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PRS and SoundCloud Reach Licensing Agreement

The two companies agree upon a multi-territory license months after PRS filed a lawsuit against the music sharing giant.

The Performing Rights Society For Music (PRS) originally decided to take legal action against SoundCloud after what they claimed to be “years of unsuccessful negotiations” concerning its need for a music license. The problem lay in the fact that no artist who used Soundcloud as a platform for exposure was able to earn money or be protected from infringement from its 175 million active users. A spokesperson for PRS stated that “We asked them to take a licence to cover the use of all our members’ repertoire or otherwise stop infringing. When a writer or publisher becomes a member of the Performing Right Society, they assign certain rights to their works over for us to administer, so it’s our job to ensure we collect and distribute royalties due to them.”

But 4 months down the line a new conclusion has been reached. Both PRS for Music and SoundCloud have announced that their preference for a negotiated agreement over extended litigation and their shared interest in supporting creators has lead to the agreement that PRS for Music’s members are to receive royalties when their works are used by SoundCloud. 

Robert Ashcroft, CEO of PRS for Music said: “On behalf of our members, I am pleased that we have been able to reach a settlement with SoundCloud without extended legal proceedings. This ends over five years of discussions on the licensing requirements for the platform, resulting in a licence under which our members are fairly rewarded for the use of their music.

Alexander Ljung, founder and CEO of SoundCloud, added: “SoundCloud is a platform by creators, for creators; we’re working hard to create a platform where all creators can be paid for their work, and already have deals in place with thousands of copyright owners.

For more information on the lawsuit click here.