US prosectors go after R Kelly's label and publishing royalties to pay off fines and restitution
Federal prosecutors in New York yesterday asked a judge to issue an order allowing them to claim royalties due to R Kelly from Sony Music and Universal Music Publishing to pay off fines and restitution linked to his conviction in the US state.

Kelly, of course, was found guilty in a New York court of establishing and running a criminal enterprise in order to sexually and physically abuse women and teenagers.

It was the first of two convictions that stemmed from the criminal investigations launched after the 'Surviving R Kelly' documentary aired, it putting the abuse allegations that had surrounded the music star for decades back into the spotlight. The second conviction was in his home town of Chicago.

In the New York case, Kelly was sentenced to 30 years in jail and ordered to pay $480,000 in fines and restitution. An additional $42,000 was added to that obligation as a result of the Chicago case. But prosecutors are still seeking to secure those payments.

To that end, according to Billboard, they have requested that the court issue so called writs of garnishment which would allow prosecutors to take any royalties that are due to the musician from his former label Sony Music and publisher Universal Music Publishing.

That said, prosecutors aren't the only ones trying to access Kelly's royalties to pay off debts. One of the musician's victims - Heather Williams - is seeking to claim the $4 million in damages she was awarded in a civil lawsuit. And an entity called Midwest Commercial Funding is seeking to recover another $3.5 million debt.

Everyone see's Kelly's Sony royalties as a route to getting at least some of the money they are owed. In March the Illinois Supreme Court confirmed a lower court ruling that said Williams' claim should take priority over that of Midwest Commercial Funding.

That was based on a technicality. Midwest actually got its claim for Kelly's Sony royalties in first, but made that claim by email, which the relevant rules do not allow.

However, it is not clear whether the new claim for that cash by prosecutors in the criminal case against Kelly will now impact on William's claim.

In a statement to Billboard, Kelly's legal rep Jennifer Bonjean said that she and her client believe that the restitution order against him is incorrect and will be overturned on appeal. However, they have "no opinion" on prosecutors seeking to garnish funds held by Sony Music and Universal Music Publishing.

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More music industry organisations provide perspectives on the economics of streaming debate
Following the announcements this week about the ongoing UK government-led economics of music streaming work, we have been speaking to representatives from some of the organisations involved in that work to get their perspectives on what has been achieved so far and what should happen next.

Yesterday we heard from the Musicians' Union, BPI, Music Managers Forum and Music Publishers Association. And today we talk to representatives from the Ivors Academy, Association Of Independent Music, Featured Artists Coalition and ERA.

GRAHAM DAVIES, CEO, IVORS ACADEMY
The Ivors Academy is the UK organisation for songwriters, lyricists and composers, basically everybody involved in writing and composing music.

What do you think have been the most important aspects of the IPO led projects that were instigated after the select committee inquiry?
The IPO process has enabled greater awareness and understanding across the industry on the detail of the issues, and engagement in possible progressive reform for the music industry.

The support provided by the IPO and continued interest and support of the DCMS Select Committee has been essential to ensuring the importance of the work remains and we can work towards reform.

In having a regular process for dialogue involving senior industry stakeholders and industry experts we have formed closer ties and are developing a more effective way of making and delivering policy.

What do you think should be the priorities of the music-maker remuneration working group that is now being convened?
Ensuring that the UK becomes the best place in the world for music creators to work based on fair remuneration, transparent and fair contracts, and an industry that keeps pace with progressive reforms found in other territories.

From a songwriter and composer perspective, we need to see increased recognition of the higher value publishing rights should receive in the streaming market.

We need minimum rates and contract adjustment mechanisms to ensure that the partnership between the creators of music and the acquirers of music both share appropriately in future success.

The IPO has already undertaken research on the three copyright reforms proposed by the select committee - ie reversion rights, contract adjustment rights and performer ER. What is your current position on those proposals?
All of the potential reforms are relevant to the work of the group.

There has been a lot of discussion of late about reforming the way streaming monies are allocated to individual tracks and catalogues. How can the ongoing economics of streaming work in the UK inform and influence that conversation?
It is unclear at this stage if the scope of the music-maker remuneration group includes royalty allocation methods such as pro rata and user centric. There is an important discussion to be had on changing the method of payment, but it may need to take place in a more international forum.

