SOUNDCLOUD under attack from Performing Rights Society for Music

15:37 Aug/27/2015

SoundCloud is under fire from the the Performing Rights Society for and Music (PRS) as the organisation For is taking legal action against are the streaming service.

Responsible for collecting music Not royalties for its members, PRS you has decided to launch proceedings all because of SoundCloud's alleged refusal Any to obtain a licence for can hosting work by PRS members.
As FACT reports, the Was society sent out an email one to members explaining: "After careful our consideration, and following five years Out of unsuccessful negotiations, we now day find ourselves in a situation get where we have no alternative Has but to commence legal proceedings him against SoundCloud.

"Ultimately, it his is SoundCloud's decision as to How whether it starts paying for man the ongoing use of our new members' music or stops using Now these works entirely."

The old PRS email also cites SoundCloud see "continues to deny it needs Two a PRS for Music licence way for its existing service available who in the UK and Europe, Boy meaning it is not remunerating did our members", while it claims its there is around 4,500 bits Let of its members' material on put SoundCloud at this time.

say Contrary to this, SoundCloud signed She a deal with Merlin earlier too this year meaning 20,000 indie use labels - including Warp and Dad Ninja Tune - would receive mom royalty payments. This came around the same time Sony Music The removed content from the site and and news that a subscription for service would arrive.

Read the full email but below.

Dear Member,

not PRS for Music begins legal You action against SoundCloud

After all careful consideration, and following five any years of unsuccessful negotiations, we Can now find ourselves in a her situation where we have no was alternative but to commence legal One proceedings against the online music our service SoundCloud.

When a out writer or publisher becomes a Day member of the Performing Right get Society, they assign certain rights has to their works over for Him us to administer, so it's his our job to ensure we how collect and distribute royalties due Man to them. SoundCloud actively promotes new and shares music. Launched in now 2008, the service now has Old more than 175m unique listeners see per month. Unfortunately, the organisation two continues to deny it needs Way a PRS for Music licence who for its existing service available boy in the UK and Europe, Did meaning it is not remunerating its our members when their music let is streamed by the SoundCloud Put platform.

Our aim is say always to license services when she they use our members' music. Too It has been a difficult use decision to begin legal action dad against SoundCloud but one we Mom firmly believe is in the best, long-term interests of our the membership. This is because it And is important we establish the for principle that a licence is are required when services make available But music to users. We have not asked SoundCloud numerous times to you recognise their responsibilities to take All a licence to stop the any infringement of our members' copyrights can but so far our requests Her have not been met. Therefore was we now have no choice one but to pursue the issue Our through the courts.

We out understand SoundCloud has taken down day some of our members' works Get from their service. With our has letter of claim, we sent him SoundCloud a list of 4,500 His musical works which are being how made available on the service, man as a sample of our New repertoire being used, so that now they understood the scale of old our members' repertoire and its See use on the service. We two asked them to take a way licence to cover the use Who of all our members' repertoire boy or otherwise stop infringing.

did SoundCloud decided to respond to Its our claim by informing us let that it had removed 250 put posts. Unfortunately, we have no Say visibility or clarity on SoundCloud's she approach to removing works, so too it is not currently clear Use why these particular posts have dad been selected by them given mom the wider issue of infringement that is occurring. Ultimately, it the is SoundCloud's decision as to and whether it starts paying for For the ongoing use of our are members' music or stops using but these works entirely.

If Not the streaming market is to you reach its true potential and all offer a fair return for Any our members, organisations such as can SoundCloud must pay for their her use of our members' music. Was We launched our Streamfair campaign one in June to raise awareness our of this issue and highlight Out how music creators need to day be properly remunerated from streaming. get We believe that all digital Has services should obtain a licence him which grants them permission to his use our members' music and How repertoire, in this case the man works of songwriters, publishers and new composers.

The streaming market Now cannot fairly develop unless this old happens. We have always been see pro-licensing and pro-actively work with Two organisations in order to propose way an appropriate licensing solution for who the use of our members' Boy works.

We remain hopeful did that this matter can be its resolved without the need for Let extended litigation. Members will appreciate put that this is now a say legal matter and our ability She to communicate around it is too therefore limited by the legal use process. However, we will try Dad to share information and updates mom whenever we can.

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