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57-685: Phonographic Performance Limited ( PPL ) is a British music copyright collective . It is a private limited company that is registered in the UK. PPL was founded by Decca Records and EMI and incorporated on 12 May 1934, and undertakes collective rights management of sound recordings on behalf of its record-company members, and distributes the fees collected to both its record company (rights holder) members and performer members. As of 2022, PPL collected royalties for over 140,000 performers and recording rightsholders. PPL continues to be owned by record companies, which it refers to as "rights holders", who are legally

114-460: A PPL licence. A PPL licence gives the licence holder permission to play recorded music from PPL's repertoire; the vast majority of commercially released music in the UK. Playing music that is outside of its copyright term or that is freely licensed does not require a PPL licence. In 2018 PPL and PRS for Music joined forces to streamline music licensing for businesses, coming together to launch PPL PRS Ltd. PPL licenses radio stations based in

171-453: A PPL licence. Exceptions are hotels, guest houses and bed and breakfast accommodation that have fewer than 25 rooms and have no areas that are open to non-residents, such as a bar or restaurant. A PPL licence is required when recorded music, within PPL's repertoire, including radio and television, is played in public. There is no statutory definition of "playing in public" and "public performance" but

228-470: A new Private limited company called PPL PRS Ltd which aims to streamline the process of obtaining a Music license in the UK. While both companies licence the use of music and collect royalties for the music industry, they represent different rights holders and have separate licences, terms, and conditions. PPL collects and distributes money for the use of recorded music on behalf of record companies and performers. PRS for Music collects and distributes money for

285-563: A single mechanical licensing database overseen by music publishers and songwriters. The cost of creating and maintaining this database will be paid for by digital streaming services and the database and tariff will be determined by an authority created under the MMA. The mechanism provided under the act will determine unclaimed royalties due to music professionals and provide a consistent legal process to receive them. Previously, these unclaimed royalties were held by digital service providers like Spotify to

342-459: A statutory monopoly, while others recognise effective monopolies through regulations. In Austria, the Society of Authors, Composers and Publishers ( Gesellschaft der Autoren, Komponisten und Musikverleger , AKM) has a statutory monopoly. German law recognizes GEMA as an effective monopoly, and the burden of proof is on an accused infringer that a work is not managed by GEMA. GEMA has one of

399-543: Is Peter Leathem OBE. Leathem was awarded the OBE for services to the music industry in the Kings 2023 New Years Honours List. PPL was formed in May 1934 by the record companies EMI and Decca Records , following a court case against Bristol coffee shop Stephen Carwardine & Co , which had been entertaining its customers by playing records. EMI, then called The Gramophone Company, argued it

456-862: Is a private limited company incorporated in the UK on 14 September 2016. It is equally owned by PPL and PRS with an initial shareholding allocation of one ordinary share to each party, creating one music copyright collective organisation in the UK that is responsible for licensing music and collection of fees. The company's stated aim is to provide the best music licensing experience in the world. PPL has international agreements, sometimes referred to as "Reciprocal Deals", with 95 music copyright collection societies, including Phonographic Performance Company of Australia (PPCA) in Australia, Gesellschaft zur Verwertung von Leistungsschutzrechten GmbH (GVL) in Germany, and AARC , AFM & SAG-AFTRA , and SoundExchange (P & R) in

513-481: Is being managed in a manner detrimental to the interests of the authors and other owners of the copyright. The major copyright societies in India are The Indian Performing Right Society Limited [IPRS] (for composers and publishers), Indian Reprographic Right Organisation [IRRO] (for literary organisations) and Indian Singers Rights Association [ISRA] (for performers). Phonographic Performance Limited [PPL] (for producers)

570-586: Is no longer operating as a copyright society under S.33 of the Copyrights Act 1957. The validity of PPL operating as a company has been debated and was considered by the 2014 case of Leopold cafe v. Novex Communication in which the Bombay High Court that s.30 of the Copyright Act 1957 allows a duly authorised agent to issue licenses on behalf of authors and other owners, therefore organisations can perform

627-405: The " Performing Right Society ", now called PRS for Music , which was founded in 1914 and originally collected fees for live performance of sheet music. As of 2018, PRS has entered a joint venture with PPL under a Leicester -based private company called PPL PRS Ltd , which aims to make it easier for their customers to obtain a music licence, which they have called " TheMusicLicence ". PPL's CEO

