SoundCloud agrees to new multi-territory settlement with PRS For Music
In late August, SoundCloud was sued by PRS for Music for unpaid artist royalties. Now the British company, who “licenses organizations to play, perform or make available copyright music on behalf of our members and those of overseas societies, distributing the royalties to them fairly and efficiently,” has come to a multi-territory settlement with SoundCloud.
Over five years of negotiations between the two companies led to the agreement, which was fueled by PRS For Music’s wish to attain royalty payments for its artists. SoundCloud remained steadfast in the fact that they couldn’t provide royalties because they were, until recently, a strictly free service. In a press release by PRS For Music, the company stated that the agreement supports SoundCloud in its subscription service plans and their advertising strategy come 2016.
Alexander Ljung, the founder and CEO of SoundCloud, commented on the recent agreement, “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. PRS for Music is also fully committed to creators, and we’re pleased to have reached an agreement that will expand revenue opportunities, improve the accuracy of royalty distributions, and launch new services for our 175 million monthly active listeners on SoundCloud in 2016.”