New issue of Music & Copyright with China country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

SPECIAL FOCUS: IPO report concludes that ER does not offer a simple solution to raising artists’ streaming income
The UK Intellectual Property Office (IPO) has published a report on the pros and cons of introducing equitable remuneration (ER) to on-demand music streams. Currently, ER is only paid to artists and performers when their works are broadcast on radio or performed publicly. The IPO was tasked with evaluating the impact of introducing ER to the investment environment for artists and record labels investing in the creation of new recording copyrights. Although the purpose of the investigation was not to consider the fairness of the current situation, or how the introduction of the proposed changes might lead to a more or less fair outcome, the Office did conclude that ER would not result in a solution to the current problem of low returns for artists and performers. The IPO did suggest that more research was needed into how best ER could be applied so as to balance the incentives to create with the need to monetize that creation.

NEWS FEATURE: Travis Scott sued for copyright infringement; Roddy Ricch case dismissed
US rappers Travis Scott and Roddy Ricch are at different ends of copyright infringement claims. The former has just been sued by the author and producer of a classic 1990s track for using a short, unlicensed sample without permission. The latter has just seen a claim brought against him at the end of 2022 dismissed. The case against Scott is unusual as it involves the alleged use of the same unlicensed sample in two of his tracks released five years apart and featuring on two different albums. Ricch’s case resembled a more traditional copyright infringement case in that the author of a work that was released several years ago claimed that the rapper had copied numerous elements of his work.

COMPANY ANALYSIS: SoundCloud can benefit in the shift from mumble rap to algorave
German audio streamer SoundCloud looked to be on the way out a half-dozen years ago as acquisitive rivals waited in the wings. That is until a significant injection of funds from a couple of investment firms kickstarted a turnaround. Now those investors are looking to cash in with a possible auction in a few months’ time. SoundCloud may be an attractive buy given that it has just turned an annual profit for the first time. Its upsides include a sizable emerging artist community that could be further leveraged and a growing dance music community that could be exploited and grown into an international brand.

COUNTRY REPORT: China
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed China music industry report. For many years, China has been the world’s most populous country. However, last year saw neighboring India take the lead. Moreover, China’s population is expected to edge down annually for the foreseeable future. Last year, the population total stood at slightly more than 1.4 billion people. China also has the world’s second-biggest economy, behind the US. For the final quarter of 2023, GDP increased 5.2% compared with the prior year period. China’s relatively buoyant economy is reflected in several sectors of the country’s music industry. Often described as an emerging market, retail sales show the country is more than living up to its long-held potential. China’s digital infrastructure is highly developed, and all the requirements for digital growth are firmly in place. Royalty collections had grown consistently since 2007. However, in 2022, total collections edged down, with the local collection society, MCSC, putting the blame for the dip on licensing difficulties caused by the global COVID-19 pandemic.

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