HomeInsightsIndustry reaches agreement on new live music licensing terms

The Copyright Tribunal has approved the terms of a new live music agreement following three years of discussions between PRS and representatives of the live sector.

PRS for Music launched a consultation on Tariff LP, which applies to live popular music events, with PRS members, licensees, stakeholders and live sector industry bodies in April 2015.

Agreement on the terms of a new Tariff LP was reached in July 2017 with major industry bodies representing the live sector, including: the Association of Festival Organisers, Association of Independent Festivals, British Association of Concert Halls, Concert Promoters’ Association, Glastonbury Festivals Limited, Music Venue Trust, National Arenas Association, Society of London Theatre, and the UK Theatre Association.

Terms of the agreed new tariff were subsequently submitted to and approved by the Copyright Tribunal and will become effective from Monday 11 June 2018.

The key amendments to the tariff include:

  • the royalty rate for concerts and all other live music events within the scope of Tariff LP, will increase from 3% to 4% [or 4.2%*], except for festivals that meet certain criteria, as below;
  • there will be a new royalty rate within the tariff for festivals that meet certain criteria, which recognises specific considerations for festivals. For these qualifying festivals the royalty rate will reduce from 3% to 2.5% [or 2.7%*];
  • the minimum fee charged for events will be waived entirely, providing that music reporting requirements are met; and
  • the incorporation of a direct licensing mechanism, as agreed with the live sector.

*The higher charge in both instances (4.2% and 2.7% respectively) would apply where the licensee elects not to account to PRS in respect of revenue generated from booking fees, administration and service charges.

PRS is currently notifying existing Tariff LP licensees of the Tribunal order and how the newly updated tariff will affect them. PRS says that it will also continue to work closely with representatives of the live sector to evaluate and assess developments across the live music industry and how they may affect the operation of the new tariff terms. To read PRS For Music’s announcement in full, click here.

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