Copyright Tribunal backs PRS For Music in cinema licensing dispute

The Copyright Tribunal has delivered a significant ruling in favor of PRS For Music in its licensing dispute with the UK Cinema Association (UKCA), marking a pivotal development in how music rights are managed within UK cinemas.

At the heart of the dispute was the licensing tariff for music used in films shown on cinema screens—a tariff that had remained largely unchanged for over two decades. PRS For Music argued that the previous fee structure, last negotiated around 2005, no longer mirrored the contemporary use of music within the cinema environment, citing an increased presence of musical works integrated into films.

The Tribunal’s decision acknowledges this shift in industry practice, endorsing an updated tariff designed to streamline the licensing process and enhance royalties for songwriters, composers, and other rightsholders. Central to the revision is a move away from a dual-tariff system based partly on ticket revenue, towards a simplified fee model calculated on admissions.

Under the new arrangement, the royalty rate per cinema attendee will rise from 7.33 pence to 7.9 pence, while the minimum annual fee per screen will see a notable increase from £75 to £131.50. These charges are set to be adjusted annually in line with inflation starting January 1, 2025. This adjustment aims to provide a more equitable and transparent framework for both licensors and exhibitors.

The ruling also addresses royalties related to concert screenings within cinemas, increasing the rate from 3% to 4% of combined ticket and booking fee revenue. This change reflects evolving forms of cinema content and the corresponding need to fairly remunerate music creators.

PRS For Music has indicated that these new terms will come into effect following final consultations with the UK Cinema Association and approval at an upcoming Tribunal hearing. The revised tariff rates will be applied retroactively to music usage starting from July 1, 2024.

Throughout the prolonged negotiation process, PRS For Music emphasized that the updated tariff not only better represents the growing role of music in cinematic storytelling but also aims to reduce administrative complexity for cinema operators. This balance is expected to facilitate smoother licensing arrangements while ensuring that rights holders receive fair compensation for their contributions.

The UK Cinema Association is set to collaborate with PRS For Music in the transition period, adjusting interim royalty payments and helping members adapt to the new framework. Details on this cooperative phase remain limited but signal a willingness to engage constructively following the Tribunal’s verdict.

This ruling reflects broader industry trends where music licensing models are increasingly reassessed to keep pace with changes in content consumption and production practices. As cinema continues to evolve, the decision underscores the importance of aligning licensing fees with contemporary realities, ensuring the sustainability of creative rights within the film exhibition sector.

In summary, the Copyright Tribunal’s support for PRS For Music’s revised tariff represents a milestone in rights management, one that reinforces the value of music in cinema and promises improved financial returns for creators. The outcome also highlights ongoing efforts to modernize licensing frameworks to reflect current usage patterns and economic conditions in the UK entertainment industry.