PRS takes legal action against Soundcloud
PRS takes legal action against Soundcloud. The PRS is a British performing rights organisation and they are suing Soundcloud for their failure to pay songwriters’ royalties. It’s a decision they have been led to, due to ‘years of unsuccessful negotiations,’ they say.
“After careful consideration, and following five years of unsuccessful negotiations, we now find ourselves in a situation where we have no alternative but to commence legal proceedings against the online music service SoundCloud. We have asked SoundCloud numerous times to recognise their responsibilities to take a licence to stop the infringement of our members’ copyrights but so far our requests have not been met. Therefore we now have no choice but to pursue the issue through the courts.” Said Karen Buse, PRS Executive director for membership
The legal action against Soundcloud comes after their successful year, the streaming site now has more than one hundred and seventy five million users each month.
Soundcloud has also indicated that it plans on launching a subscription service and, until last year they functioned without music licences.
According to the rumour mill, a licensing agreement with Universal Music is on the cards. However, Sony Music recently pulled all of its music from SoundCloud after stalled negotiations.
The US National Music Publishers Association (NMPA) has licensed SoundCloud, but the streaming site allegedly denies that it even needs a licensing deal with PRS for streams within the UK and Europe.
“It is regrettable that PRS appears to be following this course of action in the midst of an active commercial negotiation with SoundCloud. We believe this approach does not serve the best interests of any of the parties involved, in particular the members of the PRS, many of whom are active users of our platform and who rely on it to share their work and communicate with their fanbase. SoundCloud is a platform by creators, for creators. No one in the world is doing more to enable creators to build and connect with their audience while protecting the rights of creators, including PRS members. We are working hard to create a platform where all creators can be paid for their work, and already have deals in place with thousands of copyright owners, including record labels, publishers and independent artists.” Said a Soundcloud spokesperson to The Guardian
The PRS legal action against Soundcloud shows that the company has in fact, not yet agreed to a licence to pay song writers.
“If the streaming market is to reach its true potential and offer a fair return for our members, organisations such as SoundCloud must pay for their use of our members’ music.” said Karen Buse
Do you think the PRS legal action against Soundcloud is legitimate or do you agree with Soundcloud?
As PRS takes legal action against Soundcloud, learn more about the organisation.