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684-413: The Copyright Act 1957. ISRA represents the interests of singers and aims to protect performer's rights as enshrined in S.38 and S.38A of the Copyrights Act 1957. IPRS represents composers, lyricists and publishers of music in India and is a registered copyright society under S.33 of the Copyright Act 1957. The Screenwriters Association of India [SRAI] earlier known as Film Writers Association represents

741-534: The Copyright Act of 1957. In order to do the business of issuing or granting license in respect of literary, dramatic, musical and artistic works incorporated in a cinematograph films or sound recordings it is necessary that the organization be registered as a copyright society under Section 33. The proviso to section 33 sub clause 3 states ‘Provided that the Central Government shall not ordinarily register more than one copyright society to do business in respect of

798-471: The GVL founded ZPÜ which is, as of 2020 , an association of nine German collective management organisations which asserts claims for remuneration, information and reporting related to reproductions/copies of audio and audiovisual works pursuant to Art. 53 paragraph 1-3 German Copyright Ac. Due to massive back payments, the GVL collected nearly €170 million ($ 200 million) in this sector in 2017. On 9 September 1965

855-472: The GVL in 2014 was €163.4 million. The GVL collected approximately €230 million ($ 261 million) for members in 2018, a 25.9 percent decline of income compared to the previous year's high of €310 million ($ 352 million). In May 2020 GEMA and GVL called for a state aid program for all sectors of the music industry in view of the effects of the COVID-19 pandemic . The GVL was founded as a joint society in 1959 by

912-628: The German legislature integrated Neighbouring Rights into the Copyright Law of Germany called Urheberrechtsgesetz (UrhG) as Related Rights to both Producers and Performers. Since 1 May 1976, the GVL had used the Label Code (also referred to as "Labelcode") for its internal data. The first issued Label Code 00001 was in 1977 and was issued to the record company Ultraphone . Label Codes made it easier for broadcasters to detect which recordings were covered by

969-612: The German orchestra union, Deutsche Orchestervereinigung e.V. (DOV) and the private company Deutsche Landesgruppe der internationalen Vareinigung der phonographischen industrie , which was the German national group of the International Federation of the Phonographic Industry (IFPI). The first two managing directors were Herrmann Voss and Rudi Thalheim. Its full legal name is Gesellschaft zur Verwertung von Leistungsschutzrechten mbH . On 16 May 1963 GEMA, VG Wort and

1026-594: The U.S. and Canada, groups that provide intermediary functions between copyright holders and performers of works such as music are called performance rights organisations or PROs. Other organizations such as artists' rights groups license and collect royalties for the reproduction of works such as paintings by living or recently deceased artists whose work has not yet entered the public domain . There are also collectives that collect royalties for copies from magazines and scholarly journals such as Access Copyright in Canada. In

1083-404: The UK courts have given guidance on its meaning and ruled that it means any playing of music outside of a domestic setting, for example at a workplace, public event or in the course of any business activities. No licence is required for listening on headphones. The playing of recorded music as part of domestic home life, or when the audience consists entirely of friends and/or family does not require

1140-561: The UK this is currently within the remit of the Musicians Union . Performer organisations PAMRA and AURA merged with PPL in November 2006, leading to an annual meeting and dedicated board specifically for performers. Performers had no rights until the right to equitable remuneration was brought in to law in 1996, at which point PAMRA and AURA came into being; PAMRA collecting for non-featured performers and AURA for featured ones. PPL PRS Ltd

1197-478: The UK, Isle of Man and Channel Islands to use recorded music within its repertoire in all forms of radio, from traditional FM/AM broadcasting to satellite and online streaming. With the relevant PPL music licence, broadcasters can use recorded music within PPL's repertoire and/or music videos in their programming with the permission of the performer and copyright owner. Applications for music licences can be made online. Anyone who owns or holds an exclusive licence to

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1254-468: The US, PROs ensure that rights holders are paid their share of public performance royalties, by issuing licenses to different companies and establishments and tracking where and how often the songs of their affiliates are performed at these public venues. An author can only be part of one PRO, as the five existing PROs in the US have distinct systems for tariffs and payment of royalty as they compete with each other in

