IPO publishes UK Voluntary Code of Practice on Transparency in Music Streaming - FAC signs up

Today, the Intellectual Property Office has published a Code of Practice on transparency, which the FAC alongside other Council of Music Maker (CMM) organisations has signed. The Code marks a step in the process which was launched by government following the UK Parliamentary inquiry into music streaming. There are three main strands to the work; data, transparency and remuneration.  

This Code is part of the transparency strand and does not mark the end of the process, but a step towards greater transparency, to allow music makers to know how their work is being used within the digital music ecosystem, and importantly, to bring more clarity about how they are paid and to ensure that payments are accurate. Recently, the CMM published a memo to major music company employees, which sets out a picture of how the overall work in this area is progressing. In short, the FAC sees some progress, but there is a great deal more to do before we see "a complete reset" of music streaming, as called for by the Parliamentary Committee.

Today's Code provides a framework for music makers to demand greater clarity about the use of their work, and with twelve signatories, including bodies representing major and indie labels, as well as publishers, it commits parts of the industry to provide information to those who make the music and who ultimately, create the value in our sector. The Council of Music Makers has worked collaboratively and remains united on all aspects of this work. We have issued a joint statement regarding today's publication, and thank the IPO officials for their ongoing work in this area.

“The Council Of Music Makers welcomes the Transparency Code that has been agreed by the UK music industry today. Although the commitments in the code are modest, it provides a framework that can be used to start tackling the “systemic lack of transparency” in music streaming that was identified by the Culture, Media & Sport Select Committee in 2021. 

Since then, the lack of transparency in streaming has increased, with individual streaming services announcing new business models, such as payment thresholds and spatial audio uplifts, developed without consultation with music-makers or their representatives, making it even harder to understand how they are paying through. 

We now need everyone working in the industry to fully embrace the code, and to go above and beyond in providing music-makers with the information they need to properly manage, understand and audit the digital side of their individual music-maker businesses. 

As the CMM, we will play an active role in monitoring ongoing transparency issues, working with the Intellectual Property Office, which will convene twice-yearly meetings. 

When the code comes into force in six months time we will be launching a complaints mechanism via which music-makers and their managers will be able report non-compliance of the code and other transparency issues. We will then take up these issues with other music industry trade organisations and the IPO on behalf of our members.  

We will also continue to call for more proactive communications from everyone in the digital music supply chain, and for much stronger commitments around licensing models, royalty chains and audits. And we will celebrate and champion best practice where we see it. 

While this code – and last year’s data code – constitute some first steps, we are still a very long way from the “complete reset” of streaming demanded by MPs in 2021. The working group to discuss remuneration issues, announced last May, still hasn’t met. And certain major record companies refuse to engage with music-makers about their secret deals to change the streaming model and their moral obligations around AI. We call on everyone working at ALL music companies to demand the industry’s leadership stop procrastinating and start to properly engage and communicate with music-makers and their representative bodies. 

The big music and streaming companies need to stop using ‘artist-centric’ as a hollow buzzword and actually put artists and other music-makers at the centre of their businesses.”