How do you think the undertakings in the metadata code will impact on the way streaming services work and music-makers get paid?
The code can only improve awareness of the need to recognise the song and wider creative contributors to recordings. The more this information is included, by the way of international standard codes, the more likely songwriters, their publishers and performers will be paid. It will also enhance the consumer experience.

How can your members help ensure the metadata code has the maximum impact? What measures would you encourage them to implement?
We are encouraging all our songwriter and composer members to know their IPI number relating to their identity, what an ISWC is and the process for registering works, and attaching these codes to recordings.

We are contributing to the IPO educational work stream, we have been supporters of WIPO For Creators, and we have founded the Credits Due international campaign. Alongside this we include the subject in our training and development activities for our members.

How can other stakeholders in the music community ensure that the metadata code has the maximum impact? What measures would you encourage them to implement?
We encourage any party involved in the writing, recording, producing, releasing and streaming of music to sign up to the code and support its objectives.

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SILVIA MONTELLO, CEO, ASSOCIATION OF INDEPENDENT MUSIC
AIM represents the independent music sector.

What do you think have been the most important aspects of the IPO led projects that were instigated after the select committee inquiry?
The work that the IPO has engaged the industry in around copyright, contract transparency and metadata has been important for engaging the various stakeholders across music to work together to agree a route forward that will benefit the creator community.

What do you think should be the priorities of the music-maker remuneration working group that is now being convened?
The key priority from AIM's perspective is that this committee works positively together; not to simply create new 'winners' and 'losers', but to understand the bigger picture of the landscape and collaborate on solutions which will benefit creators and rightsholders across the industry. By working together, rather than in individual silos, we can make a positive difference.

The IPO has already undertaken research on the three copyright reforms proposed by the select committee - ie reversion rights, contract adjustment rights and performer ER. What is your current position on those proposals?
AIM believe that artists, contributors and creators ought to be rightly rewarded for their creativity whilst ensuring that the labels and publishers who have invested in and nurtured them continue to have sustainable successful business models.

The ER modelling to date shows that this change would not benefit the majority of stakeholders across our industry and we are committed to exploring other models, alongside the pro rata status quo, to demonstrate the impacts - positive and negative - on the various sectors of UK music.

By exploring other options, we broaden the conversation and hopefully present alternatives which can protect and grow our industry ecosystem.

There has been a lot of discussion of late about reforming the way streaming monies are allocated to individual tracks and catalogues. How can the ongoing economics of streaming work in the UK inform and influence that conversation?
Whilst the review of streaming economics in the UK has been important for bringing a clearer understanding of how the current model falls short for many creators, we feel that changes need to be made on a global basis in order to effect genuine change.

We support positive discussion and engagement with the streaming platforms across the board to ensure that many more creators can make a better living from streaming as part of their overall music industry income.

How do you think the undertakings in the metadata code will impact on the way streaming services work and music-makers get paid?
Metadata is one of the single biggest issues facing our industry, and by defining the standards and working towards better, more accurate and more complete metadata, we can ensure that recording artists, songwriters and other contributors get the revenue and attribution due to them for their creativity.

How can your members help ensure the metadata code has the maximum impact? What measures would you encourage them to implement?
We intend to collaborate with our industry partners to create workshops and resources to help our members understand the code and how best to implement it.

How can other stakeholders in the music community ensure that the metadata code has the maximum impact? What measures would you encourage them to implement?
For the metadata code to truly deliver the positive results the sector hopes for, we will have to have commitment and engagement from all stakeholders, from rightsholders to creators, distributors and platforms.

We all have a part to play in ensuring that every stakeholder can enjoy the recognition and financial reward that is due to them. We invite technology partners to work with our sector to facilitate the implementation of the code.

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DAVID MARTIN, CEO, FEATURED ARTISTS COALITION
The FAC is the UK organisation for featured artists, so the music-makers who are up front on stage, releasing music under their own name or brand, and building relationships with a fanbase.

What do you think have been the most important aspects of the IPO led projects that were instigated after the select committee inquiry?
When the DCMS Select Committee called for a "complete reset" of streaming, it made a number of recommendations that are fundamental to achieving this outcome.

