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

Debate between Mike Amesbury and John Whittingdale

2nd reading
Friday 3rd December 2021 Commons Chamber

[Mr Whittingdale]

My hon. Friend is entirely right, and the labels are very anxious about that. When they reach agreement with an artist at the moment, they have, written in a legally binding contract, a certainty that would be removed if we suddenly gave the right to one party to say that, after a certain period, they could essentially just tear up the contract. It would create uncertainty, which is bound to be a disincentive to signing new artists, so I think my hon. Friend is absolutely right.

Where I think there is more work to be done, and I hope the CMA market study may bring this out, is in an area that is not covered in the hon. Gentleman’s Bill, which is the power of the digital service providers. They are very dominant, and the industry has been complaining for a long time about what it terms the value gap, which is the amount of money retained by the platforms and not given over to the industry. I have to say that YouTube is a particular offender in this. It takes advantage of this thing called safe harbour under the Digital Millennium Copyright Act and as a result gives over to the rights holders only a fraction of the revenue it receives, particularly compared with Spotify, which has a better record in this area.

[Mike Amesbury (Weaver Vale) (Lab)]

Surely the greatest distortion in the market is the fact that artists are not getting a fair day’s pay for a fair day’s work. This is fundamentally about fairness, and the Bill will help break down monopolies. One such artist is Tim Burgess, who has been very supportive of my hon. Friend the Member for Cardiff West (Kevin Brennan). My hon. Friend is on his listening party on 15 December, if I remember rightly, so tune in!

[Mr Whittingdale]

I just say to the hon. Gentleman, as I said earlier, that the revenue share going to artists has gone up, not down. I do not think it is as immediately obvious as he says that they are being deprived unfairly of income. This is an incredibly complicated area, as I think everybody will recognise. Before we reach any conclusions, let us have the CMA carry out a proper market study, let us have the working groups and conduct the discussions, and then we will see the evidence. However, if the hon. Gentleman looks at the report produced by the IPO on earnings in the creative industries, I do not think he will find evidence to support what he has said.

There are still issues to be addressed. I welcome the initiative of the hon. Member for Cardiff West in bringing the Bill forward and allowing us to debate the matter. I am pleased that the Government have taken on board the fact that concern exists and want to find out more detail about the economics of the industry and the facts. I look forward to that, but the measures that the hon. Gentleman has brought forward would not benefit the industry, and they might well result in some of the future stars we are going to rely on if we are to sustain the enormous success of our industry not being found, because the labels will be deprived of the money that they need to invest to find those artists of the future.