UK Government Publishes Voluntary Code to Improve Transparency in Music Streaming

The code, which comes into force on July 31, requires record labels, publishers and streaming services to provide clear information to artists about how their streaming royalties are calculated.

• The UK government's Intellectual Property Office has published a voluntary code of practice aimed at improving transparency in music streaming. The code requires record labels, publishers and streaming services to provide clear and transparent information to artists and creators about how their streaming royalties are calculated.
• Signatories of the code include representatives of major and independent record labels, publishers, creators, collecting societies and streaming services. The code obliges these key players in the British music industry to supply musicians, songwriters, composers and producers with timely, accurate and clear royalty accounting information.
• The code is intended to build greater trust between record labels, streaming services and creators. It is seen as a significant point in improving transparency around licensing deals and music streaming royalties.
• The code also includes guidance that labels and publishers should signpost in a contract or elsewhere how royalties will be calculated, the means by which royalty information will be shared and the frequency with which it will be shared. Artists should also have a contractual right to audit financial information, including royalty accounting, related to the streaming of their music.
• The code will come into force on July 31, with the Intellectual Property Office set to carry out a first review of its implementation early next year.

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