Source · Select Committees · Culture, Media and Sport Committee
Recommendation 15
15
Paragraph: 139
Artists and their representatives face a systemic lack of transparency from both music companies and...
Conclusion
Artists and their representatives face a systemic lack of transparency from both music companies and the streaming services that license their works. This exacerbates the inequities of creator remuneration by creating information asymmetries and preventing them from undertaking their right to audit. Creators and their representatives have a right to know about the terms on which their works are exploited and verify the outcome of these agreements. It is also deeply concerning that this norm is challenging academic research efforts, including and in particular taxpayer-funded projects, despite efforts to positively engage music companies and streaming services in this endeavour.
Paragraph Reference:
139
Government Response
Not Addressed
HM Government
Not Addressed
The Government recognises that transparency in the streaming sector is an issue and that action in this area could be of significant benefit to musicians. The Government’s view is that this is an issue that the industry can, and should, seek to fix itself. To improve transparency for the benefit of musicians, the IPO will convene an industry- led technical working group, with the aim of agreeing standards for transparency in the industry. These discussions would draw on experiences of transparency standards in other countries, including those introduced in EU countries under the recent Directive on Copyright in the Digital Single Market. These standards could then form part of a voluntary code of practice for the music sector. The technical working group will be expected to report on their progress after 6 months. If the Government considers that this process is not leading to a satisfactory outcome, it will consider whether legislative intervention is warranted. The Government will not be taking forward the recommendation that it should require all publishers and collecting societies to publish royalty chain information. This is because it questions whether this approach is feasible or practical: these parties are unlikely to have oversight of the entire chain, so will not be in a position to publish all of this information. Collective management organisations (CMOs) are already subject to certain transparency obligations under the Collective Management of Copyright (EU Directive) Regulations 2016 (as amended following the UK’s exit from the EU), which require them to publish annual transparency reports including details of money received from, and paid to, other CMOs. The Government will consider whether there is scope to incorporate the Committee’s recommendation on global licensing deals into its work on international trade policy.