PRS for Music Beats ‘Black Box’ Claim from Blur Drummer

David Rowntree performing live. Photo Credit: Raph_PH

The U.K.’s Competition Appeal Tribunal (CAT) has officially rejected a proposed class action claim levied against PRS for Music by Blur drummer (and attorney) David Rowntree.

The “specialist judicial body” just recently handed down its 44-page decision, with Rowntree having kicked off the proceedings closer to 2024’s beginning. As many are already aware, “black box” royalties – those that, for one reason or another, aren’t matched to their rightful recipients – remain a major issue in the States and across the pond.

Enter Rowntree’s qualms, which center on the way PRS eventually distributes the relevant compensation. All told, “approximately 7.5% of works remain unidentified” by the entity for royalty-payout purposes, according to the legal text.

Long story short: As songwriters make up the vast majority of PRS’ members and publishers are inherently less likely to suffer from metadata problems, it’s unfair that the former group’s would-be payments are also distributed to publishers on a pro-rata basis, per Rowntree.

Instead, unmatched songwriter royalties should remain with songwriters themselves, the same individual communicated.

Of course, there are several additional angles to the argument and separate sides to the matter. If the mentioned decision’s overview is any indication, the proceedings have delivered a number of twists (including a May change of counsel for the filing party) and expert reports thus far.

Without getting tangled up in the legal nitty-gritty here, however, PRS sought summary judgement and pointed to, among other things, the purported absence of an applicable claim and a failure to explain how the appropriate royalties should actually be handled.

At the top level, the CAT doesn’t appear to have opposed Rowntree’s central argument.

“We accept it is arguable that the proportion of writers’ royalties that are Black Box is greater than the corresponding proportion for publishers,” the tribunal wrote. “We also accept that it is arguable that when Black Box royalites [sic] are distributed pro rata, writer members will receive a lesser sum than they would were they to be distributed” under a proportion-based formula.

Nevertheless, the described class isn’t tailored for these persons – who, needless to say, haven’t collected their due payments – but encompasses all songwriter members, the CAT explained when ruling in PRS’ favor.

“It follows that no reasons are advanced which are capable of supporting the contention that members of the class share the common feature of being ‘owed’ Black Box royalties,” the CAT penned.

What about how a potential damages award would stack up against a hefty pile of legal fees?

Well, once again in the interest of brevity, this determination requires estimates of total black-box royalties (possibly around £200 million, the document shows) and the portion thereof that should have reached songwriters instead of publishers.

“It is not clear however how the PRS can pay costs and damages other than by diverting its revenues away from its members,” the tribunal proceeded. “As a not-for-profit organisation every pound spent may be a pound less for its members. … The class may in effect find itself contributing to the costs of the litigation, the Funders Fee, and any payment of damages if it is successful.”

Unsurprisingly, PRS in a lengthy statement applauded the decision – and reiterated the tribunal’s mention of using “existing mechanisms” like the Members’ Council to resolve disputes. DMN reached out to Rowntree for comment but didn’t immediately receive a response.