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New Code Aims to Boost Music Streaming Licensing Transparency

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In a world first, the UK's Intellectual Property Office (IPO) has published a Code of Practice on Transparency in Music Streaming.

The voluntary Code has been developed and agreed by 12 music industry bodies representing music creators, record labels, publishers, digital service providers, distributors and collecting societies.

It has been implemented as part of the government's commitment to make 'meaningful and lasting improvements to streaming' in response to the recommendations of the Culture, Media and Sport Select Committee's Inquiry into music streaming.

The Code sets out agreed standards of good practice, to ensure greater levels of trust in music-maker contracts, streaming licensing deals, royalty payments, usage data, audit rights, and communication to music creators.

Compliance with the Code will be overseen by the IPO. A first review of its implementation will take place in early 2025 and a formal impact evaluation in 2026. The Code includes a resolution and escalation procedure in cases where a person or organisation falls short of its principles.

According to the IPO, the Code is part of a process to help improve creators' understanding of how their music is licensed, administered and used, helping build confidence and clarity that they are being paid correctly when their music is played via streaming services.

Further information regarding the Code can be found on the Government's website.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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