The UK’s Intellectual Property Office are reconsidering how performance royalties are paid in the UK for foreign labels and performers.

The broadcast and public performance of recorded music generates revenues for the copyright-holders of music. In the UK, that is managed by the collecting society PPL. When the copyright-holders are foreign, things get a bit complicated.

The PPL are responsible for collecting the money and paying it out to societies in other countries for foreign labels and performers. This isn’t always straightforward, as some countries differ in copyright law. This means that sometimes a country is paying societies in another country that isn’t paying back for their own copyright holders.

The ‘reciprocity’ approach means that countries are not obliged to pay to societies which do not return revenues to their territory. However, the EU courts ruled that this isn’t allowed under European law. Now the UK is out of the EU it is having to define its own approach.

The rules in the UK currently differ between copyright owners and performers. This leads to labels often getting paid whilst performers don’t. The UK’s Intellectual Property Office (IPO) have now opened a consultation over which foreign performers should receive remuneration when their recording are playing in public or broadcast in the UK.

IPO boss, Adam Williams says: “This consultation is focused on an important and complex issue, and it’s crucial that we gather a range of evidence and views. We strongly urge anyone with an interest in this topic to have their say and respond to the consultation.”

In Q4 2023, the PPL reported paying out £48.7 million to over 137,000 performers and recording righstholders. That represented their highest December payment to date and was 13% more than Q4 in 2022.

You can read the IPO’s full statement on the consultation here.