PRS Sues SoundCloud
PRS for Music says it has sued music streaming service SoundCloud in Britain, claiming the Berlin-based company has not obtained proper licensing or paid royalties to its members.
UK-based PRS, which represents more than 100,000 songwriters and publishers, has not disclosed what it seeks in the suit. “If the streaming market is to reach its true potential and offer a fair return for our members, organizations such as SoundCloud must pay for their use of our members’ music,” PRS executive director of membership and international Karen Buse wrote.
SoundCloud said in a statement reported by the New York Times, “No one in the world is doing more to enable creators to build and connect with their audience while protecting the rights of creators, including PRS members.”
Warner Music and indie label group Merlin have signed licensing deals with SoundCloud but Sony and Universal remain holdouts. SoundCloud counts more than 175 users each month and has become a popular way for artists to debut new material.
In May the company disclosed it had paid only $2 million in royalties, the Times reported, and was not profitable in its latest publicly available financial report from 2013, with $14 million revenue and $29 million in losses. It has since added advertising and a new business model.
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