Annual Review 2O13 From Earth to Cosmos Cover image PPL licenses recorded music when played in public or broadcast on the radio and Discovery’s cargo bay over TV, as well as certain uses on the internet, and then distributes the revenues collected Earth’s horizon docking with to its members. Established in 1934, PPL exists to ensure that those people who the International Space Station invest their time, talent and money to make music are fairly paid for their work. Photographed by STS–114 Our mission is to manage the sound recording rights entrusted to us by our crew member members, maximise their earnings from the broadcast and public use of those 27.O7.2OO5 recordings both in the UK and globally, and distribute them in the most efficient See page 6 for the full story manner possible. Contents Welcome to PPL’s 8Oth Anniversary Annual Review. 1 From Recordings to Collections 2 The Phonogram Performing Right We are pleased that 2O13 was, yet again, another 8 Chairman’s Statement 1O CEO’s Statement year of revenue growth which is particularly gratifying 12 Company Strategy as we celebrate our anniversary. At no point in our 18 8O Years Young 32 Financial Summary history has PPL income been so important to our 34 Business Review performer and recording rightsholder members who, 42 Our People 49 The People’s Charts in that time, have created and/or invested in millions of recordings. As the music industry continues to evolve, it highlights the significance and value of our members’ music: to them as a growing revenue stream, to the UK’s economy and culture and to the many thousands of businesses that use their recordings both in this country and around the world. It is therefore more fundamental than ever that a robust copyright infrastructure is in place to protect their rights and enable them to be fairly paid when their recordings and performances are broadcast and/ or played in public. We are delighted that leading copyright specialist Professor Adrian Sterling has kindly contributed an historical overview of ‘performance rights’ to this Review reminding us all of how far the protection of those rights has come and, contemplating what the future may hold, not just in the UK but, as he says, ‘From Earth to Cosmos’. PPL Annual Review 2O13 From Recordings to Collections 6.7million sound recordings 79,OOO perfomer members 11, 5 O O recording rightsholder members 325,OOO+ licensed public performance sites broadcast and online channels 3.8billion seconds of airplay 61 different PPO tariffs 68 international reciprocal deals = £176.9million licence fee income collected PPL Annual Review 2O13 1 Sound recordings (phonograms) and films have, from the legal The Phonogram point of view, a number of attributes in common. In the Performing Right: case, for instance, of a sound recording of a song and a film of an adaptation of a novel, From Earth to Cosmos there will in each be a creative work of an author or authors, the performers and the recording By Professor J.A.L. Sterling itself, audio or video. For the first time we heard I heard some of our records sibilants emerge from the being broadcast this morning. trumpet, loud and hissing. Are we being paid for that? Fred Gaisberg Sir Louis Sterling Record producer Managing Director 1911 19 2 5 19 33 1934 19 3 5 194 6 x Copyright Act provides Invention of electrical Gramophone Co Ltd PPL formed after The year of the first PPL agrees to make for the first time that recording systems brings test case against Carwardine verdict three year licence ex gratia payments sound recordings Carwardine café in confirms public arrangement granted to the Musicians’ Union are protected by Bristol, arguing that performance rights by PPL to the BBC, for the benefit of non- copyright in the UK playing sound recordings in sound recordings at £1O,OOO per annum featured performers in public requires the (in addition to ex gratia By 1939 PPL has permission of the sound payments made to 37 record company recording copyright featured artists) members owners 2 PPL Annual Review 2O13 The techniques of sound recordings and regional law, and in the administration recordings: section 19(1) of the UK and films both came into existence of the rights in many countries. Copyright Act 1911 provided that copyright around the end of the 19th century. The first national recognition of rights subsisted in sound recordings as if they Rights of authors in respect of the in sound recordings came in legislation were musical works. In those days the new media were recognised and in Germany in 191O and the United chief concern was what we now call developed early in the 2Oth century, Kingdom in 1911. record piracy, the unauthorised copying but the battle for national and Under the German Law of 19O1 and sale of the original recording. Public international recognition of the rights as amended in 191O, recordings counted performance of records in cafés and similar of performers and record producers as arrangements of the work recorded, the public places was initially