Songwriters and Composers: Remuneration

Jim Shannon Excerpts

Wednesday 7th December 2022 Westminster Hall

[Kevin Brennan (Cardiff West) (Lab)]

I beg to move,

That this House has considered remuneration for songwriters and composers.

Good morning. It is always a pleasure to see you in the Chair, Mr Hollobone. I should at the outset declare that I am a member of the Ivors Academy, PRS for Music and the Musicians’ Union, and I chair the all-party parliamentary group on music.

Last night was quite special because some of us, including the Secretary of State for Digital, Culture, Media and Sport, were invited to Abbey Road Studios in St John’s Wood for an event in the famous Studio Two, where the Beatles recorded the vast majority of their material that has ever been released. We were treated to a wonderful performance by a young singer called Olivia Dean, who is also a songwriter; she performed her song “The Hardest Part” quite beautifully for us. I predict big things for her in the next 12 months or so. It was a reminder of the wonderful talent for songwriting and composing in this country, and the great legacy we have.

I was fortunate recently to help host the Ivors Academy’s composer week here in the House of Commons, when several composers came to celebrate great British achievement in composing. That great legacy is also a live one, with young performers such as Olivia Dean. The legacy of Abbey Road itself is not just the Beatles, but Pink Floyd and many other great artists, including more recently Stormzy, Adele and Ed Sheeran. But behind some of those great performers are often professional songwriters. Amy Wadge, who lives quite close to my constituency in south Wales, is behind some of Ed Sheeran’s biggest hits, as she co-writes with him. We should remember not just the artists, but the songwriters and composers.

Visiting Abbey Road last night reminded me that we should protect the legacy of our great recording studios, including the Maida Vale Studios, which the BBC is now selling off, and which there is an opportunity to keep, as a going concern, as a recording studio. It would be a loss to the country if the studio were sold off for flats, rather than maintained as a recording studio.

This morning I want to talk about three things to do with songwriters and composers, and give the Minister an opportunity to respond. First, the Select Committee on Digital, Culture, Media and Sport wrote a groundbreaking report on the economics of music streaming, which contained a series of recommendations in relation to songwriters and composers, as well as to performers. I know the Minister has taken a close interest in that inquiry, particularly in relation to some work going on in the Intellectual Property Office. I am glad to see him back in his role; we discussed a lot of these matters when I introduced my private Member’s Bill, the Copyright (Rights and Remuneration of Musicians, Etc.) Bill, into the House of Commons a year ago. He made several commitments at that stage that I hope he might revisit a little today.

Secondly, I will talk about composer buyouts and the growing problem they present to our songwriters and composers, and the threat to the future pipeline of songwriters and composers.

The third point I will discuss—to give the Minister a heads-up—is artificial intelligence and the implications of the data mining of musical works.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman; he is a dear friend of mine, and a dear friend of many. On the Back Benches we like his wit—we will probably get some of his wit today at Prime Minister’s Question Time. It is a delight to hear him talk with passion on a subject that means so much to him. Does he agree that the unfair disadvantage for the songwriters and composers who have made their breakthrough via a viral song on a social media streaming platform, only to receive a minimal payment, must be addressed by Government? The industry has had more than enough time to fix it, and it has refused to do so. I believe there is clearly a legislative requirement—the broken record will not be fixed.

[Kevin Brennan]

I completely agree with the hon. Gentleman. I know that he is a bit of a musician himself. I am not going to go into lengthy detail about that issue this morning. However, suffice to say, the recent Competition and Markets Authority report into competition issues in the music industry, and, in particular, into the cross ownership of both publishing and recording rights of the major record companies, did not decide to proceed to a full market investigation. In a way, it threw the ball back to the Government, by saying that it

“is not to say that we think the market gets a ‘clean bill of health’ or cannot be improved further… We think it is a matter for the Government and policymakers to determine whether the current split is appropriate and fair, and to explore whether wider policy interventions are required, for example those relating to the copyright framework and how music streaming licensing rates are set.”

I note that in France, for example, a form of equitable remuneration—to use the technical term—which is a guaranteed payment when music is streamed, was successfully introduced recently. The research into equitable remuneration from the Intellectual Property Office research programme is over three months late already. Will the Minister update us on what is happening in those groups that were set up in the Intellectual Property Office? What is happening in relation to the research?

I also put this to the Secretary of State for Digital, Culture, Media and Sport, yesterday at the DCMS Committee, but can the Minister take a closer interest and put some ministerial input into driving that work further forward and bringing it to a conclusion? There has been some turmoil and changes in Government since we discussed this a year ago, but I know he had hoped it would have been done by last September, and for a number of reasons—not entirely his fault, and because the work is complex—the work is still incomplete. Some ministerial input is what I am calling for.

When we discussed this a year ago, the preference was that the industry should come to an agreement. That is what it has done in France to improve remuneration for songwriters and performers. If the industry did not do that, the Government were prepared to consider action. I remind the Minister of that, and ask him to respond today as to where he and the Government stand now.

The CMA concluded that it does not have the power to determine whether the current split is appropriate and fair. In the United States, things are done differently—it has a copyright court that determines those things. The judge there described some of the assumptions that the Competition and Markets Authority made about the problems that might be caused if the split was changed, and how that might disadvantage songwriters or other artists, as “heroic” assumptions. I was surprised to see that in the CMA report. But if the CMA does not have the power to do it, and it is instead a policy issue for the Government to resolve, what avenues are the Government pursuing and exploring to resolve the issue?

The second point I will mention is the issue of buy-outs. Parliament has determined, over many decades, that songwriters and composers should be entitled to a royalty when their work is performed or recorded. It did so because it recognises that the creative act involves the creation of intellectual property. That is extremely important, and many people do not understand that it is a key source of income for songwriters and composers.

This is nothing new; throughout history, people have wanted to get their hands on composers’ and songwriters’ money and get a piece of the pie, whether it is Colonel Tom Parker with Elvis Presley or whoever else. In recent years a particularly pernicious practice has emerged among some media companies of demanding up front, when they commission a piece of music—perhaps for a TV series or film—that the composer or songwriter signs a contract that waives their right to royalties, which they have a right to for their lifetime and beyond. It was Parliament’s intention that that should be the case.

Some might say, “Well, that’s their choice. They don’t have to sign the contract. A contract is something entered into equally by two parties,” but the power dynamic is weighted towards the powerful media companies. Composers know that they will end up on a blacklist of some sort if they do not agree to sign away some or all of their rights. They are often prepared to do some of that, but they are increasingly being asked to completely give up their rights to royalties when they are commissioned. Some composers got in touch with me before this debate and described the practices of one particular media company called Moonbug. When it commissions works from composers, it demands that they give up 100% of their royalties.

The Government might say, “This is a private matter. It is a contractual matter,” but there is room for Government leadership. They should support a code of conduct for the industry to make sure media companies are not routinely able to get away with this pernicious practice, which is becoming more and more common.

The third thing I want to talk about is artificial intelligence and the potential threat to our songwriters and composers from a decision that the Government announced earlier in the year—I understand they are now reviewing it. I have spoken to the Minister about this privately, and I have expressed my concerns. I know other Members have done so too, as have stakeholders in the music industry.