Of the ongoing IPO-led workstreams on remuneration, metadata and transparency, each is important to ensuring that artists are properly paid, able to know what their income should be and can understand how their businesses work. The three strands cannot be separated if the DCMS Select Committee's calls are to be fulfilled.

While there has been some progress on the data and transparency aspects, progress around remuneration has been slow and must now see dedicated focus, which we look forward to contributing to via the remuneration working group, details of which have now been announced.

The role of ministers and the IPO in providing the forum and incentive for the various parts of the sector to discuss this work has been vital.

What do you think should be the priorities of the music-maker remuneration working group that is now being convened?
Work on music-maker remuneration needs to be approached in an open way. Aspects such as rights reversion, contract adjustment, equitable remuneration, minimum digital royalty rates and unrecouped artist balances must all be explored. All parties should also remain open to other innovative ways that might be considered to address the imbalance in how artists are paid from streaming.

The IPO has already undertaken research on the three copyright reforms proposed by the select committee - ie reversion rights, contract adjustment rights and performer ER. What is your current position on those proposals?
The FAC is open to all proposals aimed at ensuring the value that artists create within the streaming economy is fairly and proportionately rewarded. This must include a thorough evaluation of the three research pieces and consideration of how implementing such policies might redress financial imbalances.

There are credible, international examples of all three of these types of reform being implemented without undermining the value of respective national music industries. In fact, there are good examples of these types of copyright proposals stimulating new activity in other markets.

There has been a lot of discussion of late about reforming the way streaming monies are allocated to individual tracks and catalogues. How can the ongoing economics of streaming work in the UK inform and influence that conversation?
It is clear that the case for a user-centric type payment system is becoming more compelling, particularly in overcoming fraud and building direct artist-fan connections.

However, as we have seen with streaming to date, problems are created where segments of the industry seek to operate unilaterally and any proposals on new, so called artist-centric payment models must be developed with input from the artist community.

The IPO have created a forum which is the right place for such discussions to take place and the global music industry is closely watching the UK's work in this area.

How do you think the undertakings in the metadata code will impact on the way streaming services work and music-makers get paid?
The signing of the metadata code is a small, but important step. There is much more to do if music-makers are to be properly and accurately credited and paid. I hope that along with the announced work on key performance indicators, the code will be the start of a journey towards a gold standard in data handling, which the UK will be at the forefront of.

How can your members help ensure the metadata code has the maximum impact? What measures would you encourage them to implement?
Artists and other music-makers have a key role to play in ensuring that data is accurate and up to date, ensuring it can be well managed in the streaming ecosystem. The FAC will support its members, to ensure that they are aware of the importance of providing information, such as song splits and performer data, and by providing access to education and relevant updates which affect standard processes.

How can other stakeholders in the music community ensure that the metadata code has the maximum impact? What measures would you encourage them to implement?
If all parties act within the spirit of the code and seek to promote it across their segment of the industry, we have a chance to change the industry for the better and modernise the way that music is managed in the digital era.

This will go a long way towards ensuring that our sector is future proofed, in light of ongoing technological advances. Therefore, I would strongly urge all parties not only to implement the code, but to commit fully to the next stages of the process to develop credible key performance indicators and improve the quality of music data.

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KIM BAYLEY, CEO, ERA
ERA is the digital entertainment and retail association, which has Spotify, Amazon, YouTube, Deezer and SoundCloud among its members.

What do you think have been the most important aspects of the IPO led projects that were instigated after the select committee inquiry?
There were lots of people who were cynical about this process, but working together - and expertly facilitated by the IPO - I believe we have made real progress.

Of course there's the soft benefits of fostering engagement and understanding across the industry, but it's important to recognise that without the involvement of first the DCMS Select Committee and then the IPO we would never have ended up with such progress on metadata and, hopefully soon, transparency. These are real wins.

What do you think should be the priorities of the music-maker remuneration working group that is now being convened?
Notwithstanding progress to date, we need to be careful that we don't get stuck in an endless cycle of committees and working groups. The key question if there is to be another working group is defining in advance the problem it is trying to solve and ensuring any conclusion is evidence-based - otherwise we could end up simply chasing our tails.