of less concern. has been prolonged. The main performer counting as the arranger, the However in the 192Os, public economic rights sought by performers performers’ right in the arrangement passing broadcasting began. and record producers are those of to the record producer. This system was One day in 1932 Sir Louis Sterling copying (reproduction) and communication replaced by the 1965 Law as amended, (who later became first Chairman of PPL, to the public. Moral rights of attribution granting to performers and record no relation to the author of this text), and integrity of performers are also producers related rights in recordings. one of the heads of EMI (embracing the appropriate. There have been notable In the UK, the record industry was Gramophone Company and the Columbia achievements regarding the recognition successful in obtaining the granting to the Graphophone Company) said to the of these rights in national, international record producer of copyright in sound company’s lawyers ‘I heard some of 8Oth 5Oth Our authentic weekly survey There can be no resting on of the best-selling pop records. laurels in the record industry. Maurice Kinn Brian Bramall NME Editor Director-General th th A n r y 8O 5O niversa anniversary anniversary 8O 5O 25 anniversary anniversary anniversary £1million £2million x 194 9 195 O 1952 195 5 195 6 1958 195 9 x PPL revenues First vinyl singles First UK record sales ‘Rock Around The Clock’ New UK Copyright First stereo LPs issued PPL revenues for the 194Os and LPs issued in chart published in by Bill Haley (and his Act confirms public in Britain by Pye for the 195Os Britain by Decca New Musical Express Comets) is Britain’s first performance rights in million-selling record sound recordings and introduces exclusive rights to broadcast copyright works PPL Annual Review 2O13 3 our records being broadcast this played to customers. On 13 December recognition of sound recording rights morning. Are we being paid for that?’ 1933, Mr. Justice Maugham gave in national and international law. The lawyers decided to consult the judgement in the case of Gramophone IFPI did not overlook the performers – leading UK copyright lawyer of the time, Co Ltd v Stephen Carwardine & Co systems of sharing the revenue received Sir Stafford Cripps, whose initial view [1934] 1 Ch 45O, holding that copyright from public performances were was that section 19(1) of the 1911 Act under section 19(1) indeed embraced introduced, culminating in the IFPI/FIM only covered copying. But Brian Bramall, the record performing right. Thus came Agreement of 1954 between IFPI and a young lawyer at EMI (who later became about the event now being celebrated, the International Federation of Musicians. Director General of the International the founding in 1934 by British record Already in the UK in 1946, PPL had Federation of the Phonographic Industry companies of Phonographic Performance agreed to make ex gratia payments (IFPI)), did an extraordinary thing. He Limited, with the objective of administering to performers from revenues received wrote to Sir Stafford and said, in effect the public performance (including from the exercise of the phonogram ‘Copyright means copyright and copyright broadcasting) rights of its members. performing right. in the record includes the record performing Just before, in 1933, IFPI was formed, Legislation and law cases confirming right in favour of the producer’. Sir Stafford with members of the record industry the phonogram performing right appeared agreed. It was decided to take a test case from many countries, and with the in Austria (1936), Italy (1941) and Spain against the proprietors of the Carwardine objectives of representing the record (1942) and other countries. In Canada café in Bristol, where records were industry as a whole and seeking the campaign for recognition of the right The Rome Convention proved a breakthrough and put record producers and performers on the international map as right Radio 1 will broadcast owners, as opposed to continuous pop music right users. from 7am to 7.3Opm, followed by light music Stephen Stewart and entertainment Director-General until 2am. £4.8million £19million x 19 6 O 19 61 19 6 3 1967 1969 19 7 3 19 7 9 x Performing Right International Convention Philips introduces the Marine Broadcasting PPL revenues PPL grants licences to PPL revenues Tribunal rules that for the Protection of cassette tape format Offences Act outlaws for the 196Os first UK commercial for the 197Os jukebox operators Performers, Producers pirate radio stations radio stations must pay fees to PPL of Phonograms BBC launches Radio 1 and Broadcasting and Radio 2 Organisations is adopted in Rome WIPO (World Intellectual Property Organisation) established 4 PPL Annual Review 2O13 extended from 197O for over 25 years, recognised in international law with While all these battles have been culminating in the recognition of the right the adoption of the WIPO Performances going on around the world, PPL has on a remuneration basis1.