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Phonographic Performance Ltd (PPL), the British licensing body representing U.K. labels and performers, announced that its members be the beneficiaries of a record-breaking quarter one international revenue distribution, Music Week reports.
The payment of over £13 million, which has upped previous distributions by 20 percent (£3 million), wiill be distributed to PPL members registered to receive royalties when their songs are played internationally. This is accomplished via reciprocal agreements with other collective management organizations (CMOs) in 34 countries, including the U.S., most European countries, and a few in Asia and South America. Furthermore, PPL maintains qualified intermediary status, so U.K. artists can collect U.S. royalties without the standard 30 percent withholding tax.
"We are actively working collaboratively with our international counterparts to help transform the licensing and distribution process to maximize revenues for all those involved in creating recorded music across the globe,” said PPL CEO Peter Leathem. "While the EU Directive on the European copyright licensing landscape will seek to set common standards across European CMOs, focusing on core principles of governance, financial management, and transparency and reporting, there is still some way to go in effectively managing the accuracy and processes around performance rights management internationally."
He echoes PPL chairman Fran Nevrkla's -- and British prime minister David Cameron's -- adamant call last year for increased support from government and politicians in protecting intellectual property rights and, in turn, the music and creative industries; a call somewhat addressed in the recent closure of a tax loophole enabling £0.99 ($1.63) song downloads, which will generate an additional £300 million ($495 million) in VAT revenues for the British Treasury in its first year, according to the U.K. Office for Budget Responsibility (OBR).
The news comes about a month after U.K. industry veteran Jonathan Morrish stepped down as director of PR and corporate communications at PPL, citing a desire to pursue other avenues.
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