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Phonographic Performance Limited

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PPL
Phonographic Performance Limited
Founded12 May 1934
FounderDecca Records, EMI
Merger ofAssociation of United Recording Artists (AURA) and the Performing Artists' Media Rights Association Ltd (PAMRA) into Phonographic Performance Ltd (PPL) in 2006
TypePrivate company limited by guarantee
Location
Area served
International
ServicesMusic Copyright Collective
Revenue
£271.8 Million (2019)
Websitewww.ppluk.com

Phonographic Performance Limited (PPL) is a British music copyright collective.[1] 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,[2] and undertakes collective rights management of sound recordings on behalf of its record-company[3] members, and distributes the fees collected to both its record company (rights holder) members and performer members.[3] As of 2019, PPL collected royalties for over 110,000 performers and recording rightsholders.[4]

PPL continues to be owned by record companies, which it refers to as "rights holders", who are legally the only "members" and the only ones entitled to attend the annual general meeting.[5] In 2019, PPL announced its financial results, revealing £271.8 million was collected that year, an increase of 10% on 2018, and that growth was achieved across all three revenue streams.[6] PPL is a member of the British Copyright Council (BCC)[7]

After administration costs and contributions to anti-piracy activities and music industry charities—all of which are agreed by the membership at the AGM—[8] 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 the "Performing Right Society",[9] now called PRS for Music, which was founded in 1914 and originally collected fees for live performance of sheet music.[10][11]

As of 2018, PRS has entered a joint venture with PPL under a Leicester-basedprivate company called PPL PRS Ltd, which aims to making it easier for their customers to obtain a music licence, which they have called "TheMusicLicense".[12][13][14]

History

Founding

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 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.

Performers' right to equitable remuneration

In 1996, performers were given 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 AURA and PAMAR for featured and non-featured performers respectively.[15][5] Article 15 of the WPPT reads "Performers and producers of phonograms shall enjoy 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". But, 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 explicit statutory right to remuneration for artist and performers when their performances are exploited through streaming services.[16] Unlike its German counterpart GVL, PPL do not collect Secondary Exploitation Rights for Performers nad in the UK this is currently within the remit of the Musicians Union.[17][18]

2006 mergers

Performer organisations Performing Artists' Media Rights Association Ltd (PAMRA) and Association of United Recording Artists (AURA) merged with Phonographic Performance Limited in 2006, leading to an annual meeting and dedicated board specifically for performers.[19][20] Performers had no rights until the right to Equitable Remuneration was brought in to law in 1996, at which point PAMRA (Performing Artists’ Media Rights Association) and AURA (Association Of United Recording Artists) came into being: PAMRA collecting for non-featured performers and AURA for featured. These two organisations merged into PPL in November 2006.[21][22]

Joint venture

PPL PRS Ltd is a Private limited company incorporated in the UK 14 September 2016. It is equally owned by the United Kingdoms two Music Copyright Collective Organisations, Phonographic Performance Limited and PRS for Music Limited with an initial shareholding allocation of 1 ordinary share to each party creating one Music Copyright Collective Organisation in the UK responsible for licensing music and collection of Fee's.[23] The stated aim of the company is to provide the best music licensing experience in the world.[24][19]

International agreements

Phonographic Performance Limited have international agreements (sometimes referred to by PPL as "Reciprocal Deals")[25][26][27][28][29] 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 U.S.A. The territories and societies that PPL currently hold agreements with do not all offer representation of Performers, some offer representation to both Rights-Holder and Performers like PPL and some only offer representation for Rights-Holder (Record Labels).[30][31]

PPL is one of 44 Ordinary Members of the Societies’ Council for the Collective Management of Performers’ Rights (SCAPR). SCAPR was founded in 1986 and is based in Brussels, Belgium.[32] It operates as an international platform for the development of the practical cooperation between Copyright Collection Societies that represent Performers. Other Ordinary Members include GVL (Germany), SENA (The Netherlands), ADAMI (France)[33] and RAAP (Ireland). Associate Members include ARCC (USA)[34] and SAMPRA (South Africa).[35]

Playing music in public

Music licensing for business

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 activities such as dance classes will need to have a PPL licence. One exception being a hotel, guest house or B&B that has fewer than 25 rooms and does not have any 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 TV, is played in public. There is no statutory definition of 'playing in public' (also sometimes referred to as 'public performance') but the UK courts have given guidance on its meaning and ruled that it is any playing of music outside of a domestic setting. So, for example, playing recorded music at a workplace, public event or in the course of any business activities is considered to be 'playing in public. No licence is required for listening on headphones. In contrast, any recorded music being played as part of domestic home life or when there is an audience entirely of friends and/or family (such as at a private family party) does not require a PPL licence.