1311-650: The US. The territories and societies that PPL currently hold agreements with do not all offer representation of performers; some offer representation to both rights-holders and performers and some only offer representation for rights holders. PPL is one of 44 ordinary members of the Societies’ Council for the Collective Management of Performers’ Rights (SCAPR), which was founded in 1986 and is based in Brussels , Belgium. It operates as an international platform for

1368-742: The VPL register and are kept under Section 352 of the Companies Act 1985 . Although technically a separate company, VPL operates under the same management as PPL. All activities relating to music videos are conducted as VPL business. Copyright collective Copyright societies evolved out of the need to have an organised body for licensing and managing copyrighted works. Without copyright societies, it would be impossible for users like restaurants, malls and large events to collect licenses from individual copyright holders and negotiate terms with them. Copyright societies negotiate prices and create tariffs on behalf of

1425-446: The activities of a copyright society without being registered under S.33 but it will not be referred to as a copyright society and cannot issue licenses in its own name. PPL now operates as a Copyrights Organisation [CRO] and can only issue licenses as an agent, therefore it must issue licenses in the name of the copyright owners and not itself. See Copyright Licensing Agency , Phonographic Performance Limited , and PRS for Music . In

1482-512: The authors that they represent and offset the imbalance of power between the users and the copyright holders. The lobbying power of copyright societies is especially important in industries like the music industry, where authors and owners of copyright are often placed at a disadvantage. The music streaming revolution was also projected as an attack on the power imbalance in the music industry. The evolution of technology and influence of music aggregators like Spotify, Apple Music and Pandora are changing

1539-511: The broadcasting license agreement with the GVL. The Broadcast Reports are vital for the remuneration of producers. However, the absence of individual track identification and associated Performers via the Label Code system via ISRC use has meant allocation of some performers' rights to equitable remuneration have been neglected. As of 2017, the GVL has adopted the internationally recognised ISRC form of sound recording identification which enables

1596-471: The copyright collective to discharge its functions, including the detection of unauthorized use, negotiation of licenses, collection of remuneration and distribution of collected remuneration amongst the members of the copyright collective on the basis of collected data. Copyright collecting societies in the European Union usually hold monopolies in their respective national markets. Some countries create

1653-592: The copyright society has control over all or most of the copyrighted works in a particular industry. Copyright law is territorial in nature, but copyrights are protected in multiple countries through international instruments such as the Berne Convention and the TRIPS Agreement . Along with licensing, copyright societies monitor the use of copyrighted works assigned to them and ensure that the copyright holders are fairly remunerated for such use. In order to monitor

1710-415: The copyright society representing the owner, and forwards payments to it. Gesellschaft zur Verwertung von Leistungsschutzrechten The GVL ( German : Gesellschaft zur Verwertung von Leistungsschutzrechten mbH ) is a German music copyright collection society that represents the interests of performing artists and producers of sound recordings. Its German name translates to English as "Society for

1767-457: The detriment of the authors. All of this will also ensure that artists are paid more and have a fair mechanism to approach for getting the money they are owed. This changes the scheme of S.115 of the US which governs compulsory licensing and allows the authority created under the act to issue blanket licenses for music to streaming services. While this does take away some agency of artists, there has been overwhelming support for this legislation from

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1824-516: The development of the practical cooperation between copyright collection societies that represent performers. Other ordinary members include GVL (Germany), SENA (The Netherlands), ADAMI (France) and RAAP (Ireland). Associate Members include ARCC (US) and SAMPRA (South Africa). Any business that plays recorded music within PPL's repertoire in public, such as a shop, bar, office, restaurant, gym, community building, not-for-profit organisation; or for activities such as dance classes, needs to have

1881-412: The download reports for the iTunes Store , which are used to determine their royalty payments. This acquisition is guided by the country's legal regime. Some jurisdictions, such as Hungary, create legal monopolies, and de facto monopolies arise in others. Once rights are acquired, the copyright collective then has to collect data on the uses of copyrighted works. The processing of this data will enable

1938-723: The economic aspects and the distribution of money from royalties of Italian-copyrighted music to authors and on their behalf. BUMA/STEMRA are two private organisations in the Netherlands , the Buma Association ( Dutch : Vereniging Buma ) and the Stemra Foundation ( Dutch : Stichting Stemra ) that operate as one single company that acts as the Dutch collecting society for composers and music publishers . Copyright Societies in India have to register themselves under section 33 of

