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UK copyright collective PRS for Music has filed a lawsuit against Live Nation Entertainment, arguing that it is not properly breaking down the way VIP ticketing works, meaning that music creators could be missing out on money from live performances.
PRS for Music is suing the live entertainment giant, as well as its UK arm, festivals division Festival Republic, promoters DF Concerts and two Live Nation-backed events: Isle of Wight Festival and Manchester’s Parklife.
The lawsuit has been filed in the Intellectual Property division of the UK’s High Court by PRS and PPL PRS Limited, the joint venture with PPL that administers live music performance licensing.
Talking exclusively to Complete Music Update, PRS for Music said that “the vast majority of promoters and venues” comply with the requirements of the live music licensing tariff, “ensuring that music creators receive rightful payment for their works” but that Live Nation has shown “disregard for these requirements”.
In particular, PRS has taken issue with the way Live Nation accounts the value of VIP tickets and packages when calculating how much should be paid to the society. In the UK, permission is required from the relevant rights holders when their music is performed or played in public – such as a concert or festival, or when a DJ uses recorded music during their set.
This is usually done through the Popular Music Concert Licence, which is administered through the PRS and PPL joint venture.
For ticketed events, including concerts and festivals, the cost of the licence is calculated as a percentage of the amount of money made by ticket sales. The calculation is based on all of the money paid for tickets, excluding things like postage and VAT.
The disagreement is about how the price of a VIP ticket with additional perks is broken down, affecting how much is paid to PRS.
PRS told CMU that it was “committed to ensuring correct remuneration for music creators” and through the legal action it is “addressing Live Nation’s failure to correctly report the full price consumers have paid for VIP tickets and other ticket packages”.
“We urge all stakeholders in the live music sector to commit to transparency on ticket prices and sales, and to uphold standards that ensure both creators and the industry can thrive together,” added the statement from PRS.
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