GovWire

Preamble

Fast paced and ongoing change in how music is distributed and consumed has increased the sophistication of licensing models and the complexity of processing and reporting usage data and associated royalties.

As the music industry continues to adapt to a constantly changing business landscape, we believe that continued dialogue - and clear and transparent sharing of relevant information - is desirable so that any lack of clarity or misunderstandings over methods of calculating and reporting revenues and royalties does not undermine the trust that is essential to a thriving music industry.

At the same time, we acknowledge the legal requirement to operate within the constraints of confidentiality agreements, data privacy laws and competition laws, and not to share information that could have the object or effect of restricting competition or stifling innovation.

This Voluntary Code is agreed by the trade body signatories on behalf of their members as a framework for minimum standards for good practice in their dealings with everyone involved in the music streaming industry, including signed Music Makers, and is focussed on the UK market.

The Code is intended to act as a stimulus for companies and organisations to provide ever better communications with each other and with Music Makers. It seeks to create a race to the top by driving up standards and encouraging parties to be transparent.

For the avoidance of doubt, any failure to abide by this Code shall not constitute a breach of any legislation or any relevant contracts, including licensing, recording, publishing and distribution agreements, which are regulated by their own terms.

Signatories

The following trade associations, membership organisations and collecting societies have signed this Code on behalf of their members:

• Association of Independent Music (AIM)
• British Phonographic Industry (BPI)
• The Digital Entertainment and Retail Association (ERA) on behalf of its digital music service members (DSPs)
• Featured Artists Coalition (TheFAC)
• Independent Society of Musicians (ISM)
• The Ivors Academy
• Music Managers Forum (MMF)
• Music Producers Guild (MPG)
• Music Publishers Association (MPA)
• Musicians Union (MU)
• Phonographic Performance Limited (PPL)
• PRSfor Music

Implementation period

Once the Code is signed, the industry trade body signatories will consult their members and agree an implementation period of at least six months after which the Code will come into effect on an agreed effective date. The Intellectual Property Office (IPO) will convene meetings of signatory organisations to assure progress during the implementation period.

During the first two years of the Code, signatories will seek to eliminate causes of misunderstandings within the industry, promoting trust via a greater dissemination of information on digital music. After that, signatories will consider how to improve the Code by considering additional commitments on transparency that take account of the changing business landscape.

IPO led review

The IPO will have oversight of the Code and its implementation.

It will convene meetings of signatory organisations every six months following the effective date to consider how the Code is working and whether it is fit for purpose.

The purpose of each such meeting and the business to be conducted will be decided by IPO and will include the level of transparency being implemented across the supply chain and what is good communication and signposting practice in accordance with the Code.

However it is agreed that the sole purpose and focus of the first meeting (six months from the effective date) shall be to review progress on the implementation of the Code at that point.

A formal review of the Code will be convened two years after the effective date to consider Code compliance and qualitatively evaluate the Codes impacts. This will also be led by the IPO.

Good faith and compliance

All parties commit to acting reasonably, proportionately and in good faith regarding the principles articulated in this Code, taking into account what is reasonably practicable, commercial and proportionate in the relevant circumstances.

In the event that one person or organisation believes that another person or organisation has fallen short of the principles set out in this Code, they will contact that person or organisation directly to discuss their concerns and seek to resolve the matter without further escalation.

Where no resolution is found through direct contact, either/or both parties may decide to contact their relevant trade body which may be able to broker further dialogue and seek to resolve the matter constructively. Trade bodies should keep a record of any involvement they have and may choose to identify common issues at the twice-yearly meetings on the Code.

While those involved in a particular matter are actively engaged in discussions or activities towards its resolution, everyone involved should allow reasonable time for the process, behave with mutual respect and not seek to criticise one another publicly about the particular matter. Trade bodies should help and guide their members in this respect.

Definitions

Throughout this Code, the term Music Makers means UK-signed artists, musicians, songwriters, composers, studio producers and other individuals who are operating under UK music contracts which provide for the payment of royalties.

Throughout this Code, the term Rights Holders means any entity empowered to license rights to another entity in the digital supply chain, including Label, Publisher, Distributor and Collecting Society.

Throughout the Code, the terms Label, Publisher, Distributor, Collecting Society and Digital Service Provider (DSP) mean those who are engaged in the activities traditionally associated with these terms, and specifically those with accounting and reporting responsibilities to Music Makers or to other Labels, Publishers, Distributors or Collecting Societies.

Collecting Societies includes Collective Management Organisations (CMOs), Independent Management Entities (IMEs) (both defined in the Collective Management of Copyright Regulations 2016), and other entities involved in the collective licensing of rights.

Labels, Publishers, Distributors, Collecting Societies and DSPs with accounting and reporting obligations shall be referred to as Reporting Parties in relation to such accounting and reporting obligations. These terms include any person or business acting in these capacities, including Music Makers who are self-releasing and have obligations to account or report to other Music Makers, as well as managers and others carrying out these activities.

Music Makers, Labels, Publishers, Distributors and Collecting Societies that receive such accounting and reporting shall be referred to as Recipient Parties in relation to their entitlement to receive such reporting and accounting.

1. Contracting with music makers

Labels, Publishers and Managers should work together (in tandem with their lawyers), in so far as is practical and possible, so that when Music Makers assign or exclusively license their rights to Labels or Publishers they are informed, either in the contract or otherwise, as to the scope of rights granted, what royalty information will be shared with them and how, and that they have a right to audit the royalty information from the applicable Label or Publisher.

To that end:

1.1

Labels and Publishers acquiring rights from Music Makers should clearly and strongly encourage them to seek suitable independent legal representation before signing any contract involving the assignment or exclusive licensing of their work.

1.2

Labels and Publishers may sometimes make a contribution towards the costs of legal representation for the Music Maker. Labels and Publishers should clearly state whether they are offering such a contribution and, if so, what kind of contribution and on what terms.

1.3

Managers should ende

View the original news story