1995-456: The existing system of copyright licensing and might make copyright societies obsolete. While the system of copyright societies is similar in all countries, their influence over the industry and mode of operation varies from country to country. Copyright societies operate by acquiring the right to license works from the owners and then negotiating and licensing the works to others. They usually operate in one particular industry and try to acquire

2052-499: The exploitation of ancillary copyrights ". Incorporated in 1959, the GVL represents 160,000 performers and over 12,000 rights-holders. They have international agreements in place, often referred to as "reciprocal deals" with music copyright collection societies including Phonographic Performance Limited (PPL), the oldest established sound recordings copyright collective. The GVL also collects so-called "secondary exploitation rights" on behalf of its members. The total income of

2109-492: The interests of lyricists, screenwriters and novelists. It applied for becoming a copyright society in 2017 but is currently operating as a trade union representing its members. Recently an application for registration under S.33 was made by the Recorded Music Performance ltd which controls public performance and broadcasting rights of sound recordings of its member companies. RMPL has applied for registration as PPL

2166-553: The largest share and non-featured a smaller share. The percentage allocation process is complex and dependent on a number of factors. PPL Performers are placed into categories on the Sound Recordings they have performed on; featured, other featured, and non-featured. A licence is required from PPL whenever recorded music within its repertoire is played in public or broadcast. PPL's repertoire includes all recorded music owned or controlled by its direct members or by members of any of

2223-543: The market. The five major PROs in the music industry in the US are ASCAP , SESAC , BMI , AllTrack , and SoundExchange . In the US copyright collectives are registered companies that act as agents of the owners of the copyright. The websites of the PROs have their Memorandum of association and Articles of association and their tariff policies. The validity of PROs was challenged in the 1979 anti-trust suit of Broadcast Music, Inc. v. CBS, Inc. in which CBS BMI and said that

2280-506: The membership at the AGM—all revenue generated from PPL licence fees is passed onto its registered record company and performer members as royalties for the use of their recorded music. PPL members range from session musicians and emerging artists to major record labels and globally successful performers. It is free to join PPL as a member. PPL's field of operation is distinct from the UK's other main music copyright collective previously known as

2337-423: The metadata (or details included in the file) of all the music registered by PPL's members that is relevant to both identify a piece of music and determine its legal status. PPL and PRS for Music are separate, independent companies and in most instances a licence is required from both organisations to legally play recorded music in public. As of 2018 both organisations have launched a joint venture via formation of

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2394-510: The most effective and lucrative music copyright administration systems. Hungary operates a legal monopoly. SIAE (English: Italian Society of Authors and Publishers, Italian: Società Italiana degli Autori ed Editori ) is the Italian copyright collecting agency. Founded in 1882 in the Kingdom of Italy , it is the monopolist intermediary between the authors of musical tracks and consumers, managing

2451-410: The music industry as it will ensure that licensing and royalty payments are transferred on a fair basis. The American Society of Composers, Authors and Publishers [ASCAP] has direct or indirect connections with copyright societies in over 30 countries. Once it receives information regarding unauthorised use of copyrighted works, the affiliated foreign copyright society collects the royalty on behalf of

2508-598: The only "members" and the only ones entitled to attend the annual general meeting . In 2023, PPL announced its 2022 financial results, revealing £272.6 million was collected that year, an increase of 7.8% on 2018, and that growth was achieved across broadcast and public performance revenue, but international revenue had decreased from 2021. PPL is a member of the British Copyright Council (BCC). After administration costs and contributions to anti-piracy activities and music industry charities—all of which are agreed by

2565-423: The overseas collective management organisations with which PPL has a reciprocal agreement. PPL's repertoire covers the vast majority of recorded music commercially available in the UK. The database is the core of PPL's business and the main interface with its registered members. The database holds all the information required to both license the music and to distribute collected licenses to PPL's members. It contains

2622-492: The performer could be eligible for royalties. This includes lead singers, choir members and musicians who have contributed to a recording, and could be eligible for PPL royalties. Inaudible contributions such as a conductor are also eligible. The equitable remuneration percentage paid to performers varies as defined in PPL UK Distribution Rules, Schedule 5: Performer Allocation Rules with featured performers receiving

