Fifth Report - Creator remuneration

Revenue from private copying from abroad is an important source of income for creators, remunerating them for the use of their works that is integral to the demand for electronic devices. Not only does a lack of such a scheme in the UK prevent British creators from receiving payments from the domestic market, but it has also put their payments from abroad under threat due to a lack of reciprocity with other countries.

We recommend the Government work with the UK’s creative industries to introduce a statutory private copying scheme, which, at minimum, safeguards reciprocal payments from abroad, to be produced within the next twelve months.

Despite our previous recommendations that the Government win back the trust of creators regarding their concerns over AI, its working group has not been able to bring forward a code of practice on AI and intellectual property. Although the Government asserted that it could consider legislating were agreement not reached, it has not indicated that it will do so. It is unlikely that simply conducting a further period of engagement with the sectors, with no clarity over its overall aims, will have any meaningful effect. We are concerned that the status quo simply favours AI developers, given creators’ concerns that their IP is already being used in AI development without licence or any practical means of recourse.

The Government must ensure that creators have proper mechanisms to enforce their consent and receive fair compensation for use of their work by AI developers. It should set out measurable objectives for the period of engagement with the AI and rightsholders sectors, which it has said ministers will lead on, and provide a definitive deadline at which it will step in with legislation in order to break any deadlock. We will continue to monitor developments in this area and recommend that our successor Committee do the same next year. (Paragraph 40) Freelancing and contractual terms

Freelancers make up a significant portion of the creative workforce but lack a single clear voice representing their interests to Government. This has resulted in a decline in pay and conditions that will cause long-term harm to the sector.

We recommend that the Government appoint a Freelancers’ Commissioner, with appropriate powers and cross-departmental oversight, to advocate across Government in the interests of creative freelancers, and of other freelance and self-employed people more broadly.

Many creators experience poor working conditions, including inconsistent use of contracts and terms and conditions, uneven responses to bullying, harassment and discrimination and a lack of proper support, accounting, training and development. This compounds the poor pay available in the profession and its high barriers to entry. (Paragraph 61) 44 Creator remuneration

The Government should acknowledge and address issues around contracts and working conditions by implementing the recommendations of the DCMS-sponsored Good Work Review, using the sector’s CREATOR campaign as a basis for fair working standards. (Paragraph 61) Economics of music publishing

We welcome the Government’s ongoing commitment to the reset of music streaming which we have advocated and note the recent metadata and transparency codes agreed by the working groups it led. The Government must now maintain this momentum in light of the finalised publications of research into “Music creators’ earnings in the digital era”, “Equitable Remuneration (ER) in the Streaming Age” and “Contract adjustment and Rights reversion”.

The Government must take stock of the results of the extensive research it has commissioned and look at how it can drive fundamental reform of music streaming with a package of measures designed to make streaming work for all.

We welcome the Government’s publication of the terms of reference for the Creator Remuneration Working Group and expect to see tangible steps to improve musicians’ remuneration and performer rights in the next twelve months. However, we note concerns that the group’s membership leaves creators themselves with a minority voice and vote among their peers and that record producers, who are integral to the music making process, are not included.

We recommend that the Government revisit the Creator Remuneration Working Group’s membership, in order to give music makers a stronger and fairer voice over issues of remuneration for the duration of the Group’s timespan.

The revenue split between recording and publishing rights does not reflect the importance of songwriters, composers and publishers in the music streaming process. We note that the Competition and Markets Authority has also concluded that it is for the Government to determine what is needed to reach an optimal split.

Given the contribution of songwriters and composers to the success of music streaming, we recommend that the Government bring forward measures for consultation with fans, music makers and other stakeholders to incentivise an optimal rate for publishing rights in order to fairly remunerate creators for their work. (Paragraph 83) Creator remuneration 45