Copyright (Rights and Remuneration of Musicians, etc.) Bill

Debate between Dean Russell and George Freeman

Friday 3rd December 2021 Commons Chamber

[George Freeman]

I am conscious that time is short, and I know that there are colleagues who still want to speak. Let me just spin through the key points that I have not yet made.

First, let me highlight the level of the Government’s support for the creative industries sector, and particularly our musicians. We have set out the creative industries sector deal, the creative sector tax reliefs, the film and television production restart scheme and the culture recovery fund, and the Chancellor’s plan for growth sets out a major long-term commitment to the sector, which we calculate contributes approximately £116 billion to the UK economy. At the recent Budget the Government announced £42 million to support our creative industries, and we include in that the small and medium-sized enterprises at the heart of film, music and video games—that broader nexus of digital entrepreneurship.

I want to touch on the impact of the pandemic, which as the Select Committee highlighted has really brought the issue of the very vertical nature of digital revenues to the fore, because musicians have not been able to have the venue events they would have had before. I make the wider point that the urgency of getting through this pandemic and defeating it is key to no one more than to our musicians. It is a joy to get back to listening to some live music, and long may that continue.

Looking at the impact of covid, for the most part, the recorded music industry stood up reasonably well during 2020. The BPI reported revenues from streaming growing to almost £737 million in 2020, which is a 15% increase during the pandemic, with smartphones, smart speakers and music streaming services providing unprecedented choice for consumers. I will not list all the music that I ended up listening to throughout the pandemic—the House has got better things to do than listen to my music tastes. However, when I listen to Bob Dylan on Spotify, it says, “If you like that, you’ll like this”, and I found myself discovering—I have pretty predictable music tastes—a whole range of artists I had never heard of, and listening to them. That highlights to me the role of digital streaming platforms, notwithstanding the need for equitable distribution, in highlighting artists who I would certainly never have heard of.

The Government are providing a whole series of support for the benefit of musicians: employment schemes, grants, loans, a reduction in VAT to 5%, business rates relief, and the extension of the moratorium on commercial evictions for business tenants, but before the hon. Member for Cardiff West makes it for me, I accept the point that many musicians at the bottom of the supply chain are not earning enough to qualify for tax in the first place.

Sector-specific relief included the culture recovery fund. That was the biggest arts funding package in our history, and the Chancellor made available £2 billion at speed, with awards to more than 800 music-based organisations. That helped to stop more than 130 of our most loved and enduring grassroots music venues having to close their doors. We also put in place the £800 million reinsurance scheme and I am delighted, as I am sure all Members are, that we can get back to live music venues, and indeed to live theatre and pub theatre. One-man and one-woman shows, or shows with a small cast, that are totally covid compliant have been a joy, and one of the unintended consequences of the ghastly pandemic.

I want to touch quickly on copyright law, to which the Bill makes a series of important reforms that are potentially impactful on everybody affected. We in the UK are proud of our copyright law, and no one more than the Minister responsible for copyright. Our 1709 Statute of Anne was the first copyright Act in the world, and today the UK is a world leader in copyright law and intellectual property enforcement. We are determined to continue to explore and modernise that, and I welcome the new chair and chief executive of the Intellectual Property Office, with whom I am working closely to ensure that we keep up with the pace of digitalisation.

In the time available I want to touch on the importance of ensuring that copyright enforcement is properly tackled. We recognise that we are a leader in that at the moment, but the rise of music streaming is a good example of how attractive new services, together with a strong focus on enforcement and education, can transform an industry that has been beset by copyright piracy. We are determined to tackle the problem of piracy, and not just those of us who remember recording “Top of the Pops” on a cassette in the 1970s, which is a low form of that—I would not say it is harmless, but as the former Chair of the Select Committee made clear, probably all of us old enough to do so did it, and it was wrong.

However, the level of industrial piracy going on is far more serious, stealing revenues from our artists. That is why the Government continue to invest in our dedicated Police Intellectual Property Crime Unit—PIPCU—which is the first of its kind in the world. It exists to protect creators and brand owners, and the unit, run by the City of London police, is dedicated to tackling serious and organised online piracy and counterfeiting that affects digital and physical goods. The Government’s upcoming infringement strategy will set out a new framework, allowing us to react more quickly and effectively to today’s challenges.

I want quickly to touch on the rise of streaming, and some of its implications. From the early 2000s, record companies saw a 15-year period of global revenue decline. Recorded music revenues were decimated due to digital piracy, and subscription streaming services such as Spotify—others are available—entered the market in 2008. By 2015, they had played a major part in halting that decline, as consumers began to adopt subscription services and paying for the right to listen to music. In 2015, there were on average 2.1 billion streams a month. By 2020, that figure had grown to 10 billion. As the Select Committee highlighted, the issue is to ensure that the revenues from that flow down. Crucially, however, we are a leader and we are growing in that sector.

The rise of streaming has been a game changer for the business models of many artists. Live performance has become the predominant source of income for many, but not all, artists while recorded music is now often viewed as a key secondary income source. Covid has brought huge challenges, as I have discussed, and the Government have moved fast to support the industry.

I will touch on the taskforces that we have set up to deal with the points in the Bill. We have put the concept of fairness at the heart of our response and we have set up the taskforces to look at three specific issues that the Bill sets out. First, the right of revocation or recapture exists in the United States and means that after 35 years, creators can recover rights that they have contractually licensed to other parties. The argument is that that increases their negotiating leverage.

Secondly, other countries, such as Germany and the Netherlands, have a contract adjustment mechanism. Thirdly, we want to look carefully at the recent European Union directive, which does not apply here, to see whether that works and benefits musicians at the grassroots. Evidence from the Netherlands suggests that contract adjustment law may have very little impact in practice. We want to make sure that we are looking at what works and more research is needed to get that right.

[Dean Russell]

My hon. Friend has listed many areas that we will look at in future. Can he assure me and artists in Watford and around the UK that the goals of the Bill to protect artists in the UK, protect the industry around the world and ensure that innovation can continue will be at the heart of the measures that he will put forward in the next few months?