Where they are known to be using a music play out system that captures airplay, we work with the music provider to capture and use airplay or playlist information.
 Where they are not identified as above or suitable usage data is unavailable, revenue is distributed against surrogate usage. This is based on reported usage from major radio stations, music copiers, and airplay charts with the mix of usage data being based on PPL's established genre based profiles.

What recent steps have you taken and what plans in the pipeline do PPL have for distribution to a wider number of members along the lines we have mentioned ?

PPL is always working to develop its activities across the entirety of its business. PPL has invested significantly in its staff and IT systems to enable it to continuously improve its operations. PPL's membership is growing all of the time as are the number of recordings that PPL manages and pays out on. However, PPL also has to balance the burden it places on its licensees to comply with its licences. This means that it would not be proportionate to require all licensees to report all of their recorded music usage, nor would it be appropriate for PPL to seek to monitor all recorded music usage by all of its hundreds of thousands of licensees.

Do you support the idea of a "single copyright licence" ?


PPL endeavours to make it as simple and accessible as possible for music users to obtain the licence they need and is involved in and supports a number of initiatives with this aim in mind. However, there are innumerable ways in which a business may use materials protected by copyright and it is important that all contributors to these creative works are fairly compensated for the use of their work.
PPL works closely with PRS for Music on a number of projects. For example, from 1 January 2012 PPL and PRS for Music have operated a joint licensing solution for not for profit community buildings. PPL will continue to explore opportunities for co-operation with PRS for Music.
PPL also supports the initiative to create a copyright hub allowing music users to easily identify the licences they need and obtain them from the relevant organisations.

What benefits for musicians and promoters would come from the media copyright hub, recently proposed ?

PPL welcomes Richard Hooper's proposal for a copyright hub serving music users and rightholders, linking existing private and public sector rights registries and other copyright-related databases. While there is much work for the industry, including PPL, to do before the final form of the hub takes shape we hope that the hub will make it easier for music users to know which licences they need and link through to licensing solutions provided by PRS for Music and PPL.
For record company and performer members we hope that the hub would, alongside the continuing efforts of PPL licensing teams, contribute to more businesses being correctly licensed, resulting in increased royalties.

Could the copyright hub facilitate the self-reporting processes suggested above ?

This will depend on how the Copyright Hub takes shape over the coming year. We are not sure at the moment.

11th September 2012
PPL
Emal: editor@livemusicforum.co.uk