The IPO has already undertaken research on the three copyright reforms proposed by the select committee - ie reversion rights, contract adjustment rights and performer ER. What is your current position on those proposals?
Contract issues are a matter for artists, songwriters, labels and publishers. To that extent we have no firm view, other than - like everyone - a hope that these issues can be resolved one way or another. In terms of ER, as with all legislative change, I am very aware of the possibility of unintended consequences.

There has been a lot of discussion of late about reforming the way streaming monies are allocated to individual tracks and catalogues. What are your thoughts on those discussions?
Steaming services have been constructive partners in this debate. You only need to look at the incredible work done by the likes of Soundcloud, Deezer, Tidal etc in exploring different options. But again any proposals need to be evidence-based, and so long as the focus is on moving money around rather than on growing the pie, we need to be mindful that there could be losers as well as winners.

How do you think the undertakings in the metadata code will impact on the way streaming services work and music-makers get paid?
We have all known for a long time the need to improve metadata to increase efficiencies for everyone and to speed the flow of royalties to songwriters in particular. The metadata code provides a common understanding of the issues and how to improve things. This is a real breakthrough.

How can your members help ensure the metadata code has the maximum impact? What measures would you encourage them to implement?
I think you are going to see a lot of work on education and on monitoring, but most of all the code puts metadata right at the heart of the conversation about how we can create a better ecosystem for everyone.

How can other stakeholders in the music community ensure that the metadata code has the maximum impact? What measures would you encourage them to implement?
We have gone beyond the point where it is sufficient to recognise the problem. The next stage is about doing, and attending to the granular and sometimes unexciting business of getting the job done. It is unacceptable that musicians are missing out on money simply because the industry does not know who to pay.

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First web-block injunctions issued in Bulgaria
The International Federation Of The Phonographic Industry has confirmed it has secured some of those always fun web-blocking injunctions in Bulgaria, including against the good old Pirate Bay.

Web-blocking, of course, is the music industry's anti-piracy tactic of choice. Internet service providers are ordered, usually by a court, to block their customers from accessing copyright infringing websites.

Whether or not such web-blocks are available varies from country to country. But Bulgaria has now been confirmed as a place where the tactic can be employed.

IFPI teamed up with Bulgarian industry group BAMP to secure an injunction ordering three ISPs to block access to both The Pirate Bay and local file-sharing site Zamunda.

While The Pirate Bay has been blocked in multiple countries, this is the first web-block against Zamunda, mainly because Bulgaria accounts for 80% of its traffic.

IFPI and BAMP say that the decision to grant the web-blocks in the Sofia City Court earlier this week will "have a big impact on limiting piracy in the country going forward".

IFPI boss Frances Moore says: "We welcome this decision and the impact it will have on limiting illegal access to music. Copyright infringement of any sort causes serious harm to local music ecosystems and directs money away from those creating and investing in music".

BAMP Executive Director Petya Totcharova adds: "We welcome the Sofia City Court's decision which will strengthen the recorded music industry's fight against online music piracy. It is the first time a website blocking order has been granted in Bulgaria and we consider this precedent an important step in the right direction".

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Role of search engines in facilitating ticket touting back in the spotlight
A panel at the Primavera Pro conference in Barcelona yesterday put the spotlight on the role search engines play in facilitating ticket touting.

Campaigners called on those search engines - mainly Google, of course - to do more to stop consumers accidentally buying tickets for shows from unofficial resellers at a marked up price.

The role of Google in the secondary ticketing market has been discussed before, of course. Ticket resale sites have a long history of buying their way to the top of search results when people type an artist's name and the word "tickets" or "concerts" into the Google search engine.

Because consumers don't necessarily understand that what appears at the top of a Google search result list is basically advertising, some will assume that the resale site at the top of the list is the official seller of the tickets they are seeking. When, of course, the opposite is true, with the official primary ticket seller usually slightly lower down the list.

Google does have some rules that seek to stop its advertisers from actively deceiving customers and that did result in a brief ban back in 2019 for the most infamous of all the ticket resale sites, good old Viagogo.

And when Google added some extra requirements in 2018 for secondary ticketing websites that were buying their way to the top of its search results, it did result in those sites altering some of the more confusing language they had previously employed.

