Select committee: Digital, Culture, Media and Sport Committee

Fifth Report - Creator remuneration

HC 156 Published 10 April 2024

Digital, Culture, Media and Sport Committee Creator remuneration Report on parliament.uk ↗

At a glance8 recommendations and 6 conclusions · Government response published 1 November 2024 (deadline 10 June 2024)

The government's response

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government welcomes the report but sets out a largely evidence-gathering and industry-led approach, with few firm commitments to the legislative or statutory measures the Committee recommended.

On a statutory private copying scheme, the government is "not ruling out" a private copying exception and levy, but "further evidence is needed"; the IPO will meet creative industries representatives on strengthening the evidence base.
On AI and copyright, the government "intend[s] to proceed carefully but with a degree of urgency" and "hope[s] to announce next steps soon". It does not set the deadline for legislation that the Committee sought.
On freelancers, it does not state a position on a Freelancers' Commissioner. A Good Work Review sub-group is "expected to discuss proposals" for one, and the five Good Work proposals are to be implemented "by March 2026".
On music streaming, its "current view" is that dialogue and "industry-led action" are best. It is confident the Working Group's membership is adequate and will "adapt the group if it feels it is necessary".

Read the government's response ↗ Report an error

What the committee recommended 14

1
Lack of UK private copying scheme threatens creators' reciprocal payments from abroad. Conclusion · paragraph 29
2
Introduce statutory private copying scheme with creative industries, safeguarding reciprocal payments from abroad. Recommendation · paragraph 29
3
Government's AI working group failed to produce IP code, favouring AI developers. Conclusion · paragraph 39
4
Require Government to establish mechanisms and a legislative deadline for AI creator compensation. Recommendation · paragraph 40
5
Creative freelancers lack unified voice, leading to declining pay and poor conditions. Conclusion · paragraph 58

See all 14 recommendations and conclusions

Sources

Fifth Report - Creator remuneration ↗The committee's report, HC 156, parliament.uk
1st Special Report - Creator remuneration: Government response ↗The government's response, 1 November 2024, parliament.uk

Recommendations and conclusions 14

1
Lack of UK private copying scheme threatens creators' reciprocal payments from abroad. Conclusion · paragraph 29 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
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.
2
Introduce statutory private copying scheme with creative industries, safeguarding reciprocal payments from abroad. Recommendation · paragraph 29 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.
3
Government's AI working group failed to produce IP code, favouring AI developers. Conclusion · paragraph 39 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
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.
4
Require Government to establish mechanisms and a legislative deadline for AI creator compensation. Recommendation · paragraph 40 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.
5
Creative freelancers lack unified voice, leading to declining pay and poor conditions. Conclusion · paragraph 58 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
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.
6
Appoint a Freelancers’ Commissioner with cross-departmental oversight to advocate for creative freelancers. Recommendation · paragraph 58 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.
7
Creators experience poor working conditions, inconsistent contracts, and inadequate support. Conclusion · paragraph 61 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
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.
8
Acknowledge and address poor creator working conditions by implementing Good Work Review recommendations. Recommendation · paragraph 61 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.
9
Maintain momentum on music streaming reform using finalised research into creator earnings. Recommendation · paragraph 69 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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”.
10
Drive fundamental reform of music streaming based on commissioned research results. Recommendation · paragraph 69 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.
11
Creator Remuneration Working Group membership gives creators minority voice and excludes producers. Conclusion · paragraph 73 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
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.
12
Revisit Creator Remuneration Working Group membership to give music makers a stronger voice. Recommendation · paragraph 73 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.
13
Music streaming revenue split does not reflect importance of songwriters and composers. Conclusion · paragraph 83 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
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.
14
Require Government to consult on measures incentivising optimal publishing rights rates for creators. Recommendation · paragraph 83 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
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.