A PPL licence gives the licence holder the 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 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.

Music licensing for radio broadcasting

PPL licenses radio stations based in 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 radio streaming.

Music licensing for television broadcasting

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 at ppluk.com[36]

Record Company Members

Record Company (Rightsholder)

Anyone who owns, or holds an exclusive licence to, the rights for when recorded music is broadcast or played in public in the UK can join PPL as a recording rightsholder member. This can include major record labels, independent labels, self-releasing artists or companies that have simply purchased the relevant rights.[3]

Performer Members

Performers

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, the performer could be eligible for royalties. This means anybody, from lead singers to choir members rock drummers to classical musicians, who has contributed to a recording could be eligible for PPL royalties. In addition, certain inaudible contributions (such as a conductor) are also eligible.

The equitable renumeration percentage paid to them varies[37] as defined in PPL UK Distribution Rules, Schedule 5: Performer Allocation Rules[38] with Featured performers receiving the largest share and Non-Featured a smaller share. The percentage allocation process is extremely complex and dependent on a number of factors.

PPL Performers are placed into one of the three following Categories on the Sound Recordings they have performed on;

  • Featured
  • Other Featured
  • Non-Featured

Repertoire

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 the overseas collective management organisations with which PPL has a reciprocal agreement.[39] PPL's repertoire covers the vast majority of recorded music commercially available in the UK.

PPL Database

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 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.[5]

The difference between PPL and PRS for Music

PPL and PRS for Music are two separate independent companies and in most instances a licence is required from both organisations to play recorded music legally in public. As of 2018 both organisations have launched a joint venture via formation of a new Private limited company called PPL PRS Ltd which aims to streamline the process of obtaining a Music license in the UK.[40] 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 the use of the musical composition and lyrics on behalf of authors, songwriters, composers, and publishers.

Unlike the PRS for Music, Phonographic Performance Limited (PPL) have no agreement in place to collect royalties on behalf of its performer members with any Streaming Platforms such as YouTube, Spotify, Apple Music, Amazon Music or Tidal meaning Performers and specially non-featured Performers (Session Musicians) often have their right to equitable remuneration and subsequent financial payment from the commercial exploitation of their Intellectual Property overlooked.

Video Performance Ltd (VPL)

Video Performance Ltd, incorporated 23 May 1984 is a Private limited company[41][42][43] and the Phonographic Performance Limited website states it as a "Sister Company". But, it is a separate legal entity.[44] The VPL licenses music videos when they are played in public or broadcast on TV. VPL distributes the fees as royalties to its rights holder members who's names appear on the VPL register of members and kept under Section 352 of the Companies Act 1985.[45] Although technically a separate company, VPL operates under the same management as PPL. All activities relating to music videos are conducted as VPL business.

PPL PRS Ltd

Launched in 2018, PPL PRS Ltd is a Private limited company incorporated in the United kingdom 14 September 2016. It is equally owned by the United Kingdoms two Music Copyright Collective Organisations, Phonographic Performance Limited and PRS for Music Limited with an initial shareholding allocation of 1 ordinary share to each party creating one Music Copyright Collective Organisation in the United Kingdom responsible for licensing music and collection of fee's on behalf of Phonographic Performance Limited and PRS for Music.[23] The stated aim of the company is to provide the best music licensing experience in the world. Anyone who plays or performs music in their business or organisation can get TheMusicLicence which aims to streamline the Music Licensing process.[40][24][19]