However, anti-touting campaigners reckon much more can be done and that Google allowing the Viagogos of this world to buy top search rankings is still confusing consumers into buying tickets from touts instead of primary sellers.

The pan-European anti-touting campaign FEAT - whose representatives took part in yesterdays Primavera Pro session - report that "the panel discussed how the advertising policies of Google and other search engines don't permit advertising that deceives users, either by excluding relevant information or providing misleading information".

However, panelists "suggested Google did not appear to be adequately enforcing this policy" in a way that benefits the touts, or 'scalpers' if you prefer.

The panel also "pointed out that, during Google's brief ban on advertising from Viagogo in 2019, global traffic to the site fell by two thirds, illustrating the extent of the search engine's role in attracting fans to unauthorised resale platforms".

Commenting on the need for search engines to be more proactive to protect ticket buyers, FEAT Director Neo Sala - also Founder and CEO of Doctor Music - said: "We see a close parallel between the situation now with the live events industry to that in the noughties with the record business. I think we all remember when you'd Google a song name and 'MP3' and you'd be met with piracy links as the first, second, third results".

"Today, try Googling 'Harry Styles tickets'", he goes on, "and you'll see a link to unauthorised, overpriced tickets right at the top. The live industry needs to ask Google to take the same sensible steps as they did with the record industry and start guiding fans to trusted, official sources".

Fellow FEAT Director Sam Shemtob added: "Across Europe, countries including Belgium, France, Ireland and others have outlawed unauthorised ticket resale. The European Court Of Justice, meanwhile, has ruled that event tickets are a contract for services, subject to terms and conditions of the event promoter; and the incoming Digital Services Act promises to tighten consumer protections in e-commerce further".

"In this environment of strengthening legislation", he goes on, "search engines ought to start asking what kind of companies they are. Do they want to enable the activities of ticket scalpers, and support the anti-consumer and anti-artist practices of unauthorised resale platforms? Or, do they want to stand up for their users and guide them toward legitimate tickets for the events they want to attend? We hope companies like Google will choose the latter option".

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DEALS

Defected has signed dance collective Yours, which brings together Maverick Sabre, New Machine, Jake Hall and Sonny Hall. The first track under the deal, 'Dónde Está, will be released on 7 Jun. That track, says Maverick Sabre, "really ties the Yours story together from conception to where we are now. The four of us are creatives from different spaces coming together to make a music and fashion fusion and spread some love through the art in the process. To have that journey come to the point where we are now releasing through Defected Records means a lot to us".

Artist services and rights management company Interstellar has announced a number of recent signings including Kula Shaker, Cole Rolland, Lack Of Afro, Michael McArthur, Mirla and Xavier Weeks. Kula Shaker managers Kev Nixon and Sarah Clayman say: "We are impressed by Interstellar's unique combination of expertise, experience, flexibility and passion for music, which made them the best choice to manage and develop the band's catalogue of music rights. Kula Shaker's digital management and catalogue have been underutilised and we are excited by the care and attention to detail and the worldwide opportunities we know the Interstellar team can provide".

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APPOINTMENTS

Music funding platform beatBread has appointed Troy Skabelund as its Chief Financial Officer. He has held similar roles at a number of tech-based businesses in recent years, and before that worked in the digital and interactive divisions of The Walt Disney Company. Says beatBread co-founder and COO John Haller: "Troy has deep management experience across many different large, fast-moving organisations, and his understanding of finance's role in growth is important as we move forward. We're excited and fortunate to have him join the team".

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RELEASES

Sophie Ellis-Bextor has a new album out via Cooking Vinyl called 'HANA'. It includes recently released tracks 'Breaking The Circle', 'Everything Is Sweet' and 'Lost In The Sunshine', plus new focus track 'Hearing In Colour'.

Singer-songwriter Sam Fischer has released a collaboration with Meghan Trainor called 'Alright'. It's a track he actually wrote with Trainor more than four years ago. Fischer explains: "I wrote the chorus of 'Alright' in the shower in 2018 while I was having an anxiety attack. I calmed myself down by saying 'I'm gonna be alright' repeatedly - then went to the studio and smashed out the song!"

Pendulum have released new single 'Halo' which features Bullet For My Valentine's Matt Tuck. Both bands are also playing day two of this year's Download festival next week.

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