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Phonographic Performance Limited

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This is an old revision of this page, as edited by DJ888kmg (talk | contribs) at 18:26, 23 August 2020 (→‎1996 Performers Right to Equitable Remuneration: link to GVL wiki and MU wiki). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

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 Collection Organisation
Revenue
£271.8 Million (2019)
Websitewww.ppluk.com.com
Not to be confused with PRS for Music.

Phonographic Performance Limited (PPL) is a Private limited company registered in the UK founded by Decca Records and EMI and incorporated on 12 May 1934[1] It licenses use of Sound Recordings on behalf of its Rights Holder members and distributes the fee's collected to its Rights Holder members and Featured Performers and Non-Featured Performer members. As of 2019, PPL collected royalties for over 110,000 performers and recording rightsholders.[2]PPL continues to be owned by record companies (also referred to by PPL as "Rights Holders"), who are legally the only “members” and the only ones entitled to attend the annual general meeting[3]. PPL announced its financial results for 2019, revealing that a total of £271.8 million was collected last year (an increase of 10% on 2018) and that growth was achieved across all three revenue streams.[4]

Its field of operation is distinct from the Performing Right Society, now called PRS for Music, founded in 1914, which originally collected fees for live performance of sheet music.[5][6]

History

1934 PPL is Founded

PPL was formed in May 1934 by the record companies EMI and Decca Records, following a ground-breaking court case against a coffee shop in Bristol.

The coffee shop, Stephen Carwardine & Co, 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.

1996 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.[7][8] 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.[9] 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.[10][11]

2006 Performer Organisations PAMRA and AURA merge with the PPL[12]

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.[13][14]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.[15]

2018 PPL and PRS for Music launch PPL PRS Ltd

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.[16] The stated aim of the Company is to provide the best music licensing experience in the world.[17][13]

International Agreements

Phonographic Performance Limited have international agreements (sometimes referred to by PPL as "Reciprocal Deals"[18][19][20][21][22]) with 95 Music Copyright Collection Societies including;Phonographic Performance Company of Australia (PPCA) in Austrailia. Gesellschaft zur Verwertung von Leistungsschutzrechten GmbH (GVL) in Germany. AARC, AFM & SAG-AFTRA, and SoundExchange (P & R) in U.S.A.

List of territories, 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).[23][24]

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[25]

Members

After administration costs, and certain contributions to anti-piracy activities and music industry charities (all of which are agreed by the membership at the Annual General Meeting[26]), all revenue generated from PPL licence fees is passed onto its registered 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.

Recording Rightsholders

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.

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.

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.[27] 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[28].

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 which aims to streamline the process of obtaining a Music license in the UK.[29] 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 it's 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 23rd May, 1984 is a Private limited company[30][31][32] and the Phonographic Performance Limited website states it as a "Sister Company". But, it is a separate legal entity[33]. 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.[34]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.[16] 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.[29][17][13]

References

  1. ^ "PHONOGRAPHIC PERFORMANCE LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 2020-08-19.
  2. ^ "PPL - What we do". Ppluk.com. Retrieved 5 June 2019.
  3. ^ Aguilar, Ananay (2019-08-09). "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.
  4. ^ "PPL publishes 2019 financial results and Annual Review - PPL". www.ppluk.com. Retrieved 2020-08-20.
  5. ^ Globalization of Services: Some Implications for Theory and Practice - Page 174 Yair Aharoni, Lilach Nachum - 2000 "In 1997, a 'Music Alliance' joint venture was formed with the older performing right society PRS (founded in 1914) giving publishers a de facto overall control over both performance and mechanical rights collection (and distribution) in the UK."
  6. ^ 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 "
  7. ^ Hitchens, Locke Lord LLP-Ben. "Copyright in the United Kingdom | Lexology". www.lexology.com. Retrieved 2020-08-19.
  8. ^ Aguilar, Ananay (2019-08-09). "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.
  9. ^ "Article: PERFORMERS' RIGHTS – Music Law Updates". Retrieved 2020-08-19.
  10. ^ https://www.gvl.de/en/gvl/about/legal-basis
  11. ^ "theMU - Recording Union | Music Recording & Broadcasting Rights | The MU". www.musiciansunion.org.uk. Retrieved 2020-08-23.
  12. ^ "Association of United Recording Artists / Performing Artists' Media Rights Association Ltd / Phonographic Performance Ltd". GOV.UK. Retrieved 2020-08-20.
  13. ^ a b c "Our history - PPL". www.ppluk.com. Retrieved 2020-08-19.
  14. ^ "Association of United Recording Artists / Performing Artists' Media Rights Association Ltd / Phonographic Performance Ltd". GOV.UK. Retrieved 2020-08-19.
  15. ^ "PPL's Peter Leathem on how performers have transformed the collection society | Analysis | Music Week". www.musicweek.com. Retrieved 2020-08-20.
  16. ^ a b "PPL PRS LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 2020-08-21.
  17. ^ a b "About PPL PRS Ltd | What we do | PPL PRS | United for Music". PPL PRS. Retrieved 2020-08-21.
  18. ^ "PPL announces Performer ER deal with Jamaican society | Complete Music Update". Retrieved 2020-08-23.
  19. ^ "PPL, ADAMI Strike Reciprocal Deal". Billboard. 2007-07-26. Retrieved 2020-08-23.
  20. ^ "PPL announces reciprocal deal with Serbian society | Complete Music Update". Retrieved 2020-08-23.
  21. ^ "PPL does reciprocal deal with New Zealand society | Complete Music Update". Retrieved 2020-08-23.
  22. ^ "PPL ADDS EUROPEAN PARTNERS". connection.ebscohost.com. Retrieved 2020-08-23.
  23. ^ "International Agreements - PPL". www.ppluk.com. Retrieved 2020-08-23.
  24. ^ "Press corner". European Commission - European Commission. Retrieved 2020-08-23.
  25. ^ "PPL website". PPL. Retrieved 28 August 2012.
  26. ^ "PPL Company Annual Review 2011". PPL. Retrieved 28 August 2012.
  27. ^ "PPL website" (PDF). PPL. Retrieved 28 August 2012.
  28. ^ Aguilar, Ananay (2019-08-09). "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.
  29. ^ a b "What is TheMusicLicence?". PPL PRS. Retrieved 2020-08-23.
  30. ^ "Brit, Belgium rights orgs link up – Variety". webcache.googleusercontent.com. Retrieved 2020-08-23.
  31. ^ "VIDEO PERFORMANCE LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 2020-08-20.
  32. ^ Inc, Nielsen Business Media (2003-05-03). Billboard. Nielsen Business Media, Inc. {{cite book}}: |last= has generic name (help)
  33. ^ "Music video licensing - VPL". www.ppluk.com. Retrieved 2020-08-20.
  34. ^ "Member policies and distribution rules - PPL". www.ppluk.com. Retrieved 2020-08-20.
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