2679-597: The right to a single equitable remuneration for the direct or indirect use of phonograms published for commercial purposes for broadcasting or for any communication to the public". When performers were granted the right to equitable remuneration through legislation, streaming services such as YouTube , Spotify and Apple Music did not exist and there is still no statutory right to remuneration for artist and performers when their performances are exploited by streaming services. Unlike its German counterpart GVL , PPL do not collect Secondary Exploitation Rights for performers; in

2736-479: The right to receive "equitable remuneration" where recordings of their performances were played in public or broadcast and until 2006, these rights were collected for performers by Performing Artists' Media Rights Association Ltd (PAMRA) and Association of United Recording Artists (AURA) for non-featured and featured performers respectively. Article 15 of the WPPT reads; "Performers and producers of phonograms shall enjoy

2793-411: The rights for recorded music that is broadcast or played in public in the UK can join PPL as a recording rights-holder member. This can include major record labels, independent labels, self-releasing artists or companies that have purchased the relevant rights. Anyone who has performed on recorded music can join PPL as a performer member. If an audible contribution has been made to a recorded music track,

2850-412: The same class of works’. This effectively creates a monopoly and mandates that only one copyright society can exist in a particular industry. This ensures concentration of bargaining power and equal terms of royalty in an industry. Copyright societies have to renew their registration under section 33 every five years and its registration can be cancelled at any time if the central government feels like it

2907-457: The tariffs decided by BMI were for blanket licenses and therefore amounted to price fixing. The court held in this case that the actions of PROs were not anti competitive as there was no bar on obtaining licenses from individual copyright holders. Digitisation and internet based music streaming services have majorly changed the music industry and the US copyright law has changed majorly to accommodate such innovation. Music Modernization Act (MMA)

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2964-642: The use of copyrighted works abroad, societies enter into MoUs or international licensing agreements with their foreign counterparts in the industry and exchange information regarding the use of copyrighted materials. Collecting societies can sell blanket licences, which grant the right to perform their catalogue for a period of time. Such a licence might for example provide a broadcaster with a single annual authorisation encompassing thousands of songs owned by thousands of composers, lyricists and publishers. The societies also sell individual licenses for users who reproduce and distribute music. For example, Apple must submit

3021-448: The use of the musical composition and lyrics on behalf of authors, songwriters, composers, and publishers. Video Performance Ltd , incorporated 23 May 1984, is a private limited company the PPL's website states is as a "sister company" but it is a separate legal entity. VPL licenses music videos when they are played in public or broadcast on television. VPL distributes the fees as royalties to its rights-holder members whose names appear on

3078-477: The works of all the authors dealing in that particular industry. The tariffs decided by copyright societies are based on the kind of event or venue of the licensee and usually allow the licensee to access the entire repertoire of works available with the copyright society. The royalty distributed to the owners is based on their market influence and demand for their works. Reduction of transaction costs and other benefits of collective management can be realised only when

3135-592: Was against the law to play the record in public without first receiving the permission of the copyright owners. The judge agreed, establishing this as a legal principle. EMI and Decca formed Phonographic Performance Ltd (PPL) to carry out this licensing role, and opened the first office in London. The Copyright Act 1956 led to the expansion of PPL's role to also cover the licensing of broadcasters that played recorded music. Further copyright law changes in 1988 strengthened PPL's licensing position. In 1996, performers were given

3192-421: Was previously registered as a copyright society under S.33 of the Copyright Act but now mentions on its website that it licenses and transfers copyrights under S.18 and S.30 and functions as a company registered under the Companies Act 2013 . PPL represents producers and record companies and is a major licensor of music to events and establishments. The ISRA and IPRS are registered copyright societies under S. 33 of

3249-526: Was signed by President Donald Trump on 11 October 2018 as the Orrin G. Hatch-Bob Goodlatte Music Modernization Act of 2018. The MMA streamlines the music licensing process in order to make it easier for copyright holders to get paid when their music is streamed online through services like Spotify, Pandora and Apple Music. Songwriters and artists will receive royalties on songs recorded before 1972 and this will ensure that songwriters are paid by streaming services with

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