References

  1. ^ Adams & Adams - Werina Griffiths. "The role of collecting societies | Lexology". www.lexology.com. Retrieved 26 August 2020.
  2. ^ "PHONOGRAPHIC PERFORMANCE LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 19 August 2020.
  3. ^ a b c "Code of Conduct - PPL". www.ppluk.com. Retrieved 23 August 2020.
  4. ^ "PPL - What we do". Ppluk.com. Retrieved 5 June 2019.
  5. ^ a b c Aguilar, Ananay (9 August 2019). "The collective management of performers' rights in the UK: a story of competing interests". SCRIPTed. 16 (1): 4–48. doi:10.2966/scrip.160119.4. ISSN 1744-2567.
  6. ^ "PPL publishes 2019 financial results and Annual Review - PPL". www.ppluk.com. Retrieved 20 August 2020.
  7. ^ "Members". BCC. Retrieved 26 August 2020.
  8. ^ "PPL Company Annual Review 2011". PPL. Retrieved 28 August 2012.
  9. ^ "Licensing commercials. (PRS for music, 2017). PPL (Phonographic - Summary Writing Examples". Weather Bird. 25 April 2019. Retrieved 26 August 2020.
  10. ^ Aharoni, Yair; Nachum, Lilach (1 June 2000). Globalization of Services: Some Implications for Theory and Practice. Routledge. ISBN 978-1-134-73636-2.
  11. ^ Popular music and society - Page 39 Brian Longhurst - 2007 "The three types of right identified in figure 1.5 are sometimes further grouped into performing and mechanical. The Performing Right Society (PRS), which was founded in 1914, is the principal collecting agency for performing Right Basis for "
  12. ^ "PPL PRS Launches in Leicester | In the News". PPL PRS. 12 April 2018. Retrieved 27 August 2020.
  13. ^ "PPL and PRS launch joint venture to offer single public performance licence". Music Business Worldwide. 28 February 2018. Retrieved 27 August 2020.
  14. ^ Matters, Business (8 July 2018). "Music licensing made simple". Business Matters. Retrieved 27 August 2020. {{cite web}}: |first= has generic name (help)
  15. ^ Hitchens, Locke Lord LLP-Ben. "Copyright in the United Kingdom | Lexology". www.lexology.com. Retrieved 19 August 2020.
  16. ^ "Article: PERFORMERS' RIGHTS – Music Law Updates". Retrieved 19 August 2020.
  17. ^ https://www.gvl.de/en/gvl/about/legal-basis
  18. ^ "theMU - Recording Union | Music Recording & Broadcasting Rights | The MU". www.musiciansunion.org.uk. Retrieved 23 August 2020.
  19. ^ a b c "Our history - PPL". www.ppluk.com. Retrieved 19 August 2020.
  20. ^ "Association of United Recording Artists / Performing Artists' Media Rights Association Ltd / Phonographic Performance Ltd". GOV.UK. Retrieved 19 August 2020.
  21. ^ "PPL's Peter Leathem on how performers have transformed the collection society | Analysis | Music Week". www.musicweek.com. Retrieved 20 August 2020.
  22. ^ "Association of United Recording Artists / Performing Artists' Media Rights Association Ltd / Phonographic Performance Ltd". GOV.UK. Retrieved 20 August 2020.
  23. ^ a b "PPL PRS LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 21 August 2020.
  24. ^ a b "About PPL PRS Ltd | What we do | PPL PRS | United for Music". PPL PRS. Retrieved 21 August 2020.
  25. ^ "PPL announces Performer ER deal with Jamaican society | Complete Music Update". Retrieved 23 August 2020.
  26. ^ "PPL, ADAMI Strike Reciprocal Deal". Billboard. 26 July 2007. Retrieved 23 August 2020.
  27. ^ "PPL announces reciprocal deal with Serbian society | Complete Music Update". Retrieved 23 August 2020.
  28. ^ "PPL does reciprocal deal with New Zealand society | Complete Music Update". Retrieved 23 August 2020.
  29. ^ "PPL ADDS EUROPEAN PARTNERS". connection.ebscohost.com. Retrieved 23 August 2020.[dead link]
  30. ^ "International Agreements - PPL". www.ppluk.com. Retrieved 23 August 2020.
  31. ^ "Press corner". European Commission - European Commission. Retrieved 23 August 2020.
  32. ^ "About us – scapr". Retrieved 23 August 2020.
  33. ^ "Governance". Adami. Retrieved 23 August 2020.
  34. ^ "Welcome | Alliance of Artists and Recording Companies". AARC. Retrieved 23 August 2020.
  35. ^ "About Us – Sampra". www.sampra.org.za. Retrieved 23 August 2020.
  36. ^ "PPL website". PPL. Retrieved 28 August 2012.
  37. ^ "Member policies and distribution rules - PPL". www.ppluk.com. Retrieved 23 August 2020.
  38. ^ "Member policies and distribution rules - PPL". www.ppluk.com. Retrieved 24 August 2020.
  39. ^ "PPL website" (PDF). PPL. Retrieved 28 August 2012.
  40. ^ a b "What is TheMusicLicence?". PPL PRS. Retrieved 23 August 2020.
  41. ^ "Brit, Belgium rights orgs link up – Variety". webcache.googleusercontent.com. Retrieved 23 August 2020.
  42. ^ "VIDEO PERFORMANCE LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 20 August 2020.
  43. ^ Inc, Nielsen Business Media (3 May 2003). Billboard. Nielsen Business Media, Inc. {{cite book}}: |last= has generic name (help)
  44. ^ "Music video licensing - VPL". www.ppluk.com. Retrieved 20 August 2020.
  45. ^ "Member policies and distribution rules - PPL". www.ppluk.com. Retrieved 20